{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2007-h2008","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2008-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":"WARREN COUNTY BOARD OF EDUCATION \nWARRENTON, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n25 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nAugust 10, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Warren County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Warren County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Warren County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \n \n2008ARL-11 \n \n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information ofthe Warren County Board ofEducation, as ofJune 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \nThe Warren County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated August 10, 2009, on our consideration of the Warren 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. \n \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. \n \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Warren 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. \n \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. \n \nRespectfully submitted, \n \n \n \n~\u003ee,10 ~~ \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \nRWH:as 2008ARL-11 \n \n WARREN COUNTY BOARD OF EDUCATION \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n626,473.60 \n \n239,011.65 \n \n1,438.29 208,801.70 441,657.00 515,122.83 \n51,950.94 3,252.91 \n70,070.00 12,409,619.25 \n \n$ ===14===56=7=,3=9=8.=1=7 \n \n$ \n \n101,382.63 \n \n754,673.72 \n \n168,700.90 \n \n15,474.18 \n \n525,000.00 6,310,000.00 \n \n$ \n \n7 875 231.43 \n \n$ \n \n5,644,689.25 \n \n10,923.34 1,271,146.98 -234,592.83 \n \n$ \n \n6,692,166.74 \n \n$ ===1=4=56=7=,3=9=8=.1=7 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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 \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n4,607,554.34 \n \n315,700.75 732,407.67 188,292.95 471,282.98 748,720.34 207,250.22 $ 849,489.76 293,393.62 \n54,549.78 7,758.35 \n \n921,545.87 21,881.20 \n506,403.76 267,105.72 \n \n$ \n \n10,193,337.31 $ \n \n2,817.30 \n77,403.55 31,300.90 111,521.75 \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n3,866,121.57 $ \n \n4,185.63 $ \n \n-737,247.14 \n \n264,105.05 72,131.30 91,888.53 \n444,293.44 541,320.04 \n31,478.39 247,310.05 227,423.82 25,676.60 \n6,589.65 \n \n102,512.87 181.89 105.87 \n83.51 139.38 40,102.00 \n \n-51,595.70 -557,763.50 \n-96,222.53 -26,883.67 -207,400. 30 -172,871.02 -602,040.33 -25,867.80 -28,873.18 \n-1,168.70 \n \n352.06 503,857.25 \n \n865,025.05 745.21 \n \n20,882.73 -21,529.14 29,499.60 -267 105.72 \n \n$ \n \n6,322,547.75 $ \n \n1,013,081.41 $ \n \n-2,746,186.40 \n \n$ \n \n2,529,067.48 \n \n411,685.72 \n \n31,277.09 \n \n677,251.32 37,012.22 184,099.00 23,875.53 \n136,681.35 \n \n$ \n \n4 030 949.71 \n \n$ \n \n1,284,763.31 \n \n5,407,403.43 \n \n$ =====6=,6=92=,1=6=6=7.=4 \n \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Other Inventories Due From Other Funds \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenue Due to Other Funds \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service \nUnreserved Undesignated Reported in: General Fund (Deficit) \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n30,147.95 $ 596,325.65 $ \n \n239,011.65 \n \n51,426.79 441,657.00 515,122.83 \n51,950.94 3,252.91 \n \n1,438.29 115,505.72 \n312,666.44 \n \n626,473.60 239,011.65 \n1,438.29 166,932.51 441,657.00 515,122.83 51,950.94 \n3,252.91 312,666.44 \n \n$ 1,093,558.42 $ 1,264,947.75 $===2=,3=58=,5=0=6=.1=7 \n \n$ 101,382.63 754,673.72 168,700.90 15,474.18 312,666.44 \n$ 1,352,897.87 \n \n$ \n \n101,382.63 \n \n754,673.72 \n \n168,700.90 \n \n15,474.18 \n \n312,666.44 \n \n$ \n \n1,352,897.87 \n \n$ \n \n10,923.34 \n \n$ \n \n$ 1,264,947.75 \n \n-270,262.79 $ -259,339.45 $ 1,264,947.75 $ \n \n10,923.34 1,264,947.75 \n-270,262.79 1,005,608.30 \n \n$ 1,093,558.42 $ 1,264,947.75 $===2=,3=58=,5==0=6==.17= \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \n \n$ 1,005,608.30 \n \n$ \n \n70,070.00 \n \n929,262.00 \n \n11,526, 179.35 \n \n1,763,583.98 \n \n-1,809,406.08 \n \n12,479,689.25 \n \n41,869.19 \n \n-6,835,000.00 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 6,692,166.74 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebt Services Principal Interest \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 2,572,986.70 $ 32,178.13 \n4,536,078.64 2,016,908.61 \n111,521.75 3,975.83 \n136,681.35 \n \n405,486.49 $ 682,085.41 \n19,899.70 \n \n2,978,473.19 714,263.54 \n4,536,078.64 2,016,908.61 \n111,521.75 23,875.53 \n136,681.35 \n \n$ 9,410,331.01 $ 1,107,471.60 $ 10,517,802.61 \n \n$ 4,963,257.07 \n \n$ 4,963,257.07 \n \n315,700.75 703,354.32 201,899.83 480,181.06 749,106.41 211,138.71 $ 871,305.37 486,410.46 \n54,549.78 7,758.35 \n84,043.47 21,881.20 562,152.90 \n \n2,359.00 \n \n315,700.75 703,354.32 201,899.83 480,181.06 749,106.41 213,497.71 871,305.37 486,410.46 \n54,549.78 7,758.35 \n84,043.47 21,881.20 562,152.90 \n \n500,000.00 267,105.72 \n \n500,000.00 267,105.72 \n \n$ 9,712,739.68 $ 769,464.72 $ 10,482,204.40 \n \n$ -302,408.67 $ 338,006.88 $ \n \n35,598.21 \n \n43,069.22 \n \n926,940.87 \n \n970,010.09 \n \n$ -259,339.45 $ 1,264,947.75 $ 1,005,608.30 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008  \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nSome of the Capital Assets acquired this year were purchased with e-rate funds. In Governmental Funds, these assets, as well as the associated revenue are not recognized, but in the Statement of Activities, the contribution of e-rate funds is recognized as a capital contribution. \nSome of the Capital Assets acquired this year were donated. In Governmental Funds, these assets, as well as the associated revenue are not recognized, but in the Statement of Activities, the donation is recognized as a capital contribution. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ \n \n35,598.21 \n \n$ \n \n47,885.09 \n \n-259,018.00 \n \n-211, 132.91 \n \n-6,442.90 \n \n102,078.91 864,662.00 \n \n500,000.00 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,284,763.31 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2008 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificates of Deposit \nTotal Assets \nLIABILITIES Accounts Payable Funds Held for Others \nTotal Liabilities NET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n695.00 $ 75,713.37 \n \n20,000.00 \n \n$ 20,695.00 $ 75,713.37 \n \n$ \n \n325.00 \n \n$ 75,713.37 \n \n$ \n \n325.00 $ 75,713.37 \n \n20,370.00 \n \n$ 20,695.00 $ ==75.,.,.,.71...,3...,.3=7 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS \nYEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n695.00 \n \n$ \n \n325.00 \n \n$ \n \n370.00 \n \n20,000.00 \n \n$ =======20='=31=0=.o=o \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Warren County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Warren County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n- 10 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports a trust arrangement, the Otis E. Williams Memorial Scholarship, under which principal and income benefit an eligible student in Warren County. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis 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. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \n \n- 11 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year 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 ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n- 12 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Warren County Board of Commissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on September 18, 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 Warren County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $2,541,709.61 and for school bonds amounted to $405,486.49. \n \nTax millage rates levied for the 2007 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n16.00 mills 2.50 mills \n \n18.50 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $677,251.32 and is to be used for debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 13 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ 5,000.00 20 to 90 years \n \n$ 5,000.00 50 to 90 years \n \n$ 5,000.00 5 to 50 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. \n \n- 14 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement ofNet Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation ofFederal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \nDEFICIT FUND BALANCE \n \nThe fund reporting a deficit fund balance at June 30, 2008, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Fund Type General Fund \n \n$ 270,262.79 \n \nThe School District intends to fund the deficit by reducing expenditures and increasing the millage rate. \n \n- 15 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum 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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $1,764,155.19. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \n \n- 16 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n1.015.032.81 \n \nTotal \n \n$ 1,015,032.81 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value of the School District's total investments was $239,011.65, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga. us/internet/searchRpts.html. \n \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 17 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances \nJuly 1. 2007 \n \nIncreases \n \nDecreases \n \nBalances June 30. 2008 \n \n$ 70.070.00 $ \n \n0.00 $ \n \n$ 11,414,942.35 $ 1,724,856.98 64,600.00 \n \n111,237.00 $ 38,727.00 864,662.00 \n \n632,031.39 914,767.80 \n3,588.89 \n \n138,651.00 108,120.00 \n12.247.00 \n \n$ 11,654.011.25 $ 755,608.00 $ \n \n$ ll,:Z24,Q81 25 $ 755,608 QQ $ \n \n0.00 $ 70,070.00 \n0.00 $11,526,179.35 1,763,583.98 929,262.00 \n770,682.39 1,022,887.80 \n15,835.89 \n0.00 $ 12.409.619.25 Q QQ $ 12,472,682.25 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nImprovements of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Enterprise Operations Food Services \n \n$ 132,919.00 \n \n$ 13,781.00 5,776.00 3,362.00 2,652.00 4,426.00 \n60,908.00 11,529.00 \n \n102,434.00 23,665.00 \n \n$ 259,018.00 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \n \n- 18 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nRestricted Cash and Cash Equivalents: Debt Services \nRestricted Investments Debt Services \n \nDebt Service Funds \n$ 596,325.65 $ 239,011.65 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2008, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Debt Service Fund \n \n$ 312,666.44 $ 312,666.44 \n \n$ 312,666.44 $ 312,666.44 \n \nThe balance due to the Debt Service Fund resulted from a loan to pay General Fund expenditures. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District has elected to self-insure for all losses related to acts of God. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n- 19 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 8: RISK MANAGEMENT \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEndofYear Liability \n \n2007 2008 \n \n$ \n \n0.00 $ 6,852.60 $ \n \n0.00 $ \n \n6,852.60 \n \n$ \n \n6,852.60 $ \n \n0.00 $ \n \n6,852.60 $ \n \n0.00 \n \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 $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal Each Employee \n \n$ 100,000.00 $ 10,000.00 $ 100,000.00 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$=~o=.o~o $400,000.00 $400,000.00 $=======0~.0-0 \n \n-20- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 10: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1999 \n \n4.35% - 5.55% $ 460,000.00 \n \nGeneral Government - Refunding - Series 2005 \n \n3.47% \n \n6,375,000.00 \n \n$ 6,835,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \nG.O. Bonds \n \nBalance \nJuly 1. 2007 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30, 2008 \n \nDue Within One Year \n \n$ 7.335.000.00 $==='0...,.0=0 $ 500 000 00 $ 6 835 000 00 $ 525 000.00 \n \nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2009 2010 2011 2012 2013 2014 - 2018 2019 \n \n$ 525,000.00 $ 550,000.00 570,000.00 595,000.00 620,000.00 \n3,485,000.00 490,000.00 \n \n243,752.50 218,957.00 199,872.00 180,093.00 159,446.50 456,999.00 \n17,003.00 \n \nTotal Principal and Interest \n \n$ 6,835,000.00 $ 1,476,123.00 \n \nNote 11: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn fiscal year 2005, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2008, $6,005,000.00 of bonds are outstanding and are considered defeased. \n \n- 21 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 12: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $146,864.94 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $142,990.70 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $2,568.24 \n \nOffice of Treasury and Fiscal Services \n \nPaid to the Public School Employees Retirement System \n \nFor Public School Employees Retirement (PSERS) Employer's Cost \n \nIn the amount of $1,306.00 \n \n \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nNote 14: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund \n \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \n \n-22 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"I\" \n \nNote 14: POSTEMPLOYMENT BENEFITS \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $639,315.01, which equaled the required contribution. \n \nNote 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 380,807.28 $ 358,901.34 $ 307,910.00 \n \n- 23 - \n \n (This page left intentionally blank) \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL {1} \n \nFINAL {1} \n \nACTUAL AMOUNTS \n \n$ 2,678,176.00 $ 2,678,176.00 $ 2,572,986.70 \n \n30,000.00 \n \n30,000.00 \n \n32,178.13 \n \n4,155,745.58 \n \n4,155,745.58 \n \n4,536,078.64 \n \n2,207,320.00 \n \n2,207,320.00 \n \n2,016,908.61 \n \n111,521.75 \n \n3,975.83 \n \n465,000.00 \n \n465,000.00 \n \n136,681.35 \n \n$ 9,536,241.58 $ 9,536,241.58 $ 9,410,331.01 \n \n$ 5,114,814.45 $ 5,114,814.45 $ 4,963,257.07 \n \n173,464.24 531,383.13 240,271.80 319,876.71 677,312.99 202,706.59 737,710.01 626,292.06 21,429.76 \n18,898.61 544,900.94 \n \n173,464.24 531,383.13 240,271.80 319,876.71 677,312.99 202,706.59 737,710.01 626,292.06 21,429.76 \n18,898.61 544 900.94 \n \n315,700.75 703,354.32 201,899.83 480,181.06 749,106.41 211,138.71 871,305.37 486,410.46 54,549.78 \n7,758.35 84,043.47 21,881.20 562,152.90 \n \n$ 9,209,061.29 $ 9,209,061.29 $ 9,712,739.68 \n \n$ \n \n327,180.29 $ \n \n327,180.29 $ \n \n-302,408.67 \n \n215,974.68 \n \n215 974.68 \n \n43,069.22 \n \nFund Balances - Ending \n \n$ \n \n543,154.97 $ \n \n543,154.97 $ ==-=2=59..,,3=3=9=.4=5 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nSummer Food Service Program for Children \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education \nFood Donation (1) \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Enhancing Education Through Technology Program Improving Teacher Quality State Grants Rural Education Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \nTotal U. S. Department of Education \n \nCFDA \nNUMBER \n \nPASS- \nTHROUGH ENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 * 10.559 \n \nN/A NIA $ N/A \n$ \n \n(2) 502,260.50 (2} \n502,260.50 \n \n10.550 \n \nN/A \n$ \n \n24,685.50 526,946.00 \n \n84.027 84.173 \n \nNIA $ N/A \n$ \n \n159,951.36 20,855.04 \n180,806.40 \n \n84.048 84.318 84.367 84.358 84.186 84.298 84.010 * 84.287 \n \nN/A \n \n14,541.00 \n \nN/A \n \n38,668.00 \n \nN/A \n \n89,991.26 \n \nN/A \n \n23,956.70 \n \nNIA \n \n7,066.49 \n \nN/A \n \n1,837.00 \n \nNIA \n \n474,384.80 \n \nNIA \n \n714159.19 \n \n$ 1,545,410.84 \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n$ 2,072,356.84 \n \n- 26 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($134,651.39) and the Summer Food Service Program for Children ($10,522.74) were not maintained separately and are included in the 2008 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Category V Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity - Alternative Sparsity - Regular Nursing Services Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Charter School - State Planning Grant Communities in Schools - Drop Out Recovery and Prevention Health Insurance High School Graduation Coaches Middle School Graduation Coaches Preschool Handicapped Program Teachers' Retirement \n- 28  \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n139,282.20 \n \n251,543.00 26,085.00 \n410,348.00 180,481.00 153,667.00 152,381.00 460,977.00 387,621.00 168,271.00 \n7,219.00 106,580.00 114,518.00 \n-2,598.00 32,899.00 37,688.00 71,578.00 23,400.00 14,305.00 \n250,912.00 255,610.00 191,037.00 \n175,108.00 38,184.00 \n 27,802.00 207,131.00 \n32,495.00 1,775.00 \n184,099.00 26,616.00 33,613.00 -66,790.00 \n125,000.00 26,412.00 \n142,990.70 42,096.00 42,096.00 35,650.00 2,568.24 \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30, 2008 \nAGENCY/FUNDING \nGRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACT Human Resources, Georgia Department of Children's Trust \nOTHER Community Affairs, Georgia Department of Local Assistance Grant \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n8,156.50 \n \n1,306.00 \n \n5,966.00 \n \n10 000.00 \n \n$ ===4=,5=36=,0=7=8=.6=4 \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \nPaying a portion of the outstanding principal and interest on the Warren County School District General Obligation School Bond, Series 1999, the maximum amount of principal and interest to be paid with sales and use tax proceeds will be $2,300,000.00. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 2,300,000.00 $ 2,300,000.00 $ 767,105.72 $ 1,528,988.95 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n(4) During fiscal year 2005, the Warren County Board of Education issued General Obligation Refunding Bond Issue 2005 to refund portions of the 1999 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Voc!=ltional Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV CategoryV Alternative Education Program \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n291,212.00 $ 290,155.87 $ \n \n8,310.33 $ \n \n298,466.20 \n \n31,241.00 \n \n35,175.41 \n \n35,175.41 \n \n489,847.00 \n \n471,214.89 \n \n27,268.91 \n \n498,483.80 \n \n214,434.00 \n \n159,915.28 \n \n159,915.28 \n \n194,235.00 \n \n197,358.38 \n \n13,689.58 \n \n211,047.96 \n \n174,453.00 554,382.00 472,306.00 199,685.00 312,931.00 \n45 153.00 \n \n175,264.52 558,876.45 549,107.99 209,695.66 \n100,747.78 214,158.99 \n21,818.88 10,923.56 103,236.84 \n \n23,854.58 37,672.69 28,126.99 \n2,704.13 \n \n175,264.52 582,731.03 586,780.68 237,822.65 \n100,747.78 216,863.12 \n21,818.88 10,923.56 103,236.84 \n \n$ \n \n2,979,879.00 $ 3,097,650.50 $ \n \n141,627.21 $ \n \n3,239,277.71 \n \n85,873.00 17 205.00 \n \n183,587.82 30,467.57 \n \n12,569.48 44,335.38 \n \n196,157.30 74,802.95 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n3,082,957.00 $ 3,311,705.89 $ \n \n198,532.07 $ \n \n3,510,237.96 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31  \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nAugust 10, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Warren County Board ofEducation as of and for the year ended June 30, 2008, which collectively comprise Warren County Board of Education's basic financial statements and have issued our report thereon dated August 10, 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Warren County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Warren County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Warren County Board of Education's internal control over financial reporting. \nOur consideration ofinternal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2008YB-30 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Warren 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 Warren County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Warren County Board of Education's internal control. We consider item FS-7491-08-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Warren County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we do not consider the significant deficiency described above to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Warren County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Warren County Board of Education in a separate letter dated August 10, 2009. \nWarren County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Warren County Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-30 \n \n This report is intended solely for the information and use of management, members of the Warren County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \nw.~ \nRu sell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008YB-30 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nAugust I0, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Warren County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWarren 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, 2008. Warren County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Warren County Board of Education's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Warren County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2008SA-65 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Warren County Board of Education's compliance with those requirements. \nAs described in item FA-7491-08-01 in the accompanying Schedule of Findings and Questioned Costs, Warren County Board of Education did not comply with requirements regarding Activities Allowed/Unallowed and Allowable Costs/Cost Principles that are applicable to its Twenty-First Century Community Learning Centers program. Compliance with such requirements is necessary, in our opinion, for Warren County Board of Education to comply with requirements applicable to that program. \nIn our opinion, except for the noncompliance described in the preceding paragraph, the Warren County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2008. \nInternal Control Over Compliance \nThe management of Warren 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 Warren 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 ofthe Warren County Board of Education's internal control over compliance. \nOur consideration of the internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiency in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as item FA-7491-08-01 to be a significant deficiency. \n2008SA-65 \n \n A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. The significant deficiency noted above is also considered to be a material weakness. \nWarren 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 Warren County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of management, members of the Warren County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~-' ~ \nell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008SA-65 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7491-03-04 FS-7491-04-05 FS-7491-05-04 FS-7491-06-01 FS-7491-06-02 FS-7491-06-03 FS-7491-06-06 FS-7491-07-01 FS-7491-07-02 FS-7491-07-03 FS-7491-07-04 \n \nUnresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $6,148.21 Finding Control Number: FS-7491-03-04 \n \nWe agree with this finding. All efforts are being made to prevent this type of error. This matter will be brought before the Board to determine if the Board will seek reimbursement. \n \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Amount: $6,369.00 Finding Control Number: FS-7491-04-05 \n \nWe agree with this finding. All efforts are being made to prevent this type oferror. This matter will be brought before the Board to determine if the Board will seek reimbursement. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Amount: $1,460.00 Finding Control Number: FS-7491-05-04 \n \nWe agree with this finding. All efforts are being made to prevent this type oferror. This matter will be brought before the Board to determine if the Board will seek reimbursement. \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Finding Control Number: FS-7491-07-02 \n \nWe agree with this finding. We have implemented new procedures for prior approval of expenditures. During the transition to CSI, we had school bookkeeper training and many accounting procedures were discussed. Revenues, Expenditures, Separation ofDuties and record keeping were some of the topics that were discussed. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7491-04-01 FA-7491-06-01 FA-7491-07-01 \n \nUnresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nALLOWABLE COSTS/COST PRINCIPLES Improper Expenditures Amount: $69,881.00 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-01 \n \nWe agree with this finding. The Georgia Department of Education will be contacted to determine the action necessary to resolve this finding. \n \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES OTHER - SINGLE AUDIT REPORTING PACKAGE Noncompliance with Audit Report Distribution and Corrective Action Plan Requirements Finding Control Number: FA-7491-06-01 We agree with this finding. A copy of the 2005 Audit Report and the Data Collection Form will be mailed to the Federal Audit Clearinghouse. ACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Leaming Centers (CFDA 84.287) Finding Control Number: FA-7491-07-01 We agree with this finding. In the future, the Warren County school system will ensure that time allocated to a particular program will more accurately reflect the actual time worked. \n-3 - \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board ofEducation's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Warren County Board of Education disclosed a financial statement significant deficiency related to the following control categories. \n \nExpenditures/Liabilities/Disbursements Revenues/Receivables/Receipts \n \nThe significant deficiency described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Warren County Board of Education disclosed a significant deficiency in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed \n \nAllowable Costs/Cost Principles \n \nThe significant deficiency described above is considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified, except for Twenty-First Century Community Leaming Centers program, which was qualified. \n \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Warren County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) of 0MB Circular A-133. This audit finding is included in Section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 10.559 Summer Food Service Program for Children 84.287 Twenty-First Century Community Leaming Centers \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7491-08-01 \n \nCondition: \n \nThis is a repeat finding (FS-7491-07-02, FS-7491-06-03, FS-7491-05-02, and FS-7491-04-03) from the years ended June 30, 2007, June 30, 2006, June 30, 2005, and June 30, 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate separation ofduties and internal controls over school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nRevenues/Receivables/Receipts  The School District was unable to provide adequate documentation for receipts. \n \nExpenditures/Liabilities/Disbursements  Several voucher packages (1) had no evidence of approval prior to purchase; (2) did not include adequate documentation to ensure the amount paid was correct; and (3) were recorded in the wrong period. \n \nCause: \n \nThe deficiencies were a result ofmanagement's failure to ensure that internal controls were established, implemented, and functioning properly. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nREVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7491-08-01 \n \nRecommendation: \n \nThe School District should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures 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-7491-08-01 \n \nCondition: \n \nA review of Twenty-First Century Community Learning Centers (CFDA 84.287) program activity revealed unallowable program expenditures. In addition, there was inadequate documentation to support charges to the Twenty-First Century program for one School District employee who worked on the Twenty-First Century program in addition to other School District activities. \n \nCriteria: \n \nProvisions in 0MB Circular A-87, Cost Principles for Determining Allowable Costs are to be followed when administering the Twenty-First Century program. Such costs charged to the program should be necessary, reasonable, and commensurate with benefits received and documented. With regard to compensating personnel, it requires that those personnel who work on multiple Federal activities or a Federal activity and non-Federal activity, a distribution oftheir salaries or wages to the Federal awards will be based on personnel activity reports (PARs). \n \nQuestioned Cost: $36,499.38 \n \n-3 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures 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-7491-08-01 \n \nInformation: \n \nTesting revealed the following: \n \n Several voucher packages contained costs for which all or a portion of the payments were unallowable. \n \n A total of $28,229.88 was paid with Twenty-First Century program funds for the salary of a bookkeeper who worked on Twenty-First Century program and other School District duties. The amount paid with Twenty-First Century program funds represented over 46% of the bookkeeper's salary. \n \nCause: \n \nManagement failed to implement internal controls for monitoring compliance with Federal guidelines regarding expenditures for goods and services as well as employee compensation payments charged to the Twenty-First Century Community Leaming Centers program. \n \nEffect: \n \nFailure to adequately monitor expenditures resulted in noncompliance with requirements of the Federal grant. It was determined that the amount ofthe bookkeeper's salary charged to the Twenty-First Century program was not reasonable and commensurate with benefits received by the program. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that all costs are allowable and properly documented under 0MB Circular A-87. Salaries charged to the Federal program should be commensurate with actual time devoted by personnel to the Federal program. The Georgia Department of Education should review this matter to determine if a reclaim of grant funds is appropriate. \n \n-4- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2008 \nFinding Control Number: FS-7491-08-01 \nWe agree with this finding. \nThe Finance Officer and Assistant Finance Officer are working closely with each of our three schools to try and correct any deficiency in the School Activity Accounting. We have put a plan in place that will help in the separation ofduties. An internal audit is done two or three times yearly to make sure that all procedures are being followed. Written procedures are given to each teacher that outlines proper money handling procedures, use ofpurchase orders and E-form requisitions for prior approval ofpurchases. \nFinding Control Number: FA-7491-08-01 \nWe agree with this finding. \nThe first section ofthis finding is for unallowable expenditures. This was for expenditures made by the Quality of Life Association (QUOLA). QUOLA had a portion in the 21st Century Grant that was designated solely for their use. These expenditures were not pre-approved by the school system. The Warren County Board ofEducation will contact the Georgia Department ofEducation to assist in the repayment of the unallowable expenditures. \nThe 21st Century Program approved $28,000.00 in salaries for the program bookkeeper. The Audit Department disallowed this expenditure because ofthe percentage ofthe total salary. No repayment will be made to the Georgia Department of Education for this expenditure. In the current 21st Century Grant Proposal there is no salary for the program bookkeeper included. \nContact Person: Fran Hutcheson, Finance Officer Telephone: (706) 465-3383, extension 303, Fax: (706) 465-9141 Email: fhutcheson@warren.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2006-h2007","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":"WARREN COUNTY BOARD OF EDUCATION WARRENTON, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n25 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n27 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n30 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 11, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Warren County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Warren 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 ofcontents. These financial statements are the responsibility ofthe Warren County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 Warren County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \n \n2007ARL-11 \n \n In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Warren County Board ofEducation, as ofJune 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe Warren County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated July 11, 2008, on our consideration of the Warren County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Warren County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n~~w~;:ia~ State Auditor \nRWH:gp 2007ARL-11 \n \n WARREN COUNTY BOARD OF EDUCATION \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \nASSETS \nInvestments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due iti More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n237,987.56 \n \n1,142.70 258,224.45 536,211.89 923,604.15 \n99,062.08 5,768.90 \n \n70,070.00 64,600.00 11,414,942.35 1,724,856.98 -1,550,388.08 \n \n$ ===1=3,,=78=6=,0=-8\"\"2.,.98=: \n \n$ \n \n53,836.72 \n \n124,418.80 \n \n640,128.51 \n \n215,876.29 \n \n9,419.23 \n \n500,000.00 6,835,000.00 \n \n$ \n \n8,378,679.55 \n \n$ \n \n4,389,081.25 \n \n5,850.60 934,214.78 \n78,256.80 \n \n$ \n \n5,407,403.43 \n \n$ ==1=3,=78=6=,0=8=2=.9===8 \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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 \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n4,709,835.97 \n \n235,580.98 580,428.58 233,222.87 619,913.56 565,600.77 $ 162,031.26 806,012.38 534,567.86 \n26,907.43 30,711.12 \n \n77,686.00 16,474.42 583,406.83 289,106.95 \n \n$ \n \n9,471,486.98 $ \n \n23,887.00 \n74,665.00 41,209.19 139,761.19 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n3,705,828.81 \n \n182,758.93 214,493.53 \n69,320.00 564,518.11 484,713.38 42,700.08 249,571.46 211,102.56 $ \n1,790.04 30,627.17 \n \n1,134.63 478,970.24 \n \n$ \n \n6,237,528.94 $ \n \n$ 117,732.00 117,732.00 $ \n \n-1,004,007.16 \n-52,822.05 -365,935.05 -163,902.87 \n-55,395.45 -57,000.39 -119,331.18 -556,440.92 -205,733.30 -25,117.39 \n-83.95 \n-3,021.00 -15,339.79 -63,227.40 -289, 106.95 \n-2,976,464.85 \n \n$ \n \n2,651,268.65 \n \n419,998.65 \n \n559,861.38 27,765.11 \n139,182.00 18,169.35 \n163 527.14 \n \n$ \n \n3,979,772.28 \n \n$ \n \n1,003,307.43 \n \n4,404,096.00 \n \n$ =======5=,4=0=7'=40=3=.4=3 \n \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nInterest Taxes State Government Federal Government Other Inventories Due From Other Funds \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenue Due To Other Funds \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories \nUnreserved Undesignated Reported in: General Fund \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 208,294.64 $ 237,987.56 \n \n$ 93,062.83 536,211.89 923,604.15 99,062.08 5,768.90 \n \n1,142.70 116,849.53 \n362,666.44 \n \n208,294.64 237,987.56 \n1,142.70 209,912.36 536,211.89 923,604.15 \n99,062.08 5,768.90 \n362,666.44 \n \n$ 1,657,709.85 $ 926,940.87 $ ===2=,5=84=,6=5=0=7.==2 \n \n$ 262,131.36 124,418.80 640,128.51 215,876.29 9,419.23 362,666.44 \n$ 1,614,640.63 \n \n$ \n \n262,131.36 \n \n124,418.80 \n \n640,128.51 \n \n215,876.29 \n \n9,419.23 \n \n362 666.44 \n \n$ \n \n1614640.63 \n \n$ \n \n81.70 \n \n$ \n \n$ 926,940.87 \n \n5,768.90 \n \n37,218.62 $ 43,069.22 $ 926,940.87 $ \n \n81.70 926,940.87 \n5,768.90 \n37 218.62 970 010.09 \n \n$ 1,657,709.85 $ 926,940.87 $ ===2,=58=4=!:,6=5=0.=72= \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 970,010.09 \n \n$ \n \n70,070.00 \n \n64,600.00 \n \n11,414,942.35 \n \n1,724,856.98 \n \n-1,550,388.08 \n \n11,724,081.25 \n \n48,312.09 \n \n-7,335,000.00 $ 5,407,403.43 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebi Services Principal Interest \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 2,625,799.47 $ 27,765.11 \n4,387,452.54 2,106,990.40 \n139,761.19 3,428.84 \n163527.14 \n \n419,072.74 $ 559,861.38 \n14,740.51 \n \n3,044,872.21 587,626.49 \n4,387,452.54 2,106,990.40 \n139,761.19 18,169.35 \n163,527.14 \n \n$ 9,454,724.69 $ 993,674.63 $ 10,448,399.32 \n \n$ 4,577,072.22 \n \n$ 4,577,072.22 \n \n235,580.98 605,112.58 227,446.87 621,000.31 $ 567,864.40 172,490.08 800,766.38 591,005.86 \n26,907.43 30,711.12 77,686.00 16,474.42 558,823.82 \n \n24.81 2,359.00 \n \n235,580.98 605,112.58 227,446.87 621,025.12 567,864.40 174,849.08 800,766.38 591,005.86 \n26,907.43 30,711.12 77,686.00 16,474.42 558,823.82 \n \n475,000.00 289,106.95 \n \n475,000.00 289,106.95 \n \n$ 9,108,942.47 $ 766,490.76 $ 9,875,433.23 \n \n$ 345,782.22 $ 227,183.87 $ 572,966.09 \n \n-302, 713.00 \n \n699,757.00 \n \n397,044.00 \n \n$ 43,069.22 $ 926,940.87 $ 970,010.09 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ 572,966.09 \n \n$ 170,439.33 -241,493.08 \n \n-71,053.75 26,395.09 \n \n475,000.00 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,003,307.43 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2007 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificates of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \nNET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ 46,967.05 $ 20,000.00 \n \n$ 20,000.00 $ 46,967.05 \n \n$ 46,967.05 $ 20,000.00 $ 20,000.00 $ 46,967.05 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nADDITIONS Investment Earnings Interest Other Additions Total Additions \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n693.92 \n \n210.08 \n \n$ \n \n904.00 \n \n$ \n \n1,050.00 \n \n$ \n \n-146.00 \n \n20,146.00 \n \n$ 20,000.00 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Warren County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Warren County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 10 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports a trust arrangement, the Otis E. Williams Memorial Scholarship, under which principal and income benefit an eligible student in Warren County. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set ofaccounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \n- 11 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n( 1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation ofthe United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n \n- 12 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(8) Obligations of other political subdivisions ofthe State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Warren County Board ofCommissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on October 16, 2006 (levy date). Taxes were due on December 28, 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 Warren County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $2,560,402.58 and for school bonds amounted to $407,678.68. \n \nTax millage rates levied for the 2006 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n16.75 mills 2.50 mills \n \n19.25 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $559,861.38 and is to be used for debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 13 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ 5,000.00 20 to 90 years \n \n$ 5,000.00 50 to 90 years \n \n$ 5,000.00 5 to 50 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial \n \n- 14 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nstatements during the fiscal year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum 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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n- 15 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $635,534.39. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n0.00 \n \n3 \n \n363,208.26 \n \nTotal \n \n$ 363,208.26 \n \n- 16 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCATEGORIZATION OF INVESTMENTS At June 30, 2007, the carrying value of the School District's total investments was $237,987.56, which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/internet/searchRpts.html. \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2007, was 15 days. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNote 5: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 17 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1. 2006 \n \nIncreases \n \nBalances Decreases June 30. 2007 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand \n \n$ 70,070.00 $ \n \n0.00 $ \n \n0.00 $ 70.070.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$11,393,126.00 $ 21,816.35 \n \n$11,414,942.35 \n \n1,682,234.00 148,622.98 $ 106,000.00 1,724,856.98 \n \n64,600.00 \n \n64,600.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n505,040.00 906,983.00 \n2,872.00 \n \n126,991.39 113,784.80 \n716.89 \n \n106,000.00 \n \n632,031.39 914,767.80 \n3,588.89 \n \nTotal Capital Assets, Being Depreciated, Net $11.725.065.00 $ -71,053.75 $ \nGovernmental Activity Capital Assets - Net $11,125,135,QQ $ -11,053.15 $ \n \n0.00 $11,654.011 .25 \no.oo $1 LZ24,081.25 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nImprovements of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 132,735.56 \n \n$ 2,292.00 5,776.00 3,974.52 442.00 5,246.00 \n66,444.00 \n \n84,174.52 24,583.00 \n \n$ 241,493.08 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows: \n \n- 18 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services \nRestricted Investments: Debt Services \n \n$ 208,294.64 $ 237,987.56 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2007, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Debt Service Fund \n \n$ 362,666.44 $ 362,666.44 \n \n$ 362l:i66.44 $ 3621666.44 \n \nThe balance due to the Debt Service Fund resulted from a loan to pay General Fund expenditures. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District has elected to self-insure for all losses related to acts of God. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \n \n- 19 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning ofYear Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEndofYear Liability \n \n2006 2007 \n \n$ \n \n0.00 $ \n \n8,321.00 $ \n \n8,321.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n6,852.60 $ \n \n0.00 $ \n \n6,852.60 \n \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 $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal Each Employee \n \n$ 100,000.00 $ 10,000.00 $ 100,000.00 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \n- 20- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote9: SHORT-TERMDEBT \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$=~0-.0~0 $400,000.00 $ 400,000.00 $==-o=.o-o \n \nNote 10: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1999 \n \n4.35% - 5.55% \n \nGeneral Government - Refunding - Series 2005 \n \n3.47% \n \n$ 895,000.00 6,440,000.00 \n \n$7,335,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2006 \n \n$ 7,810,000.00 \n \nDeductions Debt Retired \n \n475,000.00 \n \nBalance June 30, 2007 \n \n$ 7.335.000.00 \n \nPortion ofLong-Term Debt Due within One Year \n \n$ 500,000.00 \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 21 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 10: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2008 2009 2010 2011 2012 2013 - 2017 2018 - 2019 \n \n$ 500,000.00 $ 267,105.50 \n \n525,000.00 \n \n243,752.50 \n \n550,000.00 \n \n218,957.00 \n \n570,000.00 \n \n199,872.00 \n \n595,000.00 \n \n180,093.00 \n \n3,355,000.00 \n \n573,417.50 \n \n1,240,000.00 \n \n60,031.00 \n \nTotal Principal and Interest \n \n$ 7,335,000.00 $ 1,743,228.50 \n \nNote 11: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn fiscal year 2005, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2007, $6,005,000.00 of bonds are outstanding and are considered defeased. \n \nNote 12: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $122,414.28 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$118,661.34 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System {TRS) Employer's Cost In the amount of $2,414.94 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $1,338.00 \n \n- 22 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"I\" \n \nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 358,901.34 $ 307,910.00 $ 332,795.00 \n \n- 23 - \n \n (This page left intentionally blank) \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOther Sources \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1 l \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n2,201,898.48 $ \n \n2,201,898.48 $ \n \n2,625,799.47 \n \n27,765.11 \n \n4,108,612.00 \n \n4,266,292.00 \n \n4,387,452.54 \n \n1,346,622.00 \n \n2,319,215.00 \n \n2,106,990.40 \n \n139,761.19 \n \n3,428.84 \n \n120,000.00 \n \n120,000.00 \n \n163,527.14 \n \n$ \n \n7,777,132.48 $ \n \n8,907,405.48 $ \n \n9,454,724.69 \n \n$ \n \n3,529,118.86 $ \n \n4,691,433.90 $ \n \n4,577,072.22 \n \n253,887.44 340,112.67 206,892.10 419,899.09 514,416.40 220,469.77 605,211.36 599,591.40 \n41,124.62 24,000.00 \n19,037.02 445,000.00 \n \n337,162.44 519,641.67 206,892.10 481,858.09 514,416.40 248,469.77 605,661.36 641,808.40 \n41,124.62 28,000.00 \n19,037.02 445,000.00 \n \n235,580.98 605,112.58 227,446.87 621,000.31 567,864.40 172,490.08 800,766.38 591,005.86 \n26,907.43 30,711.12 77,686.00 16,474.42 558,823.82 \n \n$ \n \n7,218,760.73 $ \n \n8,780,505.77 $ \n \n9,108,942.47 \n \n$ \n \n558,371.75 $ \n \n126,899.71 $ \n \n345,782.22 \n \n8,000.00 \n \n$ \n \n558,371.75 $ \n \n134,899.71 $ \n \n345,782.22 \n \n-429,623.87 \n \n-429,623.87 \n \n-302,713.00 \n \n6,232.47 \n \n128,583.21 \n \nFund Balances - Ending \n \n$ \n \n134,980.35 $ \n \n-166,140.95 $===4=3=,0=6=9.=22= \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25- \n \n (This page left intentionally blank) \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Mathematics and Science Partnerships Rural Education Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Leaming Centers Vocational Education - Basic Grants to States \nTotal U.S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . 10.555 \n \nN/A N/A $ \n$ \n \n(2) 495,475.73 \n495,475.73 \n \n10.550 \n \nN/A $ \n \n6,462.71 501,938.44 \n \n84.027 84.173 \n \nNIA $ N/A \n$ \n \n228,678.43 41,654.00 \n270,332.43 \n \n84.318 84.367 84.366 84.358 84.186 84.298 \n. 84.010 84.287 84.048 \n \nN/A NIA N/A N/A N/A N/A N/A NIA N/A \n$ \n \n103,123.00 80,069.52 108,948.00 24,709.00 \n8,030.83 2,053.00 384,388.29 665,574.10 22,140.00 \n1,669,368.17 \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \ns_-==2=1,.,.11=,3=0=6=.6=1 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($130,580.52) were not maintained separately and are included in the 2007 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV CategoryV Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity - Alternative Sparsity - Regular Nursing Services Principal Supplements Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Comprehensive Academic Performance Health Insurance Middle School Remediation and Intervention Grant Preschool Handicapped Program Pupil Transportation - State Bonds Statewide K-8 Reading and Mathematics Program Teachers' Retirement \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n-28- \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n127,355.42 \n \n181,120.00 26,145.00 \n383,029.00 170,111.00 206,473.00 \n96,050.00 460,219.00 423,817.00 148,596.00 \n86,132.00 141,591.00 \n15,943.00 26,798.00 36,653.00 69,320.00 19,177.00 13,958.00 \n245,885.00 251,036.00 194,949.00 \n183,422.00 17,732.00 27,802.00 \n204,388.00 32,853.00 2,514.00 \n102,669.00 139,182.00 \n26,618.00 34,365.00 -71,851.00 \n40,075.00 118,661.34 \n618.00 22,592.00 100,000.00 22,500.00 \n2,414.94 \n1,338.00 \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING CONTRACT Human Resources, Georgia Department of Children's Trust OTHER Community Affairs, Georgia Department of Local Assistance Grant \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n40,201.84 \n \n15,000.00 \n \n$ ====4,=38=7=,4=5=2.=54= \n \nSee notes to the basic financial statements. \n \n- 29- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \nPaying a portion of the outstanding principal and interest on the Warren County School District General Obligation School Bond, Series 1999, the maximum amount of principal and interest to be paid with sales and use tax proceeds will be $2,300,000.00. \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 2,300,000.00 $ 2,300,000.00 $ 764,106.95 $ 764,882.00 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n(4) During fiscal year 2005, the Warren County Board of Education issued General Obligation Refunding Bond Issue 2005 to refund portions of the 1999 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Alternative Education Program \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \n$ \n \n220,884.00 $ 199,615.69 $ \n \n22,810.61 $ 222,426.30 \n \n30,264.00 \n \n30,264.00 \n \n30,264.00 \n \n464,481.00 \n \n436,734.33 \n \n49,456.58 \n \n486,190.91 \n \n197,178.00 \n \n201,790.88 \n \n201,790.88 \n \n250,482.00 \n \n242,165.29 \n \n8,412.80 \n \n250,578.09 \n \n120,158.00 \n550,750.00 507,603.00 181,118.00 322,679.00 \n43,825.00 \n \n120,557.82 8,172.02 \n520,013.58 531,245.45 137,487.10 \n128,956.64 150,222.98 \n76,126.68 \n \n38,075.35 46,256.43 56,424.35 \n1,226.04 42,273.14 15,571.65 \n \n120,557.82 8,172.02 \n558,088.93 577,501.88 193,911.45 \n130,182.88 192,496.12 \n91,698.33 \n \n$ \n \n2,889,422.00 $ 2,783,352.66 $ 280,506.95 $ 3,063,859.61 \n \n83,582.00 16 728.00 \n \n211,651.97 3,526.37 \n \n11,107.42 41,535.16 \n \n222,759.39 45,061.53 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n2,989,732.00 $ 2,998,531.00 $ 333,149.53 $ 3,331,680.53 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 11, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Warren County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Warren County Board of Education's basic financial statements and have issued our report thereon dated July 11, 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Warren 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 Warren County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Warren County Board of Education's internal control over financial reporting. \nOur consideration ofinternal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2007YB-40 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Warren 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 Warren County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Warren County Board of Education's internal control. We consider items FS-7491-07-01, FS-7491-07-02, FS-7491-07-03 and FS-7491-07-04 in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Warren County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider item FS-7491-07-04 to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Warren County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Warren County Board of Education in a separate letter dated July 11, 2008. \nWarren County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Warren County Board of Education's response and, accordingly, we express no opinion on it. \n2007YB-40 \n \n This report is intended solely for the information and use of the management, members of the Warren 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. \n \nRespectfully submitted, \n \n~ \n \n~w.4~ \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \nRWH:gp 2007YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 11, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Warren County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWarren 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. Warren County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Warren County Board of Education's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Warren 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 Warren County Board of Education's compliance with those requirements. \n2007SA-65 \n \n As described in item FA-7491-07-01 in the accompanying Schedule of Findings and Questioned Costs, Warren County Board of Education did not comply with requirements regarding Activities Allowed/Unallowed and Allowable Costs/Cost Principles that are applicable to its Twenty-First Century Community Leaming Centers program. Compliance with such requirements is necessary, in our opinion, for Warren County Board of Education to comply with requirements applicable to that program. \nIn our opinion, except for the noncompliance described in the preceding paragraph, the Warren County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2007. \nInternal Control Over Compliance \nThe management of Warren 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 Warren 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 ofintemal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe Warren County Board of Education's internal control over compliance. \nOur consideration ofthe internal control over compliance was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in the Board's internal control that might be significant deficiencies or material weaknesses as defined below. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies and others we consider to be material weaknesses. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. We consider the deficiency in internal control over compliance described in the accompanying Schedule ofFindings and Questioned Costs as item FA-7491-07-01 to be a significant deficiency. \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. The significant deficiency noted above is also considered to be a material weakness. \n2007SA-65 \n \n Warren County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Warren County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of the management, members of the Warren County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~.-=~ \nRu sell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007SA-65 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-7491-03-04 Unresolved - See Corrective Action/Responses \n \nFS-7491-04-05 Partially Resolved - See Corrective Action/Responses \n \nFS-7491-05-01 Previously Reported Corrective Action Implemented \n \nFS-7491-05-02 Further Action Not Warranted \n \nFS-7491-05-04 Unresolved - See Corrective Action/Responses \n \nFS-7491-05-05 Previously Reported Corrective Action Implemented \n \nFS-7491-06-01 Unresolved - See Corrective Action/Responses \n \nFS-7491-06-02 Partially Resolved - See Corrective Action/Responses \n \nFS-7491-06-03 Unresolved - See Corrective Action/Responses \n \nFS-7491-06-04 Previously Reported Corrective Action Implemented \n \nFS-7491-06-05 Further Action Not Warranted \n \n(1) \n \nFS-7491-06-06 Unresolved - See Corrective Action/Responses \n \nFS-7491-06-07 Previously Reported Corrective Action Implemented \n \nFS-7491-06-08 Previously Reported Corrective Action Implemented \n \nFS-7491-06-09 Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $6,148.21 Finding Control Number: FS-7491-03-04 \n \nWe agree with this finding. All efforts are being made to prevent this type of error. This matter will be brought before the Board to determine if the Board will seek reimbursement. \n \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Amount: $6,369.00 Finding Control Number: FS-7491-04-05 \n \nWe agree with this finding. The payroll sample exceptions will be brought before the Board to determine ifthe Board will seek reimbursement. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCORRECTIVE ACTION/RESPONSES \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Amount: $1,460.00 Finding Control Number: FS-7491-05-04 \nWe agree with this finding. All efforts are being made to prevent this type of error. This matter will be brought before the Board to determine if the Board will seek reimbursement. \nACCOUNTING CONTROLS (OVERALL) Inadequate Access Controls Finding Control Number: FS-7491-06-01 \nWe agree with this finding. The Board has employed an additional employee to help in the financial accounting area. We are in the process ofredistributing duties in order to avoid this finding in the future. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Controls over Central Office Accounts Finding Control Number: FS-7491-06-02 \nWe agree with this finding. We are a small school system with very few employees at the central office. We are in the process of trying to separate duties even more. The General Operating Account, Debt Service and Escrow bank statements are reviewed and initialed by the Superintendent. The Board has hired an additional employee to work in the accounting department. We are currently working to assign duties to avoid these findings in the future. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Finding Control Number: FS-7491-06-03 \nWe have a small staffin each ofour schools. We are in the process oftrying to separate duties in each of our schools. \n-2 - \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCORRECTIVE ACTION/RESPONSES \nBUDGET PREPARATION/EXECUTION Failure to Comply with Requirements of O.C.G.A. 20-2-67 Finding Control Number: FS-7491-06-06 \nWe agree with this finding. All efforts are being made to meet the requirements ofO.C.G.A. 20-2-67. \nAUDITOR'S COMMENTS (1) Findings/internal control deficiencies ofthis nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nFINDING CONTROL NUMBER AND STATUS \nFA-7491-04-01 Unresolved- See Corrective Action/Responses FA-7491-06-01 Unresolved - See Corrective Action/Responses \nCORRECTIVE ACTION/RESPONSES \nALLOWABLE COSTS/COST PRINCIPLES Improper Expenditures Amount: $69,881.00 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-01 \nWe agree with this finding. The Georgia Department of Education will be contacted to determine the action necessary to resolve this finding. \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES OTHER - SINGLE AUDIT REPORTING PACKAGE Noncompliance with Audit Report Distribution and Corrective Action Plan Requirements Finding Control Number: FA-7491-06-01 We agree with this finding. A copy of the 2005 Audit Report and the Data Collection Form will be mailed to the Federal Audit Clearinghouse. \n-4- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board ofEducation's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Warren County Board of Education disclosed financial statement significant deficiencies related to the following control categories. \n \nCash and Cash Equivalents Employee Compensation Accounting Controls (Overall) \n \nExpenditures/Liabilities/Disbursements Revenues/Receivables/Receipts Financial Reporting \n \nOf the significant deficiencies described above, Financial Reporting is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Warren County Board of Education disclosed a significant deficiency in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed \n \nAllowable Costs/Cost Principles \n \nThe significant deficiency described above is considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified, except for Twenty-First Century Community Leaming Centers program which was qualified. \n \n6. Audit Findings Required to be Reported by Section .5 IO(a) of 0MB Circular A-133 The Warren County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) of 0MB Circular A-133. This audit finding is included in section IV ofthis report. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.287 Twenty-First Century Community Leaming Centers \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Separation of Duties - Central Office Accounts Significant Deficiency Finding Control Number: FS-7491-07-01 \n \nCondition: \n \nThis is a repeat finding (FS-7491-06-02, FS-7491-05-02, and FS-7491-0403) from the years ended June 30, 2006, June 30, 2005, and June 30, 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate separation ofduties at the Central office. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties. Such internal controls would limit any one individual's access to both physical assets and the related accounting records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The check signing function was not separated from the record keeping function. \n \nRevenues/Receivables/Receipts  The deposit preparation was not separated from the record keeping and cash custody functions. \n \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUESIRECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Separation of Duties - Central Office Accounts Significant Deficiency Finding Control Number: FS-7491-07-01 \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks. \n \nEmployee Compensation  The recording of new employees and changes in compensation was not separated from the preparation of payroll checks. \n \nCause: \n \nThe School District has not assigned responsibilities to achieve appropriate separation of duties nor utilized management oversight of the incompatible activities to properly safeguard assets. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7491-07-02 \n \nCondition: \n \nThis is a repeat finding (FS-7491-06-03, FS-7491-05-02, and FS-7491-0403) from the years ended June 30, 2006, June 30, 2005, and June 30, 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate separation ofduties and internal controls over school activity accounts. \n \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7491-07-02 \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures and provide proper separation of duties. Such internal controls would limit any one individual's access to both physical assets and the related accounting records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions.  The bank reconciliation for the Warren County High School included an unidentified reconciling amount of $210.33 at June 30, 2007. \n \nRevenues/Receivables/Receipts  The deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of 30 receipts, the School District was unable to provide adequate documentation for twenty-five of the receipts. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a review of 30 items, nine had no evidence of approval prior to purchase, eight had inadequate documentation for the expenditure, and seven had no evidence of receipt included with the voucher packets. \n \nCause: \n \nThe deficiencies were a result ofmanagement's failure to ensure that internal controls were established, implemented, and functioning and to assign responsibilities to achieve appropriate separation of duties and utilize management oversight of the incompatible activities to properly safeguard assets. \n \n-4- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Significant Deficiency Finding Control Number: FS-7491-07-02 \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures and implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. \n \nACCOUNTING CONTROLS (OVERALL) Inadequate Access Controls Significant Deficiency Finding Control Number: FS-7491-07-03 \n \nCondition: \n \nThis is a repeat finding (FS-7491-06-01) from the year ended June 30, 2006. The accounting procedures ofthe School District did not maintain adequate separation of duties in the Financial Accounting System. \n \nCriteria: \n \nSeparation of duties involving key accounting functions, both manual and automated, is the basis for achieving an adequate system of internal control. \n \nQuestioned Cost: NIA \n \nInformation: \n \nAccess controls in the Financial Accounting System do not prevent users from accessing accounting functions that are outside of their area of responsibility. \n \nCause: \n \nThe School District's management is responsible for designing and maintaining internal controls that restrict access to programs or data. Management has not limited the access rights of users of the Financial Accounting System. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \n-5- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nACCOUNTING CONTROLS (OVERALL) Inadequate Access Controls Significant Deficiency Finding Control Number: FS-7491-07-03 \n \nRecommendation: \n \nManagement should ensure that the access controls in the accounting information system complement the system ofinternal control by limiting an employee's access to only the accounting functions necessary for the performance of the employee's duties. \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7491-07-04 \n \nCondition: \n \nThe School District did not have adequate controls in place over the financial statement reporting process. \n \nCriteria: \n \nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the School District's financial statements. The School District was unable to provide both fund level and entity-wide level financial statements for audit. \n \nIn addition, during the audit, auditor adjusting entries were necessary to properly record transactions that had not been made to the School District's general ledger. \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the financial statement reporting process. \n \nEffect: \n \nThe School District does not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \n-6- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7491-07-04 \n \nRecommendation: \n \nThe School District should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures 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-7491-07-01 \n \nCondition: \n \nCompensation was paid from Twenty-First Century program funds to four employees who were not qualified to work as instructors on the Twenty-First Century summer program. Also, there was inadequate documentation to support charges to the Twenty-First Century program for one School District employee who worked on the Twenty-First Century program and other Board activities. \n \nCriteria: \n \nThe approved Twenty-First Century grant award called for certified teachers to carry out the academic enrichment instructional activities ofthe program. This included summer Twenty-First Century program activities. Such certified instructors engaged to work on the Twenty-First Century program would be compensated at an extended contract hourly rate. \n \n-7- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures 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-7491-07-01 \n \nProvisions of 0MB Circular A-87, Cost Principles for Determining Allowable Costs, are to be followed in administering the Twenty-First Century program. Such costs charged to the program should be necessary, reasonable, commensurate with benefits received and documented. With regard to compensating personnel, it requires, in part, that salaries be documented as follows: \na) Personnel who work on one Federal award will be supported by a semi-annual certification. The certifications will be signed by the employee and/or immediate supervisor. \nb) For those personnel who work on multiple Federal activities or a Federal activity and non-Federal activity, a distribution of their salaries or wages to the Federal awards will be based on personnel activity reports (PARs). The PARs shall reflect after-the-fact certification ofthe time and effort ofeach employee on all activities. PARs are to be prepared monthly and signed by the employee. \n \nQuestioned Cost: $37,074.13 \n \nInformation: \n \nTesting revealed the following: Four individuals who carried out Twenty-First Century program instructional activities during the summer program were compensated at a rate of a certified teacher. While the Georgia Department of Education approved grant award with the Board required that certified instructors carry out such instructional activities, we noted these personnel were not certified. Total payments to these four personnel at a certified instructor rate was $9,074.13. \n \n-8- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures Material Weakness Material Noncompliance U.S. Department of Education Through Georgia Department of Education Twenty-First Century Community Learning Centers (CFDA 84.287) Finding Control Number: FA-7491-07-01 \n \nA total of $28,000 was paid with Twenty-First Century program funds for the salary of a bookkeeper who worked on Twenty-First Century program and other Board duties. Although required by provisions of 0MB Circular A-87, there was no PARs recording the bookkeeper's actual time expended on the Twenty-First Century program and other Board activities. Such documentation is required to serve as a basis for the support the salary charge ofthe bookkeeper who was engaged in Federal and other Board activities. The amount paid with Twenty-First Century program funds represented over 47% of the bookkeeper's salary. \n \nCause: \n \nManagement failed to implement appropriate procedures to ensure compliance with (1) the approved Twenty-First Century grant award as it relates to engaging appropriate certified personnel to perform Twenty-First Century instructional functions and properly compensating such personnel with Twenty-First Century program funds and (2) Federal Circular requirements which require PARs to document actual time expended by the bookkeeper on the Twenty-First Century program and other Board activities and serve as a basis for distributing the proper portion ofbookkeeper's salary to the Twenty-First Century program. \n \nEffect: \n \nUnqualified personnel were allowed to carry out Twenty-First Century program instructional activities which resulted in incorrect compensation charges to the Twenty-First Century program. Without required documentation supporting the actual time expended on the Twenty-First Century program and other Board activities, we were unable to determine that the amount of the bookkeeper's salary charged to the Twenty-First Century program funds was reasonable and commensurate with benefits received by the program. \n \n-9- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures 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-7491-07-01 \n \nRecommendation: \n \nThe School District should implement procedures to ensure that, in line with requirements of the Twenty-First Century program grant award, charges made to the Twenty-First Century program for instructional duties are restricted to only certified instructors. Also, salaries charged to the Federal program should be commensurate with actual time devoted by personnel to the Federal program. Appropriate time and effort records should be prepared and maintained for those personnel who work on one or more Federal programs and, ifapplicable, any other Board activities. Georgia Department of Education should ascertain if a refund is due from the Board for the inappropriate amount paid with Twenty-First Century program funds for those personnel who ( 1) were not certified to perform instructional duties or (2) had no documentation supporting time and effort on the Twenty-First Century program. \n \n- 10 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2007 \nFinding Control Number: FS-7491-07-01 \nWe agree with this finding. The Board had employed an additional employee to help in the financial accounting area. The School District has redistributed duties in order to avoid this finding in the future. This finding should be resolved during the 2007-08 school year. \nFinding Control Number: FS-7491-07-02 \nWe agree with this finding. A new software package has been purchased for school activity accounting. New procedures have been put in place during this transition that address voucher packages and daily deposits. A memo from the school bookkeepers and principals will be issued to each teacher stating the proper procedures for purchases and all receipts. The finance officer will review all information quarterly for each ofthe schools. This review will be documented and kept on file at the central office. \nFinding Control Number: FS-7491-07-03 \nWe agree with this finding. The Warren County Board of Education has employed an additional employee to help in the Financial/Payroll area. There are only two people in this area and it is necessary for both ofus to have access to all areas in PCGenesis. We have controls in place that should separate the duties and eliminate the finding for accounting controls. \nFinding Control Number: FS-7491-07-04 \nWe agree with this finding. The School District will prepare the financial statement for fiscal year 2008. \nFinding Control Number: FA-7491-07-01 \nWe agree with this finding. The School District was unaware that semi-annual certification and monthly PARs were necessary for personnel in the Twenty-First Century Community Leaming Centers Program. All necessary documentation will be kept for the fiscal year 2008 school year. \nFour non-certified individuals were placed in positions requiring a certificate as specified in the grant. The School District exhausted all efforts to find certified individuals to work in the summer program. We could not find enough certified individuals and used licensed paraprofessionals and individuals with a four year degree in the summer program. All individuals paid from the TwentyFirst Century Program in fiscal year 2008 will be paid according to the specifications of the grant. \nContact Person: Fran Hutcheson, Finance Officer Phone: (706) 465-3383 Ext. 303 Fax: (706) 465-9141 E-mail Address: fhutcheson@warren.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2005-h2006","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2006-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":"WARREN COUNTY BOARD OF EDUCATION \nWARRENTON, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nI \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nI SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n \nPage \nI 2 4 5 6 7 8 9 IO \n25 \n26 \n27 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n28 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n29 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 16, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Warren County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Warren County Board of Education, as of and for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Warren County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mons. \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 Warren County Board ofEducation, as ofJune 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2006ARL-11 \n \n The Warren County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated April 16, 2007, on our consideration of the Warren County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Warren County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nRWH:as 2006ARL-11 \n \n~r.ell ~ ~ . 0 9 . ~ . ~ W. Hinton, CPA, CGFM State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2006 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n315,739 \n \n146,969 \n \n210,498 413,880 227,162 \n34,284 4,517 \n \n70,070 64,600 11,393,126 1,682,234 -1,414,895 \n \n$ ===1=3=1=4=8=1=84= \n \n$ \n \n419,642 \n \n500,462 \n \n13,984 \n \n475,000 7,335,000 \n \n$ \n \n8,744,088 \n \n$ \n \n3,985,135 \n \n19,111 23,082 715,326 -338,558 \n \n$ \n \n4,404,096 \n \n$ ===1=-3'=14=8=1'=84..,. \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2006 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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 \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n4,227,683 \n \n178,390 548,955 213,197 366,597 682,579 $ 210,953 730,585 324,374 \n41,517 9,172 \n \n65,217 18,532 576,117 262,333 \n \n$ \n \n8,456,201 $ \n \n63,497 \n68,894 36,114 168,505 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n3,554,004 $ \n \n109,080 50,191 69,290 293,219 400,584 \n \n176,815 147,383 \n \n449,252 \n \n$ \n \n5,249,818 $ \n \n56,524 $ \n2,459 1,118 2,627 23,489 \n10,681 96,898 $ \n \n-617,155 \n-69,310 -498,764 -141,448 -72,260 -218,498 -210,953 -551, 143 -153,502 -41,517 \n-9,172 \n3,677 -18,532 -80,070 -262,333 \n-2,940,980 \n \n$ \n \n2,179,640 \n \n423,435 \n \n31,708 \n \n536,861 33,441 14,879 \n257,555 17,515 \n169 945 \n \n$ \n \n3,664,979 \n \n$ \n \n723,999 \n \n3,680,097 \n \n$===4=,4=0=4=,0=96= \n \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2006 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Due From Other Funds Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n53,487 $ \n \n100,711 413,880 227,162 \n34,284 \n4 517 \n \n0 $ \n \n262,252 $ \n \n146,969 \n \n87,870 \n \n202,666 \n \n315,739 146,969 \n188,581 413,880 227,162 \n34,284 202,666 \n4517 \n \nTotal Assets \n \n$ \n \n834 041 $====0= $ \n \n699 757 $===1=,5=3=3,1:,79...8.,. \n \nLIABILITIES AND FUND BALANCES \n \nLIABILITIES \n \nAccounts Payable Salaries Payable Due To Other Funds Deposits and Deferred Revenue \n \n$ \n \n419,642 \n \n500,462 \n \n202,666 \n \n13 984 \n \nTotal Liabilities \n \n$ 1,136,754 \n \nFUND BALANCES \n \nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories \nUnreserved Undesignated Reported in: General Fund (Deficit) \n \n$ \n \n19,111 \n \n18,565 \n \n4,517 \n \n-344 906 $ \n \nTotal Fund Balances \n \n$ \n \n-302,713 $ \n \n$ \n \n419,642 \n \n500,462 \n \n202,666 \n \n13 984 \n \n$ \n \n1 136 754 \n \n$ \n \n$ \n \n699,757 \n \n0 0 $ \n \n699,757 $ \n \n19,111 18,565 699,757 4,517 \n-344 906 \n397 044 \n \nTotal Liabilities and Fund Balances \n \n$ \n \n834.041 $=======0= $ \n \n699.757 $===1=,5=3=3=.7=98.., \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ \n \n397,044 \n \n$ \n \n70,070 \n \n64,600 \n \n11,393,126 \n \n1,682,234 \n \n-1 414 895 \n \n11,795,135 \n \n21,917 \n \n-7,810,000 $ =====4=,4=04=,0=9=6 \n \nThe notes to the basic financial statements are an integral part of this statement. -5 - \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebt Services Principal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 2,177,599 39,163 \n4,070,937 $ 1,459,925 \n168,505 6,183 \n169,945 \n$ 8,092,257 $ \n \n$ 73,409 \n73,409 $ \n \n404,860 $ 546,018 \n11,332 962,210 $ \n \n2,582,459 585,181 \n4,144,346 1,459,925 \n168,505 17,515 \n169,945 \n9,127,876 \n \n$ 4,094,931 $ \n178,390 548,955 207,421 363,970 682,579 209,468 735,773 490,962 41,517 \n9,172 65,217 18,532 551,032 \n2 451 \n$ 8,200,370 $ \n$ -108 113 $ \n \n0 $ \n0 $ 73409 $ \n \n$ \n1,485 \n505,000 259,882 766,367 $ 195,843 $ \n \n4,094,931 \n178,390 548,955 207,421 363,970 682,579 210,953 735,773 490,962 41,517 \n9,172 65,217 18,532 551,032 \n505,000 262,333 \n8,966,737 \n161,139 \n \n$ \n \n73,409 \n \n$ \n \n$ \n \n73409 $ \n \n$ \n \n-34,704 $ \n \n-268,009 \n \n-73,409 -73,409 \n0 $ 0 \n \n$ \n$ 195,843 $ 503,914 \n \n73,409 -73 409 \n0 161,139 235,905 \n \n$ -302,713 $====0= $ 699,757 $===39=7=,044=== \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \n \nEXHIBIT\"F\" \n \nTotal.Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ \n$ 235,269 -229,733 \n \n161,139 \n5,536 52,324 505,000 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ===72=3=,9=9===9 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2006 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Accounts Payable Funds Held for Others \nTotal Liabilities NET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n146 $ \n \n38,887 \n \n20,000 \n \n$ \n \n20146 $==;38==88=7= \n \n$ \n \n1,848 \n \n37 039 \n \n$ \n \n38,887 \n \n$ _ _2_0~1_46_ \n \n$ \n \n20 146 $ ===38='=88=7= \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2006 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Change in Net Assets \nNet Asset$ - Beginning \nNet Assets - Ending \n \nEXHIBIT\"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n446 \n \n$ \n \n0 \n \n$ \n \n446 \n \n19.700 \n \n$ ===20='=14=6= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Warren County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Warren County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund types: \n The Private Purpose Trust fund reports a trust arrangement, the Otis E. Williams Memorial Scholarship, under which principal and income benefit an eligible student in Warren County. \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be \n- 11 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n- 12 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Warren County Board of Commissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on August 29, 2005 (levy date). Taxes were due on December 20, 2005 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2005 tax digest are reported as revenue in the governmental funds for fiscal year 2006. The Warren 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, at the fund reporting level, during the fiscal year ended June 30, 2006, for maintenance and operations amounted to $2,145,891 and for school bonds amounted to $404,860. \n \nTax millage rates levied for the 2005 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n16.98 mills 3.25 mills \n \n20.23 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $536,861 and is to be used for debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 13 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ \n \n5,000 20 to 90 years \n \n$ \n \n5,000 50 to 90 years \n \n$ \n \n5,000 5 to 50 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. In addition, general obligation bonds have been \n \n- 14 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nissued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nDEFICIT FUND BALANCES \n \nThe fund reporting a deficit fund balance and deficit net assets at June 30, 2006, is as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGeneral Fund \n \n$ 344,906 \n \nThe School District intends to fund the deficit by reducing expenditures and through an increase in Ad Valorem taxes resulting from a property re-evaluation in Warren County. \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee 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. \nIfa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe \nsecurities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n- 15 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $849,793. The amounts of the total bank balances are classified into four categories of custodial credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \nCategory 4 - Uncollateralized. \n \nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 348,752 \n \n2 \n \n501,041 \n \n3 \n \n0 \n \n4 \n \n0 \n \nTotal \n \n$======8==49-,7===9=3 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2006, the carrying value ofthe School District's total investments was $146,969 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury \n \n- 16 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nand Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U.S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2006, was 28 days. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNote 5: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 17 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1. 2005 \n \nIncreases \n \nBalances Decreases June 30, 2006 \n \nGovernmental Activities \n \nCapital Assets, Not Being Depreciated: \n \nLand \n \n$ \n \n70,070 $ \n \n0 $ \n \n0 $ \n \n70,070 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 11,393,126 1,446,965 $ 64,600 \n \n$ 235,269 \n \n0 $ 11,393,126 1,682,234 64,600 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n378,450 804,558 \n2,154 \n \n126,590 102,425 \n718 \n \n505,040 906,983 \n2,872 \n \nTotal Capital Assets, Being Depreciated, Net $ 11,719,529 $ \n \n5,536 $ \n \n0 $ 11,725,065 \n \nGovernmental Activity Capital Assets - Net $ 11,182,522 $ \n \n5,536 $ \n \n0 $ 11,125,135 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 132,752 \n \n$ \n \n5,776 \n \n2,627 \n \n6,169 \n \n57,324 \n \n71,896 25,085 \n \nNote 6: RESTRICTED ASSETS \n \n$==2=29-,7,.,,3==3 \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2006, were as follows: \n \n- 18 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services \nRestricted Investments Debt Services \n \n$ 262,252 $ 146,969 \n \nNote 7: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2006, consisted of the following: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Debt Service Fund \n \n$ 202,666 $ 202.666 \n \n$ 202if:i66 $ 202iC:i66 \n \nThe balance due to the Debt Service Fund resulted from a loan to pay General Fund expenditures. \n \nNote 8: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2006, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nGeneral Fund \n \n$===!!73=1:.4c!:!0==9 \n \nTransfers are used to move GSFIC funds to the General Fund for reimbursement ofprior year local expenditures. \n \nNote 9: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n- 19 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 9: RISK MANAGEMENT \n \nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District has elected to self-insure for all losses related to acts of God. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2005 2006 \n \n$ \n \n7 874 $ \n \n12,214 $ \n \n20,088 $ \n \n0 \n \n$ \n \n0 $ \n \n8,321 $ \n \n8,321 $ \n \n0 \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000 loss per occurrence, up to $2,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal Each Employee \n \n$ 100,000 \n \n$ \n \n10,000 \n \n$ 100,000 \n \n- 20- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 10: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$=====0 $ 300.100 $ 300.100 $======0 \n \nNote 11: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPw:pose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1999 \n \n4.35% - 5.55% \n \nGeneral Government - Refunding - Series 2005 \n \n3.47% \n \n$ 1,310,000 6,500,000 \n \n$ 7,810.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2005 \n \n$ 8,315,000 \n \nDeductions Debt Retired \n \n505,000 \n \nBalance June 30, 2006 \n \n$ 7,810.000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 475,000 \n \n- 21 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 11: LONG-TERM DEBT \n \nAt June 30, 2006, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2007 2008 2009 2010 2011 2012 - 2016 2017-2019 \n \n$ 475,000 $ 500,000 525,000 550,000 570,000 \n3,225,000 1,965,000 \n \n289,108 267,105 243,753 218,957 199,872 685,325 128,216 \n \nTotal Principal and Interest \n \n$ 7,810.000 $ 2,032.336 \n \nNote 12: PRIOR YEAR DEFEASEMENT OF DEBT \n \nIn fiscal year 2005, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2006, $6,005,000 ofbonds are outstanding and are considered defeased. \n \nNote 13: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $122,430 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $121,092 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $1,338 \n \n-22 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"I\" \n \nNote 14: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2006 2005 2004 \n \n100% 100% 100% \n \n$ 307,910 $ 332,795 $ 356,761 \n \n- 23 - \n \n (This page left intentionally blank) \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOther Sources \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL(1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n2,185,037 $ \n \n2,185,037 $ \n \n2,177,599 \n \n60,000 \n \n60,000 \n \n39,163 \n \n3,962,796 \n \n3,951,630 \n \n4,070,937 \n \n1,400,472 \n \n1,346,638 \n \n1,459,925 \n \n11,166 \n \n168,505 \n \n6,183 \n \n95 868 \n \n169 945 \n \n$ \n \n7 715 339 $ \n \n7 543 305 $ \n \n8,092,257 \n \n$ \n \n4,108,909 $ \n \n4,826,821 $ \n \n4,094,931 \n \n144,896 279,894 215,160 488,543 654,156 188,393 673,204 503,151 \n14,033 445,000 \n \n158,352 398,251 205,504 394,595 883,689 188,393 668,133 503,151 \n33,755 \n19,033 445,000 \n \n178,390 548,955 207,421 363,970 682,579 209,468 735,773 490,962 \n41,517 9,172 \n65,217 18,532 551,032 \n2 451 \n \n$ \n \n7 715 339 $ \n \n8 724 677 $ \n \n8,200,370 \n \n$ \n \n0 $ \n \n-1,181,372 $ \n \n-108,113 \n \n73409 \n \n$ \n \n0 $ \n \n-1,181,372 $ \n \n-34,704 \n \n413,135 \n \n413,135 \n \n-268,009 \n \n-365,022 \n \n-365 022 \n \nFund Balances - Ending \n \n$ \n \n48113 $ \n \n-1, 133,259 $ \n \n-302 713 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Rural Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A NIA $ \n$ \n \n(2) 524,519 \n524,519 \n \n10.550 \n \nNIA \n$ \n \n2 897 527 416 \n \n84.027 84.173 \n \nN/A $ NIA \n$ \n \n280,187 18468 \n298,655 \n \n84.318 84.367 84.358 84.186 84.298 * 84.010 84.048 \n \nN/A NIA N/A N/A NIA N/A \nN/A \n$ \n \n159,371 96,658 26,400 3,365 4,116 \n423,637 22,499 \n1 034 701 \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n$ =====1,=56=2='1=1=7 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($136,932) were not maintained separately and are included in the 2006 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n-26 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Health Insurance Preschool Handicapped Program Statewide K-8 Reading and Mathematics Program \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nSee notes to the basic financial statements. \n \n- 27 - \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n112,848 \n \n$ \n \n112,848 \n \n235,175 14,057 \n426,554 123,591 221,386 130,215 465,336 428,864 174,544 \n12,109 137,576 \n84,095 15,895 11,575 36,538 71,458 24,402 14,254 \n250,132 253,178 207,849 \n173,849 23,489 \n238,650 31,026 2,710 7,136 \n156,946 24,028 4,600 \n-198,957 \n121,092 14,585 19,014 \n \n235,175 14,057 \n426,554 123,591 221,386 130,215 465,336 428,864 174,544 \n12,109 137,576 \n84,095 15,895 11,575 36,538 71,458 24,402 14,254 \n250,132 253,178 207,649 \n173,849 23,489 \n238,650 31,026 2,710 7,136 \n156,946 24,028 4,600 \n-198,957 \n121,092 14,585 19,014 \n \n$ \n1 338 \n \n73,409 \n \n73,409 1 338 \n \n$ 4,070,937 $ ===7~3~4~09;;,,, $ 4,144,346 \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"4\" \n \nPROJECT \nPaying a portion of the outstanding principal and interest on the Warren County School District General Obligation School Bond, Series 1999, the maximum amount of principal and interest to be paid with sales and use tax proceeds will be $2,3000,000. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 2,300,000 $ 2,300,000 $ \n \n764 882 $ \n \n0 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n(4) During fiscal year 2005, the Warren County Board of Education issued General Obligation Refunding Bond Issue 2005 to refund portions of the 1999 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues. \n \nSee notes to the basic financial statements. \n \n- 28 - \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle Grades (6-8) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategory V \n \nAlternative Education Program \n \n268,497 $ \n23,466 491,251 154,477 265,550 \n148,715 \n538,761 499,278 199,029 308,710 \n42 621 \n \n200,408 $ \n39,126 454,317 151,542 274,124 \n149,171 547,764 \n513,404 185,754 \n13,855 137,747 109,230 \n18,120 21,212 29 534 \n \n3,353 $ \n22,725 \n21,173 \n71 46,339 \n103,702 1,309 \n \n203,761 39,126 \n477,042 151,542 295,297 \n149,242 594,103 \n617,106 187,063 \n13,855 137,747 109,230 \n18,120 21,212 29 534 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n2,940,355 $ 2,845,308 $ \n \n198,672 $ \n \n3,043,980 \n \nMedia Center Program Staff and Professional Development \n \n83,523 16 856 \n \n192,135 8 546 \n \n11,356 44457 \n \n203,491 53003 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n3 040 734 $ 3,045,989 $ \n \n254 485 $ ===3,=30=0==,4=7=4 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 858-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 16, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Warren County Board ofEducation as of and for the year ended June 30, 2006, which collectively comprise Warren County Board of Education's basic financial statements and have issued our report thereon dated April 16, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Warren County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgment, could adversely affect Warren County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7491-06-01, FS-7491-06-02, FS-7491-06-03, FS-7491-06-04, FS-7491-06-08 and FS-7491-06-09. \n2006YB-40 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, of the reportable conditions described above, we consider item FS-7491-06-02 to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Warren County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use of the management and members of the Warren County Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~lell ~~OOW.~ W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 856-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 16, 2007 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWarren 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, 2006. Warren County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Warren County Board of Education's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Warren County Board ofEducation's compliance with \n \n2006SA-15 \n \n 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 Warren County Board of Education's compliance with those requirements. \nIn our opinion, the Warren 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, 2006. However, the results of our auditing procedures disclosed a nonmaterial instance of noncompliance with those requirements, which is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7491-06-01. \nInternal Control Over Compliance \nThe management of Warren 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 Warren County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \nOur consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more 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. \nThis report is intended solely for the information and use of the management, members of the Warren County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~-~~ \nRus ell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006SA-15 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-7491-01-04 Further Action Not Warranted \n \n(1) \n \nFS-7491-03-04 Unresolved - See Corrective Action/Reponses \n \nFS-7491-04-02 Further Action Not Warranted \n \nFS-7491-04-03 Further Action Not Warranted \n \nFS-7491-04-04 Previously Reported Corrective Action Implemented \n \nFS-7491-04-05 Unresolved - See Corrective Action/Reponses \n \nFS-7491-04-09 Further Action Not Warranted \n \nFS-7491-05-01 Unresolved - See Corrective Action/Reponses \n \nFS-7491-05-02 Unresolved - See Corrective Action/Reponses \n \nFS-7491-05-03 Previously Reported Corrective Action Implemented \n \nFS-7491-05-04 Unresolved - See Corrective Action/Reponses \n \nFS-7491-05-05 Unresolved - See Corrective Action/Reponses \n \nFS-7491-05-06 Previously Reported Corrective Action Implemented \n \nAUDITOR'S COMMENT: \n \n(1) Finding Control Number FS-7491-01-04 will not be reported or require auditor follow-up in subsequent years; however, management still has responsibility for the resolution of this finding. \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $6,148.21 Finding Control Number: FS-7491-03-04 \n \nWe agree with this finding. All efforts are being made to prevent this type of error. This matter will be brought before the Board to determine if the Board will seek reimbursement. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCORRECTIVE ACTION/RESPONSES \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Amount: $6,369 Finding Control Number: FS-7491-04-05 \nWe agree with this finding. For fiscal year 2007, Board members will be paid through the payroll system. The payroll sample exceptions will be brought before the Board to determine if the Board will seek reimbursement. \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-7491-05-01 \nWe agree with this finding. Every effort possible is being made to reduce expenditures and bring the system out ofthe deficit. Property in Warren County was re-evaluated and the values increased. This will increase the ad valorem taxes received and will help to reduce or eliminate the deficit. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-7491-05-02 \nWe agree with this finding. We are a small school system with very few employees at the central office. The Board has hired someone to help the Finance Officer. This should eliminate the separation of duties finding. The Superintendent signs off on all bank statements for the general operating account. \nWe have a small staff in each of our schools. We are trying to separate the duties to eliminate that finding. Each month the school bookkeepers submit the financial information to the finance officer to be entered into PC Genesis. Each month all expenditures are approved by the Board. \nAuditor's Comment: Although the Superintendent signs off on all bank statements for the general operating account, the control is not effective since unreconciled variances were noted in the general operating account reconciliations. \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Amount: $1,460 Finding Control Number: FS-7491-05-04 \n \nWe agree with this finding. All efforts are being made to prevent this type of error. This matter will be brought before the Board to determine if the Board will seek reimbursement. \n \nGENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-7491-05-05 \n \nWe agree with this finding. At year end, if a deficit exists, available grant funds will be requested and/or over expenditures will be transferred to the general fund. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7491-04-01 FA-7491-04-02 FA-7491-04-04 FA-7491-05-01 FA-7491-05-02 \n \nUnresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nALLOWABLE COSTS/COST PRINCIPLES Improper Expenditures Amount: $69,881 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-01 \n \nWe agree with this finding. Georgia Department of Education will be contacted to determine the action necessary to resolve this finding. \n \n-3- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board ofEducation's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Warren County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Employee Compensation Revenues/Receivables/Receipts Budget Preparation/Execution \n \nExpenditures/Liabilities/Disbursements General Ledger Accounting Controls (Overall) \n \nOf the reportable conditions described above, Cash and Cash Equivalents, Revenues/Receivables/Receipts, Expenditures/Liabilities/Disbursements and Employee Compensation are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Warren County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5 l0(a) of 0MB Circular A-133 The Warren County Board of Education's audit did not disclose an audit finding required to be reported by section .5 IO(a) ofOMB Circular A-133; however, we noted a certain instance of nonmaterial noncompliance which is included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nACCOUNTING CONTROLS (OVERALL) Inadequate Access Controls Reportable Condition Finding Control Number: FS-7491-06-01 \n \nCondition: \n \nThe accounting procedures ofthe School District did not maintain adequate separation of duties in the Financial Accounting System. \n \nCriteria: \n \nSeparation of duties involving key accounting functions, both manual and automated, is the basis for achieving an adequate system of internal control. \n \nQuestioned Cost: NIA \n \nInformation: \n \nAccess controls in the Financial Accounting System do not prevent users from accessing accounting functions that are outside of their area of responsibility. \n \nCause: \n \nThe School District's management is responsible for designing and maintaining internal controls that restrict access to programs or data. Management has not limited the access rights of users of the Financial Accounting System. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nManagement should ensure that the access controls in the accounting information system should complement the system of internal control by limiting an employee's access to only the accounting functions necessary for the performance of the employee's duties. \n \n-2 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Controls over Central Office Accounts Reportable Condition - Material Weakness Finding Control Number: FS-7491-06-02 \n \nCondition: \n \nThis is a repeat finding (FS-7491-05-02, FS-7491-04-03, and FS-7491-0302) from the years ended June 30, 2005, 2004, and 2003, respectively. The accounting procedures ofthe School District were insufficient to provide for adequate separation of duties and internal controls at the Central office. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures and provide proper separation of duties. Such internal controls would limit any one individual's access to both physical assets and the related accounting records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions.  The bank reconciliation for the operating account included an unidentified reconciling amount of $2,218. \n \nRevenues/Receivables/Receipts  The deposit preparation was not separated from the record keeping and cash custody functions. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  A test of thirty operating expenditure vouchers revealed that five of the vouchers had no evidence of approval prior to purchase. \n \nEmployee Compensation  The recording of new employees and changes in compensation was not separated from the preparation of payroll checks. \n \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS EMPLOYEE COMPENSATION Inadequate Internal Controls over Central Office Accounts Reportable Condition - Material Weakness Finding Control Number: FS-7491-06-02 \n \nCause: \n \nThe deficiencies were a result ofmanagement's failure to ensure that internal controls were established, implemented, and functioning and to assign responsibilities to achieve appropriate separation of duties and utilize management oversight of the incompatible activities to properly safeguard assets. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures and implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Reportable Condition Finding Control Number: FS-7491-06-03 \n \nCondition: \n \nThis is a repeat finding (FS-7491-05-02 and FS-7491-04-03) from the years ended June 30, 2005, and 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate separation of duties and internal controls over school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures and provide proper separation of duties. Such internal controls would limit any one individual's access to both physical assets and the related accounting records. \n \nQuestioned Cost: NIA \n \n-4- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Reportable Condition Finding Control Number: FS-7491-06-03 \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions.  The bank reconciliation for the Warren County High School included an unidentified reconciling amount of $726 at June 30, 2006. \n \nRevenues/Receivables/Receipts  The deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of 15 receipts, the School District was unable to provide adequate documentation for six of the receipts. \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a review of 15 items, five had no evidence ofapproval prior to purchase. \n \nCause: \n \nThe deficiencies were a result ofmanagement's failure to ensure that internal controls were established, implemented, and functioning and to assign responsibilities to achieve appropriate separation of duties and utilize management oversight of the incompatible activities to properly safeguard assets. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures and implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. \n \n-5- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-7491-06-04 \n \nCondition: \n \nThis is a repeat finding (FS-7491-05-01, FS-7491-04-02, and FS-7491-0301) from the years ended June 30, 2005, 2004, and 2003, respectively. At June 30, 2006, the General Fund of the Warren County Board of Education reported a deficit fund balance. \n \nCriteria: \n \nChapter 25 Reporting for LUAs with General Fund Deficit Balances of the Financial Management for Local Units ofAdministration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department ofEducation requires those LUAs with deficit balances to meet certain reporting requirements.\" \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District's General Fund reported a deficit fund balance in the amount of $344,906. \n \nCause: \n \nThe School District incurred expenditures in excess of revenues and other financing sources and failed to adequately budget for the prior year deficit. \n \nEffect: \n \nA financial statement irregularity in accordance with O.C.G.A. 20-2-67. \n \nRecommendation: \n \nThe School District should establish policies and procedures designed to ensure that in future periods the School District does not report a deficit fund balance. \n \n-6- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION Failure to Adopt a Balanced Budget Nonmaterial Noncompliance Finding Control Number: FS-7491-06-05 \n \nCondition: \n \nSchool District failed to adopt a balanced budget for the General Fund. \n \nCriteria: \n \nChapter 32 Preparing Operating Budgets of the Financial Management for Local Units of Administration states in part: \"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 unreserved fund balance from 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.\" \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District's General Fund budgeted a current year deficit fund balance in the amount of $1,181,372. \n \nCause: \n \nThe School District neglected the specific limitations imposed upon the School District by the Georgia Department of Education. \n \nEffect: \n \nNonmaterial noncompliance with respect to Chapter 32 of the FMGLUA. \n \nRecommendation: Appropriate procedures should be implemented by the School District to ensure that the adopted budget for all budgeted funds is balanced as required. \n \n-7- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION Failure to Comply with Requirements of O.C.G.A. 20-2-67 Nonmaterial Noncompliance Finding Control Number: FS-7491-06-06 \n \nCondition: \n \nSchool District did not comply with O.C.G.A. 20-2-67. \n \nCriteria: \n \nOfficial Code of Georgia Annotated (O.C.G.A.) 20-2-67 Local school system or school subject to corrective action plan for budget deficit; financial operationsform; publication; mailing to Department ofEducation and local governing body, states in part, \n \n\"(b) From the time such irregularity or budget deficit is discovered until the time it is eliminated, the local school superintendent shall present to each member of the local board of education for his or her review and written acknowledgment a monthly report containing all anticipated expenditures by budget function for such school or school system during the current month. The report shall be presented to local board members on or before the tenth business day of each month. Each monthly report shall be signed by each member ofthat local board and recorded and retained in the minutes of the meeting of the local board of education. \n \n(c) Not later than September 30 of the year, each local board of education shall cause to be published in the official county organ wherein the local school system is located once a week for two weeks a statement of actual financial operations for such schools or school system identified by the Department of Audits and Accounts as having financial irregularities... Prior to publication, such form shall be executed by the local board ofeducation and signed by each member of said board and the local school superintendent. \n \n(d) A copy ofthe actual financial operations form required to be published by subsection (c) of this Code section shall be mailed by each local board ofeducation to the Department ofEducation and the local county board of commissioners or local municipal governing authority. A current copy of said form shall be maintained on file in the central administrative office of the local school system for public inspection for a period of at least two years from the date of its publication. Copies of the statement shall be made available on request.\" \n \nQuestioned Cost: NIA \n \n-8- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nBUDGET PREPARATION/EXECUTION Failure to Comply with Requirements of O.C.G.A. 20-2-67 Nonmaterial Noncompliance Finding Control Number: FS-7491-06-06 \n \nInformation: \n \nThe School District did not ( 1) present a monthly report containing all anticipated expenditures; (2) publish actual financial operations; and (3) submit actual financial operations to appropriate authorities as required by O.C.G.A. 20-2-67. \n \nCause: \n \nManagement of the School District did not take appropriate action to meet the reporting requirements specified in O.C.G.A. 20-2-67. \n \nEffect: \n \nThe School District did not comply with legal requirements specified in O.C.G.A. 20-2-67. \n \nRecommendation: The School District should ensure that procedures are in place to comply with legal requirements specified in O.C.G.A. 20-2-67. \n \nEMPLOYEE COMPENSATION Inaccurate Reporting of Board Member Compensation Nonmaterial Noncompliance Finding Control Number: FS-7491-06-07 \n \nCondition: \n \nThis is a repeat finding (FS-7491-05-04 and FS-7491-04-05) from the years ended June 30, 2005, and 2004, respectively. Our examination revealed that compensation paid to Board members was not reported as salary on the detail listing of salary and travel submitted to the Department of Audits and Accounts. \n \nCriteria: \n \nO.C.G.A 50-6-27 states in part: \"Each ... local board ofeducation is required and directed to submit to the state auditor, in a format prescribed by the state auditor, a listing of all personnel of such .. .local board ofeducation showing name, title or functional area, salary and travel expense for each individual.\" \n \nQuestioned Cost: NIA \n \nInformation: \n \nSalary payments to Board Members in the amount of $7,775 were not included on the detail listing of salary and travel submitted to the Georgia Department of Audits and Accounts. \n \n-9- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nEMPLOYEE COMPENSATION Inaccurate Reporting ofBoard Member Compensation Nonmaterial Noncompliance Finding Control Number: FS-7491-06-07 \n \nCause: \n \nManagement failed to implement procedures to ensure that all employee compensation is reported as salary to the Department of Audits and Accounts. \n \nEffect: \n \nThe failure of the School District to submit total compensation paid to employees leads to inaccurate external reporting. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that all employee compensation, including Board members' compensation is included in the salary total reported to the Department ofAudits and Accounts. \n \nGENERAL LEDGER Failure to Report the Financial Statements in a Timely Manner Reportable Condition Finding Control Number: FS-7491-06-08 \n \nCondition: \n \nThe School District failed to submit the DE046 to the Georgia Department of Education in a timely manner. \n \nCriteria: \n \nChapter I Introduction to LUA Accounting ofthe Financial Management for Georgia Local Units of Administration indicates that \"accounting records must provide meaningful, reliable, accurate and timely information to the many persons and groups with legitimate interests in the financial affairs of an LUA.\" \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District's DE046 financial report was submitted to the Georgia Department of Education on November 20, 2006. \n \nCause: \n \nManagement failed to comply with the due date of September 30, 2006, as established by the Georgia Department of Education. \n \nEffect: \n \nThe failure ofthe School District to prepare and submit the financial report in a timely manner prohibits legitimate users of the report from being able to have timely access to the financial information provided. \n \n- 10- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nGENERAL LEDGER Failure to Report the Financial Statements in a Timely Manner Reportable Condition Finding Control Number: FS-7491-06-08 \n \nRecommendation: \n \nThe School District should implement controls to ensure that Georgia Department of Education policies and procedures are followed and implement procedures to ensure that the DE046 financial report is submitted in a timely manner. \n \nGENERAL LEDGER Inadequate Accounting Procedures Reportable Condition Finding Control Number: FS-7491-06-09 \n \nCondition: \n \nThis is a repeat finding (FS-7491-05-05) from the year ended June 30, 2005. The School District's Federal programs had deficit fund balances at June 30, 2006. \n \nCriteria: \n \nChapter 22 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration indicates that School Districts must prepare their financial statements in accordance with generally accepted accounting principles \n \nQuestioned Cost: NIA \n \nInformation: \n \nOur examination ofthe accounting records revealed that the School District's Federal programs had deficit fund balances at June 30, 2006, totaling $1,266. \n \nCause: \n \nThis condition occurred because management failed to properly monitor Federal program expenditures and request available grant funds from Federal agencies. \n \nEffect: \n \nFailure to monitor Federal expenditures can result in inaccurate reporting and noncompliance with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that Federal program expenditures are monitored and/or appropriate funds are requested from Federal agencies. \n \n- 11 - \n \n WARR.EN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nOTHER- SINGLE AUDIT REPORTING PACKAGE Noncompliance with Audit Report Distribution and Corrective Action Plan Requirements Nonmaterial Noncompliance Finding Control Number: FA-7491-06-01 \n \nCondition: \n \nThe School District failed to comply with reporting requirements of 0MB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. \n \nCriteria: \n \nProvisions ofOMB Circular A-133 require that a reporting package, which includes a copy of the audit report and completed Data Collection Form, be provided to the Federal Audit Clearinghouse upon issuance of the School District's Single Audit Report. \n \nQuestioned Cost: NIA \n \nInformation: \n \nThe School District failed to provide documentation that a copy ofthe audit report and Data Collection Form was forwarded to the Federal Audit Clearinghouse. \n \nCause: \n \nManagement failed to monitor compliance with Federal guidelines to ensure that the audit reports and corrective action plans were properly distributed. \n \nEffect: \n \nFailure to comply with reporting directives can result in noncompliance with Federal requirements. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that all reporting requirements ofCircular A-133 are met. To fulfill the reporting requirements for the fiscal year 2005 audit, the School District should provide a copy of the audit report and Data Collection Form to the Federal Audit Clearinghouse. \n \n- 12 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2006 \nFinding Control Number: FS-7491-06-01 \nWe agree with this finding. The Board had employed an additional employee to help in the financial accounting area. We are in the process ofredistributing duties in order to avoid this finding in the future. \nFinding Control Number: FS-7491-06-02 \nWe agree with this finding. We are a small school system with very few employees at the central office. We are in the process of trying to separate duties even more. The General Operating Account, Debt Service, and Escrow bank statements are reviewed and initialed by the Superintendent. The Board had hired an additional employee to work in the accounting department. We are currently working to reassign duties to avoid these findings in the future. \nFinding Control Number: FS-7491-06-03 \nWe have a small staff in each of our schools. We are in the process of trying to separate duties in each of the schools. An additional staff member has been requested at the Warren County High School. The duties will be divided between these two employees. This should keep the system from getting this finding in the future. \nFinding Control Number: FS-7491-06-04 \nWe agree with this finding. The school system is doing everything possible to eliminate this finding. We have addressed expenditures and the mill rate. We anticipate eliminating this deficit by the end of the fiscal year 2008 school year. \nFinding Control Number: FS-7491-06-05 \nWe agree with this finding. The school system is making every effort to execute a balanced budget. \nFinding Control Number: FS-7491-06-06 \nWe agree with this finding. All efforts are being made to meet the requirements ofO.C.G.A. 20-267 in the following school year. The Budget Elimination Plan has been submitted to the Georgia Department of Education, the fiscal year 2006 Financial Statement will be advertised in the local newspaper and mailed to the County Commissioner, and the 0396 form will be presented to the Board at the monthly Board meeting. \nFinding Control Number: FS-7491-06-07 \nWe agree with this finding. The incorrect object code number was used when the Board members were listed in the payroll system. This prevented their salaries from showing up on the CS- I report. This error has been corrected. \n-I- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2006 Finding Control Number: FS-7491-06-08 We agree with this finding. In the future the financial reports will be transmitted on time. Finding Control Number: FS-7491-06-09 We agree with this finding. All efforts are being made to monitor the Federal program expenditures to make sure that there is not a deficit balance. Finding Control Number: FA-7491-06-01 We agree with this finding. A copy of the 2005 audit report and the Federal Audit Clearinghouse Data Collection Form was mailed and never received. In the future, a return receipt will be requested when this information is mailed. Contact Person: Fran Hutcheson, Finance Officer Phone: (706) 465-3383 Ext. 303 Fax Number: (706) 465-9141 E-mail Address: fhutcheson@warren.kl2.ga.us \n-2- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2004-h2005","title":"Warren County Board of Education, Warrenton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. 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Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2004-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":"WARREN COUNTY BOARD OF EDUCATION \nWARRENTON, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n10 \n \nH \n \nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n11 \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n12 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n29 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n30 \n \n3 SCHEDULE OF STATE REVENUE \n \n31 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 29, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Warren County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Warren County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Warren County Board ofEducation, as ofJune 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2004ARL-11 \n \n As discussed in Note 2 to the basic financial statements, during fiscal year 2004, the Board changed its method ofaccounting for the salaries ofcertain ten-month employees from a cash basis to a basis that is generally accepted. This change is in accordance with generally accepted accounting principles. \nAs described in Note 2, the Warren County Board of Education has implemented a new financial reporting model as required by provisions ofGovernmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004. \nIn accordance with Government Auditing Standards, we have also issued our report dated July 29, 2005, on our consideration ofthe Warren County Board ofEducation'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 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 read in conjunction with this report in considering the results of our audit. \nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 29 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. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Warren 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. \n2004ARL-11 \n \n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated section 506-24. \nRespectfully submitted, \n~~-4~ Russell W. Hinton State Auditor \nRWH:gp 2004ARL-11 \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nThe discussion and analysis of the Warren County Board of Education's financial performance provides an overall review 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; readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \n \nFinancial Highlights \n \nKey financial highlights for fiscal year 2004 are as follows: \n \n \n \nThe Governmental Accounting Standards Board (GASB) issued GASB Statement 34 on \n \nJune 30, 1999, requiring statements to comply with a new reporting model for financial \n \nstatements. Based upon total revenues, the Warren County Board of Education was a \n \nPhase Three implementer, and was required to implement GASB Statement 34 beginning \n \nin fiscal year 2004. \n \n \n \nDue to this being the implementation year for GASB Statement 34, many comparisons \n \nare not available that will be available for fiscal year 2005. \n \n \n \nThe School District's financial status remained stable during fiscal year 2004. In total, \n \nnet assets increased $33,355 due to governmental activities since the School District has \n \nno business-type activities. \n \n \n \nTotal revenues were $8,807,021 with program specific revenues in the form of charges \n \nfor services and sales, grants and contributions accounting for $5,761,969 and general \n \nrevenues accounting for $3,045,052. \n \n \n \nThe School District had $8,773,666 in expenses related to governmental activities; only \n \n$5,761,969 of these expenses were offset by program specific charges for services and \n \ngrants and contributions. General revenues, primarily taxes, of $3,045,052 were adequate \n \nto provide for these programs. \n \n \n \nAmong major funds, the general fund has $8,177,206 in revenues and other financing \n \nsources and $8,170,358 in expenditures for an increase in general fund balance of $6,848. \n \nUsing the Basic Financial Statements \n \nThis annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the Warren County Board of Education as a financial whole, or as an entire operating entity. \n \nThe Statement ofNet Assets and Statement ofActivities provide information about the activities of the whole School District, presenting an aggregate view of the School District's finances and a longer-term view of those finances. The fund financial statements provide the next level of \n \n1 \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \ndetail. For governmental funds, these statements tell how services were financed in the shortterm as well as what remains for future spending. The fund financial statements also look at the School District's most significant funds with all other nonmajor funds, if any, presented in total in one column. In the case of the Warren County Board of Education, the general fund is by far the most significant fund. \nReporting the School District as a Whole \nStatement ofNet Assets and Statement ofActivities \nWhile these documents contain the large number funds used by the School District to provide programs and activities, the view of the School District as a whole looks at all financial transactions and determines how we concluded fiscal year 2004. The Statement of Net Assets and the Statement of Activities provide this information. These statements include all assets and liabilities using the accrual basis of accounting. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net assets and changes in those assets. This change in net assets is important because it tells the reader whether, 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 result of many factors, some financial, some not. Reductions or increases in state or local funding, change in property tax base, additional requirements in educational programs, and facility conditions are just a few of the causes for such change. \nIn the Statement of Net Assets and the Statement of Activities, the School District has one distinct type of activity: \n Governmental Activities - All of the School District's programs and services reported here including instruction, pupil services, improvement of instructional services, educational media services, administrative services, maintenance and operation of plant, student transportation services, school food services, and various others. \nReporting the School District's Most Significant Funds \nFund Financial Statements \nFund financial reports provide detailed information about the School District's major funds. The School District uses many funds to account for a multitude of financial statements. However, the fund financial statements focus on the School District's most significant funds. The School District's major governmental funds are the general fund, the District-wide capital projects fund and the debt service fund. \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 future spending. These funds are reported using an accounting method called modified accrual spending, which measures cash and all other financial assets that can readily be \n11 \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nconverted 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 you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship between governmental activities and governmental funds is reconciled in the financial statements. \n \nFiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as clubs and organizations within the school activity accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes, and used by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \n \nThe School District as a Whole \n \nThe perspective of the Statement of Net Assets is of the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2004. Since this is the first year the School District has been required to prepare financial statements following GASB Statement 34, net asset comparisons to fiscal year 2003 are not available. \n \nTable 1 Net Assets \n \nGovernmental Activities Fiscal Year 2004 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ 1,092,731 12,000,572 \n \nTotal Assets \n \n$ 13,093,303 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ 1,793,080 8,070,000 \n \nTotal Liabilities \n \n$ 9,863,080 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted (Deficit) \n \n$ 3,930,572 616,257 \n-1,316,606 \n \nTotal Net Assets \n \n$ 3!230!223 \n \n111 \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nTable 2 shows the changes in net assets for fiscal year 2004. Since this is the first year the School District has been required to prepare financial statements following GASB 34, revenue and expense comparisons are not available. The total net assets increased by $33,355. \n \nTable 2 Change in Net Assets \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nTotal Revenues \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Service Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \n \nGovernmental Activities Fiscal Year 2004 \n \n$ \n \n112,193 \n \n5,592,775 \n \n57,001 \n \n$ 5,761,969 \n \n$ 2,076,072 490,903 \n388,040 4,204 85,833 \n$ 3,045,052 \n$ 8,807,021 \n$ 4,447,137 \n104,503 247,842 196,830 638,515 679,860 223,272 639,716 440,981 \n27,314 22,909 \n80,986 577,982 445 819 \n$ 8,773,666 \n$====3=='3.==35===5 \n \nIV \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nGovernmental Activities \n \nInstruction comprises 50.7 percent of the governmental program expenses. Additionally, among the revenues, grants and contributions comprise 98.1 percent of the program revenues and 64.2 percent of total revenues while property and sales taxes comprise an additional 29.1 percent of total revenues. Although program revenues make up the majority of total revenues, the School District remains dependent upon tax revenue for governmental activities. \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. That is, it identifies the cost of these services supported by tax revenue and unrestricted State entitlements. Since this is the first year the School District has been required to prepare financial statements following GASB Statement 34, cost of service comparisons to fiscal year 2003 are not available. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services Fiscal Year 2004 \n \nNet Cost of Services Fiscal Year 2004 \n \nInstruction \n \n$ 4,447,137 $ \n \nSupport Services \n \nPupil Services \n \n104,503 \n \nImprovement of Instructional Services \n \n247,842 \n \nEducational Media Services \n \n196,830 \n \nGeneral Administration \n \n638,515 \n \nSchool Administration \n \n679,860 \n \nBusiness Administration \n \n223,272 \n \nMaintenance and Operation of Plant \n \n639,716 \n \nStudent Transportation Services \n \n440,981 \n \nCentral Support Services \n \n27,314 \n \nOther Support Services \n \n22,909 \n \nOperations of Non-Instructional Services \n \nCommunity Services \n \n80,986 \n \nFood Services \n \n577,982 \n \nInterest on Short-Term and Long-Term Debt \n \n445 819 \n \n478,475 \n56,924 207,564 126,363 204,400 442,959 223,272 414,378 242,414 \n27,314 22,909 \n23,287 95,619 445,819 \n \nTotal Expenses \n \n$ 8,773,666 $ 3,011,697 \n \nV \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nThe School District's Funds \nHighlights in Governmental Funds Governmental funds include the general fund, the District-wide capital projects fund and Debt Service Fund. Total revenues in governmental funds were $8,897,041 while total expenditures in governmental funds were $8,897,593 leaving a short fall in revenue of $552. When added to the beginning fund balance of $-671,487 the short fall in revenue decreases the ending fund balance to $-672,039. \nHighlights in General Fund Budgeting The School District's budget is prepared according to Georgia law. The most significant budgeted fund is the General Fund. \nDuring fiscal year 2004, the School District amended its general fund budget as needed. The School District uses function-based budgeting, which is designed to tightly control total function budgets while providing flexibility for site management. For the General Fund, budgeted revenues increased from $7,293,886 to $7,310,386. Expenditures budgeted increased from $8,055,320 to $8,310,223. These differences were primarily due to an increase in state revenues of $16,500, an increase in instructional expenditures of $150,167, and an increase in improvement of instructional services of $133,953. \nTotal revenues in the General Fund for fiscal year 2004 were $8,124,148 while total expenditures were $8,170,358 leaving a short fall of revenue over expenditures in the general fund of $-46,210. When added to the beginning year fund balance, the net increase of $6,848 placed our ending year general fund balance at $-1,047,393. \nCapital Assets and Debt Administration \nCapital Assets At the end of fiscal year 2004, the School District had $12,000,572 invested in capital assets. Table 4, shown below, indicates balances as of June 30, 2004. Since this is the first year the School District has been required to prepare financial statements following GASB Statement 34, capital asset comparisons to fiscal year 2003 are not available. \nVl \n \n WARREN COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities Fiscal Year 2004 \n \nLand Land Improvements Buildings Equipment \n \n$ \n \n70,070 \n \n63,164 \n \n11,141,266 \n \n726,072 \n \nTotal \n \n$ 12,000,572 \n \nThe only increase occurred in equipment. \n \nDebt At June 30, 2004, the School District had $8,070,000 in bonds outstanding with $360,000 due within one year. \n \nCurrent Issues \n \nThe Warren County Board of Education has been no exception in being impacted by the decline in funding due to economic setbacks in the state and national economy over the past few years. As of June 30, 2004, the School District has lost approximately $265,616 in austerity reductions of state funding in the last two fiscal years. To offset this reduction in funds, the School District opted not to rollback the millage rate in a recent property reevaluation, which led to an increase in tax revenue. \n \nContacting the School District's Financial Management \n \nThis financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances and to reflect the School District's accountability for the money it receives. If you have any questions about this report or need additional information, contact Fran Hutcheson, Finance Director at the Warren County Board of Education, P.O. Box 228, Warrenton, Georgia 30828. \n \nVll \n \n WARREN COUNTY BOARD OF EDUCATION \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2004 \nASSETS \nInvestments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n186,912 \n \n146,330 419,395 329,561 \n228 10,305 \n \n70,070 64,600 11,393,126 1,433,830 -961 054 \n \n$ ===1=3=,0=9=3,=3=03= \n \n$ \n \n378,347 \n \n459,721 \n \n748,045 \n \n206,967 \n \n360,000 7 710 000 \n \n$ \n \n9,863,080 \n \n$ \n \n3,930,572 \n \n96,120 147,920 372,199 \n18 -1316606 \n \n$ \n \n3,230,223 \n \n$ ======13=,0=9=3=,3=03= \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2004 \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \n \n$ \n \n4,447,137 \n \n104,503 247,842 196,830 638,515 \n679,860 $ \n223,272 639,716 440,981 \n27,314 22,909 \n \n80,986 577,982 445 819 \n \n8,773,666 $ \n \n27,697 \n48,067 36,429 112193 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \nTotal General Revenues \n \nChange in Net Assets \n \nNet Assets - Beginning of Year {Restated) \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n3,952,922 $ \n \n47,579 40,278 69,780 434,115 209,204 \n \n224,724 161,566 \n \n9,632 442,975 \n \n$ \n \n5,592,775 $ \n \n15,740 $ 687 614 \n37,001 \n2,959 57 001 $ \n \n-478,475 \n-56,924 -207,564 -126,363 -204,400 -442,959 -223,272 -414,378 -242,414 \n-27,314 -22,909 \n-23,287 -95,619 -445 819 \n-3,011,697 \n \n$ \n \n1,762,700 \n \n293,320 \n \n20,052 \n \n447,119 30,301 13,483 \n388,040 4,204 85833 \n \n$ \n \n3,045,052 \n \n$ \n \n33,355 \n \n3,196,868 \n \n$ ======3=,2=3=0=,2=23= \n \n-5- \n \n WARREN COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2004 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund (Deficit) \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n$ \n \n67,716 \n \n399,395 \n \n329,561 \n \n228 \n \n10,305 \n \n$ 81,518 $ \n \n18 \n \n186,894 \n \n20,000 \n \n106,924 \n \n81,518 186,912 \n174,640 419,395 329,561 \n228 10 305 \n \n$ 807,205 $ \n \n20,018 $ 375,336 $ 1,202,559 \n \n$ 439,865 $ \n459,721 748,045 206,967 \n$ 1,854,598 $ \n \n20,000 20,000 \n \n$ 459,865 \n459,721 748,045 206,967 \n$ 1,874,598 \n \n$ \n \n96,120 \n \n137,615 \n \n10,305 \n$ \n \n-1,291,433 \n$ -1,047,393 $ \n \n$ $ 375,336 \n18 \n \n96,120 137,615 375,336 \n10,305 18 \n \n-1,291,433 \n18 $ 375,336 $ -672,039 \n \n$ 807,205 $ \n \n20,018 $ 375,336 $ 1,202,559 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2004 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \n \n$ \n \n-672,039 \n \n$ \n \n70,070 \n \n64,600 \n \n11,393,126 \n \n1,433,830 \n \n-961,054 \n \n12,000,572 \n \n-28,310 \n \n-8,070,000 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ ====-3,..,23...,0=,2=2=3 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,862,438 43,784 \n3,913,973 $ 2,103,843 \n112,193 2,084 \n85,833 \n$ 8,124,148 $ \n \n$ 20,000 \n20,000 $ \n \n303,654 $ 447,119 \n2,120, 752,893 $ \n \n2,166,092 490,903 \n3,933,973 2,103,843 \n112,193 4,204 \n85,833 \n8,897,041 \n \n$ 4,345,303 \n104,503 247,842 191,823 634,731 679,860 221,876 635,236 394,076 \n27,314 22,909 80,986 569,742 \n$ \n \n$ -29,607 \n \n14157 \n \n$ 8,170,358 $ \n \n$ \n \n-46,210 $ \n \n-29,607 $ 49607 $ \n \n$ \n5,180 \n320,000 431,662 756,842 $ \n-3 949 $ \n \n4,345,303 \n104,503 247,842 191,823 634,731 679,860 227,056 635,236 394,076 \n27,314 22,909 80,986 569,742 -29,607 \n320,000 445 819 \n8,897,593 \n-552 \n \n$ \n \n53,058 \n \n$ \n \n$ \n \n53,058 $ \n \n$ \n \n6,848 $ \n \n-1,054,241 \n \n-49 607 $ -49,607 $ \n0 $ 18 \n \n$ -3 451 \n-3451 $ -7,400 $ 382,736 \n \n53,058 -53,058 \n0 -552 -671 487 \n \nFund Balances - Ending \n \n$ -1,047,393 $ \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n18 $ \n \n375,336 $ ==-6=7=2a!=,0=39= \n \n WARREN COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2004 \n \nEXHIBIT F 11 11 \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \n \n$ \n \n-552 \n \n$ 26,330 -222,403 \n \n-196,073 -90,020 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ===3=3=,3=5=5 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2004 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Cash Overdraft Funds Held for Others \nTotal Liabilities NET ASSETS Held in Trust for Private Purposes \nTotal Liabilities and Net Assets \n \nPRIVATE PURPOSE TRUSTS \n \nAGENCY FUNDS \n \n$ \n \n91,011 \n \n$ \n \n201000 \n \n$ \n \n20,000 $ ===:,;9~1,!,;;0~11,;,,,, \n \n$ \n \n492 \n \n$ \n \n91 011 \n \n$ \n \n492 $ \n \n91 011 \n \n$ \n \n191508 \n \n$ \n \n201000 $ ===9=1=01=1= \n \nThe notes to the basic financial statements are an integral part of this statement. - 10 - \n \n WARREN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2004 \nADDITIONS Investment Earnings Interest \nDEDUCTIONS Scholarships Change in Net Assets \nNet Assets - Beginning \nNet Assets - Ending \n \nEXHIBIT\"H\" \n \nPRIVATE PURPOSE TRUSTS \n \n$ \n \n169 \n \n$ \n \n500 \n \n$ \n \n-331 \n \n19,839 \n \n$ ===19:!'=50=8= \n \nThe notes to the basic financial statements are an integral part of this statement. - 11 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Warren County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists ofall the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Warren County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 12 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund types: \n Private Purpose Trust fund reports a trust arrangement, the Otis E. Williams Memorial Scholarship, under which principal and income benefit an eligible student in Warren County. \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and \n- 13 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \ninterest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \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. \nFor fiscal year 2004, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2004 financial statements to record costs for salaries and fringe benefits earned by employees through June 30, 2004, (even though paid in July and August 2004) and the related revenue due from the State to fund these contracts. Adjustments were also made for the similar salaries, benefits and related State revenues earned in fiscal year 2003 and recorded in fiscal year 2004. \nThe net effect of the above accounting treatment results in the accompanying financial statements reflecting costs for those salaries and benefits earned by employees during fiscal year 2004 and the related State revenue to fund these contracts. In addition, both the net assets and fund balance at July 1, 2003, have been restated for salaries and benefits earned by employees in fiscal year 2003 but not paid until July and August 2003 and for the related State revenue for these contracts. This change is in accordance with generally accepted accounting principles. See Restatement of Prior Year Fund Balance. \nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \nIn prior years, the financial activities of the School District's School Food Services Fund and Athletic Fund were reported as Special Revenue Funds. These funds had a combined fund balance of $213,133 at July 1, 2003. For fiscal year 2004, these funds have been reported as part of the General Fund. In addition, Agency Fund activity from certain school activity accounts, which were reported in the prior year's financial statements as governmental fund activity, have been reported within Agency Funds for fiscal year ended June 30, 2004. The Agency Fund activity ofthese school activity accounts had a fund balance of$41,030 at July 1, 2003. This change is in accordance with generally accepted accounting principles. \n \n- 14 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGeneral Fund Balance July 1, 2003 \n \n$ -763,234 \n \nAdd Funds Consolidated with General Fund: School Food Services Fund Athletic Fund \n \n238,208 -25,075 \n \nDeduct Funds Consolidated with General Fund: School Activity Account - Agency Activity \n \n41,030 \n \nAdd: State Revenue Related to July and August 2003 Salary Payments Earned by Employees in Fiscal Year 2003 \n \n412,603 \n \nDeduct: July and August 2003 Salary Payments Earned by Employees in Fiscal Year 2003 \n \n875 713 \n \nGeneral Fund Balance July 1, 2003 (Restated) \n \n$ -1,054,241 \n \nCHANGES IN ACCOUNTING PRINCIPLES \n \nThe Warren County Board of Education has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2004. \n \nThe provisions ofGASB Statement No. 34 require the inclusion of a Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \n \nGeneral Fund (Restated) July 1, 2003 Capital Projects Fund Debt Service Fund \n \n$ -1,054,241 18 \n382,736 \n \nGovernmental Funds (Restated) July 1, 2003 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable \n \n$ -671,487 12,935,296 -738,651 61,710 -8,390,000 \n \nNet Assets Beginning (See Exhibit \"B\") \n \n$ 3)96,868 \n \n- 15 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables \n- 16 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \ndisclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Warren County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on October 15, 2003 (levy date). Taxes were due on January 7, 2004 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Warren 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, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $1,842,386 and for school bonds amounted to $303,654. \n \nTax millage rates levied for the 2003 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.98 mills 2.53 mills \n \n17.51mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $447,119 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \n- 17 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ \n \n5,000 20 to 80 years \n \n$ \n \n5,000 50 to 80 years \n \n$ \n \n5,000 5 to 50 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nDEFICIT FUND BALANCES \n \nFunds reporting a deficit fund balance at June 30, 2004, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGeneral Fund \n \n$ 1,291,433 \n \nThe School District intends to fund the deficit by reducing expenditures and through the sale of an old school building. \n \n- 18 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $368,644. The amounts of the total bank balances are classified into three categories of credit risk: \n \n- 19 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 149,729 \n \n2 \n \n0 \n \n3 \n \n218,915 \n \nTotal \n \n$==3==68-,6==4===4 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \n \nAt June 30, 2004, the carrying value ofthe School District's total investments was $186,912 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nTxne oflnvestment \n \nU.S. Government \n \n$ \n \nLocal Government Investment Pools \n \nTotal Investments \n \nRisk Categories 2 \n \n$ \n \n18 $ \n \nCarrying \n \nFair \n \n3 \n \nAmount \n \nValue \n \nQ $ \n \n18 $ \n \n18 \n \n186,894 \n \n186,894 \n \n$ \n \n186 212 $ \n \n186,912 \n \n-20 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission (SEC) as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNote 5: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \n- 21 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 5: CAPITAL ASSETS \n \nBalances July 1, 2003 (Restated) \n \nIncreases \n \nBalances Decreases June 30, 2004 \n \nGovernmental Activities \n \nCapital Assets, Not Being Depreciated: \n \nLand \n \n$ \n \n70 070 $ \n \n0 $ \n \n0 $ \n \n70 070 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 11,393,126 1,407,500 $ 64,600 \n \n$ 26,330 \n \n0 $ 11,393,126 1,433,830 64,600 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n125,270 612,663 \n718 \n \n126,590 95,095 \n718 \n \n251,860 707,758 \n1 436 \n \nTotal Capital Assets, Being Depreciated, Net $ 12,126,575 $ -196,073 $ \n \n0 $ 11,930,502 \n \nGovernmental Activity Capital Assets - Net $ 12,196,645 $ -126,Q:Z3 $ \n \n0 $ 12,000,572 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 132,451 \n \n$ \n \n5,776 \n \n5,168 \n \n54,108 \n \n65,052 24,900 \n \n$.=~2~22~,4~0~3 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2004, were as follows: \n \n- 22 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects Bond Proceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n \n81,518 \n \n$ \n \n186,894 \n \n$ \n \n18 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2004, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nDistrict-wide \n \nCapital \n \nDebt Service \n \nProjects \n \nFunds \n \nGeneral Fund \n \n$ \n \n49 607 $===='3-4~5~1 \n \nTransfers are used to move local funds from the District-wide Capital Projects Fund to the General Fund and to move funds from the Debt Service Fund to the General Fund for the repayment of a loan. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District has elected to self-insure for all losses related to acts of God. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \n \n- 23 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2003 2004 \n \nBeginning ofYear Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n$ \n \n3 475 $ \n \n13 149 $ \n \n15 172 $ \n \n1 452 \n \n$ \n \n1452 $ \n \n21,851 $ \n \n15,429 $ \n \n7 874 \n \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 $2,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 100,000 \n \n$ \n \n10,000 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \n- 24- \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 9: SHORT-TERM DEBT \n \nBeginning Balance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ 360,000 $ 550,000 $ 910,000 $===0 \n \nAt December 31, 2003, the School District was unable to repay tax anticipation notes in the amount of $760,000 as required by Georgia laws. \n \nNote 10: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1999 \n \n4.35% - 5.55% $ 8,070,000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2003 \n \n$ 8,390,000 \n \nDeductions Debt Retired \n \n320,000 \n \nBalance June 30, 2004 \n \n$ 8,070.000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 360,000 \n \nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 25 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"I\" \n \nNote 10: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2005 2006 2007 2008 2009 2010 - 2014 2015 - 2019 \n \n$ 360,000 $ 417,103 \n \n395,000 \n \n400,362 \n \n415,000 \n \n381,798 \n \n435,000 \n \n361,877 \n \n460,000 \n \n340,780 \n \n2,710,000 \n \n1,333,950 \n \n3,295,000 \n \n531,668 \n \nTotal Principal and Interest \n \n$ 8,070,000 $ 3,767,538 \n \nNote 11: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of$54,780 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $54,074 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $706 \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nNote 13: SUBSEQUENT EVENTS \n \nIn the subsequent fiscal year, the School District issued general obligation refunding bonds in the amount of $6,610,000. The proceeds from these bonds will be used for refunding a portion of School bonds dated December 1, 1999. \n \n- 26 - \n \n WARREN COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30. 2004 \n \nEXHIBIT \"I\" \n \nNote 13: SUBSEQUENT EVENTS \n \nOn July 20, 2004, the voters of Warren 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 Warren County, is as follows: \n \n\"Shall a special one percent sales and use tax for educational purposes be reimposed in Warren County for a period not to exceed 20 calendar quarters (5 years) for the purpose of raising not more than $2,300,000 ofnet proceeds by said tax, to be used for paying a portion of the outstanding principal and interest on the Warren County School District General Obligation School Bonds, Series 1999, the maximum amount of principal and interest to be paid with sales and use tax proceeds will be $2,300,000?\" \n \nNote 14: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2004 2003 2002 \n \n100% 100% 100% \n \n$ 356,761 $ 392,452 $ 355,499 \n \n- 27 - \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOther Sources \nNet Change in Fund Balances \nFund Balances - Beginning (Restated) \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n1,676,920 $ \n \n1,676,920 $ \n \n1,862,438 \n \n43,784 \n \n3,883,242 \n \n3,899,742 \n \n3,913,973 \n \n1,733,724 \n \n1,733,724 \n \n2,103,843 \n \n112,193 \n \n2,084 \n \n85 833 \n \n$ \n \n7,293,886 $ \n \n7,310,386 $ \n \n8124148 \n \n$ \n \n5,077,333 $ \n \n5,227,500 $ \n \n4,345,303 \n \n77,528 214,284 165,481 381,565 508,280 122,862 593,685 351,020 \n29,181 28,527 19,312 486,262 \n \n76,254 348,237 173,481 318,010 535,328 122,862 577,310 351,020 \n29,181 34,567 30,211 486,262 \n \n104,503 247,842 191,823 634,731 679,860 221,876 635,236 394,076 \n27,314 22,909 80,986 569,742 14 157 \n \n$ \n \n8,055,320 $ \n \n8,310,223 $ \n \n8,170,358 \n \n$ \n \n-761,434 $ \n \n-999,837 $ \n \n-46,210 \n \n53 058 \n \n$ \n \n-761,434 $ \n \n-999,837 $ \n \n6,848 \n \n-256,997 \n \n-256,997 \n \n-1,054,241 \n \n-243,060 \n \n-243,060 \n \n$ \n \n-1 261 491 $ \n \n-1,499,894 $ \n \n-1,047,393 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Direct Twenty-First Century Community Learning Centers Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading Excellence - Local Reading Improvement Rural Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA \n \n(2) \n \nN/A $ _ _ _-'5'--'1-'-4'-\"9-'-12~ \n \n$ \n \n514,912 \n \n10.550 \n \nN/A \n \n26476 \n \n$ _ _ _.;:..54.;..;1...:3=8-\"--8 \n \n84.027 84.173 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n217,118 34,916 \n252,034 \n \n84.287 \n84.318 84.367 * 84.338 84.358 84.186 84.298 * 84.010 84.048 \n \nN/A N/A N/A N/A N/A N/A N/A NIA \n$ \n \n287,072 \n51,472 113,910 458,566 \n24,756 10,987 \n9,656 463,003 \n17,766 \n1,689,222 \n \nTotal Federal Financial Assistance \n \n$ \n \n2,230,610 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($122,019) were not maintained separately and are included in the 2004 National School Lunch Program. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 30- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright from the Start: Georgia Department of Early Care and Leaming Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle 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 CategoryV Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs At-Risk Summer School Program Health Insurance Limited School Choice Program Mentor Teachers Preschool Handicapped Program \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n105,935 \n \n$ \n \n105,935 \n \n157,097 67,243 \n343,606 293,131 200,902 113,893 \n17,466 491,118 452,886 \n39,564 \n478 125,607 \n66,634 13,769 38,432 69,474 23,132 14,022 \n239,456 192,192 210,343 \n161,566 37,001 \n150,370 34,521 2,979 9,008 3,680 \n295,497 28,354 3,264 \n-182,091 \n12,000 54,074 12,811 \n336 13,517 \n \n$ 706 \n \n20,000 \n \n157,097 67,243 \n343,606 293,131 200,902 113,893 \n17,466 491,118 452,886 \n39,564 \n478 125,607 \n66,634 13,769 38,432 69,474 23,132 14,022 \n239,456 192,192 210,343 \n161,566 37,001 \n150,370 34,521 2,979 9,008 3,680 \n295,497 28,354 3,264 \n-182,091 \n12,000 54,074 12,811 \n336 13,517 \n20,000 \n706 \n \nSee notes to the basic financial statements. \n \n$ \n \n3,913,973 $ \n \n20,000 $ \n \n3,933,973 \n \n- 31 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"4\" \n \nPROJECT \nAcquiring land. constructing and equipping a new middle/high school for Warren County and capitalizing interest through October 1. 2000 \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 3,300,000 $ 12,977,802 $ \n \n402,055 $ 12,575,747 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds. state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n- 32 - \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Alternative Education Program \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \n$ \n \n183,705 $ \n \n219,783 $ \n \n1,200 $ \n \n220,983 \n \n78,942 \n \n89,032 \n \n1,207 \n \n90,239 \n \n417,478 \n \n452,078 \n \n3,212 \n \n455,290 \n \n322,819 \n \n274,502 \n \n793 \n \n275,295 \n \n237,078 \n \n246,551 \n \n3,799 \n \n250,350 \n \n137,934 93,778 494,798 526,520 55,773 245,896 \n45 097 \n \n77,267 351,844 \n661,237 115,597 \n154,618 83,833 25,843 \n \n354 11,114 \n17,555 16,327 \n355 1,799 24 500 \n \n77,621 362,958 \n678,792 131,924 \n154,973 85,632 50 343 \n \n$ \n \n2,839,818 $ 2,752,185 $ \n \n82,215 $ \n \n2,834,400 \n \n81,559 16,389 \n \n157,579 24,486 \n \n9,937 59,992 \n \n167,516 84,478 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n2,937,766 $ 2,934,250 $ \n \n152144 $==~3,~08~6~,3~9~4 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 29, 2005 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Warren County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Warren County Board of Education's basic financial statements and have issued our report thereon dated July 29, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Warren County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Warren County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7491-04-02, FS-7491-04-03, FS-7491-04-04, FS-7491-04-05, FS-7491-04-06, FS-7491-04-07 andFS-7491-0409. \n2004YB-40 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, of the reportable conditions described above, we consider items FS-7491-04-03 and FS-7491-04-07 to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Warren County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use of the management and members of the Warren County Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \nr .,?. (l)__\u0026-0~ Rr,ell W. Hinton State Auditor \nRWH:gp 2004YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 29, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Warren County Board ofEducation 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. Warren County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe 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 Warren County Board of Education's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular 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 Warren 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 Warren County Board of Education's compliance with those requirements. \n2004SA-65 \n \n As described in item FA-7491-04-01 in the accompanying Schedule of Findings and Questioned Costs, Warren County Board of Education did not comply with requirements regarding Allowable Costs/Cost Principles that are applicable to its Reading Excellence - Local Reading Improvement program. Compliance with such requirements is necessary, in our opinion, for Warren County Board of Education to comply with requirements applicable to that program. \nIn our opinion, except for the noncompliance described in the preceding paragraph, the Warren County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2004. \nInternal Control Over Compliance \nThe management of Warren 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 Warren 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. \nWe noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Warren County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-7491-04-01, FA-7491-04-02, FA-7491-04-03 and FA-7491-0404. \nA material weakness is a reportable condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with the applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, of the reportable conditions described above, we consider item FA-7491-04-01 to be a material weakness. \n2004SA-65 \n \n This report is intended solely for the information and use of the management, members of the Warren County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~ w...J.-k Russell W. Hinton State Auditor \nRWH:gp 2004SA-65 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7491-01-03 FS-7491-01-04 FS-7491-02-01 FS-7491-03-01 FS-7491-03-02 FS-7491-03-03 FS-7491-03-04 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $8,404.21 Finding Control Number: FS-7491-01-04 \n \nWe concur with finding. All efforts are being made to catch this type of error. \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-7491-03-01 \n \nWe agree with this finding. All efforts are being made to balance the budget. \n \nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-7491-03-02 \n \nWe agree with this finding. \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $6,148.21 Finding Control Number: FS-7491-03-04 \n \nWe agree with this finding. All efforts are being made to prevent payroll errors. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7491-03-01 \n \nPreviously Reported Corrective Action Implemented \n \n-2- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Warren County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts General Ledger \n \nExpenditures/Liabilities/Disbursements Employee Compensation Budget Preparation/Execution \n \nOf the reportable conditions described above, Cash and Cash Equivalents, Revenues/ Receivables/Receipts, Expenditures/Liabilities/Disbursements and General Ledger are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Warren County Board ofEducation disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nAllowable Costs/Cost Principles Cash Management \n \nSpecial Tests and Provisions \n \nOfthe reportable conditions described above, Allowable Costs/Cost Principles is considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was qualified. \n \n6. Audit Findings Required to be Reported by Section .5 IO(a) of 0MB Circular A-133 The Warren County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n-I - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nI SUMMARY OF AUDITOR'S RESULTS \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies 84.338 Reading Excellence - Local Reading Improvement \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBOARD MEETINGS Board Meeting Minutes Exceptions Nonmaterial Noncompliance Finding Control Number: FS-7491-04-01 \nAn examination of the minutes of the regular and called meetings of the Warren County Board of Education for the year under review revealed that the minutes from five meetings could not be provided. \nThe Official Code of Georgia Annotated Section 20-2-57(a) states in part: \n\"The superintendent or the board's nominee shall record in a book, to be provided for the purpose, all official proceedings ofthe local board, which shall be a public record open to the inspection of any person interested therein; and all such proceedings, when so recorded, shall be signed by the chairperson and countersigned by the secretary.\" \nThis condition was a result of the School District's disregard for the specific requirements of the Official Code of Georgia Annotated Section 20-2-57(a). The School District should implement procedures to ensure that all minutes are properly recorded and documented as required. \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-7491-04-02 \nAt June 30, 2004, the General Fund ofthe Warren County Board ofEducation reported a deficit fund balance in the amount of $1,291,433, which is considered to be an irregularity in accordance with O.C.G.A. 20-2-67. This condition occurred because management approved expenditures in excess offunds available in the General Fund. The School District should establish appropriate policies and procedures designed to ensure that in future periods the School District does not report a deficit. \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition - Material Weakness Finding Control Number: FS-7491-04-03 \nA review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over the control categories as noted below: \nCASH AND CASH EQUIVALENTS  The bank reconciliation function was not separated from the record keeping, check preparation, and deposit functions. \n No administrative review was performed to determine that bank reconciliations were correct and that all required adjustments had been made. \n The bank reconciliation for the operating account and school activity accounts included unidentified reconciling amounts of $18,230 and $5,206, respectively, at June 30, 2004. \nREVENUES/RECEIVABLES/RECEIPTS  The deposit preparation function was not separated from the record keeping and cash custody functions. \n Our examination of the principals' accounts disclosed that based on a review of 15 receipts, the School District was unable to provide supporting documentation to ensure that receipts were deposited to the bank account in a timely manner, posted to the proper account or the amount deposited was correct. \n-3 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition - Material Weakness Finding Control Number: FS-7491-04-03 \nEXPENDITURES/LIABILITIES/DISBURSEMENTS  The check writing function was not separated from record keeping or processing of signed checks. \n Our examination ofthe principals' accounts disclosed that based on a review of 15 items, six had no documentation indicating prior approval ofpurchases included with voucher packets, three had no supporting documentation, three had a check date that preceded the requisition date and one had supporting documentation that did not agree with the check amount. \nSeparation of duties involving key accounting functions is the basis ofachieving an adequate system of internal control. These deficiencies were a result ofmanagement's decision to limit the number of administrative staffmade responsible for accounting functions at each location. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff. Internal controls should be implemented by the School District to ensure that all bank accounts are reconciled to the general ledger. \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Follow State Travel Regulations Reportable Condition Nonmaterial Noncompliance Finding Control Number: FS-7491-04-04 \nAn examination of the School District's travel expenditures was performed to test the validity and accuracy ofexpenditure transactions. The School District did not comply with travel regulations of the Georgia Department of Education as set forth in the Financial Management of Georgia Local Units of Administration. In addition, the School District failed to comply with the requirements of the Georgia Department ofAudits and Accounts for reporting travel on the detail listing of salary and travel. The expenditures examined revealed the following deficiencies: \n Three employees were paid travel stipends in the total amount of $7,042. State travel regulations require that employees be reimbursed for actual travel expenses incurred. \n Travel expenses for Board Members in the amount of $2,456 are not included on the detail listing of salary and travel submitted to the Georgia Department of Audits and Accounts. \n-4 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Follow State Travel Regulations Reportable Condition Nonmaterial Noncompliance Finding Control Number: FS-7491-04-04 \nThese conditions resulted from the School District's failure to implement internal controls to ensure that travel expenditures are in compliance with state travel regulations and are properly reported to the Georgia Department of Audits and Accounts. Internal controls should be implemented by the School District to ensure that all travel expenditures are in compliance with state travel regulations and are properly reported. \nEMPLOYEE COMPENSATION Payroll Sample Exceptions Reportable Condition Amount: $6,369 Finding Control Number: FS-7491-04-05 \nA sample of compensation payments to 25 employees disclosed the following deficiencies in regard to the payroll process: \n A salary overpayment in the amount of $4,747 was made to one employee. The School District used an incorrect salary base rate in calculating pay for this individual. \n A salary underpayment in the amount of $1,607 was made to one employee. The School District used an incorrect salary base rate in calculating pay for this individual. \n A salary underpayment in the amount of $15 was made to one employee. The School District used an incorrect daily rate in calculation pay for this individual. \n Salary payments to Board Members in the amount of $9,287 are not included on the detail listing of salary and travel submitted to the Georgia Department of Audits and Accounts. \nThese deficiencies were a result of management's failure to establish appropriate internal controls over the payroll process and to ensure that all compensation is reported to the Georgia Department of Audits and Accounts. Appropriate action should be taken by the School District to ensure that all personnel are paid in accordance with approved salary schedules and approved policies, and that all compensation is reported to the Georgia Department of Audits and Accounts. The School District should secure reimbursement of$4,747 for the salary overpayment from the employee involved and review the underpayments to determine ifadditional compensation is due to the employees involved. \n-5- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Inadequate Documentation Reportable Condition Amount: $85,497 Finding Control Number: FS-7491-04-06 \nDuring fiscal years 2004 and 2005, the finance officer of Warren County Board of Education received total payments of $85,497 for accumulated overtime earned during fiscal years 1996 to 2003. The School District was unable to provide the original records documenting the occurrence of such overtime. In addition, the finance officer received $4,500 in compensation from another local board of education for consulting services that appear to have been performed during normal business hours while employed by the Warren County Board ofEducation. The School District was unable to provide leave records that indicate personal leave was taken by the finance officer while performing these services. \nTheses deficiencies were a result of management's failure to implement adequate internal controls over the employee compensation function. Management should implement policies and procedures to ensure that all overtime pay is properly documented and employee leave records are maintained. The School District's Board should review these payments to determine if a refund of the undocumented payments is warranted. \nGENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Material Weakness Finding Control Number: FS-7491-04-07 \nAn examination of the School District's internal control procedures over the journal entry function noted the following deficiencies: \n Journal entry documentation and descriptions were not provided for all journal entries. \n All journal entries were not reviewed and approved by someone independent of the general ledger journal entry function. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Internal controls should be implemented by the School District to ensure that all journal entries are properly reviewed and documented. \n-6- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nGENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-7491-04-08 \nOn December 31, 2003, the General Fund had unpaid tax anticipation notes in the amount of $760,000. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia provides, in part, as follows: \n\"The governing authority ofany county, municipality or other political subdivision ofthis state may incur debt by obtaining temporary loans in each year to pay expenses... Such loans shall be payable on or before December 31 of the calendar year in which such loan is made. No such loan may be obtained when there is a loan unpaid obtained in any prior year.\" \nThis condition occurred because of management's failure to retire the entire loan on December 31, 2003, as required. Repayment ofloans should be made in conformity with constitutional limitations. \nGENERAL LEDGER Inadequate Accounting Procedures Reportable Condition Finding Control Number: FS-7491-04-09 \nThe School District's Federal programs had deficit balances at June 30, 2004, totaling $43,514. There were no revenues or related receivables recorded for these deficit balances. This condition occurred because management failed to monitor Federal program expenditures and/or request appropriate funds from Federal agencies. The School District should implement procedures to ensure that Federal program expenditures are monitored and/or appropriate funds are requested from Federal agencies. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nALLOWABLE COSTS/COST PRINCIPLES Improper Expenditures Reportable Condition - Material Weakness Material Noncompliance Amount: $69,881 U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-01 \nA review of the expenditures of the Reading Excellence - Local Reading Improvement Program (CFDA 84.338) revealed various charges for expendable equipment ($67,517) and math textbooks \n-7- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nALLOWABLE COSTS/COST PRINCIPLES Improper Expenditures Reportable Condition - Material Weakness Material Noncompliance Amount: $69,881 U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-01 \n($2,364) that were not included in the approved program budget. Documentation to determine the allowability ofthese expenditures could not be provided by the School District. This condition was a result of management's failure to implement procedures to ensure that only costs that support the program are charged to the Reading Excellence - Local Reading Improvement Program. \nMeasures need to be implemented to assure that only those costs included in an approved program budget are charged to a Federal program. Further, the Georgia Department of Education should review this matter to determine if, in line with Reading Excellence program requirements, the School District will be responsible for making a refund to Georgia Department of Education for these unallowable expenditures. \nCASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-02 \nA review of cash management procedures for the Title I Grants to Local Educational Agencies Program funds (CFDA No. 84.010) disclosed that cash draws were made in advance of immediate cash needs resulting in the accumulation ofexcessive cash balances. The Title I program maintained excessive ending monthly cash balances for six months of the year under review. \nThis condition occurred because the School District did not have procedures in place to accurately forecast cash needs on the required \"Contract Budget and Monthly Cumulative Contract Expenditure Report\". Procedures should be implemented to accurately forecast cash needs based on actual expenditures incurred in order to minimize or eliminate the time elapsing between the transfer of funds from the Georgia Department ofEducation and the disbursement of such funds by the School District. \n-8- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nSPECIAL TESTS AND PROVISIONS Failure to Invite Private Schools to Participate Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-04-03 \nThe School District could not provide documentation of contact with appropriate private school officials to determine whether they intended to participate in the Reading Excellence - Local Reading Improvement (CFDA 84.338) Program. This contact is required by 34 CFR 200.10 which states, in part, as follows: \n\"An LEA may receive funds under this part only if it implements programs, activities, and procedures for the involvement ofparents ofparticipating public and private school children.\" \nThis noncompliance occurred because of the Schools District's failure to monitor the Reading Excellence Program requirements as set forth in 34 CFR 200.10. Procedures should be established to ensure that all eligible private schools are invited to include their eligible students in the participation of the Reading Excellence Program as required. \nREPORTING Submission of Inaccurate Federal Program Completion Reports Reportable Condition Nonmaterial Noncompliance Amount: $7,921 Finding Control Number: FA-7491-04-04 \nAn examination of the School District's compliance with Georgia Department of Education instructions and regulations for Federal Programs revealed that the School District submitted Federal program completion reports that underreported the amount ofexpenditures incurred by the Board for two Federal assistance programs. As a result, the Board failed to return unearned grant funds. An unearned balance remained at June 30, 2004, per the School District's accounting records, as follows: \n \nSpecial Education (CFDA 84.173) Vocational Education (CFDA 84.048) \n \n$6,921 $ 1,000 \n \nThis deficiency occurred because personnel failed to accurately reflect expenditures on the completion reports and there were no procedures in place to ensure that completion reports are submitted with accurate data. \n \n-9 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS REPORTING Submission oflnaccurate Federal Program Completion Reports Reportable Condition Nonmaterial Noncompliance Amount: $7,921 Finding Control Number: FA-7491-04-04 The School District should submit corrected completion reports with documentation supporting expenditures and return the unearned Federal grant funds for these two Federal programs to the Georgia Department of Education. \n- 10 - \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-7491-04-01 \nWe concur with this finding. The Board will ensure that all minutes are properly recorded and documented as required. \nFinding Control Number: FS-7491-04-02 \nWe concur with this finding. \nWe are in the process of trying to reduce this deficit. The millage rate was raised by two (2) mills and several teaching positions were eliminated. \nFinding Control Number: FS-7491-04-03 \nWe concur with this finding. We are a small school system with very few employees at the central office. We are in the process oftrying to separate duties even more. The General Operating Account bank statement was reviewed and initialed by the Superintendent. The Debt Service and Capital Projects were not. The Superintendent will review and initial all bank statements. The Superintendent will also review and initial any adjustments needed to clear all reconciling amounts on each bank statement. \nWe have a small staff in each of our schools. We are in the process of trying to separate duties in each school. Every month each school will submit to the finance officer a copy ofeach deposit and check that was written. This information will be entered into PC Genesis. Each month all expenditures are approved by the Board. This will allow them to see and approve all expenditures for the school accounts. The Warren County High School has a new bookkeeper and is changing the way the records are kept. \nFinding Control Number: FS-7491-04-04 \nWe concur with this finding. All Board Member salary is now run through the payroll. This will allow the salary and travel to show up on the CS-1 report. \nFinding Control Number: FS-7491-04-05 \nWe concur with this finding. A letter will be written to request reimbursement for the salary overpayment. Reimbursement will be made to the employees that were underpaid. The Finance Officer will implement extra checks to stop this type of error in the future. \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-7491-04-06 We concur with this finding. Each year a cumulative form is completed with all absences listed. After this is compiled, each individual form is discarded. This would include each monthly personal leave request, sick leave form and professional leave form for each school system employee. Any time that is worked for another school system is deducted from personal leave. All of this is approved by the Superintendent. In the future each individual form will be kept until the financial audit is completed for that school year. Finding Control Number: FS-7491-04-07 We concur with this finding. All journal entries will be placed in a notebook in numerical order. Each one is signed by the Superintendent. Finding Control Number: FS-7491-04-08 We concur with this finding. Due to the financial status of the school system we were unable to retire the loan by December 31s1, All loans are currently paid in full. Finding Control Number: FS-7491-04-09 We concur with this finding. At year end the general fund will transfer fund to any program that has a deficit balance. Finding Control Number: FA-7491-04-01 We concur with this finding. All efforts are being made to ensure that proper expenditures and purchase are being made from all grants and programs. Finding Control Number: FA-7491-04-02 We concur with this finding. All efforts are being made to ensure that the correct amount ofrevenue is drawn that is needed. Finding Control Number: FA-7491-04-03 We concur with this finding. All efforts are being made to ensure that all Federal Programs will be included in the private school letter. \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 Finding Control Number: FA-7491-04-04 We concur with this finding. All efforts are being made to accurately report expenditures on completion reports. Any unexpended funds will be returned to the Georgia Department of Education. Contact Person: Fran Hutcheson, Finance Officer Phone: (706) 465-3383 Ext. 303 Fax Number: (706) 465-9141 E-mail Address: fhutches@doe.kl2.ga.us \n-3 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2002-h2003","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2003-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":"WARREN COUNTY BOARD OF EDUCATION \nWARRENTON, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS-OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUPS \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \n\" \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUND \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n6 \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIALSTATEMENTS \n \n7 \n \nADDITIONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n22 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n24 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n27 \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n28 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n29 \n \nFIDUCIARY FUND TYPES \n \nK \n \nCOMBINING BALANCE SHEET \n \n30 \n \nL \n \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUNDS \n \n31 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n35 \n \n2 SCHEDULE OF STATE REVENUE \n \n37 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n38 \n \n4 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n39 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nMarch 30, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements of the Warren County Board of Education, as of and for the year ended June 30, 2003, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Warren County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States 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 opm10n. \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows: \n \n2003ARL-14 \n \n * The Board of Education did not recognize as expenditures, in the year ended June 30, 2003, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2003. Also funds received, subsequent to June 30, 2003, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2002, were improperly recorded in the year ended June 30, 2003. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements ofthis variance or omission have not been determined, but are believed to be material. \nIn our opinion, except for the effects on the general-purpose financial statements of the matter referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Warren County Board of Education as ofJune 30, 2003, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nAs discussed in Note 1 to the general-purpose financial statements, during fiscal year 2003, the Board ofEducation completed a comprehensive inventory ofits general fixed assets for inclusion in the general-purpose financial statements. This change is in accordance with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated March 30, 2004, on our consideration ofthe Warren 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. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Warren County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) and the financial schedules (Schedules 1 through 4), which includes the Schedule of Expenditures of Federal Awards as required by U. S Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the 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 matter 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. \n2003ARL-14 \n \n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted, \n~\"' ,..(XL tp~-='s,. ~sell W. Hinton State Auditor \nRWH:as 2003ARL-14 \n \n WARREN COUNTY BOARD OF EDUCATION \n \n WARREN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUPS JUNE 30. 2003 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nDue from Other Funds \nInventories Food Donated Commodities Purchased Food \nGeneral Fixed Assets Land Buildings Improvements Other than Buildings Equipment \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \nTotal Assets \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nDEBT SERVICE \nFUND \n \n$ \n \n24,896.20 $ \n \n175,551.19 \n \n17.85 \n \n131,447.47 \n \n$ \n \n86,238.01 $ \n \n580,556.56 \n \n108,040.40 \n \n74,176.17 \n \n1,561.15 \n \n2,730.22 2,087.16 \n \n$ \n \n86,238.01 $ \n \n585,373.94 $ \n \n132,954.45 $ \n \n382,735.98 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Due to Other Funds Funds Held for Others General Obligation Bonds Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated Deficit \nTotal Fund Equity \n \n$ \n \n162,953.16 $ \n \n62,915.77 \n \n323,135.17 \n \n51,777.02 \n \n1,822.77 \n \n104,193.67 \n \n360,000.00 \n \n1,561.15 \n \n$ 153,354.57 \n \n122,936.60 10,000.00 \n \n$ \n \n849,472.25 $ \n \n372,241.03 $ \n \n132,936.60 \n \n$ \n \n99,087.51 \n \n$ \n \n2,730.22 \n \n2,087.16 \n \n$ \n \n0.00 -862,321.75 \n \n233,390.46 -25,074.93 \n \n$ \n \n-763,234.24 $ \n \n213,132.91 $ \n \n$ \n \n382,735.98 \n \n17.85 0.00 \n \n0.00 \n \n17.85 $ \n \n382,735.98 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n86,238.01 $ \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -2- \n \n585,373.94 $ \n \n132,954.45 $ \n \n382,735.98 \n \n EXHIBIT\"A\" \n \nFIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS \n \n$ \n \n35,162.05 \n \n20,000.00 \n \nACCOUNT GROUPS \n \nGENERAL \n \nGENERAL \n \nFIXED \n \nLONG-TERM \n \nASSETS \n \nDEBT \n \nTOTALS \n \n(Memorandum Onl~) \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ \n \n235,609.44 $ \n \n715,801.58 \n \n151,465.32 \n \n3,907,224.62 \n \n849,011.14 \n \n341,687.98 \n \n1,561.15 \n \n$ \n \n70,069.83 \n \n11,393,126.35 \n \n64,600.00 \n \n1,407,500.27 \n \n$ \n \n382,735.98 \n \n8,007,264.02 \n \n2,730.22 2,087.16 \n70,069.83 11,393, 126.35 \n64,600.00 1,407,500.27 \n382,735.98 \n8,007,264.02 \n \n5,712.16 1,593.62 \n645,594.90 8,164,405.10 \n \n$ \n \n55,162.05 $ 12,935,296.45 $ 8,390,000.00 $ 22,567,760.88 $ 13,782,019.96 \n \n$ \n \n35,323.42 \n \n$ \n \n35,323.42 \n \n$ \n \n225,868.93 $ \n \n97,161.96 \n \n374,912.19 \n \n193,323.19 \n \n106,016.44 \n \n89,808.84 \n \n360,000.00 \n \n30,932.18 \n \n122,936.60 \n \n673,989.53 \n \n10,000.00 \n \n454,546.90 \n \n153,354.57 \n \n1,561.15 \n \n35,323.42 \n \n39,779.72 \n \n$ 8,390,000.00 \n \n8,390,000.00 \n \n8,810,000.00 \n \n$ 8,390,000.00 $ 9,779,973.30 $ 10,389,542.32 \n \n$ \n \n19,838.63 $ 12,935,296.45 \n \n$ \n \n19,838.63 $ 12,935,296.45 \n \n$ \n \n99,087.51 $ \n \n95,703.99 \n \n382,735.98 \n \n645,594.90 \n \n2,730.22 2,087.16 \n17.85 \n13,188,525.54 -887,396.68 \n$ 12,787,787.58 $ \n \n5,712.16 1,593.62 1,755,629.13 \n913,723.84 -25,480.00 \n3,392,477.64 \n \n$ \n \n55,162.05 $ 12,935,296.45 $ 8,390,000.00 $ 22,567,760.88 $ 13,782,019.96 \n \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2003 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations \nCapital Outlay Debt Service \nPrincipal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 (Restated) \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nGENERAL FUND \n \nGOVERNMENTAL FUND \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 4,515,264.05 $ \n \n181,476.93 $ \n \n2,089,743.92 \n \n1,608,499.13 \n \n178,032.71 \n \n73,619.11 \n \n$ 6,301,795.89 $ 2,344,839.96 $ \n \n108,040.40 \n11,290.36 119,330.76 \n \n$ 4,527,913.80 $ 1,316,990.04 \n \n103,371.39 248,850.39 141,134.48 189,760.66 562,984.90 124,980.67 672,755.11 378,432.82 \n \n58,373.74 37,915.24 \n1,424.15 254,440.39 166,149.28 \n24,525.55 21,201.76 \n \n343.59 \n \n680,161.91 38,135.43 $ \n \n2,487,464.60 \n \n$ 6,950,527.81 $ 2,599,317.49 $ 2,487,464.60 $ -648,731.92 $ -254,477.53 $ -2,368, 133.84 \n \n$ $ -647,741.16 \n$ -647,741.16 $ \n \n35,218.60 $ \n \n612,522.56 \n \n35,218.60 $ \n \n612,522.56 \n \n$ -1,296,473.08 $ 533,238.84 \n \n-219,258.93 $ -1,755,611.28 \n \n434,880.24 \n \n1,755,629.13 \n \n-2,981.94 493.54 \n \nFUND BALANCE JUNE 30 \n \n$ -763,234.24 $ \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4- \n \n213,132.91 $====1=7.=85= \n \n EXHIBIT\"B\" \n \nTYPES DEBT \nSERVICE FUND \n \nTOTAL \n \nFIDUCIARY FUND TYPE EXPENDABLE TRUST FUND \n \nTOTALS \n \n(Memorandum Only) YEAR ENDED \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ 4,804,781.38 \n \n2,089,743.92 \n \n$ \n \n603,589.99 \n \n2,212,089.12 \n \n4,408.19 \n \n267,350.37 $ \n \n$ \n \n607,998.18 $ 9,373,964.79 $ \n \n$ \n646.64 646.64 $ \n \n4,804,781.38 $ 2,089,743.92 2,212,089.12 \n267,997.01 \n9,374,611.43 $ \n \n5,534,257.62 1,067,710.68 2,121,849.73 \n565,231.18 \n9,289,049.21 \n \n$ 5,844,903.84 \n \n161,745.13 286,765.63 142,558.63 444,201.05 $ 729,134.18 124,980.67 697,280.66 399,634.58 \n \n680,505.50 38,135.43 \n2,487,464.60 \n \n$ \n \n420,000.00 \n \n449,312.50 \n \n1,544.60 \n \n420,000.00 449,312.50 \n1,544.60 \n \n$ \n \n870,857.10 $ 12,908,167.00 $ \n \n$ \n \n-262,858.92 $ -3,534,202.21 $ \n \n$ 5,844,903.84 $ 4,763,935.58 \n \n1,200.00 \n \n161,745.13 286,765.63 142,558.63 445,401.05 729,134.18 124,980.67 697,280.66 399,634.58 \n680,505.50 38,135.43 \n2,487,464.60 \n \n126,194.15 205,871.23 176,500.73 379,743.70 742,977.62 114,009.31 503,292.73 442,129.49 \n20,078.71 610,044.49 \n45,657.46 7,230,825.69 \n \n420,000.00 449,312.50 \n1,544.60 \n \n240,000.00 463,597.50 \n2,234.00 \n \n1,200.00 $ 12,909,367.00 $ 16,067,092.39 \n \n-553.36 $ -3,534, 755.57 $ -6,778,043.18 \n \n$ \n \n647,741.16 \n \n-647,741.16 \n \n$ \n \n0.00 \n \n$ \n \n-262,858.92 $ -3,534,202.21 $ \n \n645,594.90 \n \n3,369,343.11 \n \n-2,981.94 493.54 \n \n$ \n \n647,741.16 \n \n-647,741.16 \n \n$ \n \n0.00 \n \n-553.36 $ -3,534, 755.57 $ -6,778,043.18 \n \n20,391.99 \n \n3,389,735.10 \n \n10,170,005.14 \n \n-2,981.94 493.54 \n \n393.04 122.64 \n \n$ \n \n382,735.98 $ \n \n-167,347.50 $ \n \n19,838.63 $ \n \n-147,508.87 $ 3,392,477.64 \n \n-5 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \n$ 4,863,035.00 $ 4,515,264.05 \n \n1,486,817.75 125,000.00 \n \n1,608,499.13 178,032.71 \n \nTotal Revenues \n \n$ 6,474,852.75 $ 6,301,795.89 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations \n \n$ 3,930,061.51 $ 4,527,913.80 \n \n81,130.69 271,439.74 172,149.85 266,277.34 496,850.52 118,361.56 611,972.11 340,915.27 \n \n103,371.39 248,850.39 141,134.48 189,760.66 562,984.90 124,980.67 672,755.11 378,432.82 \n \n343.59 \n \nTotal Expenditures \n \n$ 6,289,158.59 $ 6,950,527.81 \n \nExcess of Revenues over (under) Expenditures $ 185,694.16 $ -648,731.92 \n \nOTHER FINANCING SOURCES (USES) \n \nOther Sources Other Uses \n \n-647,741.16 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures and Other Financing \n \nUses \n \n$ \n \n185,694.16 $ -1,296,473.08 \n \nFUND BALANCE JULY 1. 2002 (Restated) \n \n489,023.50 \n \n533,238.84 \n \nFUND BALANCE JUNE 30. 2003 \n \n$ 674,717.66 $ -763,234.24 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ 241,862.55 $ 1,825,859.85 \n$ 2,067,722.40 $ \n \n181,476.93 2,089,743.92 \n73,619.11 \n2,344,839.96 \n \n$ 1,337,647.70 $ \n32,950.00 116,262.14 \n45,000.00 47,197.71 \n17,000.00 \n19,006.26 454,667.86 \n17,000.00 \n$ 2,086,731.67 $ \n$ -19,009.27 $ \n \n1,316,990.04 \n58,373.74 37,915.24 \n1,424.15 254,440.39 166,149.28 \n24,525.55 21,201.76 \n680,161.91 38,135.43 \n2,599,317.49 \n-254,477.53 \n \n35,218.60 \n \n$ -19,009.27 $ 403,312.03 \n \n-219,258.93 427,574.46 \n \n$ 384,302.76 $ ====2=08=,3=1=5.=53= \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -6- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Warren 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. \nFUND ACCOUNTING \nThe School District uses funds and account groups 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. \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 groups presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. \n \n-7- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nFIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \nEXPENDABLE TRUST FUND Otis E. Williams Memorial Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship awards to be made at the discretion of the School District. \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUPS \nGENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District. \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after year- \n-8- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2003, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2002 and ending in early June 2003. Personnel contracts for this employment period 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 were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2003, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2003, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2003. Also, the State's portion ofthe compensation paid in July and August 2003 was received and recorded as revenue in the fiscal year subsequent to June 30, 2003. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2002, were recorded in the year ended June 30, 2003. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nRESTATEMENT OF PRIOR YEAR FUND BALANCE \nIn prior years, certain school activity accounts of the School District were reported in the General Fund. These accounts had a fund balance of$2,742.54 at June 30, 2002. For fiscal year 2003, these accounts have been reported in Agency Funds. The fund balances at July 1, 2002, have been restated as appropriate. \nBUDGET \nThe Warren County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The \n-9- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nbudget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the fund level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \n \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. \n \nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \n \nSpecial Revenue \nFund \n \nFUND BALANCE JULY I, 2002 \n \n$ 434,880.24 \n \nAdjustments Inventories - July 1, 2002 Food Donated Commodities Purchased Foods \n \n-5,712.16 -1,593.62 \n \nFund Balance July 1, 2002 (Budget Basis) \n \n$ 427,574.46 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \n \n-219,258.93 \n \nFUND BALANCE JUNE 30, 2003 (Budget Basis) \n \n$ 208,315.53 \n \n- 10 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables \n- 11 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nare recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Warren County Board ofCommissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on December 2, 2002 (levy date). Taxes were due on February 18, 2003 (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 fiscal year 2003. The Warren County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2003 for maintenance and operations amounted to $1,578,517.97 and for school bonds amounted to $183,391.44. \n \nTax millage rates levied for the 2002 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n13.250 mills 1.533 mills \n \n14.783 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $420,198.55 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \n \n- 12 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nGENERAL FIXED ASSETS \nDuring fiscal year 2003, the School District completed a comprehensive inventory of its general fixed assets for inclusion in the general-purpose financial statements. General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \n \n- 13 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2003 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nDEFICIT FUND BALANCES \n \nFunds reporting a deficit fund balance position at June 30, 2003, are as follows: \n \nFund Type/Fund Name \n \nDeficit Balances \n \nGeneral Fund Special Revenue Fund \nAthletic Fund \n \n$ 862,321.75 $ 25,074.93 \n \nThe School District intends to fund the deficit in the General Fund by increasing the mileage rate for School Operations by 1.73 mills in the subsequent period. The School District intends to fund the deficit in the Athletic Fund by reducing expenditures in the subsequent period. \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be -equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \n \nAcceptable security for deposits consists of any one of or any combination ofthe following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, \n \n- 14 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $572,897.44. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 67,754.10 \n \n2 \n \n0.00 \n \n3 \n \n505,143.34 \n \nTotal \n \n$ 572,897.44 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \n- 15 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nTTJNE 30, 2003 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nAt June 30, 2003, the carrying value of the School District's total investments was $131,465.32 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nTyue of Investment \n \nU. S. Government \n \n$ \n \nLocal Government Investment Pools \n \nTotal Investments \n \nRisk Categories 2 \n \n0.00 $ \n \n11.85 $ \n \nCarrying \n \nFair \n \n3 \n \nAmount \n \nValue \n \n000 $ \n \n17.85 $ \n \n17.85 \n \n131,447.47 \n \n131,447.47 \n \n$ 131 465 32 $ 131 465.32 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U.S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \n \n- 16 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: GENERAL FIXED ASSETS \n \nThe following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year: \n \nLand \n \nBuildings \n \nImprovements Other Than \nBuildings \n \nEguiument \n \nTotal \n \nBalance July 1, 2002 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \nRetroactive Restatement of Prior Year Balances \n \n70,069.83 \n \n351,311.35 \n \n0.00 1,277,027.00 1,698,408.18 \n \nBalance July 1, 2002 Restated \n \n$ 70,069.83 $ 351,311.35 $ \n \n0.00 $ 1,277,027.00 $ 1,698,408.18 \n \nAdditions \n \n11,041,815.00 \n \n64,600.00 \n \n130,473.27 11,236,888.27 \n \nBalance June 30, 2003 \n \n$ 10,062.83 $11,323,126.35 $ 64,600.QQ $ 1,401 500 21 $12,935,226.45 \n \nNote 5: INTERFUND ASSETS AND LIABILITIES \n \nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the School District at June 30, 2003: \n \nDue From Other Funds \n \nDue To Other Funds \n \nGeneral Fund Debt Service Fund \nProperty Taxes for Bond Debt Special Purchase Local Option Sales Tax \n \n$ 1,561.15 \n \n$ 6,306.15 \n \n4,745.00 \n \n$ 62306.15 $ 62306.15 \n \nNote 6: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n- 17 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 6: RISK MANAGEMENT \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \nThe School District 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. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning ofYear Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2002 2003 \n \n$ \n \n1,757.92 $ \n \n4,453.02 $ \n \n2,736.40 $ \n \n3,474.54 \n \n$ \n \n3 474.54 $ 13,149.50 $ 15,172.04 $ \n \n1,452.00 \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 100,000.00 $ 10,000.00 \n \n- 18 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 7: OPERATING LEASES \n \nWarren County Board ofEducation has entered into various leases as lessee for portable classrooms. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2003, amounted to $23,840.32. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nAmount \n \n2004 2005 \n \n$ 18,084.00 16,577.00 \n \nTotal \n \n$ 34,661.00 \n \nNote 8: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1999 \n \n4.35% - 5.55% $ 8,390,000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \n \nGeneral Obligation \nBonds \n \nBalance July 1, 2002 \n \n$ 8,810,000.00 \n \nDeductions Debt Retired \n \n420,000.00 \n \nBalance June 30, 2003 \n \n$ 8,390,000.00 \n \nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 19 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 8: GENERAL LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2004 2005 2006 2007 2008 2009-2013 2014 - 2018 2019 \n \n$ 751,662.50 777,102.50 795,362.50 796,797.50 796,877.50 \n4,028,177.50 4,104,915.00 \n538,305.00 \n \nTotal Principal and Interest \n \n$12,589,200.00 \n \nNote 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nBeginning Balance \n \nAdditions \n \nPayments \n \nEnding Balance \n \nTax Anticipation Notes \n \n$.=====o=.o~o $ 860,000.00 $ soo,000.00 $ 360,000.00 \n \nAt December 31, 2003, the School District was unable to repay the above temporary loan as required by Georgia Laws. \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $62,434.03 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $50,696.03 \n \n- 20 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2003 \n \nNote 10: ON-BEHALF PAYMENTS \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $11,738.00 \n \nNote 11: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nNote 12: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2003 2002 2001 \n \n100% 100% 100% \n \n$ 392,451.50 $ 355,499.38 $ 388,838.05 \n \n- 21 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2003 \n \nASSETS \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n259,187.81 $ \n \n22.656.30 \n \n2,730.22 2,087.16 \n \nTotal Assets \n \n$ \n \n264,005.19 $ ==,.,;2;;;;;2;:,;;,6;,;;;5,;;,;6,;;;,30;;,., \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Deficit \nTotal Fund Equity \n \n$ \n \n2,738.63 $ \n \n23,058.72 \n \n5,658.70 16,997.60 \n \n$ \n \n25,797.35 $ \n \n22,656.30 \n \n$ \n \n2,730.22 \n \n2,087.16 \n \n233,390.46 $ \n \n0.00 \n \n$ \n \n238,207.84 $ \n \n0.00 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n264,005.19 $ ===2=2=,6=56==30= \n \nSee notes to the general-purpose financial statements. \n \n-22- \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \nATHLETIC FUND \n \nTOTALS \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ \n \n0.00 $ \n \n281,844.11 $ \n \n494,281.60 \n \n$ \n \n580,556.56 \n \n580,556.56 \n \n151,552.27 \n \n2,730.22 2,087.16 \n \n5,712.16 1,593.62 \n \n$ \n \n580,556.56 $ \n \n0.00 $ \n \n867,218.05 $==6=5=3=,1=3=9.=65= \n \n$ \n \n319,690.89 $ \n \n43,373.75 \n \n64,137.35 \n \n153,354.57 \n \n$ \n \n580,556.56 $ \n \n25,068.99 $ 5.94 \n25,074.93 $ \n \n344,759.88 $ 51,777.02 104,193.67 \n153,354.57 \n654,085.14 $ \n \n79,419.71 26,347.10 89,808.84 22,683.76 \n218,259.41 \n \n$ \n \n2,730.22 $ \n \n5,712.16 \n \n2,087.16 \n \n1,593.62 \n \n$ \n \n0.00 $ \n \n0.00 \n \n233,390.46 \n \n453,054.46 \n \n-25,074.93 \n \n-25,074.93 \n \n-25,480.00 \n \n$ \n \n0.00 $ \n \n-25,074.93 $ \n \n213,132.91 $ \n \n434,880.24 \n \n$ \n \n580,556.56 $ \n \n0.00 $ \n \n867,218.05 $ ====65=3,=13=9.=65= \n \n- 23 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2003 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n32,184.00 $ \n \n149,292.93 \n \n392,144.07 \n \n36,077.85 \n \n$ \n \n460,405.92 $ \n \n149,292.93 \n \n$ \n \n85,548.05 \n \n39,106.94 74.90 \n \n119.00 24,444.04 \n \n$ \n \n680,069.92 \n \n$ \n \n680,069.92 $ \n \n$ -219,664.00 $ \n \n149,292.93 0.00 \n \n$ -219,664.00 $ \n \n0.00 \n \n460,360.24 \n \n0.00 \n \n-2,981.94 493.54 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n238,207.84 $====~0-,;;,00;;;,. \n \nSee notes to the general-purpose financial statements. \n \n- 24 - \n \n EXHIBIT\"F\" \n \nFEDERAL PROGRAMS \n \nATHLETIC FUND \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ 1,697,599.85 51.23 $ \n$ 1,697,651.08 $ \n \n$ 37,490.03 37,490.03 $ \n \n181,476.93 $ 2,089,743.92 \n73,619.11 \n2,344,839.96 $ \n \n206,520.98 1,067,710.68 \n85,317.51 \n1,359,549.17 \n \n$ 1,231,441.99 \n \n19,266.80 37,840.34 \n1,424.15 254,440.39 127,228.97 $ \n81.51 21,201.76 \n \n91.99 38,135.43 \n \n$ 1,731,153.33 $ \n \n$ \n \n-33,502.25 $ \n \n$ 38,801.31 \n38,801.31 $ -1,311.28 $ \n \n1,316,990.04 $ \n58,373.74 37,915.24 \n1,424.15 254,440.39 166,149.28 \n24,525.55 21,201.76 \n680,161.91 38,135.43 \n2,599,317.49 $ \n-254,477.53 $ \n \n674,448.16 \n37,343.36 37,066.16 \n60,021.31 46,386.44 \n3,695.61 8,275.38 20,078.71 520,278.94 \n1,407,594.07 \n-48,044.90 \n \n33,502.25 \n \n1,716.35 \n \n35,218.60 \n \n$ \n \n0.00 $ \n \n405.07 $ \n \n-219,258.93 $ \n \n-48,044.90 \n \n0.00 \n \n-25,480.00 \n \n434,880.24 \n \n482,409.46 \n \n-2,981.94 493.54 \n \n393.04 122.62 \n \n$ \n \n0.00 $ \n \n-25,074.93 $ \n \n213,132.91 $==4=3=4=,8=80==22= \n \n-25- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2003 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTotal Assets \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ \n \n24,896.20 $ \n \n24,896.20 $ \n \n77.66 \n \n$ \n \n17.85 \n \n17.85 \n \n2,884,087.90 \n \n108,040.40 \n \n108,040.40 \n \n$ \n \n17.85 $ \n \n132,936.60 $ \n \n132,954.45 $ 2,884,165.56 \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nContracts Payable Retainages Payable \n \nTotal Liabilities \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Purpose of Bond Issue \n \n$ \n \nUnreserved \n \nUndesignated \n \nTotal Fund Equity \n \n$ \n \nTotal Liabilities and Fund Equity $ \n \n$ \n \n122,936.60 $ \n \n122,936.60 $ \n \n673,989.53 \n \n10,000.00 \n \n10,000.00 \n \n454,546.90 \n \n$ \n \n132,936.60 $ \n \n132,936.60 $ 1,128,536.43 \n \n17.85 0.00 $ 17.85 $ \n \n$ 0.00 0.00 $ \n \n17.85 $ 0.00 17.85 $ \n \n1,755,629.13 0.00 \n1,755,629.13 \n \n17.85 $ \n \n132,936.60 $ \n \n132,954.45 $ 2,884,165.56 \n \nSee notes to the general-purpose financial statements. \n \n-26 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"H\" \n \nREVENUES \nState Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCapital Outlay Professional and Technical Services Building and Building Improvements \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ \n \n108,040.40 $ \n \n108,040.40 $ \n \n901,610.85 \n \n$ \n \n11,290.36 \n \n11,290.36 \n \n270,620.48 \n \n$ \n \n11,290.36 $ \n \n108,040.40 $ \n \n119,330.76 $ 1,172,431.33 \n \n$ \n \n0.00 $ \n \n89,625.44 $ \n \n89,625.44 \n \n2,397,839.16 \n \n2,397,839.16 $ 7,159,244.59 \n \n$ \n \n0.00 $ 2,487,464.60 $ 2,467,464.60 $ 7,159,244.59 \n \n$ \n \n11,290.36 $ -2,379,424.20 $ -2,368, 133.84 $ -5,986,813.26 \n \n$ $ -1, 766,901.64 \n$ -1,766,901.64 $ \n \n2,379,424.20 $ 2,379,424.20 $ 6,257,633.74 \n \n-1,766,901.64 \n \n-6,257,633.74 \n \n2,379,424.20 $ \n \n612,522.56 $ \n \n0.00 \n \n$ -1,755,611.28 $ 1,755,629.13 \n \n0.00 $ -1,755,611.28 $ -5,986,813.26 \n \n0.00 \n \n1,755,629.13 \n \n7,742,442.39 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n17.85 $ \n \n0.00 $ \n \n17.85 $ 1,755,629.13 \n \nSee notes to the general-purpose financial statements. \n \n-27- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2003 \n \nEXHIBIT\"!\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable Due From Other Funds \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ 175,220.94 $ \n \n330.25 $ \n \n175,551.19 $ \n \n260,690.32 \n \n131,447.47 \n \n131,447.47 \n \n303,136.72 \n \n6,239.37 \n \n67,936.80 \n \n74,176.17 \n \n81,767.86 \n \n6,306.15 \n \n6,306.15 \n \nTotal Assets \n \n$ 181,460.31 $ \n \n206,020.67 $ \n \n387,480.98 $ ===6=4=5,5=9=4.=90= \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nDue to Other Funds \n \n$ \n \n4,745.00 \n \nFUND EQUITY \n \nFund Balances Reserved For Debt Service Unreserved Undesignated \n \n$ 176,715.31 $ 0.00 \n \nTotal Fund Equity \n \n$ 176,715.31 $ \n \n$ \n \n4,745.00 \n \n206,020.67 $ 0.00 \n206,020.67 $ \n \n382,735.98 $ 0.00 \n382,735.98 $ \n \n645,594.90 0.00 \n645,594.90 \n \nTotal Liabilities and Fund Equity $ 181,460.31 $ \n \n206,020.67 $ \n \n387,480.98 $ =====64=5=,5=9=4.=90= \n \nSee notes to the general-purpose financial statements. \n \n-28 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"J\" \n \nCOMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \n \nDEBT SERVICE FUND \n \nYEAR ENDED JUNE 30. 2003 \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30. 2003 JUNE 30. 2002 \n \nREVENUES \nTaxes Other Funds \nTotal Revenues EXPENDITURES \n \n$ 183,391.44 $ 1,219.62 \n$ 184,611.06 $ \n \n420,198.55 $ 3,188.57 \n \n603,589.99 $ 4,408.19 \n \n615,695.77 9,730.63 \n \n423,387.12 $ 607,998.18 $ 625,426.40 \n \nDebt Service Principal Interest Paying Agent Fees \n \n$ 130,000.00 $ 143,451.09 60.60 \n \nTotal Expenditures \n \n$ 273,511.69 $ \n \nExcess of Revenues over (under) Expenditures $ -88,900.63 $ \n \nFUND BALANCE JULY 1 \n \n265,615.94 \n \n290,000.00 $ 305,861.41 \n1,484.00 \n \n420,000.00 $ 449,312.50 \n1,544.60 \n \n240,000.00 463,597.50 \n2,234.00 \n \n597,345.41 $ 870,857.10 $ 705,831.50 \n \n-173,958.29 $ -262,858.92 $ -80,405.10 \n \n379,978.96 \n \n645,594.90 \n \n726,000.00 \n \nFUND BALANCE JUNE 30 \n \n$ 176,715.31 $ \n \n206,020.67 $ 382,735.98 $ 645,594.90 \n \nSee notes to the general-purpose financial statements. \n \n- 29 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2003 \n \nEXHIBIT\"K\" \n \nCash and Cash Equivalents Investments \n \nEXPENDABLE TRUST FUND \nOTISE. WILLIAMS MEMORIAL SCHOLARSHIP \nFUND \n \nAGENCY FUNDS \n \nTOTALS \n \nJUNE 30, 2003 \n \nJUNE 30, 2002 \n \n$ \n \n35.323.42 $ \n \n35,323.42 $ \n \n40,171.71 \n \n$ \n \n20,000.00 \n \n20,000.00 \n \n20,000.00 \n \nTotal Assets \n \n$ \n \n20,000.00 $ \n \n35,323.42 $ \n \n55,323.42 $ ===60=,1;.;,7.;.;1.;.,71= \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Funds Held for Others \nTotal Liabilities \nFUND EQUITY \nFund Balances Unreserved Undesignated \n \n$ \n \n161.37 \n \n$ \n \n161.37 \n \n$ \n \n35,323.42 \n \n35,323.42 $ \n \n39,779.72 \n \n$ \n \n161.37 $ \n \n35,323.42 $ \n \n35,484.79 $ \n \n39,779.72 \n \n19,838.63 \n \n0.00 \n \n19,838.63 \n \n20,391.99 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n20,000.00 $ \n \n35,323.42 $ \n \n55,323.42 $ ===60=,1;,;,7.;.;1=71= \n \nSee notes to the general-purpose financial statements. \n \n- 30- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2003 \n \nEXHIBIT\"L\" \n \nCHRISTMAS CLUB \nASSETS Cash and Cash Equivalents \n \nBALANCE JULY 1, 2002 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2003 \n \n$ \n \n20,884.58 $ \n \n31,762.00 $ \n \n31,076.00 $ ==.;2;,;,1~5,;,;70=.5;;;;8= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n20,884.58 $ \n \n31,762.00 $ \n \n31,076.00 $===2=1=,5=70=.5=8= \n \nMILDRED E. FREEMAN ELEMENTARY SCHOOL \n \nBETA CLUB \n \nASSETS \n \nCash and Cash Equivalents \n \n$ \n \n228.82 $ \n \n110.00 $ \n \n470.15 $ ===-=1=31=.3=3= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n228.82 $ \n \n110.00 $ \n \n470.15 $===-.;,1;;.31;,,;;.3;;;;3;,,, \n \nCOKE AND CRACKER MACHINE \nASSETS Cash and Cash Equivalents \n \n$ \n \n8,554.04 $ \n \n3,532.95 $ \n \n1,783.47 $===1=0'!:3=03=.5=2= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n8,554.04 $ \n \n3,532.95 $ \n \n1,783.47 $ ===1=0=,3=03==52= \n \nFIELD TRIPS \nASSETS Cash and Cash Equivalents \n \n$ \n \n151.51 $ \n \n1,066.40 $ \n \n465.00 $ ===.;,7,;;;;52;;;;;;.91= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n151.51 $ \n \n1,066.40 $ \n \n465.00 $ ===.;,7,;;;;52;;;;;;.91= \n \nINSURANCE \nASSETS Cash and Cash Equivalents \n \n$ \n \n21.50 $ \n \n0.00 $ \n \n0.00 $ ======21=.5=0= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n21.50 $ \n \n- 31 - \n \n0.00 $ \n \n0.00 $ ======21;,;;.5;;;;0;,,, \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2003 \n \nEXHIBIT \"L\" \n \nBALANCE JULY 1, 2002 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2003 \n \nMILDRED E. FREEMAN ELEMENTARY SCHOOL \n \nKINDERGARTEN GRADUATION \n \nASSETS Cash and Cash Equivalents \n \n$ \n \n667.29 $ \n \n1,214.00 $ \n \n1,618.70 $====2=62=.5=9= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n667.29 $ \n \n1,214.00 $ \n \n1,618.70 $====2=62=.5=9= \n \nMEMORIAL FUND \nASSETS Cash and Cash Equivalents \n \n$ \n \n-119.00 $ \n \n0.00 $ \n \no.oo $===-=1=19=.o=o= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n-119.00 $ \n \n0.00 $ \n \no.oo $===-=1=19=.o=o= \n \nPAPER AND PENCIL FUND \nASSETS Cash and Cash Equivalents \n \n$ \n \n6,033.44 $ \n \n1,891.18 $ \n \n1,301.76 $ ======6,=6=22=.8=6= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n6,033.44 $ \n \n1,891.18 $ \n \n1,301.76 $ ======6=,6=22=.8=6= \n \nSPIRIT COMMITTEE \nASSETS Cash and Cash Equivalents \n \n$ \n \n186.70 $ \n \n0.00 $ \n \n0.00 $====1=86=.7=0= \n \nLIABILITIES \n \nFunds Held for Others \n \n$ \n \nWARREN COUNTY HIGH SCHOOL \n \nFUTURE BUSINESS LEADERS OF AMERICA \n \nASSETS \n \nCash and Cash Equivalents \n \n$ \n \n186.70 $ -3,235.56 $ \n \n0.00 $ \n \n0.00 $====1=86=.7=0= \n \n15,487.61 $ \n \n21,633.39 $ ===-=9,=3=81=.3=4= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n-3,235.56 $ \n \n15,487.61 $ \n \n21,633.39 $ ===-=9,=3=81=.3=4= \n \n- 32 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS \nYEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"L\" \n \nWARREN COUNTY HIGH SCHOOL \nFUTURE FARMERS OF AMERICA \nASSETS Cash and Cash Equivalents \n \nBALANCE \nJULY 1, 2002 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE \nJUNE 30, 2003 \n \n$ \n \n3,251.94 $ \n \n6,316.00 $ \n \n6,301.61 $ \n \n3,266.33 \n \nLIABILITIES Funds Held for Others \n \n$ \n \n3,251.94 $ \n \n6,316.00 $ \n \n6,301.61 $ ==~3~,2=66~.3~3= \n \nFUTURE HOMEMAKERS OF AMERICA \n \nASSETS \n \nCash and Cash Equivalents \n \n$ \n \n481.66 $ \n \n0.00 $ \n \n0.00 $ ===.,;,4;;.81=.6=6= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n481.66 $ \n \n0.00 $ \n \n0.00 $ ===,.;,4;;;,81;,;;.6;;;6;.. \n \nYEARBOOKS \nASSETS Cash and Cash Equivalents \n \n$ \n \n2,672.80 $ \n \n9,486.20 $ \n \n10,604.47 $ ==~1,l,;;;5;;;,54;,;;.5;;;3= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n2,672.80 $ \n \n9,486.20 $ \n \n10,604.47 $ ====1,;;;,5=54==53= \n \nCHEERLEADING \nASSETS Cash and Cash Equivalents \n \n$ \n \n1,223.50 $ \n \n58.25 $ \n \n1,281.75 $====0~-,;;,;00= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n1,223.50 $ \n \n58.25 $ \n \n1,281.75 $====0~-=00= \n \nFAN CLUB \nASSETS Cash and Cash Equivalents \n \n$ \n \n310.29 $ \n \n7,339.29 $ \n \n7,649.58 $ ======0.=00= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n310.29 $ \n \n7,339.29 $ \n \n7,649.58 $====o=.o=o= \n \n- 33- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"L\" \n \nWARREN COUNTY HIGH SCHOOL JUNIOR CLASS ASSETS \nCash and Cash Equivalents \nLIABILITIES Funds Held for Others \nSENIOR CLASS ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nTOTALS - AGENCY FUNDS ASSETS \nCash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nBALANCE JULY 1, 2002 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2003 \n \n$ \n \n10,970.95 $ \n \n6,367.11 $ \n \n17,406.15 $ \n \n-68.09 \n \n$ \n \n10,970.95 $ \n \n6,367.11 $ \n \n17,406.15 $ ====-,;;68;;;.0;;9;,. \n \n$ \n \n-9,762.20 $ \n \n15,941.11 $ \n \n6,178.91 $=======0.=00= \n \n$ \n \n-9,762.20 $ \n \n15,941.11 $ \n \n6,178.91 s====o=.o=o= \n \n$ \n \n42,522.26 $ \n \n100,572.10 $ \n \n107,770.94 $==.;;3~5,:,;;,3;;;;23~.4.;,;2= \n \n$ \n \n42,522.26 $ \n \n100,572.10 $ \n \n107,770.94 $===3=5~,3=23=.4=2= \n \nSee notes to the general-purpose financial statements. \n \n- 34- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool \nTotal Special Education Cluster \nOther Programs Direct Twenty-first Century Community Leaming Centers Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies School Improvement Title II Enhancing Education through Technology Improving Teacher Quality Title VI Innovative Education Program Strategies Rural and Low Income Schools Safe and Drug Free Schools and Communities Reading Excellence - Local Reading Improvement Vocational Education - Basic Grants to States High School Program Basic Grant \nTotal U.S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \nNIA \n \n$ \n \n$ \n \n(2) 663,975.66 (3) \n663,975.66 \n \n10.550 \n \nNIA \n$ \n \n16,094.26 680,069.92 \n \n84.027 84.173 \n* 84.287 \n* 84.010 84.010 84.318 84.367 84.298 84.358 84.186 84.338 \n84.048 \n \nNIA $ NIA \n$ \n \n71,218.57 21,485.93 \n92,704.50 \n \n361,000.40 (3) \n \nNIA \n \n764,994.98 (3) \n \nNIA \n \n14,978.00 \n \nNIA \n \n14,487.00 \n \nNIA \n \n100,471.75 \n \nNIA \n \n20,921.00 \n \nNIA \n \n23,490.23 (3) \n \nNIA \n \n19,133.53 (3) \n \nNIA \n \n296,637.94 (3) \n \nNIA \n \n22,334.00 \n \n$ \n \n1,731,153.33 \n \nTotal Federal Financial Assistance NIA = Not Available \n \n$ =====2=l=,4=1=-1,=22;,;;3,;,;;.2,;;,,5 \n \n- 35- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"1\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($99,779.27) were not maintained separately and are included in the 2003 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements. \n \nSee notes to the general-purpose financial statements. \n \n- 36- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2003 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \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 High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Central Administration Facility Maintenance and Operations School Administration 20 Days Additional Instruction Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Alternative Program Regular Program Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold - Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs 4-8 After School Program Health Insurance K-3 Reading Program Pre-School Handicapped Program \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of School Readiness Pre-Kindergarten Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 153,786.00 67,672.00 431,427.00 166,751.00 209,817.00 \n139,993.00 461,834.00 424,911.00 100,954.00 \n5,828.00 175,329.00 \n45,690.00 38,620.00 71,595.00 14,110.00 \n242,249.00 218,901.00 195,294.00 \n25,202.00 \n \n$ 153,786.00 67,672.00 \n431,427.00 166,751.00 209,817.00 \n139,993.00 461,834.00 424,911.00 100,954.00 \n5,828.00 175,329.00 \n45,690.00 38,620.00 71,595.00 14,110.00 \n242,249.00 218,901.00 195,294.00 \n25,202.00 \n \n169,303.00 43,353.00 \n26,495.00 151,918.00 \n35,742.00 3,126.00 3,931.00 \n166,039.00 326,620.00 \n$ 381,275.42 -83,525.00 \n11,400.00 50,696.03 13,672.60 13,517.00 \n \n32,184.00 \n \n169,303.00 43,353.00 \n26,495.00 151,918.00 \n35,742.00 3,126.00 3,931.00 \n166,039.00 326,620.00 \n32,184.00 381,275.42 -83,525.00 \n11,400.00 50,696.03 13,672.60 13,517.00 \n \n$ 108,040.40 \n \n108,040.40 \n \n149,292.93 \n \n149,292.93 \n \n11,738.00 \n \n11,738.00 \n \nSee notes to the general-purpose financial statements. \n \n$ 4,515,264.05 $ 181,476.93 $ 108,040.40 $ 4,804,781.38  37- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nPROJECT \nAcquiring land, constructing, and equipping a new middle/high school for Warren County and capitalizing interest through October 1, 2000 \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 3,300,000.00 $ 12,575,747.07 $ 2,794,810.01 $ 9,780,937.06 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the general-purpose financial statements. \n \n- 38 - \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Alternative Education Program \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n177,115.00 $ 239,941.30 $ 29,003.97 $ 268,945.27 \n \n77,938.00 \n \n35,468.31 \n \n184.56 \n \n35,652.87 \n \n496,873.00 \n \n647,229.96 \n \n59,137.11 \n \n706,367.07 \n \n192,047.00 \n \n127,188.13 \n \n407.45 \n \n127,595.58 \n \n241,646.00 \n \n319,746.92 \n \n42,367.06 \n \n362,113.98 \n \n161,229.00 531,893.00 489,369.00 116,268.00 261,259.00 \n44,478.00 \n \n101,531.87 619,515.93 752,964.19 157,237.28 \n-576.96 454,920.49 \n-1,506.21 2,126.10 \n \n56,515.51 60,564.13 24,673.63 \n2,622.82 6,135.25 \n38,748.00 \n \n101,531.87 676,031.44 813,528.32 181,910.91 \n2,045.86 461,055.74 \n-1,506.21 40,874.10 \n \n$ \n \n2,790,115.00 $ 3,455,787.31 $ 320,359.49 $ 3,776,146.80 \n \n82,456.00 16,251.00 \n \n130,142.99 \n \n9,475.63 38,983.38 \n \n139,618.62 38,983.38 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n2,888,822.00 $ 3,585,930.30 $ 368,818.50 $ 3,954,748.80 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the general-purpose financial statements. \n \n- 39- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nMarch 30, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of Warren County Board of Education as of and for the year ended June 30, 2003, and have issued our report thereon dated March 30, 2004. This report was qualified for a departure 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 ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Warren 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Warren 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 \n2003YB-40 \n \n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Warren County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7491-03-01, FS-7491-03-02, FS-7491-03-03 and FS-7491-03-04. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider items FS-7491-0302 and FS-7491-03-03 to be material weaknesses. \nThis report is intended solely for the information and use of the management, members of the Warren County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \nw~..k \nRussell W. Hinton State Auditor \nRWH:as 2003YB-40 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nMarch 30, 2004 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Warren County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWarren 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, 2003. Warren County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe 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 Warren County Board of Education's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Warren 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 Warren County Board of Education's compliance with those requirements. \n2003SA-40 \n \n In our opinion, the Warren 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, 2003. \nInternal Control Over Compliance \nThe management of Warren 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 Warren 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. \nWe noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Warren County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7491-03-01. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not considered to be a material weakness. \nThis report is intended solely for the information and use of the management, members of the Warren County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \nw~~ \n \nRWH:as 2003SA-40 \n \nState Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-7491-01-01 FS-7491-01-03 FS-7491-01-04 FS-7491-01-05 FS-7491-02-01 FS-7491-02-02 FS-7491-02-03 \n \nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-7491-01-03 \n \nWe agree with this. Every effort is being made to complete everything in a timely manner. \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $8,404.21 Finding Control Number: FS-7491-01-04 \n \nWe concur with this finding. All efforts are being made to correct errors such as this. \n \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-7491-02-01 \n \nWe agree with finding. All efforts are being made to correct the deficit in the WCHS Athletic Funds. The deficit is reducing each year. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7491-00-04 FA-7491-01-01 FA-7491-01-03 FA-7491-01-04 FA-7491-02-01 FA-7491-02-02 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \n-2- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board of Education's financial statements was qualified for a departure from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Warren County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Employee Compensation Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements Budget Preparation/Execution General Ledger \n \nOf the reportable conditions described above, Cash and Cash Equivalents, Revenues/ Receivables/Receipts, Expenditures/Liabilities/Disbursements and General Ledger are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Warren County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement. \n \nEquipment and Real Property Management \n \nThe reportable condition described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510{a) of 0MB Circular A-133 The Warren County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) of0MB Circular A-133. This audit finding is included in section IV of this report. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nI SUMMARY OF AUDITOR'S RESULTS \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.287 Twenty-first Century Community Learning Centers \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATION/EXECUTION Deficit Fund Balance Reportable Condition Finding Control Number: FS-7491-03-01 \nAt June 30, 2003, the General Fund and Athletic Fund of the Warren County Board of Education reported deficit fund balances in the amount of$862,321.75 and $25,074.93 respectively, which is considered to be an irregularity in accordance with O.C.G.A. 20-2-67. This condition occurred because management approved expenditures in excess of funds available in the General Fund and failed to implement a corrective action plan designed to correct the prior year deficit for the Athletic Fund. The School District should establish appropriate policies and procedures designed to ensure that in future periods the School District does not report a deficit. \nManagement's Response: \nThe Warren County Board ofEducation agrees with this finding. To decrease the deficit balance in the General Fund, the millage rate was increased from 13.25% to 14.98% for fiscal year 2004. An increase will be made again in August 2004 when the millage rate is set for fiscal year 2005. The actual amount of the increase is unknown at this time. \nThe Warren County Board of Education agrees with the finding showing that the Warren County Athletic Accounts are in the deficit. The biggest problem is in correcting the Balance by Fund report that is used by the Auditors. This will be corrected before the end of the 2003-04 school year. Currently the Athletic Accounts are not in the deficit. \n-2 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition - Material Weakness Finding Control Number: FS-7491-03-02 \nA review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over the control categories as noted below: \nCASH AND CASH EQUIVALENTS The bank reconciliation for the operating account included an unidentified reconciling amount of $103,826.01 at June 30, 2003. \nThe bank reconciliation function was not separated from the record keeping, check preparation, and deposit functions. \nThere was no administrative review ofbank reconciliations to determine ifthey were correct and that all required adjustments had been made. \nGENERAL LEDGER Journal entries were not approved by someone independent of the general ledger journal entry function. \nThese conditions were a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions and their failure to institute proper controls over these areas. The School District should review the accounting procedures in place, design procedures which would enhanced segregation of duties and proper internal controls relative to the above categories and implement those procedures to strengthen the internal control over the accounting functions. \nManagement's Response: \nThe Warren County Board of Education agrees with this finding. A journal entry was made during June 2003. The entry was reversed. Only half of the entry posted to the books. This has been corrected. The process of doing monthly bank reconciliation has been changed. Each month, after the reconciliation is completed, it is approved and signed by the Superintendent. At the same time the bank reconciliation is approved, the Superintendent will approve all Journal Entries. \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nREVENUES/RECEIPTS/RECEIVABLES EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Accrue Salaries and Fringe Benefits Reportable Condition - Material Weakness Finding Control Number: FS-7491-03-03 \nAt June 30, 2003, the Warren County Board ofEducation chose not to report expenditures incurred, but not paid, for the General Fund teacher and bus driver contracts, including related employer benefits. In addition, the School District did not report revenues available from the Georgia Department of Education for the State's share ofthese contracts. This omission ofmaterial amounts, by management, is considered to be a financial statement irregularity in accordance with O.C.G.A. 20-2-67 and results in the basic financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. The School District should establish appropriate policies and procedures designed to ensure the School District properly reports expenditures for the General Fund teacher and bus driver contracts and associated revenues available from the Georgia Department of Education for the State's share of these contracts. \nManagement's Response: \nThe Warren County Board of Education agrees with this finding. The accrual of summer salaries, benefits and revenue were not reported. We understood that it was not necessary to book them until fiscal year 2004. All summer salaries, benefits and revenue will be booked at the end of June 2004. \nEMPLOYEE COMPENSATION Payroll Reporting Reportable Condition Amount: $6,148.21 Finding Control Number: FS-7491-03-04 \nA sample ofcompensation payments to 24 employees disclosed deficiencies in regard to the payroll process. Salary overpayments in the total amount of $6, 148.21 were made to three employees in excess of their approved salary schedules. The School District used an incorrect salary base rate in calculating pay for these three individuals. Appropriate action should be taken by the School District to ensure that all personnel are paid in accordance with approved salary schedules and approved policies. The School District should secure reimbursement of $6,148.21 for the salary overpayments from the employees involved. \n-4 - \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Payroll Reporting Reportable Condition Amount: $6,148.21 Finding Control Number: FS-7491-03-04 \nManagement's Response: \nThe Warren County Board of Education agrees with this finding. Three employees were overpaid. $1,177.00 for two of the employees was repaid while the auditors were in the system. A letter will be written requesting reimbursement for $4,971.21. This employee is no longer in Warren County. I was instructed by the Board of Education to pay this employee the $4,971.21. \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nEQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Property Management Records Reportable Condition Nonmaterial Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-7491-03-01 \nThe property management records for the School Breakfast Program (CFDA 10.553) and National School Lunch Program (CFDA 10.555) were incomplete and failed to meet applicable property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). A review ofthe inventory records presented for examination revealed that equipment inventory records did not include the condition ofthe equipment or Federal participation in the cost of the item as outlined in FMGLUA. This condition was the result of management's failure to implement internal controls for monitoring compliance with FMGLUA. An inventory system should be implemented that includes the condition of equipment as outlined in FMGLUA. \nManagement's Response: \nThe Warren County Board of Education agrees with this finding. All inventory cards are being updated. Also, a Master List is being made and kept by the Food Service Director at the Central Office. \n-5- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2001-h2002","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2002-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":"GA. , \nA-1,DD ' ' ,RI \nf 2.l\u003c, \" \n \n\",; \n.' \n \n-' \n \nI \n.' \n \n' , \n \nWlB \n'. too t,;ipo ' , , ; ,. ' \n \n._ \n\" \n l~ ~, \n-. , \n \n,. \n \n'. \n \n\" \n \n' \n \nSTATE OF GEORG- ' IA :. .. \n \no,:' -, ,_-, .., DEPARTMENT AlJDITS A~iD Ac:couNis - \n \n,, \n \nI \n \n-J \n \n \n \n , \n \n' \n \n:.. \n \n \n \n \n \n,,- \n \n- \n \nI \n \n ' \n \n' I : \n \n' \n \n \n \n- \n \n, \n \n'  \n \n' ,, \n \n- \n \n; \n,,  \n \nt \n \n., \n \n; -\u003c \n \n,, \n \n.,.., \n \n'I ', I \n \n, \n \n- . ' \n,, ' \n \n.. \n \n' \n \n' . \n: , \n' '- \n \n'. \n \n' \n \n,. \n \n' \n., \n \n' ' \n \n,.,._ \n \n' ( \n., \n- \n,' r \n \nI ,, \nI \" \n \n- -' '. \n \n,., . ,, \n \n1' ,1. \n \nf' I  \n \n1;\"1 \n \ni, \n \n'.- \n \n' - \n \n r \n \n'. WARREN COUNTY,soARD Of EDUCATION \n \n.. '. \n \nWARR. E-NTO.N,'..G' EORGIA \n \n. ~'REPORT ON AUDIT' \n \n. _, ' O. f TtiE\" FINANCIAL ST-AT.EM. ENT'S \n \nFOR.THE \n \n \n \n_. \n \nFISCAL \n \nYEAR \n \n ,\" \n \n \n \nENDED '  r I \n \nJUN., E \n \n30,',2002 \n \n \n \n:;- \n \n ' \n \n,, \n \n. ' \n \n.\" . \n \n, . \n \n' . \n \n' -. \nRusselfW:Hlnton \nStat~ Audito,, r' ; \n \n,, \n' 1 \n-. \nJ \n \n., ,. \n \n.,. \n \n, ' \n \nr \n \n WARREN COUN]Y BOARD OF EbucA,:bON \n-TABLE OF CONTENTS- \n \nSF.CTIONI \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON OENF.ltAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLF.MENTARY INFORMATlON. SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMElml \n \nCOMBINFD STATEMEKl'S  OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUl!S, EXPENDrn.JRES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUND \n \n4 \n \nC \n \nCOMBINED STATEMENT O f ~ EXPENDmJRES AND \n \nCHANGES IN FUND BALANCES- BUDGET AND ACTUAL \n \n(NON-OMP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD NOll!S TO TifE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nI \n \nADDfflONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n22 \n \nF \n \nCOMBINING STATEMENT Of REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n24 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBININO BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT Of REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n27 \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n21 \n \nJ \n \nCOMBINING STATEMENT Of REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n29 \n \nFIDUCIARY FUND TYPES \n \nK \n \nCOMBINING BALANCE SHEET \n \n30 \n \nL \n \nCOMBININO STATl!MEKT OF CHANGES IN ASSETS AND LIABIUTIES \n \nAGENCY FUNDS \n \n31 \n \n WARREN COUNJY BOARD 0~ EDUCATION \n. \n I!BI BOf CQNmlTS  \n \nSECllONI \n \nFINANCIAL \n \nADDmONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \nI SCHEDULE OF EXPENDl1URES OF FEDERAL AWARDS \n \n34 \n \n2 SCHEDULEOFSTATEREVENUE \n \n36 \n \n3 SCHEDULE OF APPROVED LOCAL OP110N SALES TAX PROJECTS \n \n37 \n \nALLO'IMEKl'S AND EXPENDmJRES \n \nGENERAL FUND- QUALl1Y BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \n~~~ \n \nD \n \n5 \n \nBY SITE \n \n39 \n \nSECTION II \nCOMPLIANCE AND IN\"mRNAL CONTROL REPORTS \nREPORT ON COMPUANCE AND ON INTERNAL cmrrROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN \nACCORDANCE WITH QOYBBNMEMC AUDmNO STANDARDS \nREPORT ON COMPUANCE Willi REQUIRFMENTS APPLICABLE TO EACH MAJOR PROO~ AND ON OOl!RNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR. A-133 \n \nSECTIONW AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUES110NED,.....,_., COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONElJ COS IS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONEIJ COSI S \n \n r \nSECTION I FINANCIAL \n \n 1, J W.HINnlN \n..... MD1011 IOl ....l'N \n \nDEPARTMENT OF AUDITS AND ACCOUNTS 254 w.hinp,a Saas. s.w. Sui1I: 214 \nAdala, Oeorpa ]1!334 8400 \nJuly 25, 2003 \n \nHonorable Sonny Paduc, Govanor Members ofthe Omenl A obly Members ofthe State Board of Edncl!ion \nand Supcrintmdcnt and Members ofthe Warren County Board ofFcbnrion \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE F(NANClAL STATEMENTS AND SUPPi EMENIARY (NFORMATION SQfEPULE Of f'.XPENPDVBWi Of fEPEML AWARDS \n \nLadies and Ocntlemcn: \n \nWe have audited the acrmpenyina aax:nJ-purpmr: financial Nlln!Cdls of the Wurm County Bord of Edncatim,  ofand for 1hr: yar ended June 30, 2002,  lilted in the tblr: of COIIIEIIIL Tbr:-. poerl-purpolC ftnnciJ flemo111 me the tipOiilibility of the Wna1 County Board of Fdntion'I mnqr:mr:nt. Om rapomibility is lo r:xpras ND opinion on , . _ pnal-purpmr: \nfinnci1 IINlaneDts bucd OD our udiL \n \nWe conducted our udit in ccordncr: with uditing MINndrds poerlly acrcptr:d in the United \n \n\u0026ta orAmerica nd the MINDdrdw applicble 1o 61++i1I 'lllllifll COD!Ninr:d ia Qcr.o\"lt'l\"lT Audjting \n \nS1l'1lffldl, iaur:d by the Comptroller Or:ncnJ. oftbe United S1Na. Thole f11+duda rcqm,eth! we \n \nplen and pnfi:xn the audit lo obtain rmwoable murnce bout wbe!hertbe finnciid -temc:ad\u0026 ...e \n \nfree ofmatail miSllIClhrilt An udit includel r:xmnini11\u0026, on I test lmiw, evidence mpporliDa !he \n \n...,.,.m!S and clilClowurew in 11w, finnciI daleillftlli. An udit llo incbidet \n \nio, be l!TOl\"!tina \n \nprinciples Uled nd lianificant esaimlel mme by fflllllFll!CDt,  well  evlul!ing the ovenill \n \nf111111Cil lllatemntt p.c.Siillion. We believe 1111d our audit provides  a '1:t\"able !mis for our \n \nopinion. \n \nAs delcribcd in !he nota lo the poerl-purpolC finncil -temwtw, !he Board of F4ucl!ioo'1 \nfinnci 1 MINlffl041 haw been pieprc:d UIUI\u0026 callin IICCOlrllingpm:tice, 11!11 pnlicia vmil:h, in our opinion, VIIY in IOII\"' 1eapa:II from poerlly -.ce.,ud .ICCOlll1!ina principles. Tbeie varirm me \ndescn\"l!ed  folk\u003ewl: \n \n2002ARL-13 \n \n  The aenenl-pmpoae flnencleJ l!leoo!lw of the Bord ofFchlClrion ,1id oot cx,nhrin  \nGenmal Fixed A11m Account Group 10 KC01111t fol p.op\u0026ty 11111 equipment CJWDCd by the Bord of Bch!CM!im which wbonld ~ inch!ded \"\u003e COIINiim i.. poally a:+ CjACd -mtj.. principlcw. \n \n The Bord of Em-alklll. did not ftal8lllze  expenditma, in the yer aided \n \nJune JO, 2002, a portion ofNlllriew nd tbe corrapomioa omploya'w c:owt ofrmmd \n \nbenefill e1ned fu. CWbNCMI wcrviccl c:omplctcd prior ID June 30. 2002. Alwo ftmdw \n \nm:eiwd,. MUlwq,1mt to June 30. 2002, from the Gemgia Depab1.eut .\u003ef\"FchM'Mtion,.,.. \n \nthe Stre'w ~ oflhac: uiDtwidc:d INlriew 11111 relMICd benefit, wm: not recorded Al \n \n.mew. rcwmue in the yer lillder \n \nConw:ncly, dlf! limiJr expenditunm 11111 relMICd \n \nICWIMlel for CWbih:tUll wc:mc:e, completed prior to June JO, 2001, wen: imp.oped) \n \n1ec.uded in the yer aided June JO, 2002. To COIIM.m hJ poally \u003e epted ecm,mtina \n \nprincip1ew, ~ wbouJd be recorded when MYNilble 11111 nmnb1e nd \n \nexpenditun:w wbould be 1ec.udc:d when incurred, rtbcr tbo when fimdw n: ra:eivcd or \n \ndisblned. \n \nThe qarep11, eJfcc:tw u11 tbe aaml-pmpcm fimnciI lbdrmadl ofthewe vrir-:cs cw orniniom hive not been dew,mbm, but n: believed ID be IIIMICriI. \n \nIn our opinion, except for the eft'a:tw OIi the amenl-purpowe flDMDCiI l!IUIW-1111 of the ililltal \nreferred ID in the P.ecedina pnanpb, the amenl-purpowe fjnencieJ ilbdeiiwtidl n:feued bl hove IA m flirty, in Ill mtaiI .elllC(tl. the finnci1 polition of the Wlffllll 0-ady Bord of \nFd-:ation uofJune JO, 2002, 11111 the raultw ofitl opalliom fbrtheyertboimded, inc:oafonnity \nwith ccountina principlew generally accepted in the United Sltel ofAmeric. \n \nIn aa:ordnce with WMiiitMW1 AJ!lhinv Sl11t;...._ we bve elm ilmed our n:pon dmd July 25, \n2003, on OUf COIINelltion ofthe Wurm. County Bord ofEd!CM!im~ inlawl conlrol over flnw iii \nreponina 11111 our tats ofitw c:omplince with c:ertin proviwiOIII oflaww. \"'\u0026lllriom, '\"Obb :11 .nd \nlfllltl. That report iw Ill intcarJ prt of Ill MUdit pafu.med in ccordnce with CkYiu\\Gtt \nA1MliliPe S1wwh11I .me.I wbowd be n:d in c:oqjunc:lioa with tbiw n:pon in camiderina the rewults of \nour udit. \n \nOur MUdit WD paw.med for the purpowe off\"ormina MD opinion Oii lhf. amcreJpurpoc' flnmc:W \n \nIIMlemen1I of the Wrn:n County Bord of Echh'Mtion 1km  a whole. The  u111p111ying \n \ncombinioa 141mot.w (Exbibitw E tbrouah L) 11111 the fllllllCW wcbedulew (Schedulew 1 throup 5), \n \nwhich include, dr Schedule of \u0026penditun:w of Federal AWMldw  n:quin:d by U. S. Office of \n \na a - , u , Mrq ilftll 11111 Bnclpt ~in:ulr A-133, A.lllllu ufSlala, Local \n \nm,d Na.Prq/11 \n \nOrgwdaullolu. 1ft pi Jfed for purJIOHI of dditionI wlywis 11111 n: IJClt a required prt of the \n \npnerrd-pwpoe fiDMDCiI l!le1 0!11 Such informticm baa been wubjeeled 10 the MUdiq \n \np11.-erbii'e1 pplied ni the MUdit ofthe aa,eral-purpor flDMDCil \"8ilno41 -aid in Ola ..pnim, \"'1'cepl \n \nfor the effectw uflb,, iilNlb:111efcued to in the third pnppb, u:b infonntion iw fairly IIMled, in Ill \n \nlllNll:rW ii wt,eetl, in reblJion to the puerl-puipoie fimncil.,I l!NIMOJfl IUen Ba whole. \n \n2002ARL-IJ \n \n A copy oftbis report hll been filed apamlllCllt record in the office ofthe SIie Audilllrand lllllle awilable to the prmoftbc S1ldc,  provided fbrby OfBc:iaJ. CodcofGeaqlaA.udred Se iion 506-24. \nRWH:ap 2002ARL-13 \n \n WARREN COUNJY BOARD Of EDUCATION \n \n ws m,mmenaexerewrzmW?E:EBEJIPlDf \n\u0026RN\u003erPEINIHTONI1'PCID \n Manz \n \n== \nc.iinc.,,'i\\ol  \n \n......... \"---RPllalltlll Faad ~C.C::wzaadlca \n \n- \n \nFaad \n \n- \n \n 7 11 In Dll:l lznlal Finl \n \nFs...,,,.. --,..\"il_lE:zlnDll-:I -- \n \nGEIEW. \nNI! \n \n-JIAL~ \n \nIEIEME \n \nPRO.a:TI \n \nFlN) \n \nRN\u003e \n \nI 414,181_. I \n \n11 \n \nI 1D\" CIIUIO \n \n2,114.1117.111 \n \n1CIUl7. . \n \n111.-.n \n \n1,711.11 1,111.11 \n \nI Pffl!2 I DZllM I lfflt \n \nI !OS 'IEIM RN\u003e Bl rY \n \nl!OSITEI \n.....\"cc~-..iC -.i_-o,,h ,...,,...,..,,.p......I _,.,.._ \n \n7DzlIlllClcd,.,.,......_ \n\u0026nlc,.,..,.. flnlc HM b'Olaa \n~=Ty 5 I \n \n,...,, :z: \n \n..- BM'BlllY Flccl C \n7 fslll,? ,, \n \nFlnll \n \n.,. Dll:I Ccnlm \n \ni=. _ . . : cai, 5 I 0 \n \nFcrFlaiad=-- \nEJIII-.IQa\u0026 \n_ . , _ .,. PIE..- flillEEI - \nUi--lJi , Ia \n \nDclal \n \n7 WIIC.. \n \nTCLICI F i n l ~ \n \nI \n \n11.11,. . 111.11U1 I \n \n....23,347.1D \n \nU4IAZ \n \n12,111.73 \nI \n \nI MPiZI \nI -- \n \nI 44D,J77. \n \n1,711.11 1,111.11 \nI \n.DM \n:1111!'1 \n \n1,ne-.11 D.DD \n \nmat I \n \n111 ]:B I \n \nI J.Zll III Jil \n \n,...,, :r nlflnl~ \n \nI err \n \n--r\u0026L TIIC-IDlb.uccl pr; .---111- 1 \"-\"\" jllf/1. . \n \nm.nw  zw:r  \n \n EXIBTW \n \nACCaNI' \n \nI \n \nFDICIM'I' \n \nin.12 \u0026ii \n8BMCE \n \n--11RN) \n \nMBICYNP \n \nI \n \n411,171.71 \n \n~ \nL.OIG-TENI \nllflI \n \nTOl'AL.8 \n \nw \n \n~i-m \n \nI \n \n71...,. . I 1,1R711.1M \n \n11D.1an \n \naocmm \n \n1,1117,DUI \n \nl.-..n.11 \n \n11.1111 \n \n:N1.IIII' \n \n411D.41D.11 \n \nI  I \n \n ......, \nl1M1'11P \n \n1,711.11 1,811.112 141,. . 111 \n11141119 \n \n1,111.12 1,'1711.11 \n711aoom \n \n \n ILJZl.IJ I IIJRIIIII I ~llRIJIII JH11111S \n \n ......  11.111 1a,m.11 \n \n111,4111.11 1111,111.41 \n \nID,IIZ.11 \n \n1Clll,llll.41 \n \n~ \n \n414,541111 \n \n -.111.n I IIJOIPOO \n \nut-o.1n11m.n \n \n1D.a.14 11,1111.71 \nIP'PtT \n \n  a719.za I 11!111111 I HI.MIii MUDDll \n \n 141114111 \n \n D.1111 \n \n....   \n \nI \n \nI \n \n \n \n . .7111.N \n141114.ID \n \n1Ul1.11 \n721DDDIII \n \n1,111.34 \n \n,,.,,.:lll,ll'I.. \n \n1,711.11 \n \n1,111.11 \n \n1,811.112 \n \n1,'1711.11 \n \n1,.,..,13 \n \n7,T4U4ZM \n \n113,723.14 \n:llfflT \n \n-,,.,, 1.tm.ffl.11 \n \n  1WmM ,,~mew \n \n ILJtl1ZJ I IIJRII  I Jlmllll  JIIIJIIIIS \n \n-:a- \n \n w, REN m MY eoeeow m r-e?JAN \nCTEEPUtWE7Pf PEYEMEI EIPEiPflJRERNGQl4 tKEI :7t BIC' f MIZI \nNI GQIEAIIEffM-fUNPDPEI Mil rzrn:n f IBYII NtP \nYEM BllED  IE IQ. RP \n \nflEYBMI \n..... .,..... ...Ftnll \nTat..finll \nT-RaWII M \n \n.... cw... Ina ii \"\"\"'\" \"\"''- \n \nln;::ua:allllia 7 IIIIL,lc\u0026 \n \nM 7 1111111111111 \n \nGll'lllalMMz I \n \n8c:haal AdmllM \n \n=- a. 1-MM \n \ni7 I \n \n.nl 0pailll0a,. Pim: \n \n111111111111\"1: 7  le: lc\u0026 \na,.,~..,._ \n \nFood . . ,lc\u0026Op-.4 I \n \n Cannu.llr81e,lc\u0026Opa 7 \n \n..CaplllO.., \n \nDallla.w:. \n \nPl! \\ I \n \n~ ~ \n \n,,_ \n \n-- - TalllE I \ne-d----(lnllJIE1 a \n \nBIG M !NGFMY 1 \n \nFood ......,-11111a...g. .. Fwlad \nDarllMIICGi I M \n \nBIG Ml W'Z,...!Q \n \nGEll!ll!IL \nPIN\u003e \n \nQO\\IERIIIBITALFUND \n \na Cllll. \n \nCAPITAL \n \nRBVENlE \n \nPA0Jl!C11I \n \nRN) \n \nFlN\u003e \n \n  ---  4.421,1\u002671 \n \n1,1117,71 D.1111 \n \n1111,1111.11 \n \n1,llll,1- \n1PPP?! \n \n mz.11 \n \nzmm11 \n \n   lllllll  \n \nJMIJZ \n \nJ.JzaSJ.11 \n \n  4,-,41\"42 \n....,_71 ,_,IDIIP \n......,.119,11111.73 \n311,7ZUI \n114,IIIIU1 \n-.-.12 \n433,11411 \n... ,.,.,..18UI \n71,111.10 \n \n174,441.111 \n \n37.MUe 37,cm.11 \n \n111,1121.31 . . . . 44 \n \n3,a.81 l,27UI llll,018.71 11211,271.14 \n \n \n1., ...... \n \n  IZl!1:Z2P ]AQZP107 I re?ttfP \n \n M,IJIO-\" ,. I \n,.,. .714.12 \n \n--  -41,0441111 \n \n-e,-.e,:ue \n7,742.442.JI \n \nm.04 \n]all! \n \nI PffllJI  s:rr  11Pfflli \n \n11..- .._.: Tha ,...ta..111--n.1-ppuiap:_,,n.a-.c.cllil:lal \n \npartdt111 11m1amil \n \n-4- \n \n l!:XHBTT \n \n1YPE8 DOT \nIERVICE \nFUNQ \n \nTOTAL \n \nFDDlrlrf \nFIN\u003eJYPE \nCCSDf\\PF \nTRUITflllJ \n \nTOl'AUI \nMi-lPN!Ml 0rM \nYEARBClED ,ME !Q, PR ME 3D. 2001 \n \n \n \n \n \n--~e,a.-,77 pn,pp \n \n \nll,ID4.21S7.IZ 1,DB7,71D.a \n 2,121,1141.73 \"1,IR'.11 \n 1111111  \n \n \n1gpp \n 1llil II \n \n ll,ID4,2S7.112 \n1,DB7,71D.a 2,121,1141.73 \nIIID1,11 \n 1a1.al \n \n4,131,11411.82 1.111111,IG 112 221212140 \n11D.111a \n1it:1D \n \n  4.711111  \n \n1211, 114.111 21111,1171.23 171,111111.73 371,743.70 742$r7.112 114,11111.31 IDl212'n 442,121.41 \n211,1171.71 1110,114441 \n411Mff.411 \n1m121 \n \n MDrmm ,m,1117.111 \n \n2411,0IIOIIO ,m,1117.111 \n \n22M.PP \n \n2P1JII \n \n   :n,p1,1p \n \n11'1!'12  \n \nI \n \n-1,41111.10 I \n \n \n \n721.111111.IIO \n \n10,IIO 1W 47 \n \n3\u0026llM \n1111! \n \n D.1111 \n \n \n1311, 114.111 21111,1171.23 171,111111.73 371,743.70 742$T7.112 114,11111.31 \nIDl212'n 442,1211.411 211,1171.71 \n810.044 411Mff.411 \n1mm \n \n4,3111 \n111.-.cll Dll21P21 134,177. . 317,743.40 1114,mao 1111,1117 .411 417,1172.411 \n40l.ll21.m \n. . 902. . . . . .111 31,472.IZ 1, 1111.oa.oe \n \nHIOIIOIIO 413,1187.111 \n22M?P \n  om 11'1ZEP \n1,1123.:SZ I -t,771,00.11 I \n \n110.''\"\" 1111 \nm,rwonr \n111Z-R1.71 \n-7,1211.81 \n \n11,B.17 \n \n10, 17ll,IIOII. 14 \n \n10,177,11~ \n \nm,04 \n1ill9 \n \na.a \n-4171,9 \n \n rn r,e  vn mnm WPJ!I  JBWl1  JP:1rop14 \n \n-11- \n \n ll!XIBT \"C\" \n \n-~-IEfflTD \n,._ \nOlsl'lnll \n \nTalll~ \n \nLA PJllEI \n \n-...\"-'7..I ,_ \n \n__ ..._ .._ Pl.ii..,_ \n11111111 -'IHIII 7 \n \nfl\" \n \n0....-Ri \n \n8IIIIIJIIIIMM..aw  \n \n-\" -..-..... II I \n7 I   1111101 \n.O. . .l.a. n.w_:. . . , \n \n,.I .,ia_fl'IIIII \n_ \n \n--o. -- c..nni,-c- \n-- Capllllll-, \n \nTar pt z - \n \n,_ \n \n-af\"'---IWIIIIIF: \n \nBMINWZMY1M \n \nFI.NJl!il~TMILaua \n \nallJ!tA.FINl \n \nIRE \n \necnw, \n \n....I 4.1 I 4,Gl,la.11 \n,,...,,_ 1.1111,,a.a \n \n,,.,,.,.. tTTT \nI IWt ft I \n \n1PPN \n \nI 4.lffll.llUI I 4aAJ.G \n \n17.-.al \n \n. . . . .11 \n \nlll,ID,ll' \n \n1enm \n \nIN,41114 \n141,111.111 \n111.m.n \n1111.1111.- \n_..,._.1111/141.11 \n14.1:M.ID \n \n111.a.n \n__,_,. 111.'IUJI \n114,IIIIUI \n--.....,z \n411,114.11 \n41.117.41 \n \n\"\"'\" 1 IWNIM I 1711:fDP \n \n--- .....,.,.,,... I \n \n \n \n117,111,11 \n \n....    \n \nIPlBfI.11191-.eEcRnNw\u003e, \n \nI \n \n-- l'IUll.DII I \n-.in.a 1.1111',TID.a \n \n,.,..,.,  11,117,11 \n \nI \n \n1Wlffl tz \n \n 1.11111.211.D I \n411.IDUI \naaom \nI.Gl'a \n \n174,441.11 Ir.MUii \n.....11.-.11 \n111.1111.JI \n \n.1...1-,ua \n \nUN.81 U1Uli IO.ffl.71 mlU7l.l4 \n \n  1P1:14.TI 1:1PZP07 \n -411,114.11 I -41.DMm \n--~ er,zz 1D:11YI \n I -J1m11 \n \nn.a-r a atpu ---11-....,.PlllaflA-._ \n-7- \n \n WARREN COUNJY BOARD Of EQUCA]]ON \n \nEXHIBIT \"D\" \n \nNOJJ.S JO J1fE QENEMkP\\JRPQSE FINANCIAL STATEMENTS \n \nruNE 30, 2002 \n \nNote I; SUMMABY Of SIQNJECANT ACCOUN]]NG PQL!CJFS \nREPORTING ENTITY \nThe Wmm County BoardorEduraticm (8c:bool Dilfrirt)wembliwbrd undcrthe lawlorthe Sale \nor Ocoraia 111d ope.ate\u0026 .mder tbe 11ridmre or  IC'bool board e1erted by tbe YOla'I 111d a \nSlljltibo\\wif appuinted by the Board. The School Dilfric:t ii Npnizrd u aaepmm lepl entity \nand bu the power IO levy tDa and mile bonds. Ju biJdwt ~ not IUbjert to approval by my other \nentity. Arrardinaly, the School Dillrirt ii  primary iv\"\u0026nme.tt and roalilfl or all the 'PJUtHlieN'I that rompoae its 1epl entity. \nnJND ACCOUNTING \nThe Sc:hool Dilfrirt Ulel ftmdl and 11D ICCOIIDf group fD report CXI it, fJrwiN j,1 JIOlition111dthe raulfl \nofifl opetfdm Fund erronrnlna 1. drsiped 1n dcnvr1111m 11,pl c:omplimre and to id 6mnriI \nn:r J c:n b) 1c.;xpa\".. b+IWNJIII mated fo certain IIIM5,1Uii01bd funrdom or ertivltics. A fund ii a 1ep11111, errountins entity with a lClf\"-belmx:ing let of\"erronm An ICCOIIDf group ii \nfinmrial repordna dcvirf' designed \"I provide erromdability fol ceitaiu..-.111d liabilitim dm me not ltCOl'dm in the f\\mda beral.- tmy do not directly Iffert Cii1b~ awilable fimnrial \nraoun:el. \nGenerel F\"umd Aam ani m:ordcd  iD(l,iOKlibnl in the Ylll10UI funds at tbe time orpwd uc A Ocncnl F\"ixed Aam Arrould Oroup ii DDt prcuz:tlr awiolhe:l l,y the Srbool Dilfrirt. To roufOlm hi pnally erceptcd errowding principle, Oenrnl Fumd Aa:tl NlullfGroup lhonld t,., minfwined for aeporting the COit orllletM erquired by go,,e:r Ihi WiiilI fund types. \nTbe pncnl-purpolc finanrial IOIW14 -=rc,gJt for all 8tm, Federel, TIXCI 111d Other fimdl UDdar rouflol or the Sc:bool l)lric:t, in romplimre wi1I:. FC.-11y r.:epted erronnting prinripla \npplirable ID aovanmental units, unlell oderwiR dirlOled in 1her note. Fuadl 111d the ICCOUllf \ngroup pr med in tbll report me a f'ollowl: \nGOVERNMENTAL nJND TYPES - me ued to ercount for ell or lllllll ortbe School Disttic:t'I ech1 Mi\u003cNm artivitieL Govemmental Fund Types inr1ude: \nGENERAL FUND - the fimd Uled to ICCOIIDf fbr all ffDIIDClI l'CIOUn:el or the Srbool Dilfrirt \nexcept 1hme required to be ercomtted for in nod,o: fund. 11-trnw:tiOtlll mm; to lelOUl'CCI \nobUlned 111d ued ror  iic:CI provided by a bomd of'odlw tloJIL. \nSPECIAL REVENUE FUND - the fund ued tu errowtt for the p...:eeds or ..pa:iftr rew:nue IOlll'CCI (Olber 1hln for ~or rpital pujecfl) that me lcplly 1e1imd to expenditures fbr \n.Jr lpeC'ified purv,r 1bae funds re receiwd primrily 6om the Oeoqla Depwbl,wt \nFd!Cltion 111d 6om the Fedcnl paWDOtt i., rceiwpli,I, apw:ific: edl1aliael objcctives. \nCAPITAL PROJECI\"S FUND- the fund ued to ICCOIIDf filrRnmc:itl \"elllllllZI to be ued filrfhe erquilition or roanw:don orllll,jor rpital filrilitiea. \n-1- \n \n WARREN COUNJY BOARD Of EDUCATION \n \nEXHmIT \"D\" \n \nNOTES IQ JHE QENF,RAL-PURPQSE FINANCIAL SJATEMElfiS \n \nJUNE 3Q. 2002 \n \nNote J; SUMMARY OF SJQNIFICANT ACCOUNTING PQLIC1fr5 \nDEBT SFJlVICE FUND - the ftmd UIC:CI to 1CCOU11t for the accumulalioa ofraoun:a for, 111d1hc \npaymmt ~ aenenl loaa-tenu pincipd, inlmm 111111 payma apnt feel. \nnDUCIARY J'UND TYPl'.S- lhe funds IIICICI to IC'COUIII for mc:11 bc:ld by. pa,w.ent DDit in. trullce capacity or a III aplll fur indivicbwl, private (9'rizwtion, 9dia- ac,.c.WDeDt units ad/or \nOlha' fimd TllCle ftmd include: \nEXPENDABLE TRUST FUND \nOIi E. Wllllam Merill S.:ll1lanlllp l'Dd -1hc fund mm to ICCOllll1 ford... p.incipel ml \nc:aminp wbich may b.. ~ to provide cbolmlhip awnl to be made II the disretioo of the School Dillric:t. \nAGENCY FUNDS -1hc ftnl UIIDd to account for mc:11 held in a ftduciary CllpKity for olher fimds, p a1111011, or 1ndividuala. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A flnmcil n,porting device mm to \naccount re,, ycoc.-.1 obliptioo tlebt c,,11111,0.tina \nBASIS OF ACCOUNTING \nr TJ.- N'CO'mting ad flnnc:ial tepUilDia l'Nliiert ~ied to a:filnd i ddamined by C ::aunent \nfocus. AH ~ and expaxlbP. lnlll fund are accounted for lllina a current finncial \nte10UR:C1 ~ focus. W'Ilh thi meuuranmt focus, only current aaet 111d c:unait liabilitu pnaally are included on 1hc blanc:e lhcet. Opendin. idIMWIII nftbee fundi. p: nt \nwCt CLICS (i.e., MYmUel and CJda f.nmicina oun:a) and dea I (i.e.. expenditures 111d CJlher finmcing UICI) In net c:unait WII. Their ~ l i d fund bb.nc:e ~ c:omidmm r m ure of \nIIVUlablc lp\u0026lllable l'CIOun:a. \nLiabilities which are cxpcctcd to be financed ftom awilab~ paxlNc taOUR:e are rtp111bd - liabilities in the IJOW\"'ii4W4al funds. Other liabilities, wbicb an, not e..peclal to b,, fjnprw ed from available pendable raoun:a, are rtp111tcd ln 1hc Gemn1 Lona-Tam. Debt Account Group. \nAfJlllJl!Y funds an, purely cu.-todi I in DIIUre 111d do not inwlvr rnraz.ucment oflallltl ofopa'llion \nOove1111e111l mil l\"qiC!t~ lnlll funds are N'COllmted for Ullng tr modified acc:rual bi1 of \naccounting under which: \nRnmw are ,ecognizrd .._.. wurcpdhle to accnwl (LC.. wbm the) bec.on.e bolh amuable and 11VUllblc). \"Mcuurabhl\" -11 the -t of the hp- ,ert1oo can be clmnnined and \"11VU1ablc\" \nmNIII colledible wilbin the c:urrcnt period or 10CJ11 mouali thaN.fta- to be IIICICI to pay liabilities of \nthe current period. The School Dlltrk:t comiden n:cci:vablai collected within sixty days after yar- \n-9- \n \n - _,. 8 \n \n It ...:i11tii'_ llae,. \n \nl -~Ill! \n \n11. n: f r.. f1~ [ 1 \n \nl- i I l I. f , t  f I l \n \nn pi l \n \n1 I \n \nI J!! i't \ni Ji-1 \n \nl - \n \nIf \n \n( \n \nl \\ \n \n. f \n \n \" ( \n \nt a \nIi 1:... \n \n, \n \na \n \n- \n \n \n lll.12'CJ~.- \n~ D\"\"\" - ,o II \n \nI. \"\"i1ls,-!.A. ( \n \n~ l Ii a- \n \nIf}  \n \nI\" ..- \n \np \n \n~ [ \n \n \n \n8- \" Q ;. \n \ni \n \ni-_ - \n:I \n \n_ u  .., ..,. \n \nI . 1~1 \u0026.  \n \n~-t-,, l \n \na \n \nl \n \n,I \nB \n \nt g \n \n-- \n \n- \n \n{1ra1, lsr. \n \n-~ \nij' \n \nl \n \n[ \na. \n \nJr Jli \n \nI fH\"jiIpf ~l~l lllrf(1If1f.f.ri-~J Jii-J \n \nJf a If [ If \n \n~ \niii ::i \n \nta \n \n ... \n \nWARREN COUNJY BOARD Of EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES JP TI;IE QENF,RAkPURPQSE FINANCIAL STAJEMFN[S \n \nRJNB 30. 20Q2 \n \nNote I: SUMMARY OF SlGNIFICANT ACCOUNTING PQLICIPsS \nBoard after mvermrment, the Board ncei.w:s C:Ollluddl .m the tmlmW' b:rlpt, '\"lllkes revilkxa B 'ICC ry 111d ldops a ftnal ICho,II b:Nl\u0026K Tbil fiml b:vlpt ~ then IUb:nitted, in acc:onlanc:e with provisions of the Quality BuiC\" Fccb1km Act, OCGA Section 20-2-167(c:), to the Oeorpa \nDepmlmeill ufEcbJCe!ion. Tbe Board Ill) iota or dec:n IC: the hvlFt at any time durina the \nyear. All unexpeoded b:i1:et 1Ulbority lllplCI at filc:al :,ear-end. \n \nlwvl....., Tbe lilalbiott -\u003ef Revmuel, Expenditurel and Cbci1 in Fund Balaocn - Budpt 111d Ac:11m1 \n \n\"\" 111 ctual and \n \n\"eta for the Speclal Revmue Fund. To tiN:ilitale c:ompmilon with the \n \nb:Jdaet, the following ailjlllb,.wtl haw been.-le to fillll:l blhmre  rdJec:ted on ExlnDit \"Bw oftbis \n \nreport: \n \nFUND BALANCE JULY I, 2001 \n \nSpec:ial Revenue \nflnl \nS 482,409.46 \n \nAdjh liAdl \nInvmtories- July I, 2001 Food Doolh'd Commodities Pwcl 11 =d r:ooc11 \n \n-5,319.12 \n-1,470.98 \n \nFund Balanc:e July I, 2001 (Budpt Bais) \n \nS 475,619.36 \n \nExe ofRevmuel 111d Other FiD111Cina Soun:es over (Ullder) Expenditures and Other FiMnr:ina \nu. . \nFUND BALANCE JUNE 30. 2002 (\u0026Nlpt 1-il) \n \n-41.044,90 $ 427.571,16 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSmON OF DEPOSITS \nCab 111d CBh equivalentw c:omill t1fc:III OIi hind, dmwr,I depw mNl lbort-llml irwaboadl with \noriaina1 maturitiee of three months or lea from the datl: of arquilitioa in autbormd fi.wnc:ial \n~iatioa inslitutiom Geoqia I.awl OCOA 4s-\u0026-14 authome the Sc:bool l'lilfric:t to deposit its funds in one \nor more llllvent b:mb or insuml Fodenl lWlp llld loan  \n \n- II - \n \n -- ---- ----------------------------- \n \nWARREN COUNJY BOARD OF EQUCAJJON \n \nEXHIBIT \"D\" \n \nNOJI,S JO DIE GENERAl,d'\\JRfQSH FINANCIAL STAJWEM[S \n \nJUNE ]ft 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING PQLICIBlS \n \nINVEBl'MENTS \n \nCOMPOSmON OF INVESTMBNTS \n \nP..i,. Im 4iiridl lftme by tbe Scbool Diltric:t in IMijJWOO~ inmat-e.aubl(. Cuiiba:b (IUl:h a \n \nc:a1ml:ltcl ofclepoait) and n,pun:hae ..,...,...,,111 -e npmltd It COIL \n \niiutraat-cmninB \n \nCuiiba:b ..id money lllllket in'iitlli,iiidl with a maturity at pua,J eofone yes or lal me repoiltd \n \nat amortized COIL Both pmtic:lpatlne iut\u0026tll-Clll'IDDl5 Cuiiba:b .ml 1111111ey mmbt ~ I 1eit11 -ilh \n \nia a maturity at pun:ba,, peata d:lln one year lli61eponed It fidr value. The Officill Code ofGecqia \nAmiubdlld Section 36-83-4 ltborim di\" Sc:booJ Dillric:t to inYat mfunds 11111 i.o ~le '1111111 \n \noptions for i.r- 4oe4,,,...,,.. inltitutioml mds fiJ. depmibi, the liiafnt rm: ofretum. nil bathe \n \nobja:dve, aivm cquivalmt c:onditiolll of safety and liquidity. Fliildl may ba invaltd in the \n \nfoUowina: \n \n(I) Oblipiu.11 iaued by the State ofGecqia or by other Dia, \n \n(2) Qbllprix11 illllCd by the United States aovemmmt, \n \n(3) Obliprix11 fully insured or paraolewl by the Uniltd States pe.m,rilt ur a United States 1-rle.tmmut I --:Y, \n(4) Oblipdom ofMily corporatioa ofthe United States a,.rle.mnem. \n \n(5) Prime babr't aa:er+e+a, \n \n(6) The Local Goverw1aem lu\\ea1i,rilt Pool adminimnd by the State ofOeorai-, Office of Tnmmy ml FilCFI Servica, \n \n(7) Repun:hae qree.neubi, 11111 \n \n(I) ()l,Jip1ix11 ofother politic:al mbdiviliom ofthe Stam ofOecqia. \n \nRECEIVABLES \n \nRcceivablc- comilt ofgrant .eimbunmnentl due: oa Fcdcral, Stam or Olbcr pmll far expendituns made but not reimbuned and odm n,ceivablcs diw:IOled from infCWiDiirioa available. Receivables \nan, recoukd wbm c:itbe.' the wet or i'BVlliW6 1ccopition criteria ha batii met. Rcc:civabla \nrecorded OIi the, aenaaJ-purpo1e fiMDCial -nu- do not include:: Mily M1UOIIUtl wbk:b would \nnee I iw the need for au allowaucc foruucollectiblc receivable: \n \n- 12  \n \n WARREN COUNTY BOARD Of EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES JO DIE GENERAL-PURPOSE FINANCIAL SJAJEMENJS \n \nJUNE 30. 2002 \n \nNote 1: SUMMARY Of SIGNIFICANT ACCOUNTINO POLIClf.-'S \n \nPROPERTY TAXES \n \nThe Wurm County Bamd ofCommillionc:n fixed the paope.1y ta levy mrthe 2001 tax dipt yar \n(celendv year) on December 4, 2001 (levy dale). Taxes were due on Februmy 10, 2002 (lien dale). \nTaxes collectr:d within the c:umnt filcal yar CX' within 60 days after year-cmd on the 2001 tax dipt \nare reported a re'Vel1Ue in fllClll yar 2002. The Wmai County Tax Cornrniwioac:r billl and collects the pope.ty taxes tiJr the SebooJ llillrict, wltbholdl 2.5\" oftaxel collcctcd a a fee for tax collection and mnm the balmce ,_f IIXel collected to the Sc:bool Diltrict. Property ta revmues \ndurina the fiacal yar ended June 30, 2002 fur maintcnmc:e and operation, mPattrd to \nSI ,464,603.54 and tiJr a:bool bonds amounb:d to Sl62,817.24. \n \nTu: millqe ntes leYicd for the 2001 ta yar (calendar year) for the Wurm County Board or Education were a follows (a mill cquall SI per lho!wnd -lollm of 11:11:cl -,alue): \n \nSc:bool Operations Sc:bool Bondi \n \n13.195 mills \n1,533 mills \n11,m mills \n \nSALESTAXES \nSpecial Purpole Local Option Sala Tax mimue durina the yar mNWartrd ,,, 5452,878.53 and i1 to \nbe UICd fur capital outlay tiJreducalioaal purpo1e1 or debt ICn'icc. This Mlel ta-audlorizal by local ,ef\"eaalih::n and the Illa tax lil1lll be re-autboriml at lcalt every flve yean. \n \nINVENl'ORIES \n \nFOOD INVEllrTORIES lnvelllorial or do.lated food Oiiiii--ditia UICd in the paepnltioa or ..-Is are repontd ... the Combined Balmce ~ at their Fedenlly -ignr:d wlue. Puv.J P\" cl fbods invmto.iel in reportal on the Combille'I Balmce !illlCCt at COIi (fil'll-in, fil'll-out) Dcxwrtd food commodities m, ,ecwded a revawt1 and c:xpeidit:m at the time C01nmodity ilam 11e naived. Puv.J cl '\"lOdl i.,wt1ilulit1 lie 1CC01ded  expenditurel at the time of~--rr The invamxiea reported on di\" balmce lheet \nmr donated food commoditiel and mr purcbaed foods are equally of\u0026et by iaenatiom or fund balance which indic:ata that tbele 111110U1m do DOt C0111titute available lp\"l iable i'CIOlll'CCI even \ntbouah they are a component ofllllt cummt _,._ \n \nGENERAL OBLIGATION BONDS \n \nwell,,. The Scbool Diltric:t iallCI .,eoe.al obliption bonds to provide funds for the acquisition wl \n \nCOllllrUction ofam,jm capital facilitiea. Bond paemimm 11111d diw:onma, \n \niallDCC' \"Ollli, 11e \n \nnx:ciplnd ,., the finncial 1iataneDi1 duriq the year bonds are IIIUtd Oenera1 oblipdon bonds \n \n- 13 - \n \n WARREN CQUN'IY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNQTES IQ JJlf OHNPllAL::PURPOSE flNANCIAL STATEMENTS \n \nRJNE 30, 2Q02 \n \nNgq; J; SUMMARY Of SIQNIFICANT ACCOUN[INO PQlJCTfS \nere din,ctc,J,ljplic1a -.l pledptbe fbll \u0026itbaadcnditoftbe peiWIClll. TbeOil'M .di\"IIIIIOlllll \noflbele bonds I. 1CCU1ded i4 tbe Omcral Lona-Tenn Debt Account Group. \n \nINTERFUND TRANSACTIONS \n \nThe School Diltrlct Im tbe followlq type oflntai\\md tr11!N\"MDI' \nRelabanm 1 tr ofcxpenditunm initially mme fhlm  fund dlllmpup\u0026iy appliclble.,llllllm' ftmd 1111 rec:onkd  expeaditllla in tbe reimbanina fund 111111  mb\"\"1m ofcxpenditurel in tbe \nfund that ii mmbuned. \n \nMEMORANDUM ONLY -TOTAL COLUMNS \n \nTotal columns OIi di. poend-purpoll' fbimc:ill PllbiM5dl 1111 c:aplioacd \"Ma..cww.dnrn QnJy\" 1D indicate that Ibey  JM ml lilly to fK'1itatc 61eed1l -lyis. Dam in lbele column do not pr nr f\"IIIIIICiJ pomon or multi ofopwadom in c:oafbrmity with pncnJly 1Cte1AE\" ICOO'mrina principleL Neither 1111 ueb dlla mnpmable to  comolid!io.L ID!afund elirni...,inna haw not \nbeen male in the 91PPIQII ofthil dl!a. \n \nm:nCIT FUND BALANCEI \n \nThe fund reportina  deficit fund blm:e poition If June 30. 2002, 1111 a follow: \n \nfrod Iype(F)rod Name \n \nPdilli! Belew \n \nSpecial Revenue Fund \u003eJhlelicFund \n \ns 75,go.oo \n \n111' Sc:hnol Diltric:i i11tmd1 to ftrnd tbi clcficft by reduc:ina l!hJetic apenditun: in the lul,equent \nperiod. \n \nNgq;2; DEPOSITS AND INYf,STMElfiS \n \nCOLLATERAUZATION OF DEPOSITS \n \nOfficial Code ofOeolp A111-111td (OCOA) Sccdon 45-1-12 pavldel lht there lbII not be CXI \n \n..-w deposit If my time in my d1111 ..mu, for time kmpr tbn ten day mm ofmoney which Ima not \n \nbeen 1tCU1m by umy bond. by \n \nofhwwwaocc, or by co!ll!a-1. The urep!li oftbe filCC \n \nvalue oflUl:b RB\"tty bond nd tbe lllllb:t value of ecuritie pledptl bll be equal to not lw tlrm \n \n110 pen:ent oftbe public ftrnd beina lCClnd after the deductiaa oftl,r.111'4M11.ofclepmit bwww..e. \n \nIfa clepMiluiy ollec:11 lbe pooled rnelbod (OCOA 45-1-13.1) the IIPEPtr ofthe mmet wlue oftbe \n \naeaaitia pledrt to min: a pool ofpublic funds hill be not la tbn 110 j\u0026rmt .:,ftbe dily pool \n \n-14- \n \n WARREN COUNJY BOARD OF EQUCADON \n \nEXHIBIT \"D\" \n \nNOTES IP JHB GENBRAL-PURPOSE FINANCIAL STATEMENTS \n \nRJNE 30, 2002 \n \nNo,c: 2; DEPOSITS AND JNYESIMENIS \ntwlence OCOA Section 45-8-1 l(b) providm m officer bolctina pablic fundl may, In hi dicrmoD, waive the rcquirmnmt for aecurity in the cue ofoperating funtl placed in claJwnd \"':politdw,kin1 \nICO'Jlmb \nAcceptable ecurity for dcpolin ccmlim nfany one ofor any combination ofthe followins: \n(I) Suraybond ip!CC!bya uretycompanyclulyq11ifledadauahorizedtobwwwtbiLD within the Simi ofOeoqpa, \n(2) lnlunmce or erconnh pn,vided by the Federal Depoit 1nurmce Corporation, \n(3) Bondi, bills, nota, c:mtificata ofindebt:t or Giber dim:t obllption1 nfthe United S1atel or oftbe Stale ofGeoqia, \n(4) Bond, bills, notc1, c:atificata of indebtet II or otba- obliptiom of the c:ountia or municipalitie of the State ofOcoraia, \n(5) Bond of any public llllborit,1 aeated by the law of the Slate of\u003cJeoqia, pn,vidina t1t the llalute that ac:md the llllhority lllltboriml the Ille ofthe bond for dm JIUl1IOle, \n(6) lndulrill revenue bond and bond ofdevelopmad iiidblli'itia ueated by the laws ofthe \nS1ale ofOeaqia, and \n(7) Bond, bill, note, c:atificmc of lndcblct c11, nr Giber obliptkxw \"If ,. 1111:wictimy \ncorpondion. of the United SUda IOfflW,i?i4, which are fully .,_.,111eed by the United Stlfel punnx:ut bodl u to principal and intum ordebt oblipli- MIi iaucd by the Fedual Land Blink, the Fcdenl Home Loan Bank, the Federal lntei11.ediM1r Credit Bank, lhe Central Bank forCoopuati.ra, the Fann Cndit Bub, the Federal Home Loan Mortpp \nAa,ciation, and the Fc,dcnl Natiollll. Mortpp Aaociatioa. \nCATEOORIZATIONOFDEPOSITS \nAt June 30, 2002, the bank twlmces . _ $2,110,688.17. The il1IOIIIIII ofthe IOCal bank lwlmce tre clwiricd into tm-, tlqpie of credit rik: \nc , ~ 1 - Cab tbat ii inlumf Ce.a., Feder.d depoailiii,. i.nurance) or collM1rnlized with \nl?Cllritiel held by the School Ditrict or by the Sc:bool Diltrict'1 qcnt in the Sc:bool Ditrict' mane. Cwtegnr7 2 - Cab collM1rnliml widl ecuride held by die plecfaina financial institution' tnr,4 dqilmrnt ,JI' ipiil in !he Sebool Dilbict' nmne. \nCatran'Y 3 - UncollM1rnlized dcpolitL (Thi includes any l:wnk twlMDce tbwt I colluer,Jiml \nwith IICUri1ia held by the plrdslna flnancial intitudon, or by ill 1n11t dqalibtilt JI' qcnt but not in die School Ditrict' nmne.) \n \n- IS- \n \n WARREN COUNJY BOARD Of FJXJCADQN \n \nEXHIBIT \"D\" \n \nNOTES JO JllE GENERAL-PURPOSE FINANCIAL STAJEMHNl'S \n \nRJNE ](t 200? \n \nNole 2; DEPOSITS AND INVF,STMENTS \n \nThe School nillrlc:t't depuiill ~ claliflcd by rillr. 1-a1.,,..:,, ll J111111 30, 2002, a followl: \n \nBIPkBelv:, \n \nI \n \nS 461,828.15 \n \n2 \n \n1,641,860.02 \n \n3 \n \n0,00 \n \nTOia) \n \ns 2,1!9 fiM,IZ \n \nCATEGORIZATION OF INVESTMENTS \n11,..ataueuta .are clwifled u 10 rillr. by tbe tin-- 1-ateaolies decn\"lled below: \new..,ry I - lmured ar \"\"Ii ; eel, or ICCUritie held by tbe School Dillric:t or tbe School \nDiltrict's qmt la the School Dillrict' name. C,,.,+ry 2- Uaimuml or umqilmm, with aecurltie held by the CO!rofopl(ly' 1nllt \ndepmbbad ar qent in tbe !kbool llilrict's nane. CateatY 3  UIUllUlm or unrqilaed, with ecwitits held by tbe COUDlapmty, or by ill \ntn11t depmtment or ,aem but not In tbe School Ditrlc:t'I 111111e. \n \nAt June 30, 2002, tbe cmying Vlllue oftbe School Dillric:t' total in..c/docn ~ 13,187,224.62 which i lllldaillly tic 11111e u Dir Vllluc. Tic i..... /du.e1111 m,, cl-ified a to rik cqrrie, a \nfollows: \n \nTyppg(lgwfl  U.S.Ouwa:aw \n \n_ __.__ B-W~FC,.__k-+ ] \n \nCanyb:a \nAnn \n \nl'llr \nNn \n \nSa__ _.11,Q00111 S ?WTI! a..S--aP11100 I 2_..1117_90 s 2,114J117.90 \n \nLoalOcnawww iawll'ooll \n \n19l 1-72 'HD 936.72 \n \nTalll las . , \n \ns 1111??1R I \\IE?MR \n \nTic cmying IJDOIIDD awn above Includes IIIIICJIDl1\u003cl rneiD11ined i.n n invellncut t100l bytbe Sllde \nofGeorgia, Office ofTreuury and Fical Senices in wbicb tl.e School Dilric:t own r,n k' 14iNbk:: -=urlties. Tbe inv oc-n policy oftbe Slate ofOeoraia, Office ofTreaury and Fical ScrYicel fiJr tbe Local Ov-.a1une.1t 111-eilloeat Pool (Pliumy Liquidity Portfolio) doe not provide fiJr u\"r-+ .,,_,, .ii.JI U.,l_lr,nvat.iVel or a-'u-w'lar.ln'w aa11i0d1, A AW-\".f:'.UWU:L-oI f.Lu.m. Pid.liily Liquidity\". \"n-a-u\"u-u\"u- II \nu follows: \n \nThe Primary Liquidity Portfolio con,IQ ofOeoqia Fund I, which i a cam\"imrim '9cal nd lllate \n \n..,,.aWICDt Lh c/d11Mill jlOOI, nd Fund 6. Oeoqia Fund I i aable mt -et value Im- 4-M\u003eII pool \n \nin~ which follow- Stwndml nd Poor' aiteria fiJr AAAm rmed money mabt fbnds. The pool is not \n \nll!lillaed with tl.e Sccuritie ml Fxc:benF Coaunillioa \n \n-/d1181'111 q11q+ny tu doe-. opaa \n \n-16- \n \n WARREN C0UNJY BOARD Of EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES JO JHE QENERAkPURPQSE FINANCIAL STATEMEK[S \n \nRJNE JO, 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \nOecqia Fund I in  mmier 000r'rtrot -ith Rule 2a-7 oftbe lih rtoirill Ccnnpany Act of 1940 nd ii comidaed to be a 2a-7 like pool. The pool's primary objectivea are lfety orc:api1al, i...nUb.tW:r.t income, liquidity nd diveniflClltlon while maintainiq prirx:ipal (SI .00 per llbare value). Net -:t \nvalue i calollarrd 'Weldy to emure rability. The pool dillrlbuta \u002611.U141 (net ofJMDrat \nfee) oo a monthly lmis nd value pmticipmat's llhlra .,Id and ml: :med hued on SI .00 per me. \nPooled cab and cab cquivalmts and invertoWAilw !'D aeponed at COIi which iipl-oxiniidel filir \nvalue. The pool does Dill iaue ID)' lep1ly bincting guar-111 EI to llllppOlt the value or the hares. Pwnicipation in the pool ii volumaay and depuiill c:onit of fimd \u0026om local IChUidbtlill, opeawtiq and tl'llll ftmd ofGaqia'I rm IF'acies, c:ollep and IIIIMlliticl; and cunmt opuwtina fimd ortbe Stam of0coqia'1 Oener-1 Fund. \nb,..,r,1e111 ::n Oeoqia Fund I and Fund 6 a... di:ttdECI toward lhort-tmm. illllrumenll such a U.S. \nu. s. Trtallll)' obliptiom, ltCUritie iaued or !lw\"lllleed a to principal and inteaet by tbe \n0-r.aiWitill or ID)' of ill -;ie or imttumemwllil- bakea's au:e..ieew 1 and _.....,_ qaun+II The weighled II-V'fl*IE maturity of Oecqia-Fu- nd I-ma~ y l10I exceed 60 da-y--r. wTh~e weipated avenge maturity fur Oeorgia Fund I CXI June 30. 2002, WWI 0.12 yean. The IIV'fl*IE ii.. lll!CDI dliiilion fur FUDd 6 on J1D1t 30. 2002, WWI 0.75 yean. \nNote 3: NON-MONETARY TRANSACTIONS \nThe School Diltrict recei'ltl food c:ommoditie from tbe United Smta Depa. bDtut uf Agricultuac (USDA) for ICbool breekfiir '11111 lunch paujpam. Tbtle COIIIIIIOditie are recorded at lheir \nFedtiwlly aaianed value. See N I - In.lfflll \nNote 4: RISK MANAGEMENT \nThe School Dillrlct ii fAIDm to wrioUI rilk of loa related to tor1I; theft of. daaowge h\u003e, and \nderructioa of 111 =11; mun or OiiUllion; job related il1nea or injuries to rmpk,yees; acts ofOod 111d !Dtiiiplo)\"Qti OIDijOIMIKIL \nTh,, Sebool niliric:t i . ohlained AY11De.Ji.l imua-nc:e fur rilk ofkm wx:illltd 'ith torll,- \nand tmJl'I or ominiom Howeva-, tbe emm or nmilliom policy exclude c:ovenae fur llfXllI \nbaa Net -ad dilcrimination. The School Dillrict I- oaid!u: Mianificantly illduced coverqe for \ntt.e rilk IIOl'iaicum=d ~ (lllttlffllill) -bic:b lll'reerled tllf School Dirric:t'luWWWax:e .:ovtllF \nin ID)' of tbe pat three yean. \nThe School Diltrict ba e:lrcted to elf-imurc fur all loltl .elated to acts of God. n., School Dillrict ... not expa:imced IJJ)' 1oae .elated to this rilk in tbe plt three yean. \nThe School Dllbict Is elf-imluaal with aeprd to unrmploymeat c.-+111ltl'Mlio'! eliro 1bc Sc:hool \nDillri,.. ICCO'lilll for clIIDI wi1hln the Omenl. Fund with expenditure and libllity bein\u0026 ,eported \nwbm it ii probable that a km I- occuared, and tbe IIIDOUllt oflbat loa can be r 1 1\" My erimtrd \n \n- 17- \n \n WARREN COUNJY BQABQ Qf EQUCADON \n \nEXHIBIT \"D\" \n \nNOTES JO DIE QENEBAJdlll1lPO!IB FINANCIAL STATEMENTS \n \nJUNE](t200? \n \nNqle 4 B!SK MANAGEMENT \nCw: I in die unmiploymad c:ompowlioD dllms limJit.7 cbabc die lat two filCII yan are .. \nfolloM: \n \n8coprmvl.n,1 \nI WziJ;ty \n \nClummd \na... 1n \nBltimO:e \n \nClaiml \nhid \n \nEudofY_, \nI ieblHty \n \n2001 2002 \n \ns s \n \ns 0.00 l,Z:!Z.22 s \n \n:!.IIJ.22 4-4:!J,m \n \ns s \n \ns 4.D.5600 s 2,n6.4g \n \nl,Z:IZ,~ J,414.:14 \n \nThe School Dilltric:t s-ticipa1a in die Georgia Fmmim Worun' Compn wloo. TIUll, a public \ncntityrilkpool \"'P'\":md oo Dercmlw 1, 1991, to develop, io,demcatm,lwlrninkfo ap.Ujlanuf \nn. worken' uwp:,wlion lldf-imurance for ill member orpniDliom. Sc:bool llillric:t paya m \n111111ual prrmimn to die Tnmt for ill gmenl ;111111m11:e COVlnF- Mditional i m mvaaae ii provided tbrouah ID i+CC:.iiieut by die Tnllt wilh die Uailm S,._ F'idelity and Chal'lllty Company \nto provide c:ovengc fot pl\u003cCc:alli-1 ~ _,..., by !be Trmt in ere =11 of $350,000.00 loa per \noccurrence, up to 12,000.000.00. \n \nTbc School Diltric:t Im pwrc:lcJta.a:dil IUICly boadl to p1u..id,, IMiti. 1 iwawc:ownae a fiJIIUln: \n \nPp\u0026itir.nCowgd \n \nAmgygt \n \nSuperinlmdent Each Principe1 \n \nS 100,000.00 S 10,000.00 \n \nNog 5; OPERATING I EASES \n \nWanm County Bolrd CFFhnrion Im ClidlirCd into varioul lcalel a leaee fo. pcxlllbL- d oum. \nThele leucl arc ccnsideml for -=c:ountiq purpc1 e1 to Ix. optlilDDI lm1e1 Lcae c:xpc:aidituns for \n!be )'CII' ended J1111e JO. 2002, IIDOUlded to SI 5,579.80. Futun: minimum 1 - paymmdl for tbae \nleucl are a followl: \n \nYw F,ndirug \n2003 2004 2005 \nTotal \n \nApyxmt \ns 18.(184.00 18.(184.00 ILQ14,00 \ns ~.252.1111 \n \n-18- \n \n WARREN COUNJY BOARD OF BQUCAJJON \n \nEXHIBIT \"D\" \n \nNOTES JO DIE GENERAL-PURPOSE FINANCIAL SJAJEMEMJ'S \n \nRJNE 30, 2Q02 \n \nNoto 6: GENERAL IQNO-JERM PEPI \n \nGENERAL OBLIGATION DFBT OlITSTANDINO General ObJiptior, 13ond. cwaeutly c..dM11-1ina ll'C a fullows: \n \nrwms \n \nIgqgc, Bern \n \nAmgugt \n \nOemnl Govemmmt - Saia 1988 Oenlnl Govemmmt - Series 1999 \n \n5.40%- 7.30% S 130,000.00 \n \n4.35% - 5.55% \n \nB6RQJIOO,OQ \n \ns uio,ooo,oo \n \nThe c:banp in Oemnl Lona-Tam Debt clurina the filcal ymr ended JUDe 30, 2002, -wae a \nfollowl: \n \nOenen1 Obliplion \nRgglp \n \nBelmce Tuly 1, 2001 \n \nS 9,050,000.00 \n \nDcducdOIII DebtRdiml \n \n240,000.00 \n \nBllmce TIIIIIC 30, 2002 \n \ns y10.ooo,oo \n \nAt June 30, 2002, pa,mealtl ae by filcal year which includes principal 111d :ntaut fur dae itam \nare u follows: \n \nFilCllYear \nfw!ml 1mslQ \n2003 2004 2005 2006 2007 2008-2012 2013-2017 2018-2019 \nTotal Priucipal 111d lnlaut \n \nGeneral \nObliption Rgpdp \nS 869,312.50 \n751,662.50 \nm,102.so \n795,362.50 796,797.50 4,013,862.50 4,091,277.50 \n1,363,135,00 \n \n-19- \n \n .------------------------- \n \nWARREN CQUND' BOARD Of EDUCATION \n \nEXHmIT \"I\u003e\" \n \nNOJES JP ]];IE QENBRAkPURPQSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNok Z; ON-BEHALF PA'YMENJJ \n \nThe School Dillrict bas ra:nplzrd -:evana 111111 CJ4+Nlibau hJ 1he 11DOUDt ofS55,103.53 for \nlaJth illllunmce 1111d rmremml: coatrfbudom paid OD tbe Scbool nlllrict'I behalfby 1he followina \nState Apn.::iea \nGcoqia Dqaaln.W.il1 'EcL i--n Peid to !he Gecqia Depmttoem ufCommunity Heelth Fer Heelth lmurmN:e ofNon-Certified Pea#111Nll 1n the mount orS45,t40.53 \n \nOfBce ofTreuury 1111d FllCHl Servica Peid to !he Publir Scbool employcu Redranent Symm Fer Public School F.mploycu R.ethemeut (PSERS) F.mploya't Coet In liar mount ofS9,963.00 \n \nNole I; SIGNIFICANT CQMMITMENl'S The followina is en wlylil ofliamfic:ent oo!flHDcling CODlbUdion orrmovedo,; Qlilb.a:tc..,...nd by the School Dillrict u ofJune 30, 2002.. tiaptfw with fimctina ftlileble: \n \nPrpip;t \n \nUwued Fvrnded \nOen1tt11 \n \nFunctina AYNileble \nfrnrn SWr \n \n01/00S-749-007 \n \ns2226 Q19.11 S 171,940-19 \n \nTbe HDMJnntf dCll:nl!ed in dlis note ere Dill 1rflected in the amenJ-purpoee fiDHDciel w1ell1 \n \nNote 9; CONTINGENT LIAB!LDJf.!i \n \nAmounts receival er m:civeble pincipelly \u0026om the Federel p a w .ni -ubject to IIUdit -nd \nMView b, pNUtor aaenc:ia This could i:auJt in mcpllS for ~aied t,:,the pentDr smc:Y \nfor DY expmditma- which ere die-llowm UDda' ll'ID' tmlli. n,.. Seboo1 Diilric:t blllievm lbe! m:h \ndisellowrm, ifHDy, will ti,, iwowni.d to it- O\\'ellll finNDciel position. \n \nNpg IQ; BBJ]REMENT PLANS \n \nn:\u003e-CBEPS RETIREMENI' SYSTDI OJI' GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION \nS!Jbili!lbdly ell tmchc:n, edminiltredve Hild c:lerk:el pamael emplo,al by locel -cbool di-tricti ere covaal by the Teec:hal Rethemeut Symm ofGecqle (TRS), wbicb is COlt-lbering multiple anJJloF clefi1ed benefit pemioa plen. TRS providu ea .ice retiremeut, ctiwblJity reti1ement md \n \n-20- \n \n WARREN COUN]Y BOARD OF EQUCAJJON \n \nEXHIBIT \"D\" \n \nNOJJ;S JO JJ:IE GENERAkPURPQSE FINANCIAL STA1EMENJ1 \n \nJUNE 30, 2002 \n \nNob; to: RfJJREMENI PLANS \n \nmrviwn baefllli fbr it, rnernlwn In KCOldmce with Stat-, PUllc Tbc Tccbln llc1irancnt \nor Sywcm ofGcoqpa illlllCI . . . . . . ltMnd lone f;Dll'iI mdit report MIid I copy c:D be obtained \n\u0026om the Gaqi Dq\u0026tma1t Audits MIid Ac:coullll. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE \nF.mployca ofthe School Dillrict who re c:ownd by TRS re n:quired by Stide IIIMbllcto COlllribulc 5% oftheir 1P011 cminp to TRS. The Sc:booJ Diltric:t mka IDOlllbly employer c:oatnnutions to TRS t rtr1 doptecl by the TRS Bord ofTnlllCCI in accocdmx:e with Stair lftlttc and a dvilcd by their indqien:lcm 'ICtulry. Tbc required rmploycr c:ontnDUlion ride i 9.24% MIid employer contribuliom for the eum:nt ficI ycr nd the pu et:Un1 two ficI ycr me  fbUow: \n \nfjpJ)'CI[ \n2002 2001 2000 \n \nPcrcadap: Cgpttjb,ttnl \n100% 100% 100% \n \nRequired \nOrnilMioo \ns 355,499.38 s ]BB,838.05 s 420,459.99 \n \n- 21 - \n \n WARftEN CQUNIY IAMP Pf B! f'7'tJJAN ?li EJIA IN MfCE IIHEEJ aea;1AL BEYEM P: BIi) \neUEillilXR \n \n!BEIi \nc.tl and c.tl Eq,$ .. \nAmulllDe I II \nIt. . . . . . . \nFood \n \nl.lABIUTJEI NI\u003e BJtC) EAIIIY \n \nU\u0026P\"'F8 \n \nClllhOwwmaft \nAccau'III Pa;  +SI Ila Pa;; II ~0mn1 \nD I redRIRna \n \nPa;; lilw \n \nTalll  Mr \n \nFUNQEAIIJY \n \n_, FIDIP I WWW n Farlr..a.Ulai ~- _, Food DarlllldCGlllI SI P1111:I ~ ~111111 \nu, I la \na.lldl \n \nTCIIIIFIDI~ \n \nT_..lklF andFLnl~ \n \n8CH00L \n \nFOOD \n \nBERVICE8 \n \nWIIERf \n \nFUNQ \n \nPROQIYlffl \n \n  411,mull 111.- \n \n13, 1113.24 11,118.73 \n \n1,712.11 \neua \n 1ft:171:R , ___.a:,._r.\u0026:.. \n \n \n \n 4,423.111 \n23,117.34 \n \n1,111.11 11,7113.311 \n \n  21,111.21 \n \narmez \n \n \n \n1,712.11 \n \n1.-.a \n \n 413,11114.41 \n \n0.111 \n \n  t1IIID 1111! \n \nII.Ill \n \n :1M:1Zl:R --.at';;;ar1111Plig,. \n \n-22- \n \n EXIIBIT \"'E\" \n \nFBJEIW.. \nPROQRAIIB \n \nI \n \nI \n \n1411,2111.111 \n \nA.Ttt.ETIC RN) \n \nTOTALS \nJUfE g PR JLN: 3D. 2lltl \n \n0.00 I \n \n4114,2111.1111 I \n \na,4111.40 \n \n1111,11112.27 \n \n330.00,.311 \n \nI ?19!! 1p I \n \n11,712.11 \n1ffER \n \n11,3111.12 1.470, \n \np,m I ffl pp -....:IB:..:111P1;11P11. \n \nI \n \nIIU!ll.71 I \n \n1111111114 \n \n47,3111.14 \n \n22,113.71 \n \nI \n \n1!129111 I \n \n211,410CXI I 2114111 !!Q I \n \n711,4111.71 I \n2111,347.10 lll,IOU4 22,113.71 \nZ:1121!-!l I \n \n121,1211.12 24,411.111 100.11111.41 114,1122.111 1029!'4 \n34071340 \n \nI \n \n11,712.11 I \n \n11,3111.12 \n \n1,1113.12 \n \n1,470.111 \n \nI \n \n0.00 \n \n4113.0114 41 \n \n41111111103 \n \nI :ZIW.00 \n \n-21141000 \n \n-1,,.111 \n \nI \n \ng,gg I \n \n:211AIDCIJ I \n \n9!II0.24 I \n \n4112.41111~ \n \nI 1403ft 3t I \n \ng.op I T  y ---R!1a111.1l.11Pffl=- \n \n-23- \n \n WMBEN COONJY IAMP Q- EDI ICATIQN \ncmnm-w BTtWETOF REVENUES, EXPEfHill3EIAND QtAWFS IN FlN) Ml eMrE8 \n4 91M PfYfN E BIil YEM ENDED-IN 3ll 2'IR \n \nREVEMU \na.Finll Fedlralfinll Olwfinll \nTall!--... \n \n.......... Clnn lqipart ... . ._tlcla \"'141cua:ll ll lnllructlDnlll \n \nOan11111Adl1Aillllialka1 \n \nwa SchDalAdl1illllla11tw1 \n \n57 I \n \n.and Opa. ., ~ Pin \n \nlludlntTiawpoaMll\u0026wa S.wltw \n \nO l w ~ . .. . \n \nFaad . . . . Opa. .. \n \nRN\u003e MWtPE MY 1 \n \n,_Na Faad .,_.. \n \na..g.111 PwlDII \n \nilar-.tCcwiI T Pwracllalllll S'IJIIII \n \nFUND BALANCE ,ME 30 \n \n8CHOOL FOOD \nBB'VICE8 \nRN) \n \nLOIIERY PA0QRAll8 \n \n' \n \n' 33IDIIDD \n187,1143.82 \n \n172,714.88 \n \nPZM \n \n' ' !Z!ll!.11 \n \nl:ZZ.Zl4N \n \n' \n \n131,171.111 \n \n:r,,141.111 \n \nUIU1 \n \nI ll7,l\u0026l7 \n \n' ' 1111,111 \n \n172.11!,111 \n \n' \n \n' -Ci!\"1114.87 \n \nII.OD \n \n8112,ffl.13 \n \n0.111 \n \n1113.114 \n12211! \n \n' 11! PIJ4 -----9:99-.. \n \n8N naaa Ill . . ~ dll i i 1aa. \n-lM- \n \n EJOBT\"F\" \n \nFEDERAL \nPROOR1tf5 \n \nATII.ETlC FUN) \n \nME TOTALS mYEABENDJEYPNE 30, am \n \n  111D.11111.71   ..,,.lllll \n \n \nP9PP \n lilllll \n \n 21111,11211 Ill \n1,QIJl',7111.811 \nPJ1Zl1 \n 1-111117 \n \n210,132.87 1,111111,142.112 \n1  0PP \n1,fflQIUZ \n \n 1142,772.111 \n \n37,111111. 111 \n 1111.1121.31 U13.211 \n \nI \n \n_,,,..,,  11,2711.311 2ll,D7I.71 3.13177 \n \n \n \n Cl.OD \n \nCl.OD \n \n \n37,1173. 111 \n 37,73.111  .a,e10.33 \n-18,IIIU7 \n \n 1174,4411.111 \n37,MUII 37,111111.18 1111.1121.31 48,M844 3,111111.111 1,2711.311 211,D71.71 \nR'3Zll4 \n 1.401Jl4,07  -48,D44 IIO \n412,401148 \n \n--11111,111111.17 32,4112.04 113,717.00 \ntlll,817A7 \n== 211,1311.111 \n1.217,731,19 \n111','100113 \nffl.7112.111 \n \n383.04 122.114 \n \n2111.211 :f!1d!I \n \n \n \no.CII ' -2114IOOO  4i\"\" ffll 21 -...:S!lili~41111111:1PL \n \n-211- \n \n w mJmmNIwYmeeMeoZA'I:EBIJIrnn \n('HITNa PBOFII BIG IM'llfflR \n \nll!Xl8T 'U\" \n \n,,..., \n1'11111-- \n \nCE +HIM ITAT! \n \nFIWICINO AND \n \nIIOND \n \nMU  WJT \n \nTDl'ALI \n \nPftH HM WT It MC\u0026M .UCILIR1 \n \n 11 \n \n 11 I 11 \n \n J.llllll\u0026Z \n \n].1 1119 \n \nIIIIIIIZ. \n \nLltlll!D \n \nawn,  1JMffl 13  ,.,,., I \n \nI LZSWP \n \nlrtTDEIMl'BNlfCNDY \n::erae \nep aIi.a..,,........ \nT_..11 IE \nRN\u003enrx \n... Finl  I WWW p FG'Plaplaollland .... . U.amwd u, I \n1'11111 Finl ~ \n \n... ... ...,,,,   171.-.m \n \n171.-.m \n1M111P \n \n.,  ,., I ,., \n \n 1,711,11a11  p,ap \n  ].lll-]il \n \n  1,.,....13 7.7GAG \n \nPT \n \np,ap \n \nPT \n \n  p,ap J.llllll 11 z.zgMiaa \n \n 'JMffl 11  1,?PfflS I aw,,,  Z,ZSfflP \n \n.................. ....,.________ \n-- \n \n ._ JA!MYIDNllOEfflFtIP WEF:CIIfTI tICFIIPTE?I A fNIEINl'Qffii X?JJBNJMMPI \ncerrINre?FII BNJ JEMMPPEWMM \n \nEJDEIT'H' \n \n-- - AEVBFH C...l'la ,...R \n \nEjj3 1111 \n-.d....-...-...~.... - C..-.0.-, \n \n \n7 \n \n.... PJIERTP crarezea Op 1111111111 \n \n0 I CT \n \n0111 \n \nTalal~Audl.,..._1\\-i \n \n- \n \nd_ \n \n- \n \nn__1,0F1i 1 \n \n-Aaa:lie..._ z ...adOIII.RaaU.. \n \neNJMHIZMY1 \n \n9CN) \n- ...... eeeet \n \n9F0PGIA .,.,.ff \n1'9WICIDNm \n-.nerr \nmz \n \nTOl'ALI Y!Ml!lllED \n,IN!ll,IRJ \n \n.,._ I \n.,.,, I mr \n \nmm, I an,11aa I 1111,111.11 \n \nI mee I IIJIJHI I 1,1D-91.P I Zl\u0026,1111.71 \n \nz.,, I \n \n11P I \n \n...., I mm I \n \nt1PM1  I \n \nI 1,JrT  \n \nI :fWl1lll I -azyp,z, \n \nI \nI :IIIZIB:H I :fP!W'1 I \nI ---..,:ua I \n71:RWP \n \nLal',111.74 I 1,117,11174 I 11 \n \n.,.,.,. -\u0026211718:9 :11111 \n \nI \n \n11P I \n \n11P \n \nDJID I .........UI I -ffl,ID'IZ, \n11P 7ltl19P 11PMI  \n \nBNJ Ml MINI I . . II \n \nI 1,maa I \n \nIll I 1rZ11a11 I 7.7G~ \n \n....... ID . . pa\u0026dpr I \n \n.  :r,. \n \n we AEf fDNIY IOMPAEB!PfflN \nWETR Ml MRF ltRI [ff,[ME6wI)lC. IEm- - \n \nEXIBTT \n \ner Ii \nc..i..ic.o, Fq,i   Im IJa \n~ n Pl \nBNlFO!IIY \nl'wl\"SI R .al FaDIIIIIIIIVlca \nUta wd \nUI I Ia \n \nhWi Silt \n \nTAX!lll'OR \n \n101\u00261 \n \n A.,!.',IB,,,I \n \nINFITAX JUtEILPR ,MEll,2QP1 \n \n  .-.m \n \n22U1U1 \n \n a,1a12 \n \na,1a12 \n \n411.1117.40 \n \nt.11111 \n \nZIHII! \n \nl].7117. \n \nZIZJID \n \nreme  111 P1 I! -...1T~i11W'1111iT1111- \n \n -.e111JM  \np.pp \n rm\"M  \n \n141 . . 111 I 721,DIJOIXJ \n \nom \n \nom \n \nOT \n \n,., e:, --ZM:.1i11111W'11a11111T11. \n \n... nalletDtw310.-a.nalll-ppuaiap;-   -  -  .. \n-- \n \n -- - --- - - - - - - \n \nWI IBY'XINIYP?Nll?EBJPIJCII \n \nEJOBr.r \n \nmmzrncmrJTCEBCVBED e\u0026fEPillEBNGR Si M:NBNlMHIZI \n \nDfffl' EBVIZ RN] \n \nYEM FM'ED:IIE ll PP \n \n..,. \nTOlsl'wm \n1\"111111 ........ \n-.............. ..... AA PNEI ~ Pln:lpll \nk\"C I C-~ilaaw-(lnllr!F; Era \nBll'MHIZJ\u0026Y1 \ne 11u11 ~ , 111; aa \n \nMU!Ui  V \nTAXEIIRlR \nP\"\"Eff! \n \nCW!. \nPIR'0II! \nL0CIIL QPTl0N \nMMIM \n \n......TOTAL.I YEN'B4H NCILIR' \n \nI 111,117.M I \nI ,nr'M I \n \n..,. 4IIU7I.D I lZWP I \n \n11..-.11 I \nIZl'P \nPMll19 I \n \nIIUIIUII \nR\"H\"IM '' \n \n  11DDDDDO 13,l'IDJII \n 1nrom    ll,001.M \nZMPTP \n \n1111,IIDD Ill I \n-.111.eo ?ZMPP \n ffl,R'l,ID \n -1111,411.34 \n11PP.3D \n \n MIDDDDD \n41U17.8D \nZZM'I \nmnnt.m  \n \n_DI., 11o.aoa.ao \n1-l!P:R \nmw  \n \n..-10 I -112.037 \n \n!ZIPIT PPP.II \n \n  m111   mm \n \nI D11111 \n \nS.-IDll..pealp,1 ...._ _ _millli.11 \n-- \n \n BNllYPEI \n \nEIIIBTT \n \naam \n-  c:.,nic.i--., \nl'IIIIA.- \n \n; :OT FIB ftPll fJNl RUY \n \n'\"\"\"\" \n \nC:.,Q \n \n7 \n \nFllm-lr0Zln \n \n1'11111,._ \n \nBIIIEm \nFinl?! w \nua  wawd \nUi , t \n \n1'11111,._... 1'11111 i:.llf \n \nEGBPW  \n \n111WrB!la \n \n01111. \n \n~ \n \n... Ri\\L \n \nICHDI.MIIF \nRNJ \n .,.   ,,..   r,,mm \n \nAQIIPNP \n-.n1.n \n \nJOTM.B JlN!lllPI :IICIILIRJ \n \n411,171.71 \n \n:11.DD.71 \n \n- \n \n   azn.n \n \nStTIJl \n \n11R71 \n \n.....    719.D \n \nam.ll \n \nr,mD:UmI \n \n   -.n1.n \n \n-.n1.n \n \n  \n \n. . \n.,  \n \nIYIP \n BZZID \n \n..,,. \n IL1Zl1Il \n \ntlWV \nltlllZI \n \n_ _ ID . . llii--niilf.,r11111pm...,_ \n \n. \n \n_.,_ \n \n mnznvwamr.,cOaO=IDaYwIOMwDeewr BewJAmIDwt,::erDEt \nfD RNYIEYM' BENKEl lDJPME EMaDliZJ fJ NP \n \nm..,-,.. \n \nnrmceea:  \nAIIIET1I c.i,m1c.i,Fc,rtt \n \n..-mEII l'lnll-farQlaa \n \nWDPED5-E HNEPCITAflYrm \n \nIEIAPIP \n \nAIIIET1I c.i, ml c.i, Ft,, I \n \n \n \n~ \nflnll - farm- \n \ncqq=!MJ CIMCZIR WC 1M \nti AIIIET1I \nc.llmlC.-E,,I \n \n\"Jll8I.ITEII flnll - far 0laa \nEE:D ::a a \n AIIIET1I \nc..11 ... ca., Fqat \n\"Jll8I.ITEII flnll - farm- \nIPPANCZ \n!b AIIIET1I \nc..11 ml ca., F., I \n \nLIMLITD flnll -far 0laa \n \n11111.NtCE \n \nIWANCI! \n \nAYJ,119:1 NPIAI Rf'MrnONI MlllPP \n \nI 1ZPT I \n \nI mer I \n \n ,,.. ,rm I 17700 I Pffl I \n \nI \n \nI moo I l?PT I \n \nF,]f I \n \nRP \n \nI rim I ltPT I !Pt11 I me \n \n,.. I Z:11l,ll I \n \nI \n \nI Z:11J,11 I arr I \n \n1:IZl:R I 1:IRB I \n \n.= ., \n \nI \n \n'\"\" 1111 I \n \nI !PT I \n \n11Jfl \n \nI \n \n1111 I 1m, I ?RT I \n \n11111 \n \nI \n \nll:F I \n \n99 I \n \nI \n \nl],F I \n \n911 I \n \nea I \n \n21:F \n \na.m I \n \nIJ:F \n \n 11  \n \n W'PBJ';, 10N E EDIND' IAIY! Rllf9AMlPf 'PE MID! \nAIIIETII c.,n1c.,,._.  \nLIABIJl1!II FwlllltllllllrCllwa \nIE PW-BNl \n Allllnl \nC.,n!C.0-Bi,I \n\"..IABIJl'EII , _ Hllll llr Cllwa \nPAPEP eecmn BN\u003e \n AIIIETII \nc.iin1carF4o: \n:.warTEII Fwlll Hllll llr 01-. \nlf'ICOF IIE# \n AIIIETII \nc.,n1ca-e,.: .. \n\"..IABIJl'EII Fwlll Hllll llr Cllwa \nWI JTIDX,....IAIY! EYIYBE   IFH 0::51 [ft \n AIIIETII \nC., n1 ca\" [qat I \n..-.nn \nPwm HllllllrCllwa \n \nEICIBT,_\" \n \n......,, IW.ANCE \nMX1,2lltl NPOAHI [fflf'iDCW \n \nIW.ANCI! \n \n...    ZZM1 3:fflT \n \nIRJZI I \n \n    IRPt ZffT IRZ! \n \n117:11 \n \n  JJP:51 I PT \nI 11NI  9:11 I \n \n PT \n \nHMI \n \n 9:11 \n \nJJNR \n \n '\"\"  ZWJZ  '\"\"  ITff \n \n '\"\"   Y1P,]7 \n \ntrM I IPPtt \n \n   I :rm ]Adi \n \nTIT \n \nl\u0026ZP \n \n:,,  \n \n 19:11 I \n \n 1am \n \nl ZP \n \n..,  fBW \n \n \n \n..,  :1am:  \n \n \n \n IRJI \n lmZI \n \n171  \n \n \n-- \n \n .,. mNJXeoeeog= BJCMDf \n \nm  rn:ntm aPERtU HW!IEIINPl:e rne \n \nFDlwPYeBeNrlleYPEPE!Ta \n \nIC-, \nrm \n \nN \n \nP \n \nIIXl91',.. \n \n. \n \nJ'71NIX !IQH W?ll1 \n \nf\\JDIIEE1 5  m:n: 't \n \n caAml8.E.T.8C.,, a,. I ,. \n \n..-.mEII \nFlnll-llrOlln \n \nrvnr:nc;; iEE Ars: 't \n caAml8.E.Ti8c.,, Fett \n \n.......-...m_ E.I.I Olln \n \nMIMICE \n \nIWANCI! \n \nAX1111 NPIMII RfPNIMM nMCllDI \n \n BM  '\"\"   PM  '\"'  \n \n M:11 \n \nNPllt \n \n ma HEit \n \n   11l9 \n \n911 \n \n   1139 \n \nPT \n \n 9:11 \n \n1919 \n \n. PT  ,. \n \n'TS HM \n caAml8.E.T.8C.,, \"SJ, I ,. \n. . .I..I.A. .M_.JTE.8. O l l n \n \n,.,  \n \n   ::mn \n \n7PM \n \n\u0026PZJ:11 \n \n,.,  \n \n  ZIZNP  zrr HGIP \n \nIPIN-1- KDGY' B Nll \n caA.l,8.E.T.8car Btt ,. \n.......-...m_ E.I.I Olln \n \n=    mmu P:IIZ-12 \n \n il:ZZ!rD \n \n    11 IIIZI  mdll \n \n IIIIS \n \nBZZIZI \n \n.............., ................. \n \n 1'' l'''i 'r'  II iII \n \nr : i \n \nrIi,i,I_J' i,l,!(l!Ii~ \n \n11 f \n1r1, 1 \n \nI  i \n \n1,'11~1.1,1111i1_= \n \nr : i \n \n.1,,i,1,,1J \n \ni \n1 i \n \nii,1 \n1I_I1,,,'91,1,~ \n \nI i \n \n \n \n  \n \nt! \n \n; ;;; ; 5 i ~-~ \n \nI II ia \n \nI Ill I I \n \nIll \n \nI II ~e;li \n \ni- i-I !ii i I ; i-11-; \ni '~ !ii i I i !~11 \n \niI iIi  i !8 \n \n~II \n~I \n \nI \n \nB \n \n.I \n \n ,w , m NIY IDll q: m r-Mllf \nlctFIIEOFEREMilb'EICl:EH !'-MW Ill YMP fKED PM 7R PP \n \n8C!Ell\u0026E\"1\" \n \n-------------- .. ..____ Pi .,.., -:r TP19'F_,,., \n \n.,,.........,,.w,.,,., . ,,,_,.._ (1) Thl __.....llrlllFaadDIIPP \n \nFtids alJ ......... .._ol,a  u-, \n \nCl) C; \n \nlll'taldD.ia 17 ,,..__,.,,:_ 3 \n \n_, _ _ ntallllllllllalllilldm,._,......._ \n \nPl F; ,..,....,..._ _ _ _OlsFlnlL \n \nCt \n \n._,.. lllwllMadbf'lnl-- \n \n,,\u003cIi...,.., no1,,.- 'Illa - IMIIIdid \n \n-A--tu1y Ii L \\ L \n \n'Illa \n \n3 \n \n3 7_.,____.._.,..._,,,.,.. \n \n-C:CU.,a..lllfflil ,.., ........, .......... _ , . . . , \n \n... IINr:i, .. \n \n..... ,,, ...... ~ ..:aw r ,ar.. _ Zl;u: . _ .  ._ \n \n.......... _Eal put \n-- \n \n r \n \nI \n \ns \n \nI \n \nI r,. i!' I \nI \n \nii Ii., \nf II ,1I \n \nr11 \nI 1 \n \n111, I. \n1 \n \nI1i1f,-- \n \nI 11. \njll'i \n \nI \n \na 11i \n \n \n \nI iIf \n \n.. \n \n \n \n \n \niI I i!iiii i llt!iii i! iiiii!i!i !ii! ii!!I ~I \n \nI  \n \n~ \ni 11 \n \n \ni \n \n~I \n \n \n \n \n \n! \n \n~ \n \nII ~IJ !  \n \n~ \n \n1 \n \n= \n \n \n \nI Ii iti!i! l!ll!!i!i i! li!llil!i Iii! 11111 \n \n~ \n \ni \n~ \n \n w, ICDNIIMPTAfmr--e!JPN IAfP IF SE AflPBP\"EP IOC-N PPJ1AN M Fl IM Bll,EGD \nYEM FMEME l l IPZ \n \nICtEIU.ET \n \n-om \n1:cq:: I 114 llnd. Olllllnl:llllg ... .,, I I 4 .a W I Ii 5 'lllglt ICllaal \nIDrW.... 0uilr -.II Jt 7 I ij \n~-...0111111ar1,2111111 \n \nORIGIW. \nEIcIT.mIMT,nED \n \nCUCIE#I' EIITIMTl!D \n0 *'ill!I \n \nMl0IMT eJIPcNDED INClR\u0026n\" \nY!ARI!) \n \nAIIDllfl' EXrENJED INPNOR \nYEI.RI\u0026!) \n \nPROJECT IJ:ATUI \n \nI 3 ,an cm Ill I U1U7U1 I 7Q 012 '! I 2.1V p I' 0ngaq \n \n.....,... 111 1111 lcliaal lM!cl'a ~ - ...,_ a S 7 I ~ a. @ -,,,, caTlg IDr 1116 t ; ti af.. Leal 0pCan \n \n12) TlielcliaallMlcl'a----af--lDr-..-.:a. -111-flan.pllljKlt ;I ... ar;I L \n \n131 T1ie -afW.... 0uilr 4P Id la bi; ti I vi  115 - 11111 Anl th liDa ..-.:a. \n \nAnanl ; -IDrlll pqaclm,_..._.._JW \n \nI ,-,-1......, \n \n----Anl-. . - aflh Jlllltlal, \n \n_ . . . . , IDlll..;aa:zl PL! .._... _ _,__,._., \n \n ectEDUi \"4\" \n \niffH -fiPJllp \n \nDn\u0026tll lillP!!cu:ICIIIIIIIIIIIIIPlaara IQ.\u0026JaptwiPIUU: -..-..aAiiiflnll,a \n........................... .....,a 1'1-,0..(1411'1111,a !:al) . . . . . . . 114\u003e \" - ' \n--..1...1..-11... . . . ....  ,a. I Eat,1114-11 \n,.,.,........ ,..tfFIIIIIDII._M 7 ,11-111 ....... 5 all I \n........ a C c:a..r,1 \nc:a..r,  \nc:a..r,111 \n........ Clalli--c:.i,a,,vr \nAla ..... \n \nTOTAL DIIECT MTRUC'Tl0IW. PROGR.... \n \n---Pt  -c.......... \n \n7 \n \n Dr I I \n \nAU.DTll!NTI \n \nD FRE DI-l~-C -f-aFrl \n \na.na1-fl!laWllcmra \n \nPDPTIDNMI Ml'A 0Pa\\110NI \n \nTpTM. \n \nI \n \n.. --41 114N0ffl I Ill,171.11 I \n \n...,,, 11o.m.aD \n \nam.a \n \n111.-.00 \n \n7,aJD I 11.111.17 \n \n-.oM.711 \nam.a \n11U17 \n \nta.7111l.1111 WMOM \n \n1,uaa \n \n4111.nl.ll \n \n....., 11UD.GD \nm.111.1111 \n4111MDD \n1amao \na,m,pp \n \n-.-.11 \nEN.ffl.04 \n-1am.a \n-114.11 715.'III \n1,111.IM \n \n40WN 4UG.12 1,t470Z1 \n-4,1R11 \n111.1111M \nppm \n \na,,m.a \n_,_lalll.711 \nMUI? \n-114,171.11 715.'III \n411.111.114 \n \nI 1,mnoo I :a.1:a.101.11 I 111M1.. I u,aa.n \n \nwrm.oo \n17.IIIUIQ \n \n114,111.41 \nVTP \n \n11.1117.21 RP  \n \n,,.,. 17U1:L'III \n \nTOTM.la:FOI T?\u0026IR.NJI \n \nI Z  711.1D I 1.2111!111 I !11171.111 I :1.1171111  \n \n(11 cw...- - - - - - . . . - - - - \n \n- -  I l l peal PL! ._... ___.,._. \n-- \n \n WAftAEN C0ll(TY BQAAQ OF fl! tc-!JION QENEIW- FUNQ .. A! tel UY INHC EQUCAJJQN PROQRAN tnef' \nNI ODENI8MP EXpEfQTlfiEB-IYS[JE VEAft EJIEP Ea 2'IR \n \nIICHEDULE \"II\" \n \nam. \n \nw.NnCCUlly.._.llc:haal \n \nEdi...,,. Freeman Elaaat Schaal \nCenlal Ollcll CMLIIII \n \nPrGQii li) \n \nTOTAL \n \n(1) Cu.1.alliid ~ - - Flnlapu l.oclll FM! . . . . . . \n \nALLOTIENT8 FROM GEORGIA \nDEPARTIENT OF \nEDUCA110N m \n \nB.IGIIEQBE PR00RAII 008T8 \n \nI \n \n1,3151,111.CXI I 1,7U7,3111- \n \n1,433.1111.IIO \n \n1.1111,3311.04 \n \n43.J78,IIO \n \n \n \n2 ... 30!! 99  \n \n3.31PM373 \n \nS..naallltw..........,_.aii:llliiaa. \n-- \n \n SEC110NU \nCOMPLIANCE AND INTERNAL CONTilOL REPORTS \n \n DEPARTMENT OF Auorrs AND ACCOUNTS 2S4 Waabiapm SI-. s.w. Saile 214 \n \n--M '1 J W. HINTIIN 11111111MD1011 \n \nAtlaala. GeOlp 30334 1400 \nJuly 25, 2003 \n \nHODOlable Sonny Paduc, Governor Mcmben ofthe Gcnaa1 Allembly Members ofthe State Board ofEdlnrioo \n111d Superinte11dmt 111d Memben ofthe Wurai County Board of f.dvcaticm \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WID:J GOVERNMENT AUPOJNG STANDARDS \nLadies and Gattlemen: \nWe have audited tbr, fiomciel WiCu11 of Wamm County Board of FdllCl!iDll a of 111d for the year ended June JO, 2002, 111d have issued DID' report thacw dated July 25, 2003. This rcport was qmlificd for varioul dcputurcl from pne.ally ICC =pied accounling principles, a identified in the \nauditor's report on the aenaal-purposc finllncial 11Bk:ment1. We conducted DID'audit in aa:ordancc with auditina llbllldanll acncn,lly 11..:ejA.ed in the United Swm of America and the llbllldanll \napplicable to financial audi11 c:ontwincd in Oveoox:nt Auditing Sqgt:'nMI, issued by the \nCompttollcr Omaal of the United Sllltes. \nCompljPJR \nAs part of obtwhring rcuonable IIIIUl'IIICC about whcthar Wurai County Board of Education's financial 111Cii1Ci!ll \u0026re free ofmteriI millltcmcal, we pafwwed lCIII of ill complincc with \nc:crlBin provillilllll oflaws, n,gulriona, -.oub\u0026ll and gnm, DOIIICOl'lplimce 'IVith whic:b could 11\\'e a \ndirect and mtaial effect on the dctcnnination ofllnancial 11t1ancn1111110U11t1. However, providing \nan opinion on compliance with those provisiom was aot m objc.:tive ofDID' audit, 111d accordingly, \nwe do not cxprca IUl:b n opinion. The l'Clulll ofDID' tam dilclOlcd m i\"stnce ofnoacompliance \nthat is rc:quired to be rq,or1\u0026!d under CkM\u00261.mcnt AHlitlDI !fllDdrb -ud which is dcl.:ribcd in the \nac:.:ompmyina Sc:hc:dule ofFindinp and Qucationcd Com a item FS-7491-02-02. \n \n2002YB-60 \n \n 1ntgg:1 Cmtrn1Om p;D111ip) Bmonine \n \nIn plmmina md peafutmina om audit, wt: c:\"Nid ,,.., Wmm County Bomd ofEdratiClll'I intaml \n \nc:ontrol owr finlncial repo.tiDg in order to dctamine our auditina proceduffs fur the PU1J101e of \n \nexi- 111 our opini,on on die ftnenciel -um..euta 111d DIil to iacmde ..,__ on the intmlal \n \nCOlllrol ove. fiOIIN iii rcportbJa. However, - amd certlh.. u.dt\u0026i involving the inta1lll c:ontml \n \nowr finlncial rq,ortina IDII itl openlion dial ~ c:omider to be .q,onable c:ondition Rcpomble \n \n._.... \n \n.,.,.tiOIII \n \nm. voIve \n \n~ \n \n. \nOOIDIDI \n \nt.OOIII\u003c \n \n \n \nU \n \nh \n \ni. \n \nh \n \no.eolanlia \n \n: \n \nt \n \no \n \nl. l \n \nq...p~ l ldefk- \n \n~ . \n \n........ \n \nI. D \n \n......_. \n \n._.a_...: \n \n. - \n \nor \n \n..,mna openlion orthe intaml c:ontn\u003el overflomcil \n \ndlNt, incuj!r1ammt,\"'lUld dvaxly ft\"m \n \nWmen County Bomd ofEductlon's ability to reconl, i-ve , '1111+1 ize add .epo.t ftmrncil data \na COllliltent with -:.dam ofr: ,ltilt di the flDNDCil 141\u0026101JL Rapo,1ab1e c:onditiom me \n \ndClcribed in the -=c:ompayiDa Scbeclule ofF'mdiap 111d Q!iooed Coill a itam FS7491-02-02 \n \nmd FS-7491-02-03. \n \nA matail w I n is a condition in which the daip or opcndioa ofone or more ofthe intcnwl c:ontrol CCH/q,clilhdl doe not mluc:e to  n:ladw:ly low level the risk dwt 0,:11111enldl :a lilOUiits \ntlwt would be malierial in .elllion to tbr- fiwril malCmCIID beina uditcd may occur lllll not be \nclmctcd wilbin a timely peaiod by rmployca in die nmml c:oune or peafixming thei. -ignecl \nftlilctiom. Our comidcnlion orthe intcnwl COiilrol owr flDIINil ..,mna would DO( \"\" , ily \ndia:lme all ii181ta1 in th,, intai.Wl COiilrol tl+t mipt be rc:portb]e c:onditiom and, a:ordinalY, would not .a: ,ily dia:lote all .q,ortble condition, dwl me llo CXlillicknd to be iilllCi'il \nA Lr ~ 1 However, we consider -.U ofthe .q,onable c:onditiom clelc:ribed above to be mmrial \nvnLn , ~ \n \nThis repcllt ia ;. !ltths1ed _,lely filr the inf\"Offlltion and Ille or the mI I omt, ~be.I or the \nWmen County Bomd orFcbntion, Peele.al -rcling -am:;ie1 mr ~ tlnauahentitie111111l is not \ni.10-,W kJ be nt1 bould DOt be ucd by nyoae other than 1hele pecified pm1ie. \n \nRap+ tfully aibmiaed, \n~.ctJ \nW.Hintoa Staie Auditor \n \n\\;. \n \nRWH:ap \n2002YB-a\u003e \n \n __. lPEJJ W.HIN111N 1111111! ...,,,.,.. \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n2S4 Wuldce., Slrml, S.W. S.ile 214 \nA11wa. Oeiqla 30334 1400 \n \nJuly 25, 2003 \n \nHonorable Sonny Perdue, Ovvcmor Memben of the Oenenl,\"\\ 1 irn'\u003ely Mecben ofthe State 8oHrd of Feb+ Iii-on \n1111d Superintmdent 1111d Memben ofthe Wmrm County 8oHrd ofFcbndcm \n \nREPORT ON COMPUANCE W1JJJ REQUIREMENTS APPLICABLE IO EACH MAJOR PROGRAM ANDON INTERNAL CONTROLQYER.COMPUANCEIN ACCORDANCE WIJH \n0MB CIRCULAR, A-133 \n \nJadin and Gentlemen: \n \nCompljnre:: \n \nWe have audited the compliance of Wmm. County 8oHrd ofJ:rlnrioa with the typel ofc:ocpJilnce \n \nSlippl-\"' n:qwe.bt5111 deaibed in the U.S. Offia of Mana,-WHI mtd lh,dget (0MB) Ctn:ular A-133 \n \nCo,,,pltac. \n \nthat an: applicable to cad! ofi t s ~ Feder.d piuifdaDI for the )'al' ended \n \nJ1111e JO, 2002. Wllfflill County 8oHrd \"'Fducmion'I major Federal iiiOiiEDI...., identified in the \n \nSmncmy of Auditor's Resullll Section ofthc. a:wcpauyina Schedule ofF'mdinp 1111d Que,rioned \n \nCosts. Compliance with the n:quirements of laws, rqpdmllll, CODbaC11 1111d pmm applicable to \n \neach of its 1111,jor Federal p1opac,, j1 the ltllpODlibility of Wmrm County 8oHrd of Ecbxarior'I \n \nmanaaemcnt- Ou. niipui11ibility i1 tt, exp.ea an opinion on Wmrm County 8oHrd ofFd.-tion's \n \ncompli1111Ce I - ' on our audit. \n \nWe c:onductcd our audit ofcocplimce inacc:ordancewith auditingll11l11rl., ......,.aJJy M:Cepm.i in the United States ofAmerica; tbta DidanL. .q,plic:able to financiHJ llldi,. comaincd in Qovenvncpt \n\u0026llitiD\u0026 SltJJderdL illlllXI by the CwqMJuller General ofthe United Stara; hDd 0MB Circular A- \nl 33, Awllu ofStalu, Local ao-rtu, mtd N-Pro/11 Orga,tlzatlo,u. Those llhndmds llld 0MB Circular A-133 n:quin: that we plan hDd perfonn the audit to obtair r 1rxhl,, 1111U11111Ce \nHboutwbelhernoncocplilncewitbtbetype1ofcomplilncen:quiae.11CUbi.eft:nedtoHbovedtcouJd \nhHw: I direct 1111d lllltaiHI effect OD a major FederHI piOjl\u0026D ui:Claffid. An llldit includes euminin\u0026 \non a tat balis, evidence Hbout the Wanm County 8oHrd of Fdncation'1 complimlce with thOHe \nn:q1we.11t1ib hDd perforcina IAll:h oda proccdura  we co11side.cd re 11 in tbe cin:ucnn,\"a We believe that ourllldit provides anu J11blP. !mis for om opinion. Om llldit does not provide a \nlepJ dctaminalion on WmeD County 8oHrd ofFdncaticm'I complimx:e with tbme rquimnenll. \n \n2002SA-J0 \n \n In our opinion. the Wanat County Board ofl:duc:erim complied., in all lDllailil iespectl, .rilh the RqUiraneab ,efea,ed to ahem: thlt me appliclblc to each ofitl .uJc,r FedenJ jXCJliliiii fur the ymr ended JUDe 30, 2002. \nJmme! Qmtrnt Oyp- Cmmli,e; \nThe IDlllllarmmt or Wllll'm County Boanl of Echarerion ii ,tia,JOOlible for Cltablilhing and fflfjnhriai,. -dm:dve iDtaml CODtrol owr c:omplim with n,qliilaDtilli of laWI, \"'IPdmiom, \nc:o.di\u0026II and gmm applicable to FedenJ jXCJIIIUII. In PllnDioa and paf.aiilllii ulD' audit, we \nc:onsidcred Wmm County Boanl ofl:duc:eriOi'\"' intaDll c:oaliOI OVff c,. +1111liance withMqUirrmmla \nthat could haw a direct lild mataill eft'cet OD a ~ Fedaal jXCJIIIDl i4 Older to detamine our \nauditina pnr edura for die jXiipDle orexp 01 our opinion on c:ornplimce .:id to tat lild report \nm intaml c:ontrol over complianc:e in accanllnce with 0MB Circular A-133. \nWe nmd c:atain ii11tbn involving ti,,, internal c:ou1iol uVCr oomplimc:e 1111d itl ope.ation that we \nCODSiderto be .eportable conditiom. Reportable c:onditiolll involve maltal c:onriD\u0026 to ourlllenlion \nnilming to lipificnt r\"mcimciel io the delip or opention oftbc hda,al c:ontrol over comp1iance that, in our judgment, ooulcl advenely aflec:t the Wlridl County Boanl of FdnCl!ion\"- ability to \nldminillcra ~or Federll pqp:am in a.cout-..:e wi1b applicable \"=Q11iraomt1 oflaws. ..,,leriom, \nCOidl'Ktl a:id gmm. Reportable c:oaditiolll me delcribed in1bl. wwwqan,ing Schedule ofFinding, and Que,ti-ncl Coltl a itllms FA-7491--02-01 and FA-7491--02--02. \nA mataill weaknell ii a c:oadition in which d.- :1 siw, \"' opaatiuo of me or more ofthe intanal \ncontrol o+opoaents does DOt reduce to a relatively low level ofrilk that noncamplimc:e ~th the applicable RqUimncn1I oflwl, regnlmi...., WDti\u0026II and gmm that would be mmrial in .elation to a ~ o r Federll jXCJll\u0026.D beiq audited may occur lild not be dete.:ted wi1bin a timely period by employa=s in the nonnal coune ofperfonnina their 'IP'f'd fimc:tiom Our COl1lidmdion ofthe inlemal c:ontrol ove. complimc:e would not MC ily ctilClor-U ma11m inthe ID1cmal c:onliOI that might b e ~ c:onditiom and, accordingly, would DOI nee 1it), diwclcw: U .q,ortablc c:onditiom that lie allO coasiclcnd ID be maraial .~w'z I Ii ffoweva', - believe DODe of the \nfflllOl1libk conclitions ck:lcribed ahem: ii a matmal vw'z \nThis report is intcndc,d aolely for the ~ i o n ad 111e of the n+ \u0026neut. membcn of the Wamn County Boanl ofFd1-:w1ion, FedenJ awarcfiDg lpDCia w' F dc...,.11 mtilies and is not intaided to be and IM'Jld DDt be u.i by qone other drm tbele apecified panieL \n-- w_~..tlJ; :_ lpc:C:tfW.l:y lllbmitted, \nRWH:BP \n200lSA-30 \n \n SECnONm AUDrraE'S RESPONSE TO PRIOR YEAR PINDINOS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD Of EPUGAJJON AUJJ 'i\\ BFSPQNSE \nSUMMARY SOJEPULE OF PRIOR VEAR FINDJNGS AND QUESTIONED COSTS YEAR, ENQFD JUNE 30. 2002 \n \nPRIOR VEAR FJNANCJAL STATEMENT FINDJNQS AND OUESDPNEP COSTS \n \nnNDING CONTROL NUMBER AND STA11JS \n \n7491-93-03 FS-7491-98-01 FS-7491-00-02 FS-7491-00-04 FS-7491-01-01 FS-7491-01-02 FS-7491-01-03 FS-7491-0l-o4 FS-7491-01-05 \n \nPrmoully Repmtal Com:cdve Action Implen.eubid Further Action Not Wm,ldlll5d \nPrevioully Reported Corrective Action Implcrnentcd Further Action Not Wm,auted \nUmaolved - Sec Comd:ive ActiowRclpomcl Prmolllly Repmtal Comdi.ve Aclion Iillplanc.orA Putillly Raolved- Sec Com:ctive ~ Ulll'CIOlved - Sec Correc:tive ~ Umaolved - See Corrective ~ \n \nCORRECl'IVE ACl'IONIRESPONSES \n \nBUDOET PREPARATION/EXECUTION Deficit Flllld Balance Finding Conlml Number: FS-7491-01-01 \n \nWe COIIClii' with dlil flmffna All cfl'ortl are beina made m couect the dcfic:it bllmra \n \nCASH AND CASH EQUIVALENJ'S GENERAL LEOOER Inadequlle lntrmal Control Procedum F\"mding Control Number: FS-7491-01-03 \n \nWe qree with finding. We arc t.yina very hard to keep cvaythina in  timely mnnlll'. With oae pmon l\"ClpOllliblc fiJr II accountin\u0026 payroll, and various tak, it is IOIDeli.ncl bard to lly up to dtc. \n \nEMPLOYEE COMPENSATION Payroll Rcportina Amount: $8,404.21 F\"mdiq Control Number: FS-749I-01-o4 \nW~ CDIICUi' with findiq. Beus doc:umclllmoa is bcina upl. This lhouJd help CDiiect lhc \np.ublmn. \n \n I - \n \n . . - - - - - - - - - - - - - - - - - - - ------- - \nWARREN COUNTY BOARD OF EDUCATION A\\MIJW!! BFSPQNSE \nSUMMARY SCffBPULE Of PRIOR YEAR F1NDlNGS AND OUF.S]]ONED COSTS YEAR ENDED JUNE 30, 2002 \n \nPRIOR YEAR FINANQAL STATEMENT FINDINGS AND OUF,s:IJONED COSTS \n \nCORRECTIVE AcnON/RUPONSES \n \nGENERAL FIXFl\u003e ASSETS Failure to Mlirnwio Oenenl F'IXCd Allell Ac:cown Group \nflndina Coa1rol Number: FS-7491-01-05 \n \nWe . - with fioctioa Thil ii  requirmlenl: 1hlt will take effect June 30, 2004. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUBSllQNEP COSTS \n \nJ'INDING CONTROL NUMBER AND STATUS \n \nFA-7491-00-01 FA-7491-00-02 FA-7491-00-03 FA-7491-00-04 FA-7491-01-01 FA-7491-01-02 FA-7491-01-03 FA-7491-01-04 \n \nPrmoully Repomd Comclive Ac:don lmplememd Prmoully Repoiltd Comclive Action Implenv:ttrd PrmoullyLponedComcdwActionlmplemented \nUmaolved - See Comcdve AclioalRapoDlel Partially Rao1ved  See Comdiw/Action RnponPI Previously Repmltd Comclive Adioo lmplen.euttd Umaolved - See Comclive Ac:tion/Rapomel Umaolwd - See Com,cdw, Aclion/Rapollle \n \nCORRECTIVE AcnON/RESPONSES \n \nSPECIAL TuS IS AND PROVISIONS iDaqulle bmoa1 Control Procedures Fiodioa Collllol Number: FA-7491-00-04 \n \nWe. -wilb -,odioa Forfilcal year 2003, mwpeu10Docl have bee.. emplo,cd IDd oew \nprocedure,t impa..elled Ead:l year a liped/relun, RC:e is now reqnewltd \n \nAC11VITIES ALLOWEDIUNALLOWED ALLOWABLE COSTS/COST PRINCIPLES CASH MANAGEMENT SPECIAL ThSI SAND PROVISIONS lmdequm lDlanll Control Proced,..... Fiodio\u0026 Control Number: FA-7491-01-01 \nWe qree ,wh fiodq Forfilcal year 2003, oewpenoaocl IDd p...:edura have been pm io plai:e for all S1m IDd fedeml amtt,. \n \n-2- \n \n WARREN CQutITX BOARD Of EDUCATION AWi !f.1:.15 BfSPQNSE \nSUMMARV SCHEPU!E OF PRIOR VEAR FINmNGS AND OUFSI10NED COSTS VEAR ENDED JUNE 30, 2002 \nPRIOR YEAR fEPBML AWARD FINDINGS AND OUfSDONED COSTS \nCORREC11VE ACTION/RESl'ONSl'.S PROGRAM INCOME \nlmdcqulfe IDlanal Control Pmcedlm \nF\"mdina Control Number: FA-7491-01--03 We aar-=e with findina. For filcal ymr 2003, new per-u111cl and new procedura in in \nplace. F.ach hmchrocJa, aw r -aka 1be depolit dily. SPECIAL TESTS AND PROVISlONS halequlfe lntaml Comull Findina Control Number: FA-7491-01-04 \nWe ara: with findins For fic:a1 yar 2003, mw palOiiiii:l .md pr, ..:edurel in in place. \nA lipm certified naip ;_ now mm. \n-3- \n \n SECTION IV FINDINGS AND QUBS110NED COS IS \n \n WARREN COUNTY BOARD OF EDUCATION SCHHPULB OF FINDINGS AND OUF,SJ]ONED COSTS \nVEAR ENDED JUNE 30, 2002 \n \nI SUMMAR.Y OF AUDITQR'S BF,SW,TS \n \n1. IYPe ofBmon Innt on ttac Y\"Pl\"friel s,,,mau, \n \nThe audhor'I opinion cm lbe Wmai County Board ofFAuc::edcm'a financvd M!M1me111,.. \n \n..:commna qualified for various deputura \u0026om amarall) accepted \n \nprinciples. \n \n2. BcPPdlble Qpyljtjggp in lmma,J f:pggrl Pisbnl by the AKllt ?Cthc firmriel S!PIPIMMI \nThe audit RpOrt for the Wurm County Board ofF.ducltion dirkwd fll!ID'iI id11n1e-rt \nRpOrtbJe c:ondltions relted 1D the following c:oatrol c:reaorics. \n \nCab IDd Cab Equivlcn1s ~les/Receipls GennaJ F'ixcd Aads \n \n~litiaslDilbuncmen Oenen1 Lrlll'IF \n \nAll oflbe reportblc coaditions described hove re c:onsiclm:d 1D be mmiI --uh II~ \n \n3. N.t--1amrfi1JP MmnieJ SP tbr fiDl'riel Sterrwu, The udit of 1he Wrrm County Board of Ecbrrioa diwclosed one hw11* or \nDDIICOiiiildinc:c: d  = lied IDllaiI 1D the finnciMI idlkiJMiiill This DCllltODq,lilDce ill\\'olved \nlbe Beach \u0026dlure to record 1he Oeoqi Stte Fil'.ffll aad Ir i lhwrt Commiwim '111d \nlbe SpeciI Pmpoe Loc:I Oplicm Sles Tu clivilies in the Board' Filllncial S111n10111 \nBalh ofdlllle ctivitie when: m:oldcd lbrouab udit enttia .mil1he finlll:ia,1 id11H1ow.-. pr Jtm in this rapcJrt, re not mmitly ruiMled. \n \n4. 8CPPdlblo C-mc!itiqpp in lmmJel Comrpl Pm: Major Ppp111w \n \nm.- The udit RpOrt for 1he Wnen Ccwlldy Board ofP4::li--t diwcloaed repartb]e conditiam \n \nin iDtaml CODIJUI Ova\" \n \npiqpw for the following comp)iDce n=quin1w,ts \n \nEligl11ility \n \nSpecil TCIII IDd Proviion \n \nNcme ofthe rcpc,r1lble c:onditiomdewcrlbed bove re-01idcml to be lllllail wakncaes. \n \n5. Jype ofBmon Irr! OD Cgmpljpp; fQr Maigr PrtHIIOW \nThe uditor's apinicm cm 1he Wmn Counly Board l\"fEcbl::MII._ ~ a,, c:ompliDce vti1h \nn=quitn,litilll .pplic::ble to IIIIQ'- IIIOiPiiilil w unqualified. \n \n6. AKllt fil\"!ilWI Rmuin;d IP be Bntrtel lzr Scrrioo ,511)(') ofOMB finaIn A-133 \nThe Wurm Counly Board or Ecbi::!icm' udit dilCkwd audit findinp required ta be repcllted by IIClian .510() ofOMB Clrculr A-133. 'J\"lae udit ftndlnp re iDcluded in aecdon IV aftbis report. \n \n-I- \n \n WARREN COUNTY BOARD OF EDUCATION SCUJIDULE OF FINDINGS AND OUF.STIONED COSTS \nYEAR ENDBD JUNE 30, 2002 \n \nI SUMMARY OF AUDITOR'S BfsSULTS \n7. MaiqrPu@ete \nFcdmlll awmll audited ~OI piuiilllDl anl - foUowl: \n10.553 Food ad Nulliliuo Proarmn- Food Scrvic:a- School llnwkfnl ~iiil \n10.555 Food ad Nulri1ioa. Progrm11 - Food Scnica- Narimvil St:h.d Lunch Plvgiiiil 14.010 Blmorn111 am' Scc:oockryEdoc:lticm ~-TIiie 1-0nmlltol..oc:al \u0026hwwltI \nI. lYPe\"A PJ@@1DpllarD1whtk' \nTbe dollar 11:aubuld for type \"A piuiiiiili WII $300,000.00. \n \n9. Low Bi+ belbs Tbe Wurm County Board of'Fcb-:afion did i1Dt qualify a a low rilk IUdltce.,. de6ood by \nSection .530 of'OMB Cm:ular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND OUF,STIONED COSTS \n \nBUDGET PREPARATION/EXECUl'ION \nDoficit Fund Belmce \nNoamm:rill )11,womplilllCO \nRciwal From Prior Ym \nFmdins Coatrol Number: FS-7491-02-01 \n \nAt Jw 30, 2002, Ibo liabllitlel ad ftmi:I bllmc:es ew:ceedod .-ta available f'orthe Athletic FIDI by \n \n$25,480.00. O.C.O.A. 20-2-67 (b) aequha that Ibo Superii11mdmt IIUbmit to the Ocoqia \n \nDepub,Nid #Fcb-:erim l\"Jlh a 11 iip'IM to thia conditiOl1 ad a correcti'\u003cle aclioa plm dcliped to \n \nw.,ect the bndptdeficit The Sc:booI llillrictlhouldatlblilh h!dptnyp11udmatoa11111etbn \n \nmn,na fi_ _.. \n \n. \nii \n \nm \n \n.,....,_ \ni....... \n \n. \npi'IOI' \n \nto \n \nthe \n \nScbool \n \n.n. \n \n:..........:.-. \n \nCu \n \n  iiliiiillJDg \n \nto \n \n--- \n-- \n \ni: \n- \n \n..- \n-- \n \nCASH AND CASH EQUIVALENTS \nREVENUES/RECEIVABLESIRECEIPTS EXPENDmJRESILIABilJTIES/DISBURSEMENTS GENERAL LEOOFJt Failure to Ra:ord OSFIC ad SPLOST AdiYity \nRcponable Condition - Malaial Wech Material Ncw \u003e1nplialll:e \nFinclma Control Number: FS-7491-02-02 \n \nTlr- Sc:boo11liltric:t'l fllilure to f'ollow ctmpta 7 of'the fiPIDGiel MvneW fur Qcgqja !ml UgiJI of ,A4lDjpj,ntjnp (FMOWA) raultal in the f'oUawina deftciencios in the aenen) lcdpr \np:ew ~~ \n \n-2- \n \n WARREN COUNJY BOARD OF EDUCATION SfUBPULH OF FINDINGS AND OUF,STIONEQ COSTS \nY2AR ENDFD JUNE 30, 2002 \nD FINANCIAL STATEMENT FINDINGS AND OUF,STIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUESIRECEIVABLESJRECFJPTS EXPENDDlJRmllLL~UllESJ'llISBURSEMENTS GENERAL LEDGER Failun: to Record OSFIC and SPLOST Activity Reportable Condition - Mlllaial Weknen Mlllaial Nor-v-nplilDc:e \nF'mdlna Ccmtrol Number. FS-7491-02-02 \n(I) f:.xpmdiblP'I of the 1999 bond iaue project were not ~ in the School Dislric:t'1 \nCapital Project Fund pnenl lcdaer u requin,d by amer.dly accepted ICCOUldina \npmciples An audit lltj1!1bDart WU DCC yto m:ordexpmditura of$561,755.72 in the Gcaqia State J:l!WDCina 1111111 b.. 41104 C'-GIIIJllillloo Plojed No. OIIOOS-749-007. \n(2) Th:: i:-cceeds (Revalues) of the Geoqia State Finmcina and Im- 4oNCUt Commission \nProjcd No. OIIOOS-749417 wae not rec:Gidcd in 1D\" Sc:bool Oislric:t's Clpitl1 Project \nFund aeoe,wl ledllS'  requiml by pnerally ., l)d eccanntina principles. An audit \n~ w m ,y to recard revmue ofS901,610.15 in the Clpitl1 Projec:tlOSFICFund. \n(3) Expmditura of the 1999 bond issue were not rmordcd in lhe School Dislricl'I Debt Savic:e Fund aeoe,111 lodp a rt:qllircd by pnaally 111:cepmd accountinaprinciples. An \naudit adjuiilow,.,t w r.e. ry w record expeadituraof$224,193.75 in the Debi Semce \nFund. \n(4) Th:: pPIKee:I (bvmu-.) ofthe Special Purpose Loclll Oplion Siles Tu. pojcct-DDt n:carded in the School Dillrict'I Debt Semce Fund pnenl ledp  required by poaally.,. cped ecrmmting principlcL An audit aljo4owwt.,.. ncc N)' '\u003e rmord rcvawc ofS102,148.82 in the Debt Semce Fund. \na These c:oadidrm oc:cum,cl becmlPI +I ilCill ...llirned not to be awma Ihm dae IICliviti-. hDuld \nbe rrmnled in the Sc:h.nl Dillric:n acrllnl ledger. Appraprim ectioll mild be taken by the School Dillrict to alablilh ICCOllllliua c:ontroll and IX'ech..es to erdllie Ihm all flNDCial a,:tivity ofthe School DillJic:t ia, popaiy rrmnled in the ameral lcdaer  required. \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION \nSCBBPUL6 OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE lQ. 20Q2 \nn FINANCW, STATEMENf FINDINGS AND OUF,S110NED COSTS \nOENERAL FIXED ASSETS Failure to Maintain Oenaal Fixed Alllltl Aa:ount Oroup Reportable Condition- Mataial Wcs'z Rep ltd From Prior Yem \nF\"mdina Colllrol Number: FS-7491-02-03 \nThe Wurm County Board of Educ:arion did nat nwiDIRio 11 ~ Gcnmal Filmd Allm \nAa:ount Group within the fonm1 accountina aecmdl  miumd by a-nlJy accepeel :'C'O'artiD8 \nprincipleL Tim condition raalill in 1he gmcnl-purpo1e fbw1:ild PMIMW!II uftbe School Diltric:t \nbeina inc:omplcu md not in ac:cordMDCe wilh amcnlly accejb-1 .,...mrina princlple Approprlm \nIClion wbould be 1akm by 1he School Ditric:t to eillbllwh accouatiq COll.lrol 111d pueedurn to povide fbrmai111al\"'ll ofa Oenerlll Fbuwl A la Amud 0raup. 'l1Be Rlblcti ry rec:mdubanld \ninclude 1111 ilheuluiy of Imel. buildlnp wl equipnent owned by the Scl!ool Diltric:t md wbould \ninclude. but may not be limited to, dMle acquired, ac:quiailiOD COil, em.,illed replranenl COil, \nloc:arion md dec:riplion. DetailNI -ct- wbou1d be 1111huined ofall additions md deletion 101he \nOencnl Fixed A11m Account Oroup. \nm FEDERAL AWARD F1NDINQS AND OUES]]ONED COSTS \nlnedrq,..,, F.UGmUIJ'l'Y Jnta:uI Conlrol Pw edwa Reportable Condition U.S. DejJiilliW ofEduc:arim \nThrouah Oecqia Depalwtilt ofEdac:arion \nF\"mding Colllrol Number: FA-7491-02-01 \nThe School Dillric:t WU nnNe IQ povide doamw4aliuD to Ript,Oft the lloc:arion 'lf fund to \na eliaible wc:borl ttendnre ~ md IChooll for tt,., E1mo,1my Secondaay FchiCHlioo a- Title \n1-Grmdwto LoclEductinml Apnc:iel ProS11111(CFDA 84.010). Atte l@,i\u0026il G ofOMBCin:ulr A-102 M1ipa1Hle, t1IHI finlnciI aeconlw. Rillfl*IDiidoc:umcnll, Mwdc:I rcconlsl'I all oda,ecmdl palineut 10 a araot whll be nllaincd fbr a pmiocl ofdne yan. Thi c:ooclldon wa a rault of \nrne.rowil'I liihn to implrmeut imenill COlllrOll fbr monitorina complinre with Fedenl pldeli:w. The School Dlllric:t wboold reviewlhe Fedenl compliance puredu.cs in plce, dewian \npui:edwa wbich would a,bnc,,; wuuiluliua compJinre with Fedenl pidelincw-' implement poper intmaa1 COlllloll relHlive to 1he above Fedenl complinre rc!i..;.rmeut 10 iillena,ben the \ninlemal conlml over Fcdenl poawos- \n-4- \n \n WARREN COUNTY BOARD Of EPUfAJ10N  8CHEPUI OF FINDINQS AND QUF,SDQNED COSTS \nYEM ENDED JUNE 30. 2002 \nID ffiDEML AWARD FINDINGS AND OUESJJONED COS IS \nSPECIAL TF.STS AND PROVISIONS lnldequlle IDtaml Control Proced111ea Rcpor1able Condition Repealed From Prior Yem U. S. Depmtmeut .nFcbnrion \nTbrouab Oeoqia Depmb:Deu1 ofFdoralion \nF\"mding Control Number: FA-7491-02-02 \nA rev1ew or the pmm ICbool invitmom tbr pmicipadon in the E1eoo1111,. ..., Se. -HM1y \nFdraricm Act - TIiie VI - Clm Size Rmoc:1ion Grant (CFDA 14.340) ad Enro1111y ad Secn,mry ficbw:lim Act- lide 1-0nmll lo Loc:.l Fd1M:alinuI Apucies Prujliin (CFDA 14.010) \nindicated 1ht 11 priwte ICbooll ln Wmen County were not invilm r.. pmlici....., :n the plruriD\u0026 \ndevelopmmt ad NJMDinrion or 1hele putL 11' cklirion, II childra\u003e aeumna priwte ICbooll \nwa-c not inc:ludcd in the Elemen111y 111d Sccu..dar Fcb71ioa Act - lide I - 0mm lo LocI FcblCllionI AaaiiCiCI Pruiiau -1 Elerro1bi1,- and Secandry Fcb71:ioo Act-Tide VI-Cl-a Sis \nDed1rti\"D. Grlllt prli-:alinu. p C 1'bil crwi!litinD. w I l'flUlt er IDllllpi-eut'li failure lo \nimplemeat iDlemI c:oalroll fix moailulina compliMDCe wilb Fedel! \u0026'PkWirn ThD Sc:bool Di1ric1 \nlhould rmew the FederI c:omplince pucedurm in pm. deip pu,cedura which would ailw-e \nmoai1u1ina c:omplilnce wilh Fedenl pideliue aat inqJeu-mt pupr hdii:ml wmauL. ,elatiw1o the bave Fedenl complim-:e n,quirrmmt t.. lhowtben the iDlemI c:oalrol owr Fedenl pojpllwL \n-5- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b2000-h2001","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":".\", l '. ~ , \n \n\", \n \n'. \n \n~.' \n \n,'\" , \n \n'. , I , . , ., \n \n,! , \n \n~ \n \nI ...... \n \n\" \", \n \n, \n \n, ...~ : \n \nI.,~ \n \n, , : ~ i , \n \n \n \n, .' \n \n, \n.\" \n\" \n \n\" \n\" \n':,' \n.' .. , ~ 1- : \n \n,r \n \nI ~ I .. \n \nt. \n \n,. \n \n\"\"; '~ \n \nI, ' \n \n\" t:, \\ .' ~ I \n \n,! \u003e \\',' \n \n\" ',t 'j \n \n, \"\", ~.~ } ,'\" \n\" \n, ~ ~, ' \n \n, ,',1 \n \n, ., , \" \n \n, ... ,i~ ; oJ '~ \n\\jI '\\ ' .. \n \n'. ~ \n \n',.' \n \n,I \n \n.' , \n \nI. \n \n., \n \n'\", \n\", \n \n., \" \" \n'\" ,' \n \nI\"  \n'\" \n \n\"' \n \n. 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' \n \n, \",'I, \n \n\" \n \n\"' \n \n ~t r \n \n.,,' , . , \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONfENTS - \n \nSECfIONI \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUND \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n8 \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n22 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n24 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n27 \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n28 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n29 \n \nFIDUCIARY FUND TYPES \n \nK \n \nCOMBINING BALANCE SHEET \n \n30 \n \nL \n \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUNDS \n \n31 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDmONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n35 \n \n2 SCHEDULE OF STATE REVENUE \n \n37 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECfS \n \n39 \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n40 \n \n5 \n \nBY SITE \n \n41 \n \nSECTIONll \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \n \nSECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 WashinglOn Sireet, S Suite 214 \nAtlanta. GeorgIa 30334-8400 \nJune 10,2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements of the Warren County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Warren County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States 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 perfonn 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 fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2001ARL-13 \n \n  The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \n The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose fmancial statements referred to above present fairly, in all material respects, the financial position of the Warren County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated June 10, 2002, on our consideration ofthe Warren County Board ofEducation's internal control over financial reporting and our tests of its compliallce with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Warren County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) 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-l33, 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. \n2001ARIr13 \n \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. \nRespectfully submitted, \n~ w.4.3s.. .....CQ R sell W. Hinton Sta e Auditor \nRWH:as 2001ARL-13 \n \n WARREN COUNTY BOARD OF EDUCATION \n \n WARREN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nAlL FUNp mES ANp ACCOUNT GROUp JUNE 30 2001 \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS \n \nS \n \n228,67387 S \n \n31,199 42 \n \n418,607,40 \n \n20,000,00 \n \n78,718,73 \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS \n \n(Memorarydum Only) \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \nS 1,152,n6.04 S \n \n435,626 88 \n \n8,880,97213 \n \n9,757,88572 \n \n490,49018 \n \n556,70715 \n \nS \n \n726,00000 \n \n8,324,000 00 \n \n5,31912 1,47098 726,00000 \n8,324,000 00 \n \n5,03084 2,44244 838,03796 \n8,321,96204 \n \nS \n \n726,00000 S \n \n51,19942 S 9,050,00000 $ 19,581,02845 $ 19,917,69303 \n \n$ \n \n288,100 68 \n \n$ \n \n118,430.15 \n \n118,10258 \n \n100,15546 \n \n55,283,26 \n \n100,308 41 \n \n10,720.32 \n \n75,000.00 \n \n10,29854 \n \n$ \n \n31,83075 \n \n31,830.75 \n \n32,671 31 \n \n$ 9,050,000 00 \n \n9.050,00000 \n \n9,160,000 00 \n \n$ \n \n31,83075 $ 9,050,000 00 $ 9,411,02331 $ 9,739,87815 \n \n$ \n \n726,00000 \n \n000 $ \n \n$ \n \n726,00000 S \n \n19,368.67 19,36867 \n \n$ \n \n78,381 15 $ \n \n87,634.28 \n \n726,000,00 \n \n838,03796 \n \n3,981.24 \n \n3,981.24 \n \n5,31912 1,470.98 7,742,442,39 \n \n5,030 84 2,44244 8,053,675 66 67,26800 \n \n1,632,37993 -19,96967 \n \n1,119,744 46 \n \n$ 10,170,005 14 $ 10,1n,81488 \n \nS \n \n726,000 00 S \n \n51,19942 S 9,050,000 00 $ 19,581,02845 $ 19,917,69303 \n \n-3- \n \n  EXHIBIT-a\" \n \nTYPES DEBT \nSERVICE FUND \n \nTOTAL \n \nFIDUCIARY FUND TYPE EXPENDABLE TRUST FUND \n \nTOTALS \n \n(Memorandum Only) \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \nS 4,931,945.62 \n \n1.055,842.52 \n \n$ \n \n635,552.35 \n \n2,282,625 40 \n \n23,554.59 \n \n869,100.74 $ \n \n$ \n \n659.106.94 S 9,139.514.28 $ \n \nS \n1,080.95 1,080.95 $ \n \n4,931.945.62 S \n1.055,842.52 2,282,625 40 \n870,181.69 \n9,140,595.23 $ \n \n4,280.081.47 887,70940 \n1,959,468.16 481,167.60 \n7,608,42663 \n \nS 4.305,851.66 \n \n161,685.09 235.259.26 134,9n.56 314,343.40 $ 574,332.00 115,037.45 417,572.45 409.821.03 \n \n25.838.15 495,902.86 \n31.472.92 1.151,083.06 \n \nS \n \n110,000.00 \n \n659,233.97 \n \n1,910.93 \n \n110,000.00 659,233.97 \n1,910.93 \n \nS \n \nn1,144.90 $ 9,144,321 79 $ \n \n$ \n \n-112,037.96 $ \n \n-4,807.51 $ \n \n$ 3,400.00 \n3,40000 $ -2,319.05 $ \n \n4.305,851.66 S \n161,685.09 235,259.26 134,9n.56 317.743.40 574,332.00 115,037.45 417,57245 409,821.03 \n25.838.15 495.902.86 \n31,472.92 1.151,083.06 \n110.000.00 659,233.97 \n1.910.93 \n9,147.721 79 $ \n-7.126.56 $ \n \n4,349,013.09 \n137,967.92 359,919.66 141,47039 270,270.25 502.971.38 233,347.76 445.734.21 363,083.55 \n5,351.00 13,874.28 479.739.41 24,115.02 383.623.84 \n105,000.00 29,615.00 \n1,261.25 \n7,846,358 01 \n-237,931.38 \n \n$ \n \n-112,037.96 $ \n \n-4,807.51 $ \n \n838.037.96 \n \n10.156,127.16 \n \n288.28 -971.46 \n \n$ \n \n37,462.29 \n \n8,800,000.00 3,784.16 -3,78416 \n \nS 8,837,482.29 \n \n-2.319.05 $ \n \n-7,126.56 $ \n \n21,687.72 \n \n10,1n,814.88 \n \n8.599,550.91 1,578,639 00 \n \n288.28 -971.46 \n \n-700.39 32536 \n \n$ \n \n726,000.00 $ 10,150,636.47 $ \n \n19,368.67 $ 10,170,00514 $ 10,1n.81488 \n \n-5- \n \n  -WARREN COUNTY BOARP OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES \nBURGET ANp ACTUAL - INON-GMP BASIS) GENERAL ANp SPECIAl REVENUE FUNDS \nYEAR ENpED JUNE 30 2001 \n \nEXHIBIT \"CO \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \n \nState Funds Federal funds Taxes Other Funds \n \n$ 4,238.687 00 $ 4.471.053.20 \n \n1.587,35570 110,000 00 \n \n1,647,073.05 217,667.18 \n \nTotal Revenues \n \n$ 5,936,04270 S 6,335,79343 \n \nEXPENDITURES \n \nCurrent Instruc:tson Support SeMces Pupl!S8MC88 Improvement of 1nstrueb0n81 SeMCeS Edue:atJonal MedI8 SeMCeS General AdmilllStr8tJlln School AdmllllStratJon BUSiness Admuustrallon Mamtenance and Operation of Plant Student Transportation SeMC8S Central Support SeMCeS Other Support ServIces food ServIces OperatIOn Community ServlC8S Qperabons \nTotal Expendrtures \n \nS 4,179,211 10 S 3.644,300 79 \n \n74,63192 149,491.93 150.09147 234,424.78 382,062.93 118,237.19 351.967.n 299,73960 14,56700 16,000 00 \n3,00000 \n \n112,08511 202,807.22 134,9n 56 250,55640 505,414.53 115.037.45 417.572.45 409.821.03 \n130,31688 31,47292 \n \nS 5,973,42569 S 5,954,362 34 \n \nExcess of Revenues over (under) Expenditures fUNP BALANCE JULY 1 2000 (Restated-See Note 1) \n \nS -37,38299 S 695,364 08 \n \n381.431.09 818.35353 \n \nfUND BALANCE JUNE 30 2001 \n \nS 657,98109 S 1,199.784 62 \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \n$ 168,856 70 $ 210.13267 \n \n1,109,40257 \n \n1,055,842.52 \n \n106,056.93 \n \nS 1,278,25927 $ 1.372,03212 \n \nS 638,594 96 S 661,55087 \n \n48,17224 52,185.00 \n \n49.59998 32,45204 \n \n114,122.81 \n \n63,78700 68,917 47 \n \n1.04900 224,00000 \n \n25.83815 365,58598 \n \nS 1,078,12401 S 1,267,73149 \n \nS 200.13526 S 104.30063 \n \n196,78351 \n \n371.31873 \n \nS 396,918 n S 475.61936 \n \nThe notes to the general-purpose tinanaal statements ara an Integral part of this statement. -7. \n \n WARREN COUNTY BOARD OF EOUCAnON \n \nEXHffiIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Warren 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. \nFUND ACCOUNTING \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. \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. \nThe general-pwpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \n-8- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIDIT \"D\" \n \nNOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nDEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-tenn principal, interest and paying agent fees. \nFIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \nEXPENDABLE TRUST FUND Otis E. Williams Memorial Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship awards to be made at the discretion of the School District. \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. Wit, 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 fmancing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Tenn Debt Account Group. \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be detennined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of \n \n-9- \n \n WARREN COUNfY BOARD OF EDUCAnON \n \nEXHmIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nthe 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. \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services,completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nRESTATEMENT OF PRIOR YEAR FUND BALANCE \nIn prior years, the athletic activities for the School District's Athletic Fund were reported as part of the General Fund. This fund had a deficit of$7,378.50 at June 30, 2000. For fiscal year 2001, this fund has been reported as a part ofthe Special Revenue Fund. The fund balance at July 1,2000, has been restated as appropriate. \n \n- 10- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"0\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nBUDGET \n \nThe Warren County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles, \n \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, \n \nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \n \nSpecial Revenue \nFund \n \nFUND BALANCE JULY 1, 2000 (Restated) \n \n$ 378,792.01 \n \nAdjustments Inventories - July 1,2000 Food Donated Commodities Purchased Foods \n \n-5,030,84 -2,442.44 \n \nFund Balance July 1,2000 (Budget Basis) \n \n$ 371,318.73 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JUNE 30, 2001 (Budget Basis) \n \n104,300.63 $ 475,619.36 \n \n- 11 - \n \n WARREN COUN1Y BOARD OF EDUCATION \n \nEXHmIT \"0\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation ofthe United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia \n \n- 12 - \n \n WARREN COUNTY BOARD OF EOUCAnON \n \nEXHmIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nRECEIVABLES \n \nReceivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Warren County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 20, 2000 (levy date). Taxes were due on February 2,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Warren 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 $1,590,350.34 and for school bonds amounted to $170,794.42. \n \nTax millage rates levied for the 2000 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.915 mills 1.533 mills \n \n16.448 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $464,757.93 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $2,604,455.39 has been collected or on December 31,2004, whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded \n \n- 13- \n \n - \nWARREN COUNTY BOARD OF EDUCATION\" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \nJUNE 3D. 2001 \n \nEXHffiIT \"0\" \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nas revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported oli the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \n \nGENERAL OBLIGATION BONDS \n \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. \n \nINTERFUND TRANSACTIONS \n \nThe School District has the following type of interfund transactions: \n \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. \n \nMEMORANDUM ONLY - TOTAL COLUMNS \n \nTotal columns on the general-purpos~ financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial 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. \n \nDEFICIT FUND BALANCE \n \nThe fund reporting a deficit fund balance position at June 30, 2001, is as follows: \n \nFund TvoelFund Name \n \nDeficit Balance \n \nSpecial Revenue Fund Athletic Fund \nThe School District intends to fund this deficit by reducing athletic expenditures in the subsequent period. \n \n- 14- \n \n WARREN COUNlY BOARD OF EOUCAnON \n \nEXHIDIT \"0\" \n \nNOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum 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. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $2,507,664.67. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \n- 15 - \n \n WARREN COUNlY BOARD OF EDUCATION \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 432,066.73 \n \n2 \n \n1,523,718.75 \n \n3 \n \n551.879.19 \n \nTotal \n \n$ 2.507.664.67 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nAt June 30, 2001, the carrying value of the School District's total investments was $8,160,972.10 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nType of Investment \n \nU. S. Government \n \n$ \n \nLocal Government Investment Pools \n \nTotal Investments \n \nRIsk Categories 2 \n000 $ 7742364 70 $ \n \nCarrying \n \nFair \n \n3 \n \nAmount \n \nValue \n \n000 $ 7,742,364.70 $ 7,742,364.70 \n \n418,607.40 \n \n418,607.40 \n \n$ 8160972 10 $ 8160972 10 \n \n- 16- \n \n WARREN COUNfY BOARD OF EDUCATION \n \nEXHmIT \"0\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \nThe Primary Liquidity Portfolio consists ofGeorgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund I may not exceed 60 days. The weighted average maturity for Georgia Fund I on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. \nNote 3: NON-MONETARY TRANSACTIONS \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 \nNote 4: RISK MANAGEMENT \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. \n \n- 17- \n \n WARREN COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"D\" \n \nNOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 4: RISK MANAGEMENT \n \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \nThe School District 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. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2000 2001 \n \nBeginnmg of Year Liability \n \nClaims and Changes in Estimates \n \nClaIms PaId \n \nEnd ofYear Llabihty \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n5,813.92 $ \n \n4,056.00 $ \n \n1.757.92 \n \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 $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 10,000.00 $ 10,000.00 \n \nNote 5: OPERATING LEASES \n \nWarren County Board ofEducation has entered into various leases as lessee for portable classrooms. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $16,997.28. Future minimum lease payments for these leases are as follows: \n \n- 18 - \n \n WARREN COUNfY BOARD OF EDUCATION \n \nEXHffiIT \"0\" \n \nNOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 5: OPERATING LEASES \n \nYear Ending \n \nAmount \n \n2002 \n \n$ 1,416,44 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 1988 General Government - Series 1999 \n \n5.40% - 7.30% 4,35% - 5,55% \n \n$ 250,000.00 8,800,000,00 \n \n$ 9,050,000,00 \n \nThe changes in General Long-Tenn Debt during the fiscal year ended June 30, 2001, were as follows: \n \nGeneral Obligation \nBonds \n \nBalance July 1, 2000 \n \n$ 9,160,000,00 \n \nDeductions Debt Retired \n \n110,000.00 \n \nBalance June 30, 2001 \n \n$ 9,050,000,00 \n \nAt June 30,2001, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 19- \n \n WARREN COUNrY BOARD OF EOUCAnON \n \nEXHmIT \"0\" \n \nNOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 2017 - 2019 \n \n$ 703,597.50 869,312.50 751,662.50 777,102.50 795,362.50 \n4,001,927.50 4,076,212.50 2,186,932.50 \n \nTotal Principal and Interest \n \n$14.162.110,00 \n \nNote 7: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $65,160.11 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $48,745.60 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $2,471.51 \n \nOffice ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$13,943.00 \n \nNote 8: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: \n \n- 20- \n \n - \nWARREN COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \nJUNE 30. 2001 \n \nEXHmIT \"D\" \n \nNote 8: SIGNIFICANT COMMITMENTS \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n01/00S-749-007 \n \n$ 9.091,448.80 $ 1.029.651.25 \n \nThe amounts described in this note are not reflected in the general-purpose financial statements. \n \nNote 9: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nNote 10: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORG.IA (TRS) \n \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. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n2001 2000 1999 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 388,838.05 $ 420,459.99 $ 427,993.08 \n \n- 21 - \n \n - \nWARREN COUNTY BOARp OF EDUCATION COMBINI~G BALANCE SHEET \nSPECIAL REVENUE FUND \nJUNE 30, 2001 \n \n ASSETS \nCash and Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n465.890.34 $ \n \n20.511,06 \n \n52.468.08 \n \n5.319.12 1,470.98 \n \nTotal Assets \n \n$ \n \n525,148.52 $ ..............2.=0=.5=1=1.=06= \n \nTotal Uabilities and Fund Equity \nSee notes to the general-purpose financial statements. - 22- \n \n$ \n \n525,148.52 $ ......= ..2.=0=,5=1.1.=06= \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \n$ \n \n$ \n \n277,533.28 \n \nATHLETIC FUND \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n0.00 $ \n \n486,401.40 $ \n \n349,555.54 \n \n330,001.36 \n \n392,720.69 \n \n5,319.12 1,470.98 \n \n5,030.84 2,442.44 \n \n$ \n \n277,533.28 $ \n \n0.00 $ \n \n823,192.86 $ =:::z::::oi7;\",;4..9.=.,7::i:j49.,.5..1i:= \n \n$ \n \n101,864.06 $ \n \n17,929.99 \n \n63,418.10 \n \n84,022.59 \n \n10,298.54 \n \n$ \n \n277,533.28 $ \n \n19,961.06 $ 8.61 \n19,969.67 $ \n \n121,825.12 $ 24,481.69 100,155.46 84,022.59 10,298.54 \n340,783.40 $ \n \n282,887.16 14,688.26 55,283.26 10,720.32 \n363,579.00 \n \n$ \n \n5,319.12 $ \n \n5,030.84 \n \n1,470.98 \n \n2,442.44 \n \n$ \n \n0.00 \n \n495,589.03 \n \n378,697.23 \n \n$ \n \n-19,969.67 \n \n-19,969.67 \n \n$ \n \n0.00 $ \n \n-19,969.67 $ \n \n482,409.46 $ \n \n386,170.51 \n \n$ \n \n277,533.28 $ \n \n0.00 $ \n \n823,192.86 $ ..........,,7...4.;,;;,9.,7.4.9. =..5..1.. \n \n- 23- \n \n WARREN COUNTY BOARP OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES ANp CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support 5eNlces Pupil SeNices Improvement of Instructional SeNlces Educational Media SeNlces General Administration School Administration Maintenance and Operation of Plant Other Support 5eNlCes Food SeNices Operation \nTotal Expenditures \nExcess of Revenues over (under) expenditures \nFUND BALANCE JULY 1 (Restated-See Note 1) \nFood Inventory Net Change In Penod Donated Commodibes Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n35,242.00 $ \n \n155,303.32 \n \n395,523,55 \n \n51,712.23 \n \n$ \n \n482.4n 78 $ \n \n155,30332 \n \n$ \n \n112,550.84 \n \n42,752,48 \n \n$ \n \n365,58598 \n \n$ \n \n365,585.98 $ \n \n155,303,32 \n \n$ \n \n116,891.80 $ \n \n0.00 \n \n386,170,51 \n \n000 \n \n288,28 97146 \n \nFUND BALANCE JUNE 30 \n \n$ \n \n502,37913 $==--====0=.=00= \n \nSee notes to the general-purpose financial statements. \n \n- 24- \n \n EXHIBIT\"F\" \n \nFEDERAL PROGRAMS \n \nATHLETIC FUND \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n19,587.35 \n \n660,318.97 \n \n$ \n \n$ \n \n679,90632 $ \n \n$ 54,344.70 54,344 70 $ \n \n210,132.67 $ 1,055,842.52 \n106,056.93 \n1,372,032.12 $ \n \n243,506.88 887,70940 \n49,786.70 \n1,181,002.98 \n \n$ \n \n549,000.03 \n \n$ \n \n661,550.87 $ \n \n570,37948 \n \n6,847.50 32,452.04 \n63,787.00 1,981.60 $ \n25,838.15 \n \n66,935.87 \n \n49,599.98 32,452.04 \n63,787.00 68,917.47 \n25,838.15 365,585.98 \n \n47,934.59 58,279.52 \n866.04 35,305.41 \n2,239.00 4,136.42 13,614.28 370,129.22 \n \n$ \n \n679,906.32 $ \n \n66,935.87 $ \n \n1,267,731.49 $ \n \n1,102,883.96 \n \n$ \n \n0.00 $ \n \n-12,591.17 $ \n \n104,300.63 $ \n \n78,119.02 \n \n0.00 \n \n-7,378.50 \n \n378,792.01 \n \n308,426.52 \n \n288.28 -971.46 \n \n-700.39 32536 \n \n$ \n \n0.00 $ \n \n-19,969.67 $ \n \n482,40946 $ ===3=8:=;6.,1.7.0...5=1... \n \n- 25 \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL pROJECTS FUND JUNE 30, 2001 \n \nEXHIBIT\"G\" \n \nASSETS Cash and Cash EqUIValents Investments \nTotal Assets \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS JUNE 30, 2001 JUNE 30, 2000 \n \n$ \n \n77,66 $ \n \n000 $ \n \nn.66 $ \n \n77.66 \n \n7l42,364.73 \n \n7,742,364 73 \n \n8.484,044 34 \n \n$ 7,742,442.39 $_--=_.....;;;;O.~OO_ $ 7,742,44239 $ 8,484,122.00 \n \nLIABILmES AND FUND EQUITY \nL1ABILmES \nCash Overdraft Contracts Payable \nTotallJabllities \nFUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ 7,742,442.39 0.00 $ \n$ 7,742,442.39 $ \n \n$ 288,17834 75,00000 \n$ 363,178.34 \n \n$ 7,742,442.39 $ 8,053,675.66 67,268.00 \n \n0:.;..00::.:... \n \n000 \n \n0.00 \n \n0:::,.0:,:0:.,. $ 7.742,442.39 $ 8,120,943.66 \n \nTotallJabihtles and Fund Equity \n \n$ 7:742,442 39 $ _ _=~O..O_O= $ 7,742,44239 $ 8.484,122.00 \n \nSee notes to the general-purpose financial statements. \n \n-26 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL pROJECTS FUND YEAR ENDED JUNE 30. 2001 \n \nEXHIBIT \"I-/\" \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \nREVENUES \n \nState Funds Other Funds \n \n$ $ 521,822.04 \n \n250,75975 $ \n \n250,759.75 521,82204 $ \n \n185,423.69 \n \nTotal Revenues \n \n$ 521,822.04 $ \n \n250,759.75 $ n2,58179 $ 185,423.69 \n \nEXPENDITURES \n \nCurrent Support serviceS Busmess Administration \nCapital Outlay Land and Land Improvements Building and Building Improvements \n \n$ \n \n0.00 \n \n$ 127,322.00 \n \n$ \n \n1.151,083 06 $ 1,151 ,083.06 \n \n303,95884 79,665.00 \n \nTotal expenditures \n \n$ \n \n000 $ \n \n1,151,083.06 $ 1.151 ,083 06 $ 510,94584 \n \nExcess of Revenues over (under) expenditures \n \n$ 521,822.04 $ \n \n-900,323.31 $ -378,501.27 $ -325,52215 \n \nOTHER FINANCING SOURCES (USES) \n \nProceeds from General Obllgabon Bonds Par Value \nOperallng Transfers In Qperabng Transfers Out \n \n$ $ -833,055.31 \n \n833,055.31 $ \n \n$ 833,055.31 -833,055.31 \n \n8,441,800.81 450,891.84 -447,107.68 \n \nTotal Other Flnandng Sources (Uses) \n \n$ -833,055.31 $ \n \n833,055.31 $ \n \n0.00 $ 8,445,584.97 \n \nExcess of Revenues and Other Flnandng Sources  over (under) Expenditures and Other Flnandng Uses $ -311,233.27 $ \n \n-87,268.00 $ -378,501.27 $ 8,120,062.82 \n \nFUNp BALANCE JULY 1 \n \n8,053,675.66 \n \n67,26800 \n \n8,120,94366 \n \nBBO 84 \n \nFUND BALANCE JUNE 30 \n \n$ 7?42,442.39 $ \n \n000 $ 7?42,442.39 $ 8,120,94366 \n \nSee notes to the general-purpose finandal statements. \n \n- 27- \n \n wARREN COUNTY BOARp.OF EDUCATION COMBINING BALANCE SHEET \nPEBT SERVICE FUNP JUNE 30, 2001 \n \nEXHIBIT-I\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES' TAX \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n228,673,87 \n \n$ \n \n228,673,87 $ \n \n191,850,94 \n \n$ \n \n418,607.40 \n \n418,60740 \n \n553,841,38 \n \n7,934 83 \n \n70,78390 \n \n78,71873 \n \n92,34564 \n \nTotal Assets \n \n$ \n \n236,608.70 $ \n \n489,391.30 $ \n \n726,000.00 $ _ _8.-38.,0.3..7.-9.6. \n \nFUND EQUITY \nFund Balances ReseNed For Debt Service UnreseNed Undesignated \n \n$ \n \n236,608,70 $ \n \n489,391,30 $ \n \n726,000.00 $ \n \n838,037,96 \n \n000 \n \n000 \n \n000 \n \n000 \n \nTotal Fund Equity \n \n$ \n \n236,608.70 $ \n \n489,391.30 $ \n \n726,00000 $ _ _83.-8.,.03..7.-9.6 . \n \nSee notes to the general-purpose finanCIal statements \n \n- 28- \n \n - \nWARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \npEBT SERVICE FUND YEAR ENDED JUNE 30. 2001 \n \nEXHIBIT \"J\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \n \nREVENUES \n \nTaxes Other Funds \n \n$ 170,794.42 $ \n \n464,757.93 $ 23,554.59 \n \n635,552.35 $ 23,554.59 \n \n391,691.21 13,804.59 \n \nTotal Revenues \n \n$ 170,79442 $ 488,312.52 $ 659,10694 $ 405,495.80 \n \nEXPENDITURES \n \nDebt Service PnnClpal Interest PaYIng Agent Fees \n \n$ 110,000.00 22,035.00 $ 51.93 \n \n$ 637,198.97 \n1,85900 \n \n110,000.00 $ 659,233.97 \n1,91093 \n \n105,000.00 29,615.00 \n1,261.25 \n \nTotal Expendrtures \n \n$ 132,086.93 $ 639,057.97 $ n1,144.90 $ 135,876.25 \n \nExcess of Revenues over (under) Expenditures \n \n$ 38,707.49 $ -150,745.45 $ -112,037.96 $ 269,619.55 \n \nOTHER FINANCING SOURCES \n \nAccrued Interest on Bonds Sold Proceeds of General Obligation Bonds \nPar Value \n \n$ \n \n37,482.29 \n \n358J99.19 \n \nTotal Other Financing Sources \n \n$ 395,68148 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures \n \n$ \n \n38,707.49 $ \n \nFUNP BALANCE JULY 1 \n \n197,901.21 \n \n-150,74545 $ 640,136.75 \n \n-112,037.96 $ 838,037.96 \n \n665,301.03 172,73693 \n \nFUNP BALANCE JUNE 30 \n \n$ 236,608 70 $ 489,391.30 $ 726,00000 $ 838,037.96 \n \nsee notes to the general-purpose financial statements. \n \n-29- \n \n - ---- ------- - - - - - - - - - - \nWARREN COUNTY BOARp OF EpUCATION COMBINING BALANCE SHEET FlpUCIARY FUND TYPES JUNE 30 2001 \n \nEXHIBIT\"K\" \n \n~ Cash and cash Equivalents Investments \nTotal Assets \n \nEXPENDABLE TRUST FUND \nOTISE. WI LUAMS MEMORIAL SCHOLARSHIP \nFUND \n \nAGENCY FUNDS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n31,830.75 $ \n \n31,830.75 $ \n \n34,359.03 \n \n$ \n \n20,000.00 \n \n20,00000 \n \n20,000.00 \n \n$ \n \n20,000.00 $ \n \n31.83075 $ \n \n51,83075 $ \n \n54,35903 \n \nTotal UabllitJes and Fund EqUity \n \n$ \n \n20,000.00 $ \n \n31,830.75 $ \n \n51,830 75 $ _ _~54-..::.3~59~0;;;;3_ \n \nsee notes to the general-purpose financlal statements. \n \n30 \n \n WARREN COUNTY BOARp OF EPUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE AGENCY FUNDS YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT \"\\.\" \n \nLIABILITIES Funds Held for Others \n \n$ 20,370,00 $ 28:273 00 $ \n \n31,608.00 $_\",\"\",,1~7~,0~3,;;:,5~00~ \n \nMILDREP E, FREEMAN ELEMENTARY SCHOOL \n \nBETA CLUB \n \nASSETS \n \nCash and Cash Equivalents \n \n$ \n \n0,00 $ \n \n53500 $ \n \n31900 $ _ _...:2..:.16~00~ \n \nLIABILITIES Funds Held for Others \n \n$ \n \n0,00 $ \n \n535.00 $ \n \n319,00 $-=,\"\"\",-===2;.:,1~6~00~ \n \nLIABILITIES Funds Held for Others \nINSURANCE ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \n$ \n \n0,00 $ \n \n94800 S \n \n932 84 $_===-=..1.~5_16_ \n \n$ \n \n21,50 $ \n \n0,00 $ \n \no00 $ \n \n~2.:..1~50~ \n \n$ \n \n21,50 S \n \n31  \n \n000 $ \n \n000 $ \n \n.:;2.:.;1.~50::. \n \n WARREN COUNTY BOARp OF EDUCATION \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUNp TYPE -AGENCY FUNDS \nYEAR ENDED JUNE 30, 2001 \n \nEXHIBIT\"l\" \n \nMILDRED E FREEMAN ELEMENTARY SCHOOL \nKINDERGARTEN GRADUATION \nASSETS Cash and Cash EqUIValents \n \nBAlANCE JULY \" 2000 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 3D, 2001 \n \n$ \n \nn9.13 $ 1,653.00 $ \n \n1,65909 $ \n \nn3.04 \n \nLIABILITIES Funds Held for Others \nMEMORIAL FUND ASSETS Cash and Cash EqUivalents \n \n$ \n \nn913 $ 1,653.00 $ \n \n1.659 09 $ ==--=n=-3iC04=::. \n \n$ \n \n000 $ \n \n000 $ \n \n119 00 $ \"\"\"\",.--..:-1='=9,;:00... \n \nLIABILITIES Funds Held for Others \nPApER AND PENCIL FUND ASSETS Cash and Cash Equivalents \n \n$ \n \n000 $ \n \n0.00 $ \n \n119.00 $ -======-'=':;9',;;00. \n \n$ \n \n4,694 94 $ \n \n1,848.30 $ _ .....=5~,3~65==\"= \n \nLIABILITIES Funds Held for Others \n \n$ \n \n4,694 94 $ 2,51847 $ \n \n\"848 30 $_==5~,3;;;;6_5_\"_ \n \nPARTNERSHiP IN EDUCATION \nASSETS Cash and Cash Equivalents \n \n$ \n \n1,032.35 $ \n \n0.00 $ \n \n1,032.35 $ _===0;,;..-00... \n \nLIABILITIES Funds Held for Others \n \n$ \n \n1,032.35 $ \n \n000 $ \n \n1,032.35 $\"\"\",,=__0..0.-0... \n \nSPECIAL OLYMPICS FUNp \nASSETS Cash and Cash Equivalents \n \n$ \n \n3.21 $ \n \n0.00 $ \n \n3 21 $ __....\"\"\"\"=0....0..0... \n \nLIABILITIES Funds Held for Others \n \n$ \n \n3.21 $ \n \n- 32 \n \n000 $ \n \n3.21 $ \n \n~O~OO_ \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 \n \nEXHIBIT\"L\" \n \nMILDRED E FREEMAN ELEMENTARY SCHOOL \nSPIRIT COMMITIEE \nASSETS Cash and Cash EqUivalents \n \nBALANCE JULY 1, 2000 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2001 \n \n$ \n \n18890 $ \n \n000 $ \n \n0.00 $ \n \n18890 \n \nLIABILITIES Funds Held for Others \nWARREN COUNTY HIGH SCHOOL FUTURE BUSINESS LEADERS OF AMERICA ASSETS \nCash and Cash Equivalents \n \n$ \n \n18890 $ \n \n000 $ \n \n0.00 $ _ _.......,;1~8;;;,8,;;;;90= \n \n$ \n \n-2,369.49 $ 6,887.54 $ \n \n6,910 12 $ _ _,;,;.2=:,3~9,;;;2.~07~ \n \nLIABILITIES Funds Held for Others \n \n$ \n \n-2,369.49 $ \n \n6,910 12 $_==;;,::.2~,3~9~2~07:... \n \nFUTURE FARMERS OF AMERICA \nASSETS Cash and cash EqUIValents \n \n$ \n \n592.51 $ 6,46991 $ \n \n6,672.08 $-===~3~90;;;.:;:;34~ \n \nLIABILITIES Funds Held for Others \n \n$ \n \n59251 $ 6:46991 $ \n \n6,672.08 $_\"'\"\"'.....3;:,;:9~0.~34~ \n \nFUTURE HOMEMAKERS OF AMERICA ASSETS cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \n$ \n \n48166 S \n \n000 $ \n \ns \n \n48166 $ \n \n0,00 $ \n \no00 $ _=-....;4~8:=1~66= o00 $_=~4~8:.:.1.~66:;:,. \n \nYEARBOOKS \nASSETS Cash and Gash EqUIValents \n \n$ \n \n126.06 $ 5,758.43 $ \n \n3,520.50 $ _ _.:2;o;;,3::;:6~3:;99::., \n \nLIABILITIES Funds Held for Others \n \n$ \n \n12606 $ \n \n- 33- \n \n5,758.43 $ \n \n3,520.50 $ _ _..:2~,36=3.~99;:. \n \n WARREN COUNTY BOARD OF EDUCATION \nCOMBINING STATEMENIOF CHANGES IN ASSETS ANp LIABILITIES \nFIDUCIARY FUNp TYPE - AGENCY FUNDs \nYEAR ENDED-JUNE 30; 2001 \n \nEXHIBIT\"L\" \n \nWARREN COUNTY HIGH SCHOOL GENERAL ATHLETICS ASSETS \nCash and Cash Equivalents \nLIABILITIES Funds Held for Others \nTOTALS - AGENCY FUNDS ASSETS \nCash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nBALANCE JULY \" 2000 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 3D, 2001 \n \n$ \n \n769.07 $ \n \n0.00 $ \n \n76907 $ \n \n000 \n \n$ \n \n769.07 $ \n \n000 $ \n \n769.07 $ _ =.......,;;;O.~OO:;,. \n \n$ 32,671.31 $ 56.27090 $ \n \n57,111 46 $ a:====3.,.,8=30===:75. \n \n$ 32,671.31 $ 56.270.90 $ \n \n57,111.46 $ _====3;;.;'=,8=30=.7..5.. \n \nSee notes to the general-purpose financial statements. \n \n- 34 \n \n -WARREN COUNTY BOARP OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY 10 \nNUMBER \n \nFEDERAl REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgnculture, U S Department of Child NutntJon Cluster Pess-Through From Georgl8 Department of Education Food and NutntJon Program Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutntion Cluster \n \n10553 \n 10.555 \n \nN/A \n \nS 105.372.39 \n \nN/A \n \n271,264 68 S \n \nS 376,63707 S \n \n(2) 346,699 50 (3) \n346,699.50 \n \nOther Programs Pas\u0026-Through From Georgia Department of Educ:atJon Food and Nutnbon Program Food Dlstrlbubon Program (1) \n \n10550 \n \nN/A \n \n18.88648 \n \n18,88648 \n \nTotal U. S. Department of Agnculture \n \n$ 395,52355 S \n \n365,58598 \n \nEducation, U. S Department of Special Educabon Cluster Pas\u0026-Through From Georgl8 Department of Educ:atJon IndlV1duals WIth DISabilities Educabon Act Part B  SpeCIal Educabon CapaCIty Building Improvement Grant Flow Through Preschool \n \n84173 84.027 84173 \n \nN/A \n \nS \n \n2,280.00 $ \n \nN/A \n \n26.20161 \n \nNlA \n \n32.48004 \n \n2.28000 26,20161 32.48004 \n \nTotal Speasl Education Cluster \n \n$ \n \n60,961.65 $ \n \n60,961.65 \n \nOther Programs \n \nPass-Through From Georgia Department of Educabon \n \nElementary and Secondary Education Act \n \nTitle I Grants to local EducatIonal AgenCIeS \nTiUe II \n \n 84 010 \n \nNlA \n \nEisenhower Professional Development \n \n84.281 \n \nN/A \n \nTitle VI \n \nInnovetlve Education Program Strategies \n \n84298 \n \nNlA \n \nClass SIZe ReductJon \n \n84.340 \n \nNlA \n \nGoals 2000 \n \nState and local Educabon Systemic Improvement Grants 84.276 \n \nN/A \n \nSafe and Drug-Free Schools and Communities \n \n84.186 \n \nNlA \n \nVocational Education - BaSIC Grants to States \n \nHigh School Program \n \nBaSIC Grant \n \n84048 \n \nNlA \n \n496.93574 5,70146 \n16.05208 39.116.71 \n4.894 42 17.039.24 \n19,61767 \n \n496.93574 5.70146 \n16.052.08 39.11671 \n4,89442 17,039.24 \n19,61767 \n \nTotal U. S Department of Education \n \n$ 660.31897 $ \n \n660.318.97 \n \nTotal Federal Financial Assistance \nN/A = Not Aveilable \n \n$ 1.055.842 52 $ \n \n1,025.904 95 \n \n35 \n \n , WARREN COUNTY BOARD OF ,EPUCAl]ON \n \nSCHEpULE OF: EXRENPITURES OF FEpERAL AWARDS \n \n- \n \nYEAR ENDEDJUNE.30 2001 \n \nSCHEDULE \"1\" \n \nNotes to the Schedule of Expenditures Qf Federal Awards \n(1) The amounts shown tor the Food DlstnbutlQn Program represents the FederellyasSigned value of nonmonetary aSSIstance ~r donated commodl!Jes recerved and/or consumed by the system dunng the current fiscal year \n(2) Expenditures tor the School-Breakfast Progl!lm were not m_a,lr:!talned \nseparetely and ere Included In the 2001 Netional School Lunch Program. (3) Expenditures tor thiS program Include State, and/or Other Funds \nExpenditures are nol maintained by fund source \nMa)Ol' Programs are lden!lfied by an aslensk CO) In fronl of the CFDA number \nThe School Dlstnd did nol proVIde Federal AsSIstance to any SubreClptenl. \nThe accompanymg schedule of expenditures Qf FederalllW8rds IDdudes the Federal grant 8ctlVlty of Ihe Werren CQunty Board of Educallon,end is presented on the modified accrual baSIS of accountlDg which IS the beSIS of accoun!lng used In the presenta!lQn of the general-purpose finanCial stalements \n \nSee notes to the general-purpose finanCial S18temenls \n \n- 36 \n \n WARREN COUNTY BOARP OF EPUCATION SCHEPULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/fUNpING \nGRANTS EducatIOn, GeorglS Department of Quality BaSIC EducatIOn Direct instructIOnal Cost Kindergarten Program KIndergarten Program. Early IntervenlJon Program Pnmary Grades (1-3) Program Pnmary Grades Early Intervention (13) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program High School General education (9-12) Program Vocabonal Laboratory (9-12) progrem Students with DIS8b1lrtles Category I Category \" Category III Category rI! Remedial Education Program AltemallVe EducatIOn Program Media Center Program Staff and ProfeSSional Development IndllllCl Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing ServICeS Principal Supplements Vocational SUpelVlSOrs MId-tenn Adjustment Hold-Harmless Education Equalization Funding Grant Food Services VocabonalEducabon Other State Programs AtRisk Summer School Program Health Insurance InnovallVe Programs Preschool HandICapped Program RemedlSl Summer School Stalew1de Local education Improvement Teachers' Retirement lottery Programs Computers In the Classroom \nGeorgia State Flnancmg and Investment CommISSIOn ReImbursement on ConstruCtIOn Projects \nOffice of School Readiness Pre-Klndergarten Program \nOffice of Treasury and FISC8I Services Public School Employees Retirement \nCONTRACTS Education, GeorglS Department of GeorglS'S Reading Challenge Reading Firat Program \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \nS 40,275.00 253,964.00 400,09800 238,231 00 281,23100 493,521.00 383,95900 99,222.00 \n11,034 00 238,75300 130,98800 \n15,18800 77,61800 38.28500 64,34000 23,396.00 685,058 00 \n \n$ 40.27500 253,964 00 400,098.00 238,23100 261,23100 493,521 00 383,95900 99,222.00 \n11.034 00 238,75300 130,988.00 \n15,16800 77,61800 38,28500 84,34000 23,396.00 685,05800 \n \n167,724.00 53,696 00 157,897.00 37,41300 \n3,980.00 3.98000 85,190.00 250,80800 \nS 35,24200 13,220.92 \n3,929.71 48,74560 \n5,00000 9,630.00 2.74720 28.252.00 2.471.51 \n20.10500 \n \n167,72400 53.696.00 \n157,89700 37,41300 3,98000 3.960.00 85.19000 \n250.80800 35,24200 13,220.92 \n3,92971 48,74560 \n5,00000 9,630.00 2.747.20 28.252.00 2,471 51 \n20,105.00 \n \n$ 250,75975 \n \n250,75975 \n \n135.19832 \n \n135,19832 \n \n13,94300 \n \n13,94300 \n \n107,304 26 \n \n19,58735 \n \n107,304 26 19,58735 \n \nSee notes to the general-purpoae financial statements \n \nS 4.471105320 S 210,13267 S 250.75975 $ 4,931,94562 37. \n \n  WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"3\" \n \nPROJECT \nAcqUlnng land, conslrudlng, and equipping a new mlddleJhlQh school for Warren County and capitalIZIng interest through October 1, 2000 \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 3,300,000.00 $ 9,864,47981 $ 1,788.28203 $ 383.623.84 Ongoing \n \n(1) The School Distrid's onglnal cost esbmate as speafied In the resolution calling for the Imposition of the Local Opbon sales Tax. \n(2) The School DJstrid's current esbmate of total cost for the project Indudes all cost from projed Incepbon to completion \n(3) The voters of Warren County approved the ImposrtJon of a 1'\" sales tax to fund the above projed. Amounts expended for thiS proJed may Indude sales tax proceeds, state, local property taxes and/or other funds over the life of the projed \n \nSee notes to the general-purpose finanaal statements \n \n- 39- \n \n -WARREN COUNTY BOARD OF EDUCATION GENERAL FUND - aUALJIY BASIC EDUCATION PROGRAM (aBEl \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \nDlred Instructional Programs KIndergarten Program Kmdergarten Program-Earty Intervention Program Primary Grades (1-3) Program Primary Grades-Ear1y Intervention (1-3) Program Upper Elementary Grades (\"'5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocatlonal Laboratory (9-12) Program Students with DIsabilities category II category III category IV Remedial Education Program Alternative Educatlon Program \nTOTAl DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE aBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nS \n \n46.039.00 $ 114,629.63 $ 13.88511 $ \n \n128.514.74 \n \n290.31300 \n \n152.740.50 \n \n696.58 \n \n153,437.08 \n \n457.362.00 \n \n569.287.67 \n \n26.863.34 \n \n596,151.01 \n \n272.328.00 \n \n298,620.00 \n \n396,85957 \n \n10.411.23 \n \n407.270.80 \n \n564.157.00 \n \n513.140.51 \n \n10.465.n \n \n523.606.28 \n \n438.913.00 113.423.00 452,614.00 \n88.727.00 43.765.00 \n \n504,571.85 103.375.54 \n289.704.90 215,739.92 \n7,124.92 15,706.63 25.827.03 \n \n11,424.98 39,427.53 \n3.038.69 6,81298 \n35,000 00 \n \n515.996.83 142,803.07 \n292.743.59 222,552.90 \n7,124.92 15.706.63 60,827.03 \n \n$ \n \n3.066.261.00 $ 2.908,708.67 $ 158,026.21 $ 3,066.734.88 \n \n96.411.00 26.74500 \n \n113.435.94 4,297.42 \n \n14,401.97 50.56668 \n \n127.837.91 54.864.10 \n \nTOTAL aBE FORMULA FUNDS \n \ns \n \n3,189,417 00 $ 3,026,442.03 S 222,994 86 $ 3,249.436.89 \n \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nSee notes to the general-purpose financial statements. \n \n-40 - \n \n WARREN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE -5\" \n \nWarren County High School Freeman Elementary School Central Office (Altemative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n1,376,931.00 $ \n \n1,538,318.58 \n \n1,645,565,00 \n \n1,528,379.68 \n \n43,765.00 \n \n36.62 \n \n$ \n \n3,066,261.00 $ a:::::::~3;f;,06;,;,6;;:'.;.;734;;,,;.;,;;.8;,;;.8 \n \nSee notes to the general-purpose financial statements. - 41 - \n \n SECTIONn COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. \"'''TON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS 254 Washmgton Sireet. S w.. Suite 2 J4 \nAtlanta. Georgia 30334-K400 \nJune 10, 2002 \n \nHonorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of Warren County Board of Education as of and for the year ended June 30, 200 I, and have issued our report thereon dated June 10, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Warren 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Warren 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 \n200 1YB-40 \n \n control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Warren County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7491-0l-02, FS-7491-01-03, FS-749l-01-04 and FS-749l-0l-0S. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-7491-0105 to be a material weakness. \nThis report is intended solely for the information and use of the management, members of the Warren County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n~~.~~ II W. Hinton Auditor \nRWH:as 2001YB-40 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washmgton Street. S.W., SUite 214 Atlanta, GeorgIa 30334-R400 \nJune 10,2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWarren County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Warren 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 Warren County Board of Education's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Warren 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 Warren County Board of Education's compliance with those requirements. \n2001SA-35 \n \n In our opinion, the Warren 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. \nInternal Control Over Compliance \nThe management of Warren 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 perfonning our audit, we considered Warren 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 OMB Circular A-l33. \nWe noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect Warren County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-7491-01-02, FA-7491-01-03 and FA-7491-01-04. \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider items FA-7491-01-02 and FA-7491-01-03 to be material weaknesses. \nThis report is intended solely for the information and use of the management, members of the Warren 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. \n \nRWH:as 2001SA-35 \n \nRus ell W. Hinton State Auditor \n \n SECflONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \n7491-93-03 FS-7491-98-01 FS-7491-99-01 FS-7491-99-02 FS-7491-00-01 FS-7491-00-02 FS-7491-00-03 FS-7491-00-04 \n \nUnresolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses \n \nCORRECTIVE ACTIONIRESPONSES \n \nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $3,981.24 Finding Control Number: 7491-93-03 \n \nThis finding will be cleared in fiscal year 2002 by Georgia Department of Education. \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $3,143.84 Finding Control Number: FS-7491-98-01 \n \nAll efforts are being made to prevent this type of error from happening again. \n \nGENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-7491-00-02 \n \nThe Superintendent signs or initials all journal entries. \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7491-00-04 \n \nThe School District will have the General Fixed Assets on the books by June 30, 2003. \n \n- 1- \n \n - \nWARREN COUNTY BOARD OF EDUCAnON AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2001 \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND OpESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-7491-00-01 FA-7491-00-02 FA-7491-00-03 FA-7491-00-04 \n \nPartially Resolved - See Corrective Action Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTIONIRESPONSES \n \nACTNITIES ALLOWEDIUNALLOWED ALLOWABLE COST/COST PRINCIPLE Inadequate Internal Control Procedures Finding Control Number: FA-7491-00-01 \n \nThis unallowed expense has been returned to the Georgia Depamnent of Education. All efforts will be made to have allowable expendi~es in the future. \n \nCASH MANAGEMENT Inadequate Internal Control Procedures Finding Control Number: FA-7491-00-02 \n \nAll efforts are being made to request the accurate amount needed for a program. \n \nREPORTING Inadequate Internal Control Procedures Finding Control Number: FA-7491-00-03 \n \nAll efforts are being made to ensure that all completion reports are being done. \n \nSPECIAL TESTS AND PROVISIONS Inadequate Internal Control Procedures Finding Control Number: FA-7491-00-04 \n \nAll efforts are being made to correct this error. We now send the letter certified with a return receipt. \n \n-2- \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n WARREN COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nI. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Warren County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents General Ledger \n \nEmployee Compensation General Fixed Assets \n \nOf the reportable conditions described above, General Fixed Assets is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Warren County Board ofEducation disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nEquipment and Real Property Management \n \nProgram Income Special Tests and Provisions \n \nOf the reportable conditions described above, Equipment and Real Property Management and Program Income are considered to be material weaknesses. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-133 The Warren County Board of Education's audit disclosed audit findings required to be reported by section .5 1O(a) ofOMB Circular A-133. These audit findings are included in section IV of this report. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nI SUMMARY OF AUDITOR'S RESULTS \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \nn FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nBUDGET PREPARATIONIEXECUTION Deficit Fund Balance Nonmaterial Noncompliance Finding Control Number: FS-7491-0l-01 \nAt June 30, 2001, the liabilities and fund b.alances exceeded assets available for the Athletic Fund by $19,969.67. Official Code of Georgia Annotated Section 20-2-67 (b) requires that the Superintendent submit to the Georgia Department ofEducation both a response to' this condition and a corrective action plan designed to correct the budget deficit. The School District should establish budgetary procedures to ensure that funding is available prior to the School District committing to expenditures. \nCASH AND CASH EQillVALENTS UncollateraIized Deposits Reportable Condition Nonmaterial Noncompliance Finding Control Number: FS-7491-01-02 \nAs of June 30, 2001, the School District failed to have $514,061.49 of its bank balances collateralized as provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows: \n- 2- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \nIT FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \nCASH AND CASH EQUNALENTS Uncollateralized Deposits Reportable Condition Nonmaterial Noncompliance Finding Control Number: FS-7491-01-02 \n\"The collecting officer or officer holding public funds may not have on deposit at anyone time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. The aggregate of the face value of such surety bond and the market value of securities pledge shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance\" \nThis noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The School District should implement adequate procedures to monitor the collateralization ofbank balances to ensure compliance at all times with State Laws governing deposits and investments. \nCASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7491-01-03 \nA review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over control categories as noted below: \nCASH AND CASH EQUNALENTS There was no administrative review ofbank reconciliations to determine ifthey were correct and that all required adjustments had been made. \nBank reconciliations for the months ofJuly 2000 through June 2001 were not performed on a timely basis. Instead these reconciliations were performed between June 2001 and October 2001. \nGENERAL LEDGER The School District could not provide journal entry documentation, nor descriptions or documentation ofreview, and approval by someone independent ofthe general ledgerjournal entry function. \n-3- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIQNED COSTS \nYEAR ENDED JUNE 30. 2001 \nIT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7491-01-03 \nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and their failure to institute proper internal controls over these areas. The School District should review the accounting procedures in place, design procedures which would enhance segregation of duties and proper internal controls relative to the above categories and implement those procedures to strengthen the internal control over the accounting functions. \nEMPLOYEE COMPENSATION Payroll Reporting Reportable Condition Amount: $8,404.21 Finding Control Number: FS-7491-01-04 \nA sample of compensation payments to 34 employees disclosed the following deficiencies in the payroll process: \nSalary payments in excess of approved salary schedules totalling $1,511.74 were made to two employees. The School District used an incorrect salary base rate in calculating pay for these two individuals. \nA salary overpayment in the amount of $50.59 was made to one employee which resulted from the School District's failure to deduct excess leave taken. \nSalary payments in excess of approved salary contracts totalling $3,529.72 were made to three employees. The School District was unable to provide documentation to support the payments made in excess of approved salary contracts. \nThe Superintendent was overpaid salary in the amount of$3,312.16. The School District was unable to provide an approved salary contract for the Superintendent nor was the increase formally approved and documented in the official School District's minutes. \n-4- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nEMPLOYEE COMPENSATION Payroll Reporting Reportable Condition Amount: $8,404.21 Finding Control Number: FS-749l-0l-04 \nThese deficiencies occurred because of management's failure to establish appropriate internal controls over the payroll process. Appropriate action should be taken by the School District to ensure that all personnel are paid in accordance with approved salary schedules and approved School District policies. The School Board should review these overpayments and determine if reimbursement is required. \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7491-0l-05 \nThe Warren 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 of all additions and deletions to the General Fixed Assets Account Group. \n- 5- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \n \nill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS \n \nACTIVITIES ALLOWEDIUNALLOWED ALLOWABLE COST/COST PRINCIPLES CASH MANAGEMENT SPECIAL TESTS AND PROVISIONS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-749l-0l-01 \n \nA review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over the Elementary and Secondary Education Act - Title VI Class Size Reduction Grant (CFDA 84.340) for the following compliance requirements: \n \nACTIVITIES ALLOWEDIUNALLOWED \n \nALLOWABLE COST/COST PRINCIPLES \n \nA test of expenditures for the Elementary and Secondary Education Act - Title VI - Class Size \n \nReduction Grant (CFDA 84.340) revealed that an official knowledgeable ofallowable activities and \n \ncosts for the program did not approve expenditures as required by the Office of Management and \n \nBudget Circular A-87 and A-133 Compliance Supplement. This deficiency resulted in expenditures \n \nin the amount of$I44.38 being charged to the program that were not allowable activities or costs. \n \nOn June 6, 2002, $144.38 representing these unallowable costs were refunded to the Georgia \n \nDepartment ofEducation. \n \n. \n \nCASH MANAGEMENT A review ofcash management procedures for the Elementary and Secondary Education Act - Title VI - Class Size Reduction Grant (CFDA 84.340) disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2001, the program had an average cash balance of$2,980.7l and had excessive ending monthly cash balances in eight months. \n \nSPECIAL TESTS AND PROVISIONS A review ofprivate school invitations for participation in the Elementary and Secondary Act - Title VI - Class Size Reduction Grant (CFDA 84.340) indicated that all private schools in Warren County were not invited to participate in the planning, development and organization of this grant. In addition, all children attending private schools were not included in the Elementary and Secondary Education Act - Title VI - Class Size Reduction Grant application process as required. \n \n-6- \n \n WARREN COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED CQSTS \nYEAR ENDED JUNE 30. 2001 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED CQSTS \nACTINTnESALLO~DmNALLO~D \nALLOWABLE COST/COST PRINCIPLES CASH MANAGEMENT SPECIAL TESTS AND PROVISIONS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-749l-0l-0l \nThese conditions were a result ofmanagement's failure to implement internal controls for monitoring compliance with Federal guidelines. The School District should review the internal controls for Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and implement proper internal controls relative to the above Federal compliance requirements and procedures to strengthen the internal control over Federal programs. \nEQUIPMENT AND REAL PROPERTY MANAGEMENT Failure to Maintain Property Management Records Reportable Condition - Material Weakness Nonmaterial Noncompliance U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-749l-01-02 \nA review of the School District's policies and procedures noted deficiencies in providing for adequate internal control over equipment for the Elementary and Secondary Education Act - Title I Grants to Local Educational Agencies (CFDA 84.010) program. The School District did not maintain a property management system to meet applicable property management standards as set forth in Chapter 41, of the Financial Management for Georgia Local Units of Administration (FMGLUA). This condition was a result ofmanagement's failure to implement internal controls for monitoring compliance with FMGLUA. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in FMGLUA. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year. \n-7- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nPROGRAM INCOME Inadequate Internal Control Procedures Reportable Condition - Material Weakness U. S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-7491-01-03 \nA review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over Program Income for the Child Nutrition Cluster (Food and Nutrition Program - Food Services (CFDA 10.553) and National School Lunch Program (CFDA 10.555 as follows: \nCash receipts totalling $41,356.63 for the period October 2000 through May 2001 were not deposited to a bank account until June 2001. \nRevenues for the period October 2000 through May 200 I were not posted to the general ledger until June 2001. \nThis condition was a result of management's failure to implement appropriate internal control procedures for monitoring compliance with Federal guidelines. The School District should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and implement proper internal controls relative to the above Federal compliance requirement to strengthen the internal control over Federall'rograms. \nSPECIAL TESTS AND PROVISIONS Untimely Participation Notification to Local Private Schools Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-01-04 \nA review ofprivate school invitations for participation in the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies Program (CFDA 84.010) revealed that the School District did not notify all private schools on a timely basis in order to participate in the program. In addition all private school children were not included in the Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies application process. This condition was a result ofmanagement's failure to implement internal controls for monitoring compliance with Federal guidelines. The School District should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and implement proper internal controls relative to the above Federal compliance requirement to strengthen the internal control over Federal programs. \n- 8- \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-b1999-h2000","title":"Warren County Board of Education, Warrenton, 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, Warren County, 33.40896, -82.67676"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2000-06-30"],"dcterms_description":["Fiscal year ended June 30, 2000, released in 2001?-","Ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: Warren County Board of Education, Warrenton, Georgia, schedule of salaries and travel, fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Report on salary and travel for the fiscal year ended ... (Warren County, Ga. Board of Education), fiscal year ended June 30, 2003-fiscal year ended June 30, 2007; Salaries and travel reimbursement (Warren County, Ga. Board of Education), fiscal year ended June 20, 2008.","Fiscal year ended June 30, 2008, released in 2009?"],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Auditors' reports--Georgia","Financial statements--Georgia","Warren County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Warren County Board of Education, Warrenton, 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-bw28-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw28-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":" \n \nSTATE OF GEORGIA \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n \nGtA \n \nA800 \n \n \n \n. KI \n \n2~ \n \nWl8 \n \n19CJCl-,20QO \n \n00 00000 0 0 \n1776 \n \n \nI \nWARREN COUNTY BOARD OF EDUCATION \nWARRENTON, GEORGIA \nREPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 \n \nRussell W. Hinton State Auditor \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS -OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nAND EXPENDABLE TRUST FUND \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n7 \n \nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \n8 \n \nADDITIONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \n \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n \n \n22 \n \n24 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n26 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n27 \n \nDEBT SERVICE FUND \n \nI \n \nCOMBINING BALANCE SHEET \n \n28 \n \nJ \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n29 \n \nFIDUCIARY FUND TYPES \n \nK \n \nCOMBINING BALANCE SHEET \n \n30 \n \nL \n \nCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \n \nAGENCY FUNDS \n \n31 \n \n WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nADDITIONAL FINANCIAL INFORMATION \n \nSCHEDULES \n \n \n \n. \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n2 SCHEDULE OF STATE REVENUE \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nANALYSIS OF \n \nEXPENDITURE REQUIREMENTS \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \n \n4 \n \nOVERALL \n \n5 \n \nBY PROGRAM \n \nPage \n34 36 37 \n39 \n40 \n \nSECTION II \n \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \n \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL  \nREPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQU!REMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH \n \nOMB CIRCULAR A-133 \n \n \n \nSECTION ill \n \nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nS \n \nY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  \nSECTION I FINANCIAL \n \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 6562174 \n \nDEPARTMENT OF'AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 10334-X400 \nJune 1,2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board ofEducation \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general purpose financial statements of the Warren County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Warren County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States 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 \n \nOpInIOn. \n \nAs described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2000ARL-13A \n \n * The general purpose financial statements ofthe Board did not contain a General Fixed \nAssets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. \n \n* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \n \nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \n \nIn our opinion, except for the effects on the general purpose financial statements of the matters \nreferred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Warren County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \n \nIn accordance with Government Auditing Standards, we have also issued our report dated June 1, \n \n2001, on our consideration ofthe Warren County Board ofEducation's intemal control over financial \n \nreporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and \n \ngrants. That report is an integral part of an audit performed in accordance with Government \n \nAuditing Standards and should be read in conjunction with this report in considering the results of \n \nour audit. . \n \n- \n \n \nOur audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Warren County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of \nManagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the \ngeneral purpose financial statements. Such 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. \n \n \n \n2000ARL-13A . \n \n A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \nRespectfully submitted,  \nW. \nR sell W. Hinton State Auditor RWH:jb 2000ARL-13A \n \n \n \n  \n \n \n \n \n \n \n  \n \n \n \nWARREN COUNTY BOARD OF EDUCATION \n \n \n \n \n \n \n \n- \n \n \n \n \n \n \n WARREN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ \n \n142,748.53 $ \n \n66,668.38 \n \n700,000.00 \n \n$ 8,484,044.34 \n \n71,640.82 \n \n392,720.69 \n \n5,030.84 2,442.44 \n \nTotal Assets \n \n$ \n \n914,389.35 $ \n \n466,862.35 $ _~8,484,044.34 \n \nLIABILITIES AND FUND EqUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Funds Held for Others General Obligation Bonds Payable \nTotal Liabilities \nFUND EqUITY \nFund Balances Reserved For Bus Replacement Funds For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n288,100.68 \n \n$ \n \n103,414.32 $ \n \n14,688.26 \n \n55,283.26 \n \n10,720.32 \n \n75,000.00 \n \n$ \n \n103,414.32 $ \n \n80,691.84 $ _ _3~6~3:.r....!,1~0~0.~68~ \n \n$ \n \n87,634.28 \n \n3,981.24 \n \n$ \n719,359.51 \n \n5,030.84 2,442.44 \n$ \n378,697.23 \n \n8,053,675.66 67,268.00 \n- \n0.00 \n \n$ \n \n810,975.03 $ \n \n386,170.51 $ _ _8~,~12~0~,94~3.~66~ \n \nTotal Liabilities and Fund Equity \n \n$ \n \n914,389.35 $ \n \n466,862.35 $ _.,;;;8,484,044.34 \n \nThe notes to the general purpose financial statements are an integral part of this statement. -2- \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nFIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS \n \n$ \n \n191,850.94 $ \n \n34,359.03 \n \n553,841.38 \n \n20,000.00 \n \n92,345.64 \n \nACCOUNT GROUP \nGENERAL LONG-TERM \nDEBT \n \nTOTALS \n \n(Memorandum Only./....) \n \n_ \n \nJUNE 30, 2000 \n \nJUNE 30,1999 \n \n$ \n \n435,626.88 $ \n \n492,305.93 \n \n9,757,885.72 \n \n1,020,000.00 \n \n556,707.15 \n \n316,019.09 \n \n$ \n \n838,037.96 \n \n8,321,962.04 \n \n5,030.84 2,442.44 838,037.96 \n8,321,962.04 \n \n6,138.53 1,709.78 172,736.93 \n292,263.07 \n \n$ \n \n838,037.96 $ \n \n54,359.03 $ 9,160,000.00 $ 19,917,693.03 $ 2,301,173.33 \n \n$ \n \n32,671.31 \n \n-----$ \n \n$ \n \n32,671.31 $ \n \n$ \n9,160,000.00 \n9,160,000.00 $ \n \n288,100.68 \n118,102.58 $ \n55,283.26 10,720.32 75,000.00 32,671.31 9,160,000.00 \n \n117,266.34 66,517.33 45,040.73 \n28,709.93 465,000.00 \n \n9,739,878.15 $ _ _~72==2:.c:,5~34~.~33~ \n \n$ \n \n838,037.96 \n \n0.00 $ _ _~2::...!1~,6~8~7.~72!::... \n \n$ \n \n838,037.96 $ _ _~2::...!1~,6~8~7.~72!::... \n \n$ \n \n87,634.28 \n \n838,037.96 $ \n \n172,736.93 \n \n3,981.24 \n \n98,294.12 \n \n5.030.84 2,442.44 8,053,675.66 67,268.00 \n1,119,744.46 \n$ 10,177,814.88 $ \n \n6,138.53 1,709.78 \n880.84 \n1,298,878.80 \n1,578,639.00 \n \n$ _ _8;;;,;.38.,037.96 $ \n \n54,359.03 $ 9,160,000.00 $ 19,917,693.03 $ 2,301,173.33 -3- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \nTotal Revenues  \n \nEXPENDITURES \n \nCurrent \n \n \n \nInstruction \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nFood Services Operation \n \nCommunity Services Operations \n \nCapital Outlay \n \nDebt Service \n \nPrincipal \n \nInterest \n \nPaying Agent Fees \n \nTotal Expenditures \n \nExcess of Revenues over (under) Expenditures \n \n- \n \n \nOTHER FINANCING SOURCES (USES) \n \nAccrued Interest on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Operating Transfers In Operating Transfers Out \n \nTotal Other Financing Sources (Uses) \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \n \nFUND BALANCE JULY 1 \n \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nGENERAL FUND \n \nGOVERNMENTAL FUND \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 4,036,574.59 $ \n1,567,776.95 231,708.41 \n \n243,506.88 887,709.40 \n49,786.70 $ _ _.:.:18:::::5~.4~2:::..:3.~69::..... \n \n$ \n \n5,836,059.95 $ \n \n1,181,002.98 $ _ _.:.:18:::::5~,4~23:::..:.~69::..... \n \n$ 3,778,633.61 $ \n90,033.33 301,640.14 140,604.35 234,964.84 500,732.38 106,025.76 441,597.79 363,083.55 \n5,351.00 260.00 \n109,610.19 24,115.02 \n \n \n570,379.48 \n47,934.59 58,279.52 \n866.04 35,305.41 2,239.00 \n$ 4,136.42 \n13,614.28 370,129.22 \n \n127,322.00 383,623.84 \n \n$ \n \n6,096,651.96 $ \n \n1,1 02,883.96 $ _ _5:::..1~0;.L:9:4':..:.::.:5.~84~ \n \n$ \n \n-260,592.01 $ \n \n78,119.02 $ _ _-3::::2~5:c,5:.::2::.:..2:.:15::... \n \n$ \n \n-..;;;,3\",-,7=84,;..;..1\"\",,6,- \n \n$ \n \n-. ;;;,307.:~.,84.:.:.. 1.:.:6.... \n \n$ \n \n-264,376.17 $ \n \n1,075,351.20 \n \n$ 8,441,800.81 3,784.16 \n \n$ _-.;8::J,,4..:.;4.:.::5;.L:5::'::::84;.:.:.~97:.- \n \n78,119.02 $ 308,426.52 \n \n8,120,062.82 880.84 \n \n-700.39 325.36 \n \nFUND BALANCE JUNE 30 \n \n$ _ _8..1-.0,975.03 $ _ _3..8-.6,170.51 $ \n \nThe notes to the general purpose financial statements are an integral part of this statement. -4- \n \n8,120,943.66 \n \n EXHIBIT \"B\" \n \nTYPES DEBT \nSERVICE FUND \n \nTOTAL \n \nFIDUCIARY FUND TYPE EXPENDABLE TRUST FUND \n \nTOTALS \n \n(Memorandum Only,-) \n \n_ \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ 4,280,081.47 \n \n887,709.40 \n \n$ \n \n391,691.21 \n \n1,959,468.16 \n \n13,804.59 \n \n480,723.39 $ \n \n$ \n \n405,495.80 $ 7,607,982.42 $ \n \n$ \n...:44..:.,4,:.:;.2::..1:- \n444.21 $ \n \n4,280,081.47 $ \n887,709.40 1,959,468.16 \n481 ,167.60 \n7,608,426.63 $ \n \n4,312,733.22 1,039,266.08 1,644,239.01 \n320,875.53 \n \n \n \n$ 4,349,013.09 $ \n \n0.00 $ 4,349,013.09 $ 4,119,296.27 \n \n137,967.92 \n \n359,919.66 \n \n141,470.39 \n \n270,270.25 \n \n502,971.38 \n \n233,347.76 \n \n \n \n445,734.21 \n \n363,083.55 \n \n5,351.00 \n \n13,874.28 \n \n \n \n479,739.41 . \n \n24,115.02 \n \n383,623.84 \n \n$ \n \n105,000.00 \n \n29,615.00 \n \n1,261.25 \n \n105,000.00 29,615.00 1,261.25 \n \n137,967.92 359,919.66 141,470.39 270,270.25 502,971.38 233,347.76 445,734.21 - 363,083.55 \n5,351.00 13,874.28 479,739.41 24,115.02 383,623.84 \n105,000.00 29,615.00 1,261.25 \n \n139,664.34 277,730.92 176,145.27 221,197.34 502,651.58 \n97,462.71 422,543.26 270,270.53 \n14,758.92 440,897.18 \n16,576.02 \n32,850.00 95,000.00 36,567.50 \n1,540.50 \n \n$- \n$ \n \n135,876.25 $ 269,619.55 $ \n \n7,846,358.01 $ -238,375.59 $ \n \n0.00 $ 444.21 $ \n \n7,846,358.01 $ 6,865,152.34 -237,931 .38 $ _ _4.:.:;5:.:.1.19.:~:'61.:.:..5:::,:0:.... \n \n- \n \n$ \n \n37,482.29. $ \n \n37,482.29 \n \n358,199.19 \n \n8,800,000.00 3,784.16 -3,784.16 \n \n$ \n \n395,681.48 $ 8,837,482.29 \n \n$ \n \n665,301.03 $ 8,599,106.70 $ \n \n172,736.93 \n \n1,557,395.49 \n \n-700.39 325.36 \n \n$ \n \n37,482.29 \n \n8,800,000.00 3,784.16 -3.784.16 \n \n$ 8,837,482.29 \n \n \n444.21 $ \n21,243.51 \n \n8,599,550.91 $ \n1,578,639.00 \n \n451,961.50 1,140,867.56 \n \n-700.39 325.36 \n \n-431.91 -13,758.15 \n \n$ \n \n838,037.96 $ 10,156,127.16 $ \n \n21,687.72 $ 10,177,814.88 $ 11578,639.00 -5- \n \n WARREN CQUNTY BOAFID OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDIIURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - {NON-GAAP BASIS} GENI;BAL AND SPECIAL BEVI;NUE FUNDS \nYEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"CO \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS),--_ \n \n \n \nSPECIAL REVENUE FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS) \n \nREVENUES \n \nState Funds Federal Funds Taxes Other Funds \n \n$ 3,848,163.00 $ 4,036,574.59 \n \n93,000.00 \n \n1,501,999.66 \n \n1,567,776.95 \n \n100,000.00 \n \n231,708.41 \n \n$ \n \n330,478.70 $ \n \n1,069,281.50 \n \n243,506.88 887,709.40 \n49,786.70 \n \nTotal Revenues \n \n$ 5,543,162.66 $ 5,836,059.95 \n \n$ 1,399,760.20 $ 1,181,002,98 \n \nEXPENDITURES \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations \n \n$ 3,539,320,98 $ 3,778,633.61 \n \n173,525.81 329,722.27 137,353.47 227,888.47 470,900.60 117,119.20 423,071.72 351,379.84 \n6,900.00 5,000,00 2,000.00 26,134.09 \n \n90,033.33 301,640.14 140,604.35 234,964,84 500,732.38 106,025.76 441,597.79 363,083.55 \n5,351.00 260.00 \n109,610.19 24,115.02 \n \n$ \n \n838,214.44 $ \n \n570,379.48 \n \n51,493.21 73,335.14 11,500.00 60,234.21 \n2,392.00 \n \n47,934.59 58,279.52 \n866,04 35,305.41 \n2,239.00 \n \n4,136.42 \n \n11,767.07 425,430.83 \n \n13,614.28 370,129.22 \n \nTotal Expenditures \n \n$ 5,810,316.45 $ 6,096,651.96 \n \n$ 1,474,366.90 $ 1,102,883.96 \n \nExcess of Revenues over (under) Expenditures \n \n$ -267,153.79 $ -260,592.01 \n \n$ \n \n-74,606.70 $ \n \n78,119.02 \n \nOTHER FINANCING USES Other Uses \n \n- \n-3,784.16 \n \nExcess of Revenues over (under) Expenditures and \n \n \n \nOther Financing Uses \n \n$ -267,153.79 $ -264,376.17 \n \n$ \n \n-74,606.70 $ \n \n78,119.02 \n \nFUND BALANCE JULY 1. 1999 \n \n971,360.96 \n \n1,075,351.20 \n \n295,942.79 \n \n300,578.21 \n \nAdjustments \n \n-8,843.09 \n \n-24,552.58 \n \nFUNp BALANCE JUNE 30. 2000 \n \n$ \n \n695,364.08 $ \n \n81. .0.,9.7..5._0.3 . \n \n$ \n \n196?83.51 $ \n \n37,.8;,;,6_97;\",0.2;;;3. . \n \nThe notes to the general purpose financial statements are an integral part of this statement. -7- \n \n WARREN COUNTY BOARD OF EDUCAnON \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nREPORTING ENTITY \nThe Warren County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \n. \nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational \nactivities. Governmental Fund Types include: . \nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \n-8- \n \n WARREN COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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. \nFIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: \nEXPENDABLE TRUST FUND \nOtis E. Williams Memorial Scholarship Fund - the fund used to account for the principal and  \nearnings which may be expended to provide scholarship awards to be made at the discretion of the Board. \nAGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other fmancing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. \nAgency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. \nGovernmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: \n \n- 9- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \n, \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and \navailable). \"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. \nExpenditures are generally recognized when the related fund liability is incurred. \n \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to ,June 30, 2000. Conversely, the similar  expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \n \n- \nAgency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. \nBUDGET \nThe Warren County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function an~ object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval 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 \n \n- 10- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nnecessary 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. \n \nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for th~ General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" of this report: \n \nSpecial Revenue \nFund \n \nFUND BALANCE JULY 1, 1999 \n \n$ 308,426.52 \n \nAdjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods \nFund Balance July 1, 1999 (Budget Basis)  \n \n-6,138.53 -1,709.78 \n$ 300,578.21 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Otber Financing Uses \n \nFUND BALANCE JUNE 30, 2000 (Budget Basis) \n \n78,119.02 \n$ 378..227.23 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \n \nINVESTMENTS \n \nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and \nmoney market investments with a maturity at purchase ofone year or less are reported at amortized \n \n- 11 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \ncost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(l) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the Uaited States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables consist 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 \n \nrecorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe Warren County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 30, 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 Warren County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board. \n \n- 12- \n \n WARREN COUNTY BOARD OF EDUCAnON \n \nEXHIBIT liD\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nTax millage rates levied for the 1999 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n14.98 mills 1.54 mills \n \n16.52 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $230,786.68 and was recorded in the Debt Service Funds. The State will terminate collection ofthis tax once an additional $3,069,213.32 has been collected or on December 31, 2004, whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES \n \nInventories of donated food commodities used in the preparation of meals are reported on the \n \nCombined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported \n \non the Combined Balance'Sheet at cost (first-in, first-out). Donated food commodities are recorded \n \nas revenues and expenditures at the time commodity items are received. Purchased foods inventories \n \nare recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet \n \nfor donated food commodities and for purchased foods are equally offset by reservations of fund \n \nbalance which indicates that these amounts do not constitute \"available spendable resources\" even \n \n \n \nthough they are a component of net current assets. \n \n \nGENERAL OBLIGATION BONDS \n \nThe Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. \n \nINTERFUND TRANSACTIONS \n \nThe Board has the following types of interfund transactions: \n \nReimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \n \n- 13- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY - TOTAL COLUMNS \nTotal columns on the general purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \n \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of anyone of or any combination of the following: \n(1) Suretybond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, \n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \n \n- 14- \n \n \n WARREN COUNTY BOARD OF EDUCAnON \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary .corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \nAt June 30, 2000, the bank balances were $1,323,654.79. The amounts ofthetotal bank balances are \nclassified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledgIng financial institution, or by its trust department or agent but not in the Board's name.) \n \nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \n \nRisk Category \n \nBank Balance \n \nI \n2 \n \n3 \n \n$ 397,537.19 926,117.60 0.00 - \n \nTotal \n \n$ 1.323,654.79 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \nCategory 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. \n \n- 15 - \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nAt June 30, 2000, the carrying value of the Board's total investments was $9,035,669.96. The investments are classified as to risk categories as follows: \n \nType of Investment \nU. S. Government Local Government \nInvestment Pools Total Investments \n \nRisk Categories \n \nI \n \n2 \n \n3 \n \nCarrying Amount \n \nFair Value \n \n$==~O~.O~Q $ 8,889,891.25 $==.==d!O~.QQ10 $ 8,889,891.25 $ 8,889,891.25 \n \n145,778.71 \n \n145,778.71 \n \n$ 9,035,669.96 $ 9,035,669.96 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool \nwhich follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not \nregistered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1,00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. \nGovernment or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. \n \n- 16- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: RISK MANAGEMENT \n \nThe Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n \nThe Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \n \nThe Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. \n \nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n1999 2000 \n \nBeginning \n \nClai-ms and \n \nof Year \n \nChanges in \n \nClaims \n \nEnd ofYear \n \n- \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \n \n \n$ \n \n5.633.57 $ \n \n0.00 $ \n \n5,633.57 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \nThe Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \n \n- 17 - \n \n WARREN COUNTY BOARD OF EDUCAnON \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 4: RISK MANAGEMENT \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal \n \n$ 10,000.00 $ 10,000.00 \n \nNote 5: OPERATING LEASES \n \nWarren County Board ofEducation has entered into various leases as lessee for portable classrooms. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $21,444.16. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nAmount \n \n2001 2002 \n \n$ 16,997.28 1,416.44 \n \nTotal \n \n$ 18,413.72 \n \nNote 6: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nas General Obligation Bonds currently outstanding are follows: \n \n_ _ _ _~Purp~o~se::...- \n \n_ \n \nInterest Rates \n \nAmount \n \nGeneral Goyernment - Series 1988 General Government - Series 1999 \n \n5.40% - 7.30% 4.35% - 5.55% \n \n$ 360,000.00 8,800,000.00 \n \n$ 9.}Q,OOO.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: \n \n- 18 - \n \n  \n \nWARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2000 \n \n \nNote 6: GENERAL LONG-TERM DEBT \n \n \nGeneral \n \nObligation \n \n \n \nBonds \n \nBalance July 1, 1999 \n \n$ 465,000.00 \n \nAdditions New Bonds Issued \n \nDeductions Debt Retired \n \n8,800,000.00 105,000.00 \n \nBalance June 30, 2000 \n \n$ 9,160,000.00 \n \nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2001 2002 2003 2004 2005 2006 - 2010 \n \n2011 - 2015 2016 - 2019 \n \n \n- \n \n$ 769,233.96 703,597.50 869,312.50 751,662.50 777,102.50 \n3,993,057.50 4,060,197.50 3,007,180.00 \n \nTotal Principal and Interest \n \n$14,931,343.96 \n \nNote 7: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and expenditures in the amount of $71,808.63 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department ofCommunity Health For Health Insurance ofNon-Certified Personnel In the amount of$51,539.83 \n \n- 19- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 7: ON-BEHALF PAYMENTS \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $6,565.80 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $13,703.00 \n \nNote 8: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: \n \n \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n0I/00S-749-007 \n \n$ 225.000.00 $J2~Q.411.00 \n \nThe amounts described in this note are not reflected in the general purpose financial statements. \n \nNote 9: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nNote 10: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with-State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 20- \n \n WARREN COUNTY BOARD OF EDUCATION \n \nEXHffiIT \"D\" \n \nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2000 \n \nNote 10: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2000 1999 1998 \n \n100% 100% 100% \n \n$ 420,459.99 \n$ 427,993.08 \n$ 415,636.22 \n \n \n- 21 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \n \nASSETS Cash and Cash Equivalents Accounts Receivable Inventories \nFood Donated Commodities Purchased Food \nTotal Assets \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTIERY PROGRAMS \n \n$ \n \n349,555.54 \n \n49,887.51 $ \n \n26,500.00 \n \n5,030.84 2,442.44 \n \n$ \n \n406,916.33 $ ==~2;;;;:6;,:,;;,5;,;;,0.;;.;0.~OO~ \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \n \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Inventories \n \nFood Donated Commodities Purchased Food \nUnreserved Undesignated \nTotal Fund Equity \n \n \n \n$ \n \n25,829.37 \n \n$ \n \n2,061.36 \n \n670.63 \n \n18,684.46 \n \n \n \n$ \n \n20,745.82 $ \n \n26,500.00 \n \n \n \n$ \n \n$ \n \n5,030.84 2,442.44 \n378,697.23 $ \n386,170.51 $ \n \n=.;O.:.:;:.OO=_. \nO~.=.;OO::... \n \nTotal Liabilities and Fund Equity \nSee notes to the general purpose financial statements. - 22- \n \n$ \n \n406,916.33 $ ==:.:2;;.;;6*,5~0~0.~00;... \n \n EXHIBIT \"En \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30,1999 \n \n$ \n \n349,555.54 $ \n \n320,876.23 \n \n$ \n \n316,333.18 \n \n392,720.69 \n \n241,614.78 \n \n5,030.84 2,442.44 \n \n6,138.53 1,709.78 \n \n$ \n \n316,333.18 $ \n \n749,749.51 $ ==5=7=:0:1:0,3=39=',;0;32= \n \n$ \n \n257,057.79 $ \n \n282,887.16 $ \n \n132,919.12 \n \n11,956.27 \n \n14,688.26 \n \n19,896.37 \n \n36,598.80 \n \n55,283.26 \n \n66,517.33 \n \n10,720.32 \n \n10,720.32 \n \n42,579.98 \n \n \n \n \n \n \n \n$ \n \n316,333.18 $ \n \n363,579.00 $ \n \n261,912.80 \n \n$ \n \n5,030.84 $ \n \n6,138.53 \n \n2,442.44 \n \n1,709.78  \n \n$ \n \n.::.:O.~OO:;..,. \n \n378,697.23 \n \n300,578.21 \n \n$ \n \n0.00 $ \n \n386,170.51 $ _ _3;;.;:0:.::8J.:,4.=.26=.:,.5=.;:2:.- \n \n$ \n \n316,333.18 $ \n \n749,749.51 $ ==5=:7:::;0:1::,3=39=:.=32= \n \n \n \n- 23- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND \nYEAR ENDED JUNE 30, 2000 \n \nREVENUES \n \nState Funds \n \nFederal Funds \n \n \n \nOther Funds \n \nTotal Revenues \n \nEXPENDITURES \n \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Other Support Services Food Services Operation \n \nTotal Expenditures \n \nExcess of Revenues over (under) Expenditures \n \nFUND BALANCE JULY 1 \n \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nFUND BALANCE JUNE 30 \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n28,890.00 $ \n \n194,911.88 \n \n369,571.54 \n \n49,786.70 \n \n$ \n \n448,248.24 $ _ _..:..:19::.::4~,9:....:.1..:..;1.~88~ \n \n$ \n \n153,687.39 \n \n37,088.07 \n \n4,136.42 \n \n \n \n$ _ _3::..:7:.;:0..z..:,1..=29::..:.=22=- \n \n$ \n \n370,129.22 $ _ _~19:...:4.J..9::'..;.1~1.=88:::... \n \n$ \n \n78,119.02 $ \n \n0.00 \n \n308,426.52 \n \n0.00 \n \n-700.39 325.36 \n \n$ \n \n386,170.51 $ ====;;;,;O.~OO~ \n \nSee notes to the general purpose financial statements. \n \n- \n \n- 24- \n \n EXHIBIT \"F\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2000 \n \nJUNE 30,1999 \n \n$ \n \n19,705.00 $ \n \n243,506.88 $ \n \n232,324.21 \n \n518,137.86 \n \n887,709.40 . 1,039,266.08 \n \n49,786.70 \n \n54,286.78 \n \n$ \n \n537,842.86 $ 1,181,002.98 $ 1,325,877.07 \n \n$ \n \n416,692.09 $ \n \n570,379.48 $ \n \n600,353.28 \n \n10,846.52 58,279.52 \n866.04 35,305.41 \n2,239.00 \n13,614.28 \n \n \n47,934.59 58,279.52 \n866.04 35,305.41 \n2,239.00 4,136.42 13,614.28 3701129.22 \n \n45,813.93 32,054.79 16,072.74 59,577.64 \n22,371.52 14,758.92 \n \n381,094.48 \n \n$ \n \n537,842.86 $ 1,102,883.96 $ 1,172,097.30 \n \n$ \n \n0.00 $ \n \n78,119.02 $ - 153,779.77 \n \n \n \n0.00 \n \n308,426.52 \n \n168,836.81 \n \n-700.39 325.36 \n \n-431.91 -13,758.15 \n \n$ \n \n0.00 $ \n \n386,170.51 $ ==3==:8=14=26=.=52= \n \n \n \n \n- 25- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \n \nEXHIBIT \"G\" \n \nASSETS Cash and Cash Equivalents Investments \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS JUNE 30, 2000 JUNE 30,1999 \n \n$ \n \n77.66 \n \n$ \n \n77.66 $ \n \n880.84 \n \n8,053,598.00 $ _ _4....,3'-=0\"-',4:..:.46::..:.:::..34.:.... \n \n8,484,044.34 \n \nTotal Assets \n \n$ 8,053,675.66 $ \n \n430,446.34 $ 8,484,122.00 $ ====::8;;;;8~0.=:;:;84;;,., \n \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nCash Overdraft Contracts Payable \n \n$ \n \n288,178.34 $ \n \n288,178.34 \n \n75,000.00 \n \n75,000.00 \n \nTotal Liabilities FUND EQUITY \n \n$ \n \n363,178.34 $ _-.:::..36:;.;:3\"'\"',1:.:..7,::.:8..:::..34.:.... \n \nFund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ 8,053,675.66 $ \n \n$ 8,053,675.66 $ . \n \n67,268.00 \n \n67,268.00 \n \n880.84 \n \n0.00 _ _ _ _o::..:.:::;oo~ \n \n0.00 \n \n0.00 \n \n$ 8,053,675.66 $ \n \n67,268.00 $ 8,120,943.66 $ _ _~8~8~0.~84~ \n \nTotal Liabilities and Fund Equity $ 8,053,675.66 $ \n \n430,446.34 $ 8,484,122.00 $ =-_......;;8;;;;8~0.~84;., \n \nSee notes to the general purpose financial statements. \n \n- 26- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"H\" \n \nBOND PROCEEDS \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nTOTALS YEAR ENDED \nJUNE 30, 2000 JUNE 30,1999 \n \nREVENUES \n \nOther Funds Total Revenues \n \n$ 185,423.69 $ $ 185,423.69 $ \n \n0.00 $ 0.00 $ \n \n185,423.69 $ 185,423.69 $ \n \n---\"\"o.\"\"-oo::.... \n---\"\"O.~OO::.... \n \nEXPENDITURES \n \nCurrent Support Services Business Administration \nCapital Outlay Land and Land Improvements Building and Building Improvements \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 127,322.00 \n \n$ \n \n$ \n303,958.84 79,665.00 \n \n127,322.00 $ \n303,958.84 79,665.00 \n \n$ 127,322.00 $ \n \n383,623.84 $ 510,945.84 $ \n \n$ \n \n58,101.69 $ \n \n-383,623.84 $ -325,522.15 $ \n \n0.00 \n---\"\"O.~OO::.... \n0\"\".0:::,:0'- \n \nOTHER FINANCING SOURCES (USES) \n \nProceeds from General Obligation Bonds Par Value \nOperating Transfers In Operating Transfers Out \n \n$ 8,441,800.81 $ \n-447,107.68 \n \n$ 450,891.84 \n \n8,441,800.81 450,891.84 -447,107.68 \n \nTotal Other Financing Sources (Uses) \n \n$ 7,994,693.13 $ \n \n450,891.84 $ 8,445,584.97 \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures and Other Financing Uses $ 8,052,794.82 $ \n \n67,268.00 $ 8,120,062.82 $ \n \n0.00 \n \nFUND BALANCE JULY 1 \n \n880.84 \n \n0.00 \n \n880.84 \n \n880.84 \n \nFUND BALANCE JUNE 30 \n \n \n \n$ 8,053,675.66 $ \n \n6.7.,268.00 $ 8,120,943.66 $ _ _......8.8_0.;,;;8.4... \n \n \n \nSee notes to the general purpose financial statements. \n \n- 27 \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 \n \nEXHIBIT \"I\" \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2000 \n \nJUNE 30, 1999 \n \n$ \n \n191,850.94 \n \n$ \n \n191,850.94 $ \n \n166,878.29 \n \n$ \n \n553,841.38 \n \n553,841.38 \n \n6,050.27 \n \n86,295.37 \n \n92,345.64 \n \n5,858.64 \n \nTotal Assets \n \n$ \n \n197,901.21 $ \n \n640,136.75 $ \n \n838,037.96 $ ==1..7...2.,!,;.,7,;;;,36\"\";;;,;93= \n \nFUND EQUITY \n \nFund Balances \n \nReserved \n \nFor Debt Service \n \n$ \n \nUnreserved \n \nUndesignated \n \n197,901.21 $ \n0.00 \n \n640,1.36.75 $ \n0.00 \n \n838,037.96 $ \n0.00 \n \n172,736.93 0.00 \n \nTotal Fund Equity $ \n \n640,136.75 $ \n \n838,037.96 $ ==1,;.;,7,;;;2,;,7;\"~36~.9~3~ \n \n \n \n \nSee notes to the general purpose financial statements. - 28- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nDEBT SERVICE FUND \nYEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"J\" \n \nPROPERTY TAXES FOR BOND DEBT \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS YEAR ENDED \nJUNE 30, 2000 JUNE 30, 1999 \n \nREVENUES \n \nTaxes Other Funds \n \n$ 160,904.53 $ 230,786.68 $ 391,691.21 $ 154,290.87 \n \n13,804.59 \n \n13,804.59 \n \nTotal Revenues \n \n$ \n \n160,904.53 $ \n \n244,591.27 $ \n \n405,495.80 $ _--:.;154=,2~9~0'c:::.87:..... \n \nEXPENDITURES \n \n \n \nDebt Service Principal Interest Paying Agent Fees \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \n \n$ 105,000.00 \n \n$ 105,000.00 $ \n \n29,615.00 \n \n29,615.00 \n \n1,125.25 $ _ _----:1~36:::.:.~00~ \n \n1,261.25 \n \n95,000.00 36,567.50 \n1,540.50 \n \n$ 135l40.25 $ \n \n136.00 $ \n \n135,876.25 $ _--:.;13~3:....;,1~0~8.~00~ \n \n$ \n \n25,164.28 $ \n \n244,455.27 $ \n \n269,619.55 $ _--:2~1-,\"\"1~8=:2.c:::.87:..... \n \nOTHER FINANCING SOURCES \nAccrued Interest on Bonds Sold Proceeds from General Obligation Bonds \nPar Value \n \n$ - 37,482.29 $ 358,199.19 \n \n37,482.29 358,199.19 \n \nTotal Other Financing Sources \n \n$ \n \n395,681.48 $ _~39~5:c,6~8.:..:1.4:::8~ \n \nExcess of Revenues and Other Financing Sources \n \nover (under) Expenditures \n \n$ \n \nFUND BALANCE JULY 1 \n \n25,164.28 $ \n \n172l36.93 \n \n640,136.75 $ 0.00 \n \n665,301.03 $ 172,736.93 \n \n21,182.87 151 ,554.06 \n \n \nFUND BALANCE JUNE 30 \n \n \n$ - 197,901.21 $ _ _64;;;,,;,,;;,0,136.75 $ \n \n \n838,037.96 $ _-.:.:17,,:;,2,736.93 \n \n  \n \n \n \nSee notes to the general purpose financial statements. \n \n29 - \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000 \n \nEXHIBIT \"K\" \n \nASSETS \nCash and Cash Equivalents Investments \n \nEXPENDABLE TRUST FUND \nOTIS E. WILLIAMS MEMORIAL SCHOLARSHIP \nFUND \n \nAGENCY FUNDS \n \nTOTALS JUNE 30, 2000 JUNE 30, 1999 \n \n$ \n \n1,687.72 $ \n \n32,671.31 $ \n \n34,359.03 $ \n \n29,953.44 \n \n20,000.00 \n \n20,000.00 \n \n20,000.00 \n \nTotal Assets \n \n$ \n \n21,687.72 $ \n \n32,671.31 $ \n \n54,359.03 $ ==4=9=,9=5=3.4...4= \n \nLIABILITIES AND FUND EQUITY \n \nLIABILITIES \n \nFunds Held for Others \n \n$ \n \nFUND EQUITY \n \nFund Balances Unreserved Undesignated \n \n$ _---=2:..:.1~,6::::.87:....:..7~2=- \n \n \n \n32,671.31 $ \n \n32,671.31 $ \n \n28,709.93 \n \n0.00 \n \n21,687.72 \n \nTotal Liabilities and Fund Equity \n \n$ \n \n21,687.72 $ \n \n32,671.31 $ \n \n54,359.03 $ ===49:1,=95..3....4.4;\",,;,., \n \n \n \nSee notes to the general purpose financial statements. \n \n \n- 30- \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"L\" \n \nCHRISTMAS CLUB \nASSETS Cash and Cash Equivalents \n \nBALANCE JULY 1,1999 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2000 \n \n$=====2;;,;,1,915.40 $ \n \n34,152.20 $ \n \n35,697.60 $ ===..:2=0,370.00 \n \nLIABILITIES Funds Held for Others \n \n$ =-.:2_1,915.40 $ \n \n34,152.20 $ \n \n35,697.60 $ ==..:2=0:,3,;,;70:;;;.0~0;,. \n \nMILDRED E. FREEMAN ELEMENTARY SCHOOL \n \nCOKE AND CRACKER MACHINE \n \nASSETS Cash and Cash Equivalents \n \n$ _ =...4..,737.66 $==.,..;;;2,201.66 $ \n \n957.85 $ ==-=5,981.47 \n \nLIABILITIES Funds Held for Others \nINSURANCE ASSETS Cash and Cash Equivalents \n \n$ \n \n4,737.66 $ \n \n2,201.66 $ \n \n957.85 $ ===-=5,..,9;;,81...4..7... \n \n$ \n \n21.50 $ \n \n0.00 $ \n \n0.00 $ \n \n..:2;,;,1.,.50;;., \n \nLIABILITIES Funds Held for Others \n \n$ \n \n21.50 $ \n \n0.00 $ \n \n0.00 $ \n \n..:;2;,:,1.,.5.0.. \n \nKINDERGARTEN GRADUATION \nASSETS Cash and Cash Equivalents \n \n$ \n \n756.52 $ \n \n1,211.63 $ \n \n1,189.02 $ \n \n7.7.9_..1..3... \n \nLIABILITIES Funds Held for Others \n \n$ \n \n756.52 $ _ _....1.,211.63 $ _ _....1.,189.02 $ \n \n7,;,,;79:;;;,.1_3;., \n \nMEMORIAL FUND \nASSETS Cash and Cash Equivalents \n \n$ \n \n0.00 $ \n \n741.50 $ \n \n741.50 $ \n \np;;;,.O:,;O;., \n \nLIABILITIES Funds Held for Others \n \n$ \n \n0.00 $ \n \n741.50 $ \n \n741.50 $ \n \n.......0,..0.0.. \n \n31 \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"L\" \n \nBALANCE JULY1,1999 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 3D, 2000 \n \nMILDRED E, FREEMAN ELEMENTARY SCHOOL \n \nPAPER AND PENCIL FUND \n \nASSETS Cash and Cash Equivalents \n \n$ \n \n4,119.24 $ ~_....1.,772.33 $ \n \n1,196.63 $ ===4..,.6..9.4=,=94= \n \nLIABILITIES Funds Held for Others \nPARTNERSHIP IN EDUCATION ASSETS Cash and Cash Equivalents \n \n$. \n \n4,119.24 $ _ _..:.1,772.33 $ \n \n \n \n$ \n \n0.00 $ \n \n1,995.60 $ \n \n963.25 $ ~_..\",;,1=;:,O~32;;;;.3;,;5;., \n \nLIABILITIES Funds Held for Others \n \n$ \n \n0.00 $ \n \n1,995.60 $ \n \n963.25 $ _ _....:.1,032.35 \n \nSPECIAL OLYMPICS FUND ASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \nSPIRIT COMMITTEE . ASSETS Cash and Cash Equivalents \n \n$ \n$ \n- \n \n3.21 $ \n \n3.21 $ \n \n0.00 $ 0.00 $ \n \n$ \n \n0.00 $ \n \n261.50 $ \n \n0.00 $ \n \n3...2;;,;1... \n \n0.00 $ \n \n.....3...;;;,21... \n \n72.60 $ \n \n1.-88_..9.0... \n \nLIABILITIES Funds Held for Others \n \n$ \n \n0.00 $ \n \n261.50 $ \n \n72.60 $ \n \n.:1~88~.90~ \n \nWARREN COUNTY HIGH SCHOOL \n \nFUTURE BUSINESS LEADERS OF AMERICA \n \nASSETS \n \nCash and Cash Equivalents \n \n$ \n \nLIABILITIES \n \nFunds Held for Others \n \n$ \n \n-.2.,999.02 $ -2,999.02 $ \n- 32- \n \n9,085.57 $ \n \n9,085.57 $ \n \n8,456.04 $ \n \n-,;;,2,369.49 \n \n8,456.04 $ \n \n-,;;,2,369.49 \n \n WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES \nFIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000 \n \nEXHIBIT \"L\" \n \nWARREN COUNTY HIGH SCHOOL \nFUTURE FARMERS OF AMERICA \nASSETS Cash and Cash Equivalents \n \nBALANCE JULY1,1999 \n \nADDITIONS \n \nDEDUCTIONS \n \nBALANCE JUNE 30, 2000 \n \n$ \n \n-269.09 $ \n \n10,138.80 $ \n \n9,277.20 $ _ _.-..;5;:;;:9:;;;2.,:;:,51:.\" \n \nLIABILITIES Funds Held for Others \nFUTURE HOMEMAKERS OF AMERICA ASSETS Cash and Cash Equivalents \n \n$ \n \n-269.09 $ \n \n10,138.80 $ \n \n9,277.20 $ ~_~..:;:5:;;,:92:;,;;.5;;;.:1:.. \n \n \n \n$ \n \n481.66 $ \n \n0.00 $ \n \n0.00 $ = \n \n.,;;;4,:;:.81;\";;.6;;,;;6;,, \n \nLIABILITIES Funds Held for Others \n \n$ \n \n481.66 $ \n \n0.00 $ \n \n0.00 $ =_=.,;;;4~81:,;,;.6;;,;;6:.. \n \nYEARBOOKS \nASSETS Cash and Cash Equivalents \n \n$ \n \n-57.15 $ \n \n8,083.64 $ _ _....7.,900.43 $ \n \n.:1~26:;:;;.06~ \n \nLIABILITIES Funds Held for Others \n- \nGENERAL ATHLETIC \nASSETS Cash and Cash Equivalents \n \n$ \n \n-57.15 $ _ _..,:;:,8,083.64 $ _ _...7..,900.43 $ \n \n..:.12~6;:;,:.06~ \n \n- \n \n$ \n \n0.00 $ _ _,,:i;2,981.00 $ \n \n2,211.93 $ \n \n..:.7~69::;;.0~7_ \n \nLIABILITIES Funds Held for Others \nTOTALS-AGENCY FUNDS ASSETS \nCash and Cash Equivalents \n \n$ \n \n0.00 $ \n \n2,981.00 $ \n \n2,211.93 $ \n \n.:.;76:;:;9i:;:.0~7_ \n \n \n \n$ _ _.:2~8,709.93 $ _ _..:.7,;;,2,625.43 $ _ _.:6;;,:,8,664.05 $ _ _,,:;:3~2,671.31 \n \nLIABILITIES Funds Held for Others \n \n$ \n \n28,709.93 $ _ _..:7:.:;2,625.43 $ _ _.:6;;,:,8,664.05 $ _ _..;;3~2,671.31 \n \nsee notes to the general purpose financial statements. \n \n- 33 \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY 10 \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \n \n 10.553  10.555 \n \nN/A $ \n \n92.873.28 \n \nN/A \n \n269,417.34 $ \n \n(2) \n362.848.30 (3) \n \nTotal Child Nutrition Cluster \n \n$ 362.290.62 $ \n \n362,848.30 \n \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) \nTotal U. S. Department of AgriCUlture \n \n10.550 \n \nN/A \n \n7,280.92 \n \n7.280.92 \n \n \n \n$ \n \n369,571.54 $ _ _~37.;...:0\",-1..:.::;2~9;;;;.2=-2 \n \nCorporation for National and Community Service Pass-Through From Georgia Department of Education Leam and Serve America School and Community Based Programs \n \n94.004 \n \nN/A $ \n \n12,000.00 $ _ _......:.:12::..:.oo=0:.:::.0~0 \n \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool \nTotal Special Education Cluster \n \n84.027 84.173 \n \n \nNlA $ \nNlA \n$ \n \n41.068.60 $ 33,997.00 \n75,065.60 $ \n \n41.068.60 33.997.00 \n75.065.60 \n \nOther Programs \n \nPass-Through From Georgia Department of Education - \n \nElementary and Secondary Education Act \n \n- \n \nTitle I \n \nGrants to Lotsl Educational Agencies \n \nTitle II \n \nEisenhower Professional Development \n \nTitle III \n \nTechnology Literacy Challenge Grant \n \nTitle VI \n \nInnovative Education Program Strategies \n \nClass Size Reduction \n \nGoals 2000 \n \nState and Local Education Systemic Improvement Grants \n \nSafe and Drug-Free Schools and Communities \n \nVocational Education - Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n84.010 84.281 \n 84.318 \n84.298 \n 84.340 \n84.276 84.186 \n84.048 \n \nTotal U. S.Department of Education \n \nNlA \n \n227.622.75 \n \n227.622.75 \n \n \n \nNlA \n \n15,352.16 \n \n15.352.16  \n \nNlA \n \n75,000.00 \n \n75.000.00 \n \nNlA \n \n9.625.72 \n \n9,625.72 \n \nNlA \n \n35,460.17 \n \n35.460.17 \n \nNlA \n \n40.751.83 \n \n40.751.83 \n \nNlA \n \n4.366.63 \n \n4,366.63 \n \nNlA \n$ \n \n22.893.00 \n \n22,893.00 \n \n506,137.86 $ _ _..::;50~6::..1:.:3:.:..7:.:::.8~6 \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n$ _..:8~8:.:.7!709.40 $ _ _.::8::;88;;,;:.2~6:.:.7;.::.0;;:.8 \n \n- 34 \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 3D. 2000 \nNotes to the Schegule of Expenditures of Federal Awards \n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. \n \nExpenditures are not maintained by fund source. \nMajor Programs are identified by an asterisk (0) in front of the CFDA number. \nThe Board did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. \n \nSCHEDULE \"1\" \n \n \n \n \nSee notes to the general purpose financial statements. \n \n- 35- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30. 2000 \n \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nGRANTS \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nGeneral and Career Education Programs \n \nSpecial Education Programs \n \nRemedial Education Program \n \nMedia Center Programs \n \nStaff Development Programs \n \nIndirect Cost \n \nPupil Transportation \n \nRegular \n \nBus Replacement \n \nSparsity Grant \n \nSpecial Instructional Assistance \n \nIn-School Suspension \n \nCounselors \n \nTechnology Specialist \n \nLocal Five Mill Share \n \nEducational Equalization Formula \n \nFood Services \n \nOther State Programs \n \nApprenticeship Program \n \nAt-Risk Summer School Program \n \nHealth Insurance \n \nPreschool Handicapped Program \n \nRemedial Summer School \n \nTeachers'Retirement \n \nYear 2000 Project Funding \n \nLottery Programs \n \n- \n \nComputers in the Classroom \n \nHuman Resources, Georgia Department of Second Step Violence Prevention Program \n \n$ 2,158,343.00 496,536.00 110,890.00 95,918.00 27,029.00 618,355.00 \n154,516.00 52,328.00 147,873.00 \n215,395.00 33,240.00 9,967.00 28,842.00 \n-573,850.00 \n2-76,078.00 $ \n197.50 6,647.11 51,539.83 8,876.00 2,357.48 6,565.80 2,558.00 \n2,669.87 \n \n$ \n28,890.00 53,000.00 \n \nOffice of School Readiness Pre-Kindergarten Program \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n13,703.00 \n \n141,911.88 \n \nCONTRACTS Education, Georgia Department of To provide funding for quality after school programs \n \n \n90,000.00 \n \nTo provide funds to local schools for the Reading First Program \n \n19,705.00 \n \nTOTAL \n2,158,343.00 496,536.00 110,890.00 95,918.00 27,029.00 618,355.00 \n154,516.00 52,328.00 \n147,873.00 215,395.00 \n33,240.00 9,967.00 \n28,842.00 -573,850.00 276,078.00 \n28,890.00 \n197.50 6,647.11  51,539.83 8,876.00 2,357.48 6,565.80 2,558.00 \n53,000.00 \n- \n2,669.87 \n141,911.88 \n13,703.00 \n90,000.00 \n19,705.00 \n \n$ 4,036,574.59 $ \n \n243,506.88 $ =..;;4~,2;:;8~0~,O::;:,8.:=1.~47~ \n \nSee notes to the general purpose financial statements. \n \n- 36- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"3\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS \n \nAcquiring land, constructing, and \n \nequipping a new middle/high school \n \nfor Warren County and capitalizing \n \ninterest through October 1, 2000 \n \n$ \n \n3,300,000.00 $ \n \n9,864,479.81 $ \n \n383,623.84 $ ====,;;;O';';;'OO~ \n \n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option \n \nSales Tax. \n(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the general purpose financial statements. \n \n37 - \n \n  WARREN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - OVERALL \nGENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \n \nSCHEDULE \"4\" \n \nMinimum Expenditure Requirements (Total Allotment)  \nExpenditures on Combined Program Basis Salaries Operations \nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \nExpenditures per Audit \n \nFOURTEEN WEIGHTED AND MEDIA CENTER \nPROGRAMS \n \n100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \n \n$ \n \n2,861 ,687.00 $ _ _---.:8::2:.t.:9,::.::8.::.;9.:;:.00.=.. \n \n$ \n \n3,132,320.62 \n \n204,847.78 $ _ _~18::2:.!.-',4:...:.4...:..;.:1;:.3.:....1 \n \n$ \n \n3,337,168.40 \n \n-43,009.88 \n$ _ _...::;3.=,2:::,.94.:.l.'1.:.,;:5:.:8,;:;.5=-2 \n \nAmount of Underexpenditure for Total Allotment \n \n$ \n \n \n0.00 $ ====~O'';;'OO= \n \n- \n \n \nSee notes to the general purpose financial statements. - 39 - \n \n WARREN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF \n \nREQUIRED \n \nORIGINAL \n \n% \n \nORIGINAL \n \nMID-TERM \n \nGENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) \n \nGrades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) \nTotal General and Career Education Programs \n \n$ \n \n229,373.00 \n \n$ \n \n206,435.70 $ \n \n649,445.00 \n \n584,500.50 \n \n$ \n \n878,818.00 90 $ \n \n790,936.20 $ \n \n297,620.00 90 \n \n267.858.00 \n \n499,555.00 90 \n \n449,599.50 \n \n250,936.00 90 \n \n225,842.40 \n \n96,430.00 90 \n \n86,787.00 \n \n134,984.00 90 \n \n121,485.60 \n \n$ 2,158,343.00 \n \n$ 1,942,508.70 $ \n \n0.00 0.00 \n.:::.0.c:::0.::,.0 \n \nSPECIAL EDUCATION PROGRAMS \nRegular Programs Category II (*) Category 11\\ (*) Category IV (*) \nTotal Special Education Programs \nREMEDIAL EDUCATION PROGRAM \u003c:1 \nTotal Fourteen Weighted Programs \n \n$ \n \n496,536.00 \n \n$ \n \n446,882.40 $ \n \n0.00 \n \n$ \n \n496,536.00 90 $ \n \n446,882.40 $ \n \n$ \n \n110,890.00 90 $ \n \n99,801.00 $ \n \n$ 2,765,769.00 \n \n$ 2,489,192.10 $ \n \n~O:,:,:,O~O ..:::O~.O;::..O ..:::O~.O;::..O \n \nMEDIA CENTER PROGRAMS \n \nSalaries \n \n$ \n \nOperations \n \nTotal Media Center Programs \n \n$ \n \nTotal-Fourteen Weighted and Media Center Programs $ \n \n76,691.00 90 $ 19,227.00 100 \n \n95,918.00 \n \n$ \n \n2,861,687.00 \n \n$ \n \n69,021.90 $ 19,227.00 \n88,248.90 $ \n \n0.00 --:0:.:.:.0;.::..0 \n \n \n2,577,441.00 $ ===:=:;0...0.==0 \n \nSTAFF DEVELO~MENTPROGRAMS Cost of Instruction Professional Development \nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. \n \n$ \n \n8,769.00 \n \n18,260.00 \n \n$ \n \n8,769.00 $ \n \n18,260.00 \n \n0.00 0.00 \n \n$ \n \n27,029.00 100 $ \n \n27,029.00 $=====,,0...0.=0 \n \nSee notes to the general purpose financial statements. \n \n- 40  \n \n SCHEDULE \"5\" \n \nEDUCATION TOTAL \nREQUIRED \n \nACTUAL EXPENDITURES \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nAMOUNT OF UNDEREXPENDITURE \nFOR REQUIRED ALLOTMENT \n \n$ \n \n206,435.70 $ \n \n171,037.65 $ \n \n4,242.10 $ \n \n175,279.75 \n \n584.500.50 \n \n654,562.84 \n \n16,560.20 \n \n671,123.04 \n \n$ \n \n790.936.20 $ \n \n825,600.49 $ \n \n20,802.30 $ \n \n846,402.79 $ \n \n0.00 \n \n267,858.00 \n \n371,280.94 \n \n12,014.07 \n \n383,295.01 \n \n0.00 \n \n449,599.50 \n \n580,236.71 \n \n47,691.46 \n \n627,928.17 \n \n0.00 \n \n225,842.40 \n \n404,263.88 \n \n38,952.12 \n \n443,216.00 \n \n0.00 \n \n86,787.00 \n \n112,687.93 \n \n1,775.40 \n \n114,463.33 \n \n0.00 \n \n121,485.60 \n \n158,595.44 \n \n31,554.15 \n \n190,149.59 \n \n0.00 \n \n$ 1,942,508.70 $ 2,452,665.39 $ \n \n152,789.50 $ 2,605,454.89 \n \n$ \n \n446,882.40 \n \n$ \n \n226,022.52 $ 256,137.77 \n \n4,439.99 $ 686.10 \n5,434.70 \n \n230,462.51 256,823.87 \n5,434.70 \n \n$ \n \n446,882.40 $ \n \n482,160.29 $ \n \n10,560.79 $ _ _4~9~2::.:7,~2;.:.1;:::.0.:::,.8 \n \n0.00 \n \n$ \n \n99,801.00 $ \n \n80,973.53 $ \n \n19,091 .02 $ _ _.:.:1O::;:O~0,::;:6:::,4.;:::5.:::,.5 \n \n0.00 \n \n$ 2,489,192.10 $ 3,015,799.21 $ \n \n182,441.31 $ 3,198,240.52 \n \n$ \n \n69,021.90 $ \n \n116,521.41 \n \n$ \n \n116,521.41 \n \n19,227.00 _ _ _ _ _ _ $ _ _=22t..(,4~0::::6.:::.4~7 \n \n22,406.47 \n \n$ \n \n88,248.90 $ \n \n116,521.41 $ \n \n22,406.47 $ _ _..:.:13::;:89~~,2c:..7;:::.8.:::,.8 \n \n0.00 0.00 \n \n \n \n$ 2,577,441.00 $ 3,132,320.62 $ \n \n204,847.78 $ 3,337,168.40 $ .....= =.....==.;;;O,;;;:.O~O \n \n$ \n \n8,769.00 \n \n18,260.00 \n \n$ ==,;2.;,;7,=02;,;;9;;,;.0=0 \n \n$ \n \n44,051.52 $ \n \n44.051.52 \n \n3,742.35 \n \n3,742.35 \n \n$ \n \n47,793.87 $ \n \n47,793.87 $ .....=====,;;,0;,;;;.0,;,;,0 \n \n- 41 - \n \n  \n \n \nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n \n \n \n \n \n \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street. S.W.. Suite 214 Atlanta. Georgia ~03~4-X400 \nJune 1,2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of Warren County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 1,2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with 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. \n \nCompliance  \nAs part of obtaining reasonable assurance about whether Warren 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 an instance ofnoncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7491-00-01 . \n \n \n2000YB-60A \n \n Internal Control Over Financial Reporting \n \nIn planning and perfonning our audit, we considered Warren County Board of Education's internal control over financial reporting in order to detennine 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 certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Warren County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule'ofFindings and Questioned Costs as items FS-7491-00-01, FS-7491-00-02 and FS-7491-00-04. \n \nA material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning 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, ofthe reportable conditions described above, we consider items FS-7491-0001 and FS-7491-00-04 to be material weaknesses. \n \nThis report is intended solely for the infonnationand use ofmanagement, members ofthe Warren 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. \n \nRespectfully submitted, \n \n- \n \n \n \n \n \nRussell W. Hinton State Auditor \n \nRWH:jb 2000YB-60A \n \n  \n \nRUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \n..........~.. .' /77b \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Stn:el. S.W.. Suite 214 Atlanta. Georgia :l03:14-X400 \nJune 1,2001 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Warren County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofWarren County Board ofEducation with the types ofcompliance \nrequirements described in the u.s. Office of Management and Budget (OMB) Circular A-i33 \nCompliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Warren 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 ofWarren County Board ofEducation's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Warren 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 Warren County Board of Education's compliance with those requirements. \n \n2000SA-30A \n \n In our opinion, the Warren County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. \n \nInternal Control Over Compliance \n \nThe management of Warren County Board of Education is responsible for establishing and \n \nmaintaining effective internal control over compliance with requirements of laws, regulations, \n \ncontracts and grants applicable to Federal programs. In planning and performing our audit, we \n \n \n \nconsidered Warren County Board ofEducation's internal control over compliance with requirements \n \nthat could have a direct and material effect on a major Federal program in order to determine our \n \nauditing procedures for the purpose ofexpressing our opinion on compliance and to test and report \n \non internal control over compliance in accordance with OMB Circular A-133. \n \nWe noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Warren County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-7491-00-01, FA-7491-:00-02, FA-7491-00-03 andFA-7491-0004. \n \nA 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 the applicable requirements oflaws,regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \n \nThis report is intended solely for the information and use ofmanagement, members ofthe Warren 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. \n \nRespectfully submitted, \n \nuJ. \nRussell W. Hinton State Auditor \n \n \n~vt::: \n \nRWH:jb \n \n \n \n2000SA-30A \n \n  \n \nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n- \n \n \n WARREN COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nFINDING CONTROL NUMBER AND STATUS \n \n7491-93-03 7491-95-02 FS-7491-97-01 FS-7491-98-01 FS-7491-98-02 FS-7491-98-04 FS-7491-99-01 FS-7491-99-02 \n \nUnresolved - See Corrective Action/Responses Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \n \nFurther Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTIONIRESPONSES \n \nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $3,981.24 Finding Control Number: 7491-93-03 \n \nThis finding will be resolved by the Georgia Department of Education through a future increase in the Board's local five mill share portion of the QBE Allotment. \n \nEMPLOYEE COMPENSATION Payroll Reporting Amount: $3,143.84 Finding Control Number: FS-7491-98-01 \n \n \n \n \n- \nAll efforts are being made to prevent this type of error from happening again. \n \nGENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-7491-99-01 \n \nAll journal entries will be kept in a notebook and verified by the Superintendent. \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7491-99-02 \n \nWeare in the process of looking for a company to come in and do this service. \n \n \n \n  \nSECTION IV FINDINGS AND QUESTIONED COSTS \n  \n- \n \n, \n \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Warren County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts General Fixed Assets \n \nExpenditures/Liabilities/Disbursements General Ledger \n \nAll ofthe reportable conditions described above include conditions that are considered to be \n \nmaterial weaknesses. \n \n. \n \n3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed one instance of noncompliance deemed material to the financial statements. This noncompliance involved the Board's failure to record the 1999 bond issue activity and the Special Purpose Local Option Sales Tax activity in the Board's financial statements. \n \n4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the Warren County Board ofEducation disclosed reportable conditions in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed Cash Management Special Tests and Provisions \n \nAllowable Costs/Cost Principles Reporting \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n5. TYPe of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510W ofOMB Circular A-B3 The Warren County Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-B3. These audit findings are included in section IV of this report. \n \n- 1- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n7. Major Programs \n \nFederal awards audited as major programs are as follows: \n \n' \n \n10.553 Food and Nutrition Program - Food Services - School Breakfast Program \n \n10.555 Food and Nutrition Program - Food Services - National School Lunch Program \n \n84.318 Elementary and Secondary Education Act - Title ill - Technology Literacy \n \nChallenge Grant . \n \n84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction \n \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUNALENTS \n \nREVENUES/RECENABLES/RECEIPTS \n \nEXPENDITURESILIABILITIESIDISBURSEMENTS \n \nGENERAL LEDGER \n \n. \n \nFailure to Record Bond Issue and SPLOST activity \n \nReportable Condition - Material Weakness \n \nMaterial Noncompliance \n \nFinding Control Number: FS-7491-00-01 - \n \n \n \nThe Board's failure to follow Chapter 7 of the Financial Management for Georgia Local Units of Administration (FMGLUA) resulted in the following deficiencies in the general ledger process: \n \n(1) The proceeds and associated expenditures ofthe 1999 bond issue were not recorded in the Board's general ledger as required by generally accepted accounting principles. An audit adjustment was necessary to record bond proceeds of $8,441,800.81 and bond issue expenditures of$127,322.00 in the Bond Proceeds Fund. An additional audit adjustment was necessary to record bond proceeds of$358,199.19 and accrued interest of$37,482.29 in the Debt Service Fund. \n \n(2) The expenditures ofthe 1999 bond issue project were not recorded in the Board's general ledger as required by generally accepted accounting principles. An audit adjustment was necessary to record expenditures of $15,000.00' in the Georgia State Financing and Investment Commission Project No. 01/00S-749-007. \n \n-2- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUNALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURESILIABILITIESIDISBURSEMENTS GENERAL LEDGER Failure to Record Bond Issue and SPLOST activity Reportable Condition - Material Weakness Material Noncompliance Finding Control Number: FS-749l-00-0l \n \n(3) The proceeds (Revenues) ofthe Special Purpose Local Option Sales Tax project were not recorded in the Board's general ledger as required by generally accepted accounting principles. An audit adjustment was necessary to record revenue of $230,786.68 in the Debt Service Fund. \n \nThese conditions occurred because management claimed noUo be aware that these activities should be recorded in the Board's general ledger. Appropriate- action should be taken by the Board to establish accounting controls and procedures to ensure that all financial activity is properly recorded in the general ledger as required. \n \nGENERAL LEDGER \n \nInadequate Internal Control Procedures \n \nReportable Condition \n \nRepeated From Prior Year \n \n. \n \nFinding Control Number: FS-749l-00-02 \n \n \n \nA review ofthe Board's internal control policies and procedures noted deficiencies in providing for adequate internal control in the separation of duties as noted below: \n \n* Journal entry documentation and written explanations could not be provided by the Board. \n \n* Journal entries were not reviewed and approved by someone independent of the general \nledger journal entry function. \n \nThese conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and their failure to institute proper controls over these areas. The Board should review the accounting procedures in place, design procedures which would enhance segregation ofduties and proper internal controls relative to the above control category and implement those procedures to strengthen the internal control over the accounting functions. \n \n-3- \n \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nGENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial Noncompliance Finding Control Number: FS-7491-00-03 \n \nThe Warren County Board of Education received approval for State capital outlay project funding, through Georgia State Financing and Investment Commission. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Warren County Board of Education to receive this funding require that the Warren County Board of Education transfer required local matching funds to the Capital Projects Fund by June 30, 2000, and designate those funds by project name and number. This transfer was not made by the Warren County Board of Education at June 30, 2000. This condition occurred because management claimed not to be aware of the provisions ofFMGLUA. A correcting audit adjustment was necessary to transfer $142,268.00 from the Bond Proceeds Fund to GSFIC Project No. 01/00S-749-007 as required. \n \nGENERAL FIXED ASSETS \n \nFailure to Maintain General Fixed Assets Account Group \n \nReportable Condition - Material Weakness \n \nRepeated From Prior Year \n \nFinding Control Number: FS-7491-00-04 \n \n \n \nThe Warren County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriat~ action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \n \n \n-4- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWEDIUNALLOWED ALLOWABLE COST/COST PRINCIPLES Inadequate Internal Control Procedures Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-00-01 \n \nA review ofthe Board's policies and procedures noted deficiencies in providing for adequate internal control over the Elementary and Secondary Education Act - Title VI - Class Size Reduction Grant (CFDA 84.340). A test of expenditures revealed that the \"Official\" knowledgeable of allowable activities and costs for the program did not approve expenditures as required by the Office of Management and Budget Circular A-87 and A-133 Compliance Supplement. This deficiency resulted in expenditures in the amount of $5,792.83 being charged to the program that were not allowable activities or costs. On June 1,2001 these unallowable costs were refunded to the Georgia Department of Education. This condition was a result of management's failure to implement adequate internal controls for monitoring compliance with Federal guidelines. The Board should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and proper internal controls relative to the above Federal compliance requirement and implement those procedures to strengthen the internal control . over Federal programs. \n \nCASH MANAGEMENT Inadequate Internal Control Procedures . Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-00-02 \n \n \n \n \nA review ofthe Board's policies and procedures noted deficiencies in providing for adequate internal controls over Cash Management as noted below: \n \n* Review ofcash management procedures for the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund Grant (CFDA 84.318) disclosed that cash draws were not made based on immediate cash needs, resulting in a loss of approved Federal funding in the amount of $50,000.00. \n. \n* Review ofcash management procedures for the Elementary and Secondary Education Act \n- Title VI - Class Size Reduction Grant (CFDA 84.340) disclosed that cash draws were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances for eleven months. \n \n-5- \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCASH MANAGEMENT Inadequate Internal Control Procedures Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-00-02 \n \nThese conditions were a result ofmanagement's failure to implement internal controls for monitoring compliance with Federal guidelines. The Board should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and proper internal controls relative to the above Federal compliance requirement and implement those procedures to strengthen the internal control over Federal programs. \n \nREPORTING Inadequate Internal Control Procedures \n \nReportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-00-03 \n \nA comparison ofthe completion report for the Elementary and Secondary Education Act - Title III- \n \nTechnology Literacy Challenge Fund Grant (CFDA 84.318) to the accounting records revealed that \n \nthe project completion report was not supported by total expenditures recorded for this program in  \nthe accounting records. The completion report should have reflected an approved grant and grant \n \nexpenditures totalling $125,000.00 however, only $75,000.00 in grant revenues and expenditures \n \nwere included in the completion report. The instructions provided by the Georgia Department of \n \nEducation mandate that financial management systems provide for accurate, complete and current \n \ndisclosure of the financial results of each grant program. This condition was a result of \n \nmanagement's failure to implement internal controls for monitoring compliance with federal \n \nguidelines.. The Board should review the federal compliance procedur~sin place, design procedures \n \nwhich would enhance monitoring compliance with federal guidelines and proper internal controls \n \nrelative to the above federal compliance requirement and implement those procedures to strengthen \n \nthe internal control over Federal programs. \n \n. \n \n- 6- \n \n \n \n WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2000 \nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SPECIAL TESTS AND PROVISIONS Inadequate Internal Control Procedures Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-00-04 A review ofprivate school invitations fGf participation in the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund Grant (CFDA 84.318) and the Elementary and Secondary Act - Title VI - Class Size Reduction Grant (CFDA 84.340) indicated that a private school in Warren County was not invited to participate in the planning, development and organization of the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund and the Elementary and Secondary Education Act - Title VI - Class Size Reduction programs as required by guidelines issued by the Georgia Department ofEducation. In addition the children attending this private school were not included in the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund Grant and Elementary and Secondary Education Act - Title VI - Class Size Reduction Grant application process as required. This condition was a result of management's failure to implement internal controls for monitoring compliance with federal guidelines. The Board should review the federal compliance procedures in place, design procedures which would enhance monitoring compliance with federal guidelines and proper internal controls relative to the above federal compliance requirements and implement those procedures to strengthen the internal control over federal programs. \n-7- \n \n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":9,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":9}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits","hits":9}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Auditors' reports--Georgia","hits":9},{"value":"Financial statements--Georgia","hits":9},{"value":"Warren County (Ga.). 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