HomeMy WebLinkAboutSingle Audit Report 6/30/2001
Augusta Richmond GA
DOCUMENT NAME: ~\ ('l ~ l.E Au ~ IT R~ pO!<-\ &,)?:,O / ;).00 I
DOCUMENT TYPE: l\. t:: pO R- '\
YEAR: ::2 00 ~
BOX NUMBER: llo
FILE NUMBER: J'le::2 If \
NUMBER OF PAGES: (p lo
-
'~
{
~
,
RICHMOND COUNTY
BOARD OF EDUCATION
200 I audit dist. letter
ANDREW A. JEFFERSON
President
CHARLES G. LARKE, Ed.D.
Superintendent
C. GENE SPIRES, CPA
Controller
July 9, 2002
U. S. Department of Justice
Richmond County Board of Commissioners
530 Greene Street
Augusta, GA 30911
This is to advise you that a Single Audit has been performed of the Richmond County Board of
Education for the fiscal year ended June 30, 2001. The audit was. performed by the Georgia
Department of Audits and was conducted in accordance with Office of Management and Budget
(OM B) Circular A-133 which establishes the audit requirement for States, Local Governments
and Non-Profit Organizations that expend $300,000 or more in Federal financial assistance.
The "Schedule of Expenditures of Federal Awards" as reflected in the audit report included the
following financial information relating to the Federal Awards provided to this School District by
our organization:
CFDA EXPENDITURES
NAME OF FEDERAL PROGRAM NUMBER
1. Juvenile Delinquency Prevention and 16.548 $17,126.93
Intervention, 2001 Grant
The Single Audit Report included no prior year or current year findings or questioned costs
relating to Federal financial assistance programs funded through the Richmond County Board of
Commissioners.
Sincerely,
~.~
C. GENE SPIRES
Controller
CGS/smb
Enclosure
"
.! " 'l
, }, , '~
'\
','
~',"STATE 'OF GEORGIA '
, ,
DEPARTME'NT OF AUDITS AND ACCO'UNTS
. , . .-.
, ,
'. . c .
,I .
RICHMOND COUNTY BOARD OF EDUCATION
,:" AUGUSTA, GEORGIA'"
REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
,'FOR THE,FIScAL YEAR ENDED JUNE 30,,2001
- "
'Russell W. Hinton
State Auditor'
~
{
1
t
RICHMOND COUNTIT BOARD OF EDUCATION
- TABLE OF CONTENTS-
Page
SECTION I
FINANCIAL
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION-
SCHEDULE OF EXPEl\TDITURES 'OF FEDERAL A WARDS
EXHIBITS
GENERAL-PURPOSE FINANCIAL STATEMENTS
COMBINED STATEMENTS - OVERVIEW
A COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
AND EXPENDABLE TRUST FUNDS
C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
(NON-GAAP BASIS)
GENERAL AND SPECIAL REVENUE FUNDS
D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
2
4
6
7
ADDITIONAL FINANCIAL INFORMATION
COMB~GSTATEMENTS
SPECIAL REVENUE FUND
E COMBINING BALANCE SHEET
F COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
G COMBINING BALANCE SHEET
H COMBINING STATEMENT OF REVENUES, EXPENDffiTRES
AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
I COMBINING BALANCE SHEET
J COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
24
26
28
30
32
33
'f
"
1
t
RICHMOND COUNTY BOARD OF EDUCA nON
- TABLE OF CONTENTS -
Page
SECTION I
FINANCIAL
ADDITIONAL FINANCIAL INFORMATION
EXHIBITS
COMBINING STATEMENTS
FIDUCIARY FUND TYPES
K COMBINING BALANCE SHEET 34
L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
EXPENDABLE TRUST FUNDS 36
M COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS 38
SCHEDULES
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 39
2 SCHEDULE OF STATE REVENUE 41
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 43
ALLOTMENTS AND EXPENDITURES
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)
4 BY PROGRAM M
5 BY SITE 45
SECTION IT
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A-l33
r
.,
,
RICHMOND COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -
SECTION III
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV
FINDINGS AND QUESTIONED COSTS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
,
SECTION I
FINANCIAL
1
,
j
r
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hinglol1 Street. S.W.. Suite 214
Atlanta. Georgia 30334-X4()()
RIISSEI.I. \\'. HJ:\T()!\
STATE AUDITOR
/404) 656.2174
February 14, 2002
Honorable Roy E. Barnes, Governor
Members of the General Assembly
Members of the State Board of Education
and
Superintendent and Members of the
Richmond County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION-
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Richmond County
Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents.
These general-purpose financial statements are the responsibility ofthe Richmond County Board of
Education's management. Our responsibility is to express an opinion on these general-purpose
financial statements based on our audit.
Except as discussed in the following paragraph, 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. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
We did not observe the taking of the consumable supplies inventory at June 30, 2001, nor could we
satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative
procedures.
2001ARL-13
r
As 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:
* 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.
* School activity accounts maintained at the individual sch.ools are not included in the
general-purpose financial statements. To conform to generally accepted accounting
principles, these accounts should be included in the general-purpose financial
statements.
* 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.
The aggregate effects on the general-purpose financial statements of these variances or omissions
have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the General Fund, as might have
been determined to be necessary had we been able to ,satisfy ourselves as to the accuracy of the
consumable supplies inventory as discussed in the third paragraph, and except for the effects on the
general-purpose financial statements of the matters referred to in the preceding paragraph, the
general-purpose financial statements referred to above present fairly, in all material respects, the
financial position of the Richmond County Board of Education as of June 30, 2001, and the results of
its operations for the year then ended, in conformity with accounting principles generally accepted in
the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
February 14, 2002, on our consideration of the Richmond County Board of Education's internal
control over financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grants. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be read in conjunction with this report in
considering the results of our audit.
2001 ARL-13
f
i:
Our audit was performed for the purpose of forming an opinion on the general-purpose financial
statements of the Richmond County Board of Education taken as a whole. The accompanying
combining statements (Exhibits E through M) 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-I33, 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 of the general-purpose financial statements and in our opinion, except
for the effect of adjustments, if any, on the General Fund, as might have been determined to be
necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies
inventory as discussed in the third paragraph, and except for the effects ofthe matters referred to in
the fourth paragraph, such information is fairly stated, in all materia! respects, in relation to the
general-purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office ofthe State Auditor and made
available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-
6-24.
Respectfully submitted,
Ru sell W. Hinton
St e Auditor
RWH:gp
200IARL-I3
RICHMOND COUNTY BOARD OF EDUCATION
EXHIBIT "A"
ACCOUNT
FIDUCIARY GROUP
DEBT FUND TYPES GENERAL TOTALS
SERVICE TRUST AND LONG-TERM (Memorandum Only)
FUND AGENCY FUNDS DEBT JUNE 30, 2001 JUNE 30, 2000
$ 4,205,871,82 $ 111,728,80 $ 18,648.4 71.88 $ 15,262,143,68
2,613,98 57.475,188,10 58,908,072.50
162,318.59 13,148,717,27 12,608,524.06
260,092.90
3,300,380,36 3,517.317,35
135,351,52 142,661.~4
138,233,93 127,054,25
$ 4,208,201,98 4.208,201.98 6.763,87844
43,366,798,02 43,366,798.02 69,006,121.56
17,089.427,27 17.089.427.27 17.471,348,79
1 ,269,110.42 1,269,110.42 1 ,006,836.56
$ 4,370,804,39 $ 111 ,728.80 $ 65.933,537,69 $ 159,039,973.65 $ 184,813,95833
$ 24,182.21
3.222,853.45 $ 4,782.120,73
2,148,960,00 2,259,970,51
13,000,000,00
260,208.90 109,156.61
365,069,27 3,226,378.47
737,271,10 1,864,318,79
S 162,602.41 260,092,90
$ 38,215.68 38,215,68 34,534.43
$ 17.089.427,27 17,089.427.27 17,471,34879
1.269.110,42 1,269,110.42 1,006,836.56
47,575.000,00 47,575,000,00 75,770,000.00
$ 162,602.41 $ 38,215,68 $ 65,933.537,69 $ 85,990.391,20 $ 106,524,664.89
$ 920,175,00 $ 920,175.00
149.24
$ 4,208,201,98 4,208,201.98 6,763,878.44
246,550,92 543,015.59
3,300,380,36 3,517,317.35
135,351,52 142,661,14
138.233,93 127,054.25
1,257,282,71 10,561.573.52
34,322.211,00 27,388,291,64
139,532.08 5.679,511,40
0,00 $ 73,513,12 28,381 ,662,95 22,645,665,87
$ 4,208,201,98 $ 73,513,12 $ 73,049,582.45 $ 78,289,293,44
$ 4,370,804.39 $ 111 ,728.80 $ 65,933,537,69 $ 159,039,973,65 $ 184,813,958,33
- 3-
J
RICHMOND COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 2001
GOVERNMENTAL FUND
SPECIAL CAPITAL
GENERAL REVENUE PROJECTS
FUND FUND FUND
REVENUES
State Funds $ 137,023,016.29 $ 8,045,396,92 $ 5,201,297,51
Federal Funds 1,301,626.41 24,492,381.33
Taxes 61,996,305,70 9,408,022.96
Other Funds 3,622,041.03 3,310,352,57 2,727,130.46
Total Revenues $ 203,942,989.43 $ 35,848,130.82 $ 17,336,450.93
EXPENDITURES
Current
Instruction $ 132,589,801.91 $ 15,179,216,33
Support Services
Pupil Services 4,120,090.14 2,614,468.49
Improvement of Instructional Services 4,419,182,91 2,107,796,76
Educational Media Services 5,165,483.45 614,537,00
General Administration 1.935,396,70 349,279.31
School Administration 14,673,350,79 231,515.03
Business Administration 1,454,053.55 $ 100,000.00
Maintenance and Operation of Plant 21,917,244.85 705,964.26
Student Transportation Services 8,599,012.25 79,927.60
Central Support Services 1.901,460.09 170.47
Other Support ServiCes 27,832.78 43,968.51
Food Services Operation 70,148,70 13,024,041.10
Community Services Operations 107,423.00 315,962,12
Capital Outlay 632,933.65 25,174,093.98
Debt Service
Principal 1,447,167.42 14,068.40
Interest 1,222,425.38 1,986.75
Paying Agent Fees
Total Expenditures $ 200.283,007.57 $ 35,282,902.13 $ 25,274,093.98
Excess of Revenues over (under) Expenditures $ 3,659,981,86 $ 565,228.69 $ -7,937,643.05
OTHER FINANCING SOURCES (USES)
Capital Leases $ 1,079,314.31
Operating Transfers In 55,610.12 $ 239,400.00
Operating Transfers Out -239,400.00 $ -55,610.12
Total Other Financing Sources (Uses) $ 895,524.43 $ 239,400.00 $ -55,610.12
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 4,555,506.29 $ 804,628.69 $ -7,993,253.17
FUND BALANCE JULY 1 21,505,999.27 5,323,878,36 44,632,453.96
Consumable Supplies Inventory - Net Change in Period -65,216.11
Food Inventory - Net Change in Period
Donated Commodities -7,309.62
Purchased Food 11,179.68
FUND BALANCE JUNE 30
$ 25,996,289.45 $
6,132,377.11 $ 36,639,200.79
The notes to the general-purpose financial statements are an integral part of this statement.
- 4-
1
EXHIBIT "B"
TYPES
TOTAL
FIDUCIARY
FUND TYPE
EXPENDABLE
TRUST FUNDS
TOTALS
(Memorandum Only)
YEAR ENDED
JUNE 30, 2001 JUNE 30, 2000
DEBT
SERVICE
FUND
$ 150,269,710.72 $ 150,269,710.72 $ 140,566,279.88
25,794,007.74 25,794,007,74 23,764,408.59
$ 28,455,305.81 99,859,634.47 99,859,634.47 97,215,587.36
407,710.99 10,067,235.05 $ 10,804.71 10,Q78,039.76 10,109,932.64
$ 28,863,016,80 $ 285,990.587.98 $ 10,804.71 $ 286,001 ,392.69 $ 271 ,656,208.47
$ 147,769,018.24 $ 147,769.018.24 $ 133,668,311.29
6,734,558,63 6,734,558.63 10,600.842.61
6,526,979.67 6,526,979.67 6.367,218,28
5,780,020.45 5.780,020.45 6,022,386,97
2,284,676.01 2,284,676.01 2.360,612.17
14,904,865.82 14.904,865,82 13.995,455.68
1,554,053.55 1,554.053.55 1,270,083.75
22,623,209.11 22,623,209,11 21,306,947.36
8,678,939,85 8,678.939.85 7,615,167.27
1,901.630.56 $ 375.00 1.902,005.56 2,263.834.93
71,801,29 71,801.29 453,065.28
13,094,189.80 13,094,189.80 13,045,128.50
423,385.12 423,385.12 491,505.24
25,807,027.63 25.807.027,63 36.928,772.88
$ 28,195,000.00 29,656,235.82 29,656,235.82 24,372,965.52
3,214,680.00 4,439,092.13 4,439,092,13 5,061,192,87
9,013.26 9,013.26 9.013.26 8,886.70
$ 31,418,693.26 $ 292.258,696.94 $ 375,00 $ 292,259,071.94 $ 285,832,377.30
$ -2,555,676.46 $ -6,268,108,96 $ 10,429.71 $ -6,257 ,679.25 $ -14,176,168.83
$ 1,079,314.31 $ 1,079,314.31 $ 11,496,00
295,010.12 295.010.12 480,954.77
-295,010.12 -295.010,12 -480,954.77
$ 1.079,314.31 $ 1.079,314.31 $ 11,496.00
$ -2.555,676.46 $ -5,188,794.65 $ 10,429.71 $ -5,178,364.94 $ -14,164,672.83
6,763.878.44 78,226,210.03 63,083.41 78,289,293.44 92,110,611.82
-65,216.11 -65,216.11 302,971.10
-7,309.62 -7,309.62 31,075,98
11 ,179.68 11 ,179.68 9,307.37
$ 4,208,201,98 $ 72.976,069.33 $ 73,513.12 $ 73,049,582.45 $ 78,289,293,44
-5-
J
RICHMOND COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) ,
GENERALANDSPEC~LREVENUEFUNDS
YEAR ENDED JUNE 30. 2001
EXHIBIT "CO
GENERAL FUND SPECIAL REVENUE FUND
ACTUAL ACTUAL
(BUDGET (BUDGET
BUDGET BASIS) BUDGET BASIS}
REVENUES
State Funds $ 133,632,423,50 $ 137,023,016,29 $ 8,012,370.00 $ 8.045,396,92
Federal Funds 1,738,365,00 1,301.626.41 24,648,546.00 24,492.381,33
Taxes 59,348,717,00 61,996.305,70
Other Funds 18,129,785,28 3,622,041,03 3,049,965,00 3,310,352,57
Total Revenues $ 212,849,290,78 $ 203,942,989.43 S 35,710,881,00 $ 35,848,130,82
EXPENDITURES
Current
Instruction $ 129,757.743,28 $ 132,589,801.91 $ 15,956,751.00 $ 15,179,216,33
Support Services
Pupil Services 5,364,468.00 4,120,090,14 2,904,432,87 2,614,468,49
Improvement of Instructional Services 5,084,844,49 4,419,182.91 2,302,953.00 2.107,796.76
Educational Media Services 5,722,769.95 5,165,483.45 614,537,00 614,537.00
General Administration 1,862,038.40 1,935,396,70 367,113,00 349,279,31
School Administration 14,781.094.85 14,673,350,79 234,924,00 231,515,03
Business Administration 1,488,729.08 1,454,053,55
Maintenance and Operation of Plant 21,490,221.89 21,917.244,85 689,352,00 705,964.26
Student Transportation Services 8,453,183,53 8,599,012.25 127,435,00 79,927,60
Central Support Services 1,952,575.67 1,901,460.09 1,500.00 170,47
Other Support Services 43,113,00 27.832,78 48,149,00 43,968.51
Food Services Operation 15,396.00 70,148,70 14,013,522.99 13,024,041.10
Community Services Operations 107,423,00 107,423,00 593,126.00 315,962,12
Capital Outlay 634,642,82 632,933,65
Debt Service 17,781,186.00 2,669,592.80 16.055,15
Total Expenditures $ 214,539,429.96 $ 200,283.007,57 $ 37,853,795.86 $ 35,282,902,13
Excess of Revenues over (under) Expenditures $ -1,690,139,18 $ 3,659,981.86 $ -2,142,914,86 $ 565,228.69
OTHER FINANCING SOURCES (USES)
Other Sources $ 1,969,539.18 $ 1,134,924,43 $ 2,160,411.86 $ 239,400,00
Other Uses .279,400,00 -239,400.00 -17,497.00
Total Other Financing Sources (Uses) $ 1,690,139,18 $ 895,524.43 $ 2,142,914,86 $ 239,400,00
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing
Uses $ 0,00 $ 4,555,506.29 $ 0,00 $ 804,628.69
FUND BALANCE JULY 1. 2000 0.00 19,344,479.41 0.00 5,054.162.97
FUND BALANCE JUNE 30 2001 $ 0,00 $ 23,899,985,70 $ 0.00 $ 5,858,791.66
The notes to the general-purpose financial statements are an integral part of this statement.
- 6 -
l
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30,2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Richmond County Board of Education (School District) was established under the laws of the
State of Georgia and operates under the guidance of a school board elected by the voters and a
Superintendent appointed by the Board. The School District is organized as a separate legal entity
and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other
entity. Accordingly, the School District is a primary government and consists of all the
organizations that compose its legal entity,
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results
of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial
management by segregating transactions related to certain governmental functions or activities, A
fund is a separate accounting entity with a self-balancing set of accounts. An account group is a
financial reporting device designed to provide accountability for certain assets and liabilities that are
not recorded in the funds because they do not directly affect expendable available financial
resources,
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A
General Fixed Assets Account Group is not presently maintained by the School District. To
conform to generally accepted accounting principles, a General Fixed Assets Account Group should
be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets,
liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these
accounts are reflected in these financial statements. To conform to generally accepted accounting
principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under
control of the School District, in compliance with generally accepted accounting principles
applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account
group presented in this report are as follows:
GOVERNMENT AL FUND TYPES - are used to account for all or most of a School District's
educational activi'ties. Governmental Fund Types include:
GENERAL 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.
- 7 -
J
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL 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.
CAPIT AL PROJECTS FUND - the fund used to account for financial resources to be used for the
acquisitio,n or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the
payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY 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:
EXPENDABLE TRUST FUNDS
Davidson Trust Fund - the fund used to account for the principal and earnings which may be
expended to provide financial assistance to needy students of David son Fine Arts Magnet School.
Gail Hendricks Scholarship Fund, Nora Coxwell Scholarship Fund and Roberta McKenzie
Scholarship Fund - the funds used to account for the principal and earnings which may be
expended to provide scholarships for selected students.
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other
funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to
account for general obligation'debt outstanding, accrued compensated absences and capital lease
obligations.
BASIS OF ACCOUNTING
The 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 of these funds present
increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other
financing uses) in net current assets. Their reported fund balance is considered a measure of
available spendable resources.
- 8 -
i
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 200 1
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expec'ted 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.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental and expendable trust funds are accounted for using the modified accrual basis of
accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount.ofthe transaction can be determined and "available"
means collectible within the current period or soon enough thereafter to be used to pay liabilities of
the current period. The School District considers receivables collected within sixty days after year-
end 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.
Expenditures are generally recognized when the related fund liability is incurred.
A 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 of personnel of the School District were employed for a one hundred and ninety
day period beginning in August 2000 and ending in early June 2001. 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.
- 9 -
J
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets
and liabilities.
BUDGET
The Richmond 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 fund type level. The budget for governmental
funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for
the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised
at least once in a newspaper of general circulation in the locality. At the next regular meeting of the
Board after advertisement, the Board receives comments on the tentative budget, makes revisions as
necessary and adopts a final school budget. This final budget is then submitted, in accordance with
provisions of the Quality Basic Education Act, OCGA Section 20-2-167( c), to the Georgia
Department of Education. The Board may increase or decrease the budget at any time during the
year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate
comparison withthe budget, the following adjustments have been made to fund balance as reflected
on Exhibit "B" of this report:
General
Fund
Special
Revenue
Fund
FUND BALANCE JULY 1,2000 $21,505,999.27
$ 5,323,878.36
Adjustments
Inventories - July 1,2000
Food
Donated Commodities
Purchased Foods
Supplies -2,161.519.86
Fund Balance July 1,2000 (Budget Basis) $19,344,479.41
-142,661. 14
-127,054.25
$ 5,054,162.97
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing
Uses 4,555.506.29
804,628.69
FUND BALANCE JUNE 30, 2001 (Budget Basis) $23,899.985.70 $ 5.858.791.66
- 10-
t
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS
Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with
original maturities of three months or less from the date of acquisition in authorized financial
institutions. Georgia Laws OCGA 45-8-l4 authorize the School District to deposit its funds in one
or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS
Investments made by the School District in nonparticipating interest-earning contracts (such as
certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning
contracts and money market investments with a maturity at purchase of one year or less are reported
at amortized cost. Both participating interest-earning contracts and money market investments with
a maturity at purchase greater than one year and equity investments are reported at fair value. The
Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its
funds, In selecting among options for investment or among institutional bids for deposits, the
highest rate of return shall be the objective, given equivalent conditions of safety and liquidity.
Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United
States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of
Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIV ABLES
Receivables 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
- 11 -
I
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 200 1
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
PROPERTY TAXES
The Augusta - Richmond County Board of Commission Council fixed the property tax levy for the
2000 tax year (calendar year) on September 19,2000 (levy date). Taxes were due on December 27,
2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are
reported as revenue in fiscal year 2001. The Augusta - Richmond 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 oftaxes collected to the School District. In addition, the Clerk
of the Superior Court of Richmond County collects recording taxes for the Bo~rd of Education,
withholds 6% of taxes collected as a fee for tax collection and remits the balance to the School
District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and
operations amounted to $61,742,221.06 and for school bonds amounted to $5,981,796.69.
Tax millage rates levied for the 2000 tax year (calendar year) for the Richmond County Board of
Education were as follows (a mill equals $1 per thousand dollars of assessed value):
School Operations
School Bonds
18.688 mills
1.860 mills
20.548 mills
SALES TAXES
Special 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
$31,856,250.46 and was recorded in the Capital Projects and Debt Service Funds. The State will
terminate collection of this tax once an additional $30,673,131.23 has been collected or on June 30,
2002, whichever occurs first.
INVENTORIES
CONSUMABLE SUPPLIES
Inventories of athletic, custodial and instructional supplies are recorded as expenditures under the
consumption method and are valued at cost (weighted average). These inventories are recorded as
assets at the time of purchase. Inventories of maintenance and transportation supplies are recorded
as expenditures at the time of purchase and are valued on the Combined Balance Sheet at cost
(weighted average). Inventories of textbooks are recorded as expenditures atthe time of purchase
and are valued on the Combined Balance Sheet at cost (first-in, first-out). Inventories reported on
- 12 -
i
RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the balance sheet are equally offset by a reservation of fund balance which indicates that these
amounts do not constitute "available spendable resources" even though they are a component of net
current assets.
FOOD INVENTORIES
Inventories of donated food commodities used in the preparation of meals are reported on the
Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported
on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded
as revenues and expenditures at the time commodity items are received. Purchased foods inventories
are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet
for donated food commodities and for purchased foods are equally offset by reservations of fund
balance which indicates that these amounts do not constitute "available spendable resources" even
though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe School District relating to employees' rights to
receive compensation for future absences based upon service already rendered. This obligation
relates only to vesting accumulating leave in which payment is probable and can be reasonably
estimated, No liability has been recorded in the individual funds for the current portion of this
obligation as this amount is deemed immaterial to the general-purpose financial statements.
GENERAL OBLIGATION BONDS
The School District 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. 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 General Long-Term Debt Account Group.
RESERVED FUND BALANCES
.
For Encumbrances - This reserve constitutes the unperformed portion of purchase orders, contracts
and other commitments for goods and services at year end. Encumbrances outstanding are reported
as a reservation of fund balance and do not constitute expenditures or liabilities in the current year
because the commitments will be honored during the subsequent year.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
- 13 -
j
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
Reimbursements of expenditures initially made from a fund that are properly applicable to another
fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the
fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to
indicate that they are presented only to facilitate financial analysis, Data in these columns do not
present financial position or results of operations in conformity with generally accepted accounting
principles. Neither are such data comparable to a consolidation. Interfund eliminations have not
been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLA TERALIZA nON 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 of the amount of deposit insurance.
If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the
securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool
balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,
waive the requirement for security in the case of operating funds placed in demand deposit checking
accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business
within the State of Georgia,
, .
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United
States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or
municipalities of the State of Georgia,
(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,
- 14-
i
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 2: DEPOSITS AND INVESTMENTS
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the
State of Georgia, and
(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..
CA TEGORIZA nON OF DEPOSITS
At June 30, 2001, the bank balances were $27,673,025.34. The amounts of the total bank balances
are classified into three categories of credit risk:
Category 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.
Category 2 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent in the School District's name.
Category 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.)
The School District's deposits are classified by risk category at June 30, 2001, as follows:
Risk Category
Bank Balance
1
2
3
$ 100,222.25
27,572,803.09
0.00
Total
$27.673.025.34
CATEGORIZATION OF INVESTMENTS
Investments are classified as to risk by the three categories described below:
Category I - Insured or registered, or securities held by the School District or the School
District's agent in the School District's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust
department or agent in the School District's name.
Category 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.
- 15 -
J
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 2: DEPOSITS AND INVESTMENTS
At June 30, 2001, the carrying value of the School District's total investments was $57,475,188.10
which is materially the same as fair value, The investments are classified as to risk categories as
follows:
Risk Categories Carrying Fair
TyPe of Investment 2 3 Amount Value
U, S. Government $ I 4,548,644.33 $ 0.00 $14,548,644.33 S I 4,548,644.33
Common Stock $ 453.491.44 453.491.44 453.491.44
Total $ 453491.44 $14548644 :B S 0.00 $15,002,135,77 $15,002,135.77
Local Government
Investment Pools 42.473.052.33 42.473.052,33
Total Investments $5747518810 $57475188.10
The carrying amounts shown above includes amounts maintained in an investment pool by the State
of Georgia, Office of Treasury and Fiscal Services in which the School District owns no identifiable
securities. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for
the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for
investment in derivatives or similar investments, A description ofthe Primary Liquidity Portfolio is
as follows:
The 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 of the Investment Company Act of 1940 and
is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment
income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset
value is calculated weekly to ensure stability. The pool distributes earnings (net of management
fees) on a monthly basis al1d 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 guarahtees 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,
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S.
Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S.
Government or any of its agencies or instrumentalities, banker's ,acceptances and repurchase
agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The
weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average
investment duration for Fund 6 on June 30, 2001, was 6 months.
- 16 -
l
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 3: NON-MONETARY TRANSACTIONS
The 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
Note 4: INTERFUND ASSETS AND LIABILITIES
Due to and due from other funds are recorded for interfund receivables and payables which arise
from interfund transactions. The following analysis summarizes the status of all interfund
transactions of the School District at June 30, 2001:
Due From
Other Funds
Due To
Other Funds
General Fund
Capital Projects Fund
Special Purpose Local Option Sales Tax
Debt Service Fund
Property Taxes for Bond Debt
$ 97,490.49
$ 260,092.90
162,602.41
$ 260.092.90 $ 260.092.90
Note 5: RISK MANAGEMENT
The School District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster
and unemployment compensation.
The School District has obtained commercial insurance for risk ofloss associated with torts, assets,
errors or omissions, job related illness or injuries to employees and natural disaster. The School
District has neither significantly reduced coverage for these risks nor incurred losses (settlements)
which exceeded the School District's insurance coverage in any of the past three years.
The School District has established a limited risk management program for workers' 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 of that loss can
be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of
$225,000.00 loss per occurrence, up to the statutory limit.
- 17 - ,
.l
RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001
Note 5: RISK MANAGEMENT
Changes in the workers' compensation claims liability during the last two fiscal years are as follows:
Beginning Claims and
of Year Changes in Claims End of Year
Liability Estimates Paid Liability
2000 $ 0.00 $ 322,385.23 $ 322.385.23 $ 0.00
2001 $ 0.00 $ 137.494.44 $ 137.494.44 $ 0,00
The 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.
Changes in the unemployment compensation claims liability during the last two fiscal years are as
follows:
~eginning Claims and
of Year Changes in Claims End of Year
Liability Estimates Paid Liability
2000 $ 18.950.00 $ 24.742.77 $ 35.643.77 $ 8.049.00
2001 $ 8.049.00 $ 5.677,00 $ 12.186.00 $ 1 .540.00
The School District has purchased surety bonds to provide additional insurance coverage as follows:
Position Covered
Amount
Superintendent
President
V ice-President
Comptroller
Assistant Superintendent
Associate Superintendent
Supervisors
Administrative Assistant
Each Central Office Bookkeeper
Each Principal
Each School Bookkeeper
Each School Business Manager
Athletic Business Manager
Each Lunchroom Manager
$ 50,000.00
$ 50,000.00
$ 50,000.00
$ 50,000.00
$, 50,000.00
$ 50,000.00
$ 20,000.00
$ 10,000.00
$ 10,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 5,000.00
$ 3,000.00
- 18 -
i
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 6: GENERAL LONG-TERM DEBT
CAPIT AL LEASES
The lUchmond County Board of Education has entered into various lease agreements as lessee for
school buses, operating vehicles, office equipment, computer equipment, equ.ipment upgrades at
various schools, lighting systems, a career exploration lab and the acquisition and construction of
school facilities. These lease agreements qualify as capital leases for accounting purposes and,
therefore, have been recorded at the present value of the future minimum lease payments as of the
date of their inception.
GENERAL OBLIGA nON DEBT OUTSTANDING
General Obligation Bonds currently outstanding are as follows:
Purpose.
Interest Rates
Amount
General Government - Refunding - Series 1998
General Government - Refunding - Series 1993
General Government - Refunding - Series 1991
3.80% - 4.25%
2.50% - 4.70%
4.50% - 6.30%
$32,685,000.00
10,900,000.00
3,990,000,00
$47.575.000.00
The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as
follows:
General
Capital Compensated Obligation
Leases Absences Bonds Tota]
Balance July 1,2000 $] 7,471 ,348.79 $ ] ,006,836.56 $75,770,000.00 $94,248,] 85.35
Additions.
Capital Leases 1,079,3 ]4.31 1,079,314.31
Annual Leave Earned and
Utilized (Net) 262,273,86 262,273,86
Deductions
Debt Retired ] .461.235.83 28,195.000.00 29.656.235.83
Balance June 30, 200] $1708942727 $ 1.269] 1042 $47 575 000.00 $6593353769
. At June 30, 2001, paYments due by fiscal year which includes principal and interest for these items
, are as follows:
- 19 -
"
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 6: GENERAL LONG-TERM DEBT
General
Fiscal Year Capital Obligation Total
Ended June 30 Leases Bonds Debt
2002 $ 2,530,278.95 $31,420,397.50 $33,950,676.45
2003 2,047,806.54 8,571,217.50 10,619,024.04
2004 1,904,456,85 2,998,460.00 4,902,916.85
2005 1,907,449,35 3,015,256,25 4,922,705,60
2006 1,904,599.57 3,026,972.50 4,931,572.07
2007 - 2011 5,648,625.82 2,128,880.00 7,777,505,82
2012 - 2016 4,040,033.75 4,040,033,75
2017-2021 4,040,175.00 4,040,175.00
2022 - 2025 3,233,050.00 3,233,050.00
Total Principal and Interest $27,256,475.83 $51.161.183,75 $78.417.659,58
Deduct: Imputed Interest 10,167,048.56
Net Present Value of Future
Minimum Lease Payments $17 .089.427 ,27
Note 7: SHORT-TERM DEBT
The School District issues tax anticipation notes in advance of property tax collections, depositing
the proceeds in its General Fund and Capital Projects 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 ofthe Constitution of the State of Georgia limits the aggregate amount of short-term
debt to 75 percent of the total gross income from taxes collected in the preceding year and requires
all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was
incurred.
Beginning
Balance
Additions
Payments
Ending
Balance
Tax Anticipation Notes
$
0.00 $28.000.000.00 $15.000.000.00 $13.000.000.00
Note 8: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of$3,125,607.38 for
health insurance and retirement contributions paid on the School District's behalfby the following
State Agencies.
- 20 -
.
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 8: ON-BEHALF PAYMENTS
Georgia Department of Education
Paid to the Georgia Department of Community Health
For Health Insurance of Non-Certified Personnel'
In the amount of$2,401,533.40
Paid to the Teachers Retirement System of Georgia
For Teachers Retirement System (TRS) Employer's Cost
In the amount of$211,405.98
Office 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$512,668.00
Note 9: SIGNIFICANT COMMITMENTS
The following is an analysis of significant outstanding construction or renovation contracts executed
by the School District as ofJune 30, 2001:
Unearned
Executed
Proiect Contracts
CP-2011 $ 1,403.09
99-721-088 30,787.20
00/99S-721-106 84,781.63
B-98033-409 11,608,12
B-97-013,-426 84,095.10
B-97-017-424 11,778.54
B-98-035-411 322,824.85
B-98-029-418 350.59
B-99-041-420 98,914,00
B-97-012-415 7,702.00
B-99-036-417 48.840.18
$ 703.085.30
The amounts described in this note are not reflected in the general-purpose financial statements.
- 21 -
.
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "0"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 10: CONTINGENT LIABILITIES
ARBITRAGE REBATE TAX
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the
United States Treasury oflnvestment Income received at yields that exceed the issuer's tax-exempt
borrowing rates. The U, S. Treasury requires payment every five years. The estimated contingent
liability of$920, 175.00 at June 30,2001, is based on tax exempt debt subject to the Tax Reform Act.
This amount will be updated annually for any tax-exempt issuances or changes in yields through
September 1,2003, at which time payment of the final calculated liability for the five-year period is
required to be remitted.
Amounts 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.
Note 11: SUBSEQUENT EVENTS
In the subsequent fiscal year, voters authorized the School District to issue general obligation bonds
in the amount of$115,000,000,OO, The proceeds from these bonds will be used for the purpose of
acquiring, constructing and equipping capital outlay projects for educational purposes in Richmond
County and paying certain costs and expenses relating to the issuance of the bonds,
Note 12: ACCUMULATED EMPLOYEES' LEAVE
Administrative and other clerical personnel earn two days of vacation each month with a maximum
accumulation of twenty-four days less required vacation days to be taken during the year.
Maintenance and other twelve-month employees earn vacation leave ranging from ten days to
twenty-four days per year depending upon the employee's length of service with a maximum
accumulation of22 days. Vacation leave vests with the employee and unused accumulated vacation
leave up to the maximum accumulation is paid at the current rate of pay, to employees upon
retirement or termination of employment. See Note 1 - Compensated Absences
Note 13: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS 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 separa~e stand alone financial audit report and a copy can be obtained
from the Georgia Department of Audits and Accounts.
- 22 -
.
RICHMOND COUNTY BOARD OF EDUCATION' EXHffiIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 13: RETIREMENT PLANS
TRS CONTRIBUTIONS REQUIRED AND MADE
Employees of the School District who are covered by TRS are required by State statute to contribute
5% of their gross earnings to TRS. The School District makes monthly employer contributions to
TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised
by their independent actuary. The required employer contribution rate is 11.29% and employer
contributions for the current fiscal year and the preceding two fiscal years are as follows:
Percentage Required
Fiscal Year Contributed Contribution
2001 100% $14,559,150.00
2000 100% $14,016,137.79
1999 100% $14,315,192.29
- 23 -
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
SPECIAL REVENUE FUND
JUNE 30, 2001
ASSETS
SCHOOL
FOOD
SERVICES LOTTERY FEDERAL
FUND PROGRAMS PROGRAMS
$ 6,268,607,56 $ 347.853.05
248,109.70 242,460.25 $ 3,774,842.40
Cash and Cash Equivalents
Accounts Receivable
Inventories
Consumable Supplies
Food
Donated Commodities
Purchased Food
135,351.52
138,233,93
Total Assets
$
6,790,302.71 $
590,313.30 $
3,774,842.40
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft $ 2,543,994.14
Accounts Payable $ 256,115.13 $ 130,986.90 282,608.67
Salaries Payable 742,254.01 459,326.40 947,379.59
Expired Grant Balances Payable 860.00
Total Liabilities $ 998,369.14 $ 590,313.30 $ 3,774,842.40
FUND EQUITY
Fund Balances
Reserved
For Continuation of Federal Programs
For Encumbrances
For Inventories
Consumable Supplies
Food
Donated Commodities $ 135,351.52
Purchased Food 138,233.93
Unreserved
Undesignated 5,518,348.12 $ 0.00 $ 0,00
Total Fund Equity $ 5,791,933.57 $ 0.00 $ 0.00
Total Liabilities and Fund Equity
'$
6,790,302;71 $
590,313.30 $
3,774,842.40
See notes to the general-purpose financial statements.
- 24-
EXHIBIT "E"
OTHER ATHLETIC TOTALS
PROGRAMS FUND JUNE 30, 2001 JUNE 30, 2000
$ 1,319,89 $ 288,012.12 $ 6,905,792.62 $ 6,093,349.53
4,265,412.35 4,125,608.87
51,111.53 51,111.53 39,071.37
135,351.52 142,661.14
138,233,93 127,054.25
$
1,319.89 $
339,123.65 $ 11,495,901.95 $ 10,527,745.16
$ 2,543,994.14 $ 2,292,276.97
669,710.70 613,568.93
2,148,960.00 2,259,970.51
860,00 38,050.39
$ 5,363,524.84 $ 5,203,866.80
$ 149.24
$ 97,971.69 $ 97,971.69 119,059.87
51,111.53 51,111.53 39,071.37
135,351.52 142,661.14
138,233.93 127,054.25
$ 1,319.89 190,040.43 5,709,708.44 4,895,882.49
$ 1,319,89 $ 339,123,65 $ 6,132,377,11 $ 5,323,878.36
$
1,319.89 $
339,123.65 $ 11,495,901.95 $ 10,527,745,16
- 25-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2001
SCHOOL
FOOD
SERVICES LOTTERY FEDERAL
FUND PROGRAMS PROGRAMS
REVENUES
State Funds $ 1,010,054.00 $ 4,551,157.23 $ 2,484,185,69
Federal Funds 10,353,378,01 14,139,003,32
Other Funds 2,878,843.07
Total Revenues $ . 14,242,275.08 $ 4,551,157.23 $ 16,623,189.01
EXPENDITURES
Current
Instruction $ 3,253,485.91 $ 11,848,245,14
Support Services
Pupil Services 497,664.02 1,759,637.99
Improvement of Instructional Services 18,196.62 2,089,600.14
Educational Media Services 614,537.00
General Administration $ 6,973,99 342,305.32
School Administration 231.515.03
Maintenance and Operation of Plant 71,046.00 139,734.25 237,820,04
Student Transportation Services 27,539.43 52,388,17
Central Support Services 170.47
Other Support Services 43,968,51
Food Services Operation 13,022,408.81 1,632.29
Community Services Operations 315,962.12
Debt Service
Principal 14,068.40
Interest 1,986.75
Total Expenditures $ 13,416,390.92 $ 4,551.157.23 $ 16,623,338.25
Excess of Revenues over (under) Expenditures $ 825,884.16 $ 0.00 $ -149.24
OTHER FINANCING SOURCES (USES)
Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 825,884,16 $ 0.00 $ -149.24
FUND BALANCE JULY 1 4,962,179.35 0.00 149.24
Food Inventory - Net Change in Period
Donated Commodities -7,309.62
Purchased Food 11,179,68
FUND BALANCE JUNE 30
$
5,791,933.57 $
0.00 $
0.00
See notes to the general-purpose financial statements,
- 26-
EXHIBIT "F"
OTHER
PROGRAMS
ATHLETIC
FUND
TOTALS
YEAR ENDED
JUNE 30, 2001 JUNE 30, 2000
$ 8,045,396,92 $ 9,158,548.29
24,492,381.33 22,731,774.33
$ 77,095.28 $ 354,414.22 3,310,352.57 3,433,178.66
$ 77,095.28 $ 354,414.22 $ 35,848,130.82 $ 35,323,501,28
$ 77 ,485.28 $ 15,179,216.33 $ 14,458,253.80
$ 357,166.48 2,614,468,49 3,485,973.33
2,107,796.76 1,441,259.29
614,537.00 809,473.54
349,279.31 329,097,96
231,515.03 60,787,65
257,363,97 705,964.26 542,177.96
79,927.60 22,730.03
170.47
43,968.51 318,314,00
13,024,041.10 13,036,644.58
315,962,12 264,619.33
14,068.40 13,462,37
1 ,986.75 2,592.78
$ 77 ,485,28 $ 614,530.45 $ 35,282,902.13 $ 34,785,386.62
$ -390.00 $ -260,116.23 $ 565,228,69 $ 538.114,66
$ 239,400.00 $ 239,400.00 $ 267,600.00
-146,413,24
$ 239,400.00 $ 239,400,00 $ 121 ,186.76
$ -390.00 $ -20,716.23 $ 804,628.69 $ 659,301.42
1,709.89 359,839.88 5,323,878.36 4,624,193.59
-7,309.62 31,075.98
11,179.68 9,307,37
$
1,319.89 $
339,123.65 $
6,132,377.11 $
5.323,878.36
- 27-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND
JUNE 30, 2001
ASSETS
REGULAR
BOND
PROCEEDS
Cash and Cash Equivalents
$
0.00 $
1,349,736.12
Investments
1,601,040.45
Accounts Receivable
Due from Other Funds
Total Assets
$
0.00 $
2,950,776.57
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft
Accounts Payable $ 20,423.10
Short-Term Debt
Contracts Payable 354,868.50
Retainages Payable 398,027.26
Total Liabilities $ 773,318.86
FUND EQUITY
Fund Balances
Reserved
For Arbitrage Rebate Tax $ 920,175.00
For Purposes of Bond Issue 1,257.282.71
For SPLOST Projects
For State Capital Outlay Projects
Unreserved
Undesignated $ 0,00 0.00
Total Fund Equity $ 0,00 $ 2,177,457.71
Total Liabilities and Fund Equity
$
0,00 $
2,950,776,57
See notes to the general-purpose financial statements.
- 28 -
EXHIBIT "G"
GEORGIA STATE SPECIAL
FINANCING AND PURPOSE
INVESTMENT LOCAL OPTION TOTALS
COMMISSION SALES TAX JUNE 30, 2001 JUNE 30, 2000
$ 1,349,736.12 $ 1,565,115.05
$ 42,280,880.23 43,881,920.68 42,297,217.07
$ 931,467.60 5,727,280.51 6,658,748.11 5,864,002,62
260,092.90 260,092.90
$ 931,467,60 $ 48,268,253.64 $ 52,150,497.81 $ 49,726,334.74
$ 427,875,69 $ 946,042.64 $ 1,373,918.33
14,615.22 35,038.32 $ 3,183.52
13,000,000.00 13,000,000.00
10,200.77 365,069.27 3,226,378.47
339,243.84 737,271.10 1,864,318.79
$ 791 ,935,52 $ 13,946,042.64 $ 15,511 ,297,02 $ 5,093,880.78
$ 920,175,00 $ 920,175.00
1,257,282.71 10,561,573.52
$ 34,322,211.00 34,322,211.00 27,388,291,64
$ 139,532.08 139,532,08 5,679,511.40
0,00 0.00 0,00 82,902.40
$ 139,532.08 $ 34,322,211.00 $ 36,639,200,79 $ 44,632,453.96
$ 931 ,467.60 $ 48,268.253.64 $ 52,150,497.81 $ 49,726,334.74
- 29-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2001
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements,
- 30 -
$
0,00 $
2,177,457.71
EXHIBIT "H"
GEORGIA STATE
FINANCING AND
INVESTMENT
COMMISSION
SPECIAL
PURPOSE
LOCAL OPTION
SALES TAX
TOTALS
YEAR ENDED
JUNE 30, 2001 JUNE 30, 2000
$ 5,201,297.51 $ 5,201,297.51 $ 4,113,378.49
$ 9,408,022,96 9,408,022.96 27,066,461.23
1 ,820,784,68 2,727,130.46 2,617,298,56
$ 5,201 ,297.51 $ 11 ,228,807,64 $ 17,336,450,93 $ 33,797,138.28
$ 100,000.00 $ 100,000.00
237,589.50 395,820.88 $ 803,644.85
$ 13,501,111.99 298,705,05 23,796,030.55 33,485,908.77
6,839.56 84,287.00 982,242.55 2,346,016.03
$ 13,507,951.55 $ 720,581.55 $ 25,274,093.98 $ 36,635,569,65
$ -8,306,654.04 $ 10,508,226.09 $ -7 ,937 ,643.05 $ -2,838,431.37
$ 2,766,674,72 $ 3,471,702.01 $ 414,419.86
$ -3,474,306.73 -3,527,312.13 -201,065,09
$ 2,766,674,72 $ -3,474,306.73 $ -55,610,12 $ 213,354.77
$ -5,539,979,32 $ 7,033,919.36 $ -7,993,253,17 $ -2,625,076.60
5,679,511.40 27,288,291.64 44,632,453.96 47,257,530.56
$ 139,532.08 $ 34,322,211.00 $ 36,639,200.79 $ 44,632,453.96
- 31 -
,
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
DEBT SERVICE FUND
JUNE 30, 2001
EXHIBIT "I"
ASSETS
SPECIAL
PROPERTY PURPOSE
TAXES FOR LOCAL OPTION TOTALS
BOND DEBT SALES TAX JUNE 30, 2001 JUNE 30, 2000
$ 4,205,871.82 $ 0.00 $ 4.205,871.82 $ 6,584,098.02
2,613.98 2,613.98 2,836,61
162,318.59 162,318.59 176,943,81
Cash and Cash Equivalents
Investments
Accounts Receivable
Total Assets
$ 4,370,804,39 $
0.00 $ 4,370,804,39 $ 6,763,878.44
Total Liabilities and Fund Equity
$ 4,370,804.39 $
0.00 $ 4,370,804.39 $ 6,763,878.44
See notes to the general-purpose financial statements.
- 32-
.
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "J"
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30. 2001
FUND BALANCE JUNE 30
$ 4,208,201.98 $
0.00 $ 4,208,201.98 $ 6,763,878,44
See notes to the general-purpose financial statements.
- 33-
ASSETS
Cash and Cash Equivalents
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
FIDUCIARY FUND TYPES
JUNE 30, 2001
DAVIDSON
TRUST
FUND
$
37,037,99 $
LIABILITIES AND FUND EQUITY
LIABILITIES
Funds Held for Others
FUND EQUITY
Fund Balances
Unreserved
Undesignated
$
37,037.99 $
Total Liabilities and Fund Equity
$
37,037.99 $
See notes to the general-purpose financial statements.
- 34 -
EXPENDABLE TRUST FUNDS
GAIL NORA
HENDRICKS COXWELL
SCHOLARSHIP SCHOLARSHIP
FUND FUND
7,397.47 $
28,200.41
7,397.47 $
28,200.41
7,397.47 $
28,200.41
ROBETTA
MCKENZIE
SCHOLARSHIP
FUND
$
877.25 $
$
877.25
$
877.25 $
EXHIBIT "K"
TOTALS
AGENCY FUNDS JUNE 30, 2001 JUNE 30, 2000
38,215.68 $
111 ,728.80 $
$
38,215.68 $
38,215.68 $
0.00
73,513.12
38,215.68 $
111 ,728.80 $
- 35-
97,617.84
34,534.43
63,083.41
97,617.84
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2001
FUND BALANCE JUNE 30
$
37,037.99 $
7,397.47
See notes to the general-purpose financial statements,
- 36-
NORA
COXWELL
SCHOLARSHIP
FUND
$
1,598.95 $
$
0.00 $
$
1,598,95 $
26,601.46
$
28,200.41 $
ROBETTA
MCKENZIE
SCHOLARSHIP
FUND
49,73 $,
0.00 $
49.73 $
827.52
877.25 $
EXHIBIT "L"
TOTALS
YEAR ENDED
JUNE 30, 2001 JUNE 30, 2000
10,804.71 $
375.00 $
3,417.51
0,00
3,417.51
10,429.71 $
63,083.41
73,513,12 $
- 37 -
59,665,90
63,083.41
,
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS
YEAR ENDED JUNE 30: 2001
EXHIBIT "M"
BALANCE BALANCE
JULY 1, 2000 ADDITIONS DEDUCTIONS JUNE 30, 2001
COHEN, COLONEL CLARENCE H:, R.O.T.C,
AWARD FUND
ASSETS
Cash and Cash Equivalents $ 796,54 $ 46.29 $ 0.00 $ 842,83
LIABILITIES
Funds Held for Others
$
796.54 $
46.29 $
0,00 $
842.83
PERFORMANCE BONDS
ASSETS
Cash and Cash Equivalents
$
33,737.89 $ 20,914.21 $
17,279.25 $
37,372,85
LIABILITIES
Funds Held for Others
$
33,737.89 $ 20,914.21 $
17,279.25 $
37 ,372.85
TOTALS - AGENCY FUNDS
ASSETS
Cash and Cash Equivalents
$
34,534,43 $ 20,960.50 $
17.279,25 $
38,215,68
LIABILITIES
Funds Held for Others
$
34,534.43 $ 20,960,50 $
17,279.25 $
38,215.68
See notes to the general-purpose financial statements.
- 38-
,
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001
SCHEDULE "1"
PASS-
THROUGH
ENTITY FEDERAL
FUNDING AGENCY CFDA ID REVENUE EXPENDITURES
PROGRAM/GRANT NUMBER NUMBER IN PERIOD IN PERIOD
Agriculture, U, S, Department of
Child Nutrition Cluster
Pass-Through From Georgia Department of Education
Food and Nutrition Program
Food Services
School Breakfast Program 10.553 N/A $ 1,920,670.48 (2)
National School Lunch Program 10,555 N/A 7,339,794,70 $ 12,377,201.03 (3)
Pass-Through From Office of School Readiness
Summer Food Service Program for Children 10,559 N/A 340,610.76 340,610,76
Total Child Nutrition Cluster $ 9,601,075.94 $ 12,717.811,79
Other Programs
Pass-Through From Georgia Department of Education
Food and Nutrition Program
Food Distribution Program (1) 10.550 NJA 698,579,13 698.579.13
Pass-Through From Office of School Readiness
Food and Nutrition Program
Child and Adult Care Food Program 10,558 N/A 53,722.94 (2)
Total U, S. Department of Agriculture $ 10,353,378.01 $ 13,416,390,92
Education, U. S, Department of
Special Education Cluster
Pass- Through From Georgia Department of Education
Individuals with Disabilities Education Act
Part B - Special Education
Capacity Building Improvement Grant 84,173 N/A $ 92,075.00 $ 92,075.00
Flow Through 84,027 N/A 2.298,632,59 2,298,632.59
Georgia Leaming Resources System 84,027 N/A 149,984,62 149,984.62
Preschool 84,173 N/A 138,782.45 138.782.45
Severely Emotionally Disturbed 84,027 N/A 193,734.82 193,734.82
Total Special Education Cluster $ 2,873,209,48 $ 2.873,209.48
Other Programs
Direct
Impact Aid 84,041 756,917.77 (5)
Pass-Through From Georgia Department of Education
Comprehensive School Reform Demonstration Project 84.332 N/A 68,250.00 68.399,24
Elementary and Secondary Education Act
Title I
Accountability Grants 84,348 N/A 342,989.00 342,989.00
Grants to Local Educational Agencies 84,010 NJA 8,463,427.77 8,463,427.77
Title II
Eisenhower Professional Development 84.281 NJA 255,859,17 255,859.17
Title III
Technology Literacy Challenge Fund Grants 84,318 N/A 141.230.49 141.230.49
Title VI
Innovative Education Program Strategies 84.298 N/A 270,322,61 270,322,61
Class Size Reduction 84.340 N/A 1,010,919.93 1,010,919.93
Safe and Drug-Free Schools and Communities 84,186 N/A 137,893,44 137.893.44
Stewart B. McKinney Homeless Assistance Act
Education for Homeless Children and Youth 84.196 N/A 12,235,06 12.235.06
Vocational Education. Basic Grants to States
High School Program
Basic Grant 84,048 N/A 433,644,17 433,644,17
Total U. S, Department of Education $ 14,766,898,89 $ 14,010,130.36
.39 -
'.
.
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001
SCHEDULE "1"
FUNDING AGENCY
PROGRAM/GRANT
PASS-
THROUGH
ENTITY
ID
NUMBER
FEDERAL
REVENUE
IN PERIOD
EXPENDITURES
IN PERIOD
CFDA
NUMBER
Health and Human Services, U, S. Department of
Pass-Through Georgia Department of Human Resources
Block Grants for Prevention and Treatment of Substance
Abuse
Grant-in-Aid
93.959
N/A
$
79.952.57
(4)
Justice, U, S. Department of
Pass-Through From Richmond County Board of
Commissioners
Juvenile Delinquency Prevention and Intervention
16,548
N/A
$
17.126,93 $
17,126,93
Labor. U, S. Department of
Pass-Through From Richmond/Burke Job Training
Authority
Job Training Partnership Act
08-00-20-11-245
17 .250
N/A
$
111.895.27 $
111,895.27
OTHER FEDERAL ASSISTANCE
Defense. U, S, Department of
Direct
Defense Activity for Non-Traditional Support
Troops to Teachers
Department of the Air Force
ROTC. Program
Department of the Army
ROTC, Program
Department of the Marines
ROTC. Program
Department of the Navy
RO,T.C. Program
$
36,713.62 (4)
49,332,50 (4)
180,508.20 (4)
38,097,98 (4)
160.103.77 (4)
464,756.07
Total U, S. Department of Defense
$
Total Federal Financial Assistance
$ 25,794,007.74 $
27.555,543.48
N/A = Not Available
Notes to the Schedule of Exoenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federaliy assigned value of nonmonetary
assistance for donated commodities received and/or consumed by the system during the current fiscal year.
Commodities from U, S. Department of Defense for fresh produce valued in the amount of $140.000,00 were received
during the current fiscal year and were not recorded in the School District's financial statements,
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained
separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds,
Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source,
(5) Funds earned on this program do not require reporting of expenditures,
Major Programs are identified by an asterisk n in front of the CFDA number.
The School District did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the
Richmond 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,
See notes to the general-purpose financial statements,
- 40-
AGENCY/FUNDING
GRANTS
Community Affairs, Georgia Department of
Governor's Emergency Funds (1)
Local Assistance Grants
.
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2001
SCHEDULE '2"
, GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
REVENUE PROJECTS
FUND FUND
GENERAL
FUND
TOTAL
$
2,479,00
126,340,19
$
2,479,00
126,340,19
Education, Georgia Department of
Quality Basic Education
Direct Instructional Cost
Kindergarten Program
Kindergarten Program - Early Intervention Program
Primary Grades (1-3) Program
Primary Grades - Early Intervention (1-3) Program
Upper Elementary Grades (4-5) Program
Middle Grades (6-8) Program
Middle School (6-8) Program
High School General Education (9.12) Program
Vocational Laboratory (9-12) Program
Students with Disabilities
Category I
Category II
Category III
Category IV
Gifted Student - Category VI
Remedial Education Program
Alternative Education Program
English Speakers of Other Languages (ESOL)
Media Center Program
Staff and Professional Development
Indirect Cost
Categorical Grants
Pupil Transpo'rtation
Regular
Bus Replacement
Nursing Services
Principal Supplements
Vocational Supervisors
Mid-term Adjustment Hold-Harmless
Education Equalization Funding Grant
Food Services
Vocational Education
Other State Programs
Apprenticeship Program
At-Risk Summer School Program
Environmental Science Program
Georgia Learning Resources System
Health Insurance
Innovative Programs
Mentoring Program
Mentor Teachers
PayforPertormance
Preschool Handicapped Program
'Remedial Summer School
Severely Emotionally Disturbed
Statewide Local Education Improvement
Teachers' Retirement
Lottery Programs
Computers in the Classroom
Georgia Public Safety Training Center
Law Enforcement Training Center
6,262,607.00 6,262,607.00
1,800,050.00 1,800,05000
18,566,565,00 18,566,565,00
4,594,319,00 4,594,319,00
10,303,272.00 10,303,272,00
1,250,060,00 1.250,060,00
17,241,417.00 17,241,417.00
16,619,593,00 16,619,593,00
3,330,209.00 3,330,209,00
525,190,00 525,190.00
2,944.256.00 2,944,256,00
5.200,026,00 5,200,026,00
623,909,00 623,909.00
358,763.00 358,763,00
1,581,352.00 1,581,352,00
1,407,713,00 1,407,713.00
164,763.00 164,763,00
3,061,819,00 3,061,819.00
821,374,00 821,374,00
19,049,370,00 19,049,370,00
2,623,752.00 2,623,752,00
587,117,00 587,117.00
665,974,00 665,974,00
141,311,00 141,311,00
135,726,00 135,726,00
1,468,846,00 1,468,846,00
9,975,758,00 9,975,758.00
$ 1,010,054,00 1,010,054,00
240,421.17 240.421,17
65,000.00 65,000.00
75,303,32 75,303,32
2,250,00 2,250,00
103,368.00 103,368.00
2,401,533.40 2,401,533,40
5,000,00 5,000.00
6,790.28 6,790.28
25,917,00 25,917,00
224,088.46 224,088.46
565.453.00 565.453,00
53,378.69 53,378,69
2,380,817,69 2,380.817.69
8,379,00 8,379,00
211.405,98 211,405,98
744,537.00 744,537,00
237,559,72 237,559,72
-41 -
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2001
AGENCY/FUNDING
GENERAL
FUND
GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
REVENUE PROJECTS
FUND FUND
GRANTS
Georgia State Financing and Investment
Commission
Reimbursement on Construction Projects
Office of School Readiness
Pre-Kindergarten Program
Office of Treasury and Fiscal Services
Public School Employees Retirement
$
512,668,00
CONTRACTS
Education, Georgia Department of
Foreign Language Program
Georgia's Reading Challenge
Reading First Program
26,651,00
234,452 78
659,061,22
Office of Planning and Budget
Georgia Council for the Arts
Georgia Challenge Program
32,634,23
OTHER
Education. Georgia Department of
Reimbursement for Teacher Substitute
Special Education Administrator's Conference
516,65
420,00
SCHEDULE "2"
TOTAL
5,201,297,51
3.606.620,23
512,666,00
26,651.00
234,452,78
659,061,22
32.834,23
518,65
420,00
$ 137,023,016,29 $ 8,045,396.92 $ 5,201.297.51 $ 150.269.710,72
$ 5,201.297,51 $
$ 3,606,620,23
(1) The purpose of the funds are to provide funds for the purchase of a bronze plaque to honor the retiring principal of
John S Davidson Fine Arts Magnet School.
See notes to the general-purpose financial statements,
- 42-
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001
PROJECT
ORIGINAL
ESTIMATED
COST (1)
CURRENT
ESTIMATED
COSTS (2)
The general obligation debt of the
district will be retired from the proceeds
of the special use tax, This will
include a large portion of the bond
issue of $115,000,000,00 entitled
"Richmond County General Obligation
School Bond Series 1996" and certain
other previously outstanding general
obligation bonds at an estimated cost
of $124.150,000,00. The principal and
interest on these bonds come due on
May 1 st and November 1 st of each
year. May 1, 1998, will be the first
time the principal will come due to be
retired, in part, by the sales tax,
AMOUNT
EXPENDED
IN CURRENT
YEAR (3)
AMOUNT
EXPENDED
IN PRIOR
YEARS (3)
$ 124.155,000.00 $ 124,755,000.00 $ 22,448,227.50 $ 61,184.266,78
The school board will construct. as
provided in the election, a middle
school and/or an elementary school,
which expenditures shall include
acquiring, constructing and equipping
these school buildings, In addition, to
the construction of the middle and/or
elementary school, the special sales
tax shall be utilized to renovate, repair,
improve and equip existing school
buildings and other buildings and
facilities.
25,245,000,00
25,245,000,00
15,784,419.00
509,481.14
$ 150,000,000.00 $ 150,000,000.00 $ 38.232,646.50 $ 61,693.147.92
(1) The School District's original cost estimate as specified in the resolution calling for the Imposition of the Local Option
Sales Tax,
(2) The School District's current estimate of total cost for the projects, Includes all cost from project inception to completion.
(3) The voters of Richmond County approved the impoSition of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property
taxes and/or other funds over the life of the projects.
See notes to the general-purpose financial statements,
- 43-
SCHEDULE "3"
PROJECT
STATUS
Ongoing
Ongoing
"-
RICHMOND COUNTY BOARD OF EDUCATION
GENERAL FUND - OUALlTY BASIC EDUCATION PROGRAM IOBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30. 2001
SCHEDULE "4"
TOTAL OBE FORMULA FUNDS
$
110,761,066,00 $ 120,312,552.03 $ 4,657.433,68 $ 124.969.985,71
(1) Comprised of State Funds plus Local Five Mill Share.
See notes to the general-purpose financial statements,
- 44-
.
RICHMOND COUNTY BOARD OF EDUCATION
GENERAL FUND - OUALlTY BASIC EDUCATION PROGRAM COBE)
ALLOTMENTS AND EXPENDITURES - BY SITE .
YEAR ENDED JUNE 30 2001
SCHEDULE "5"
ALLOTMENTS
FROM GEORGIA ELIGIBLE OBE
DEPARTMENT OF PROGRAM
SITE EDUCATION (1) COSTS
Cross Creek High School $ 3,305,005.00 S 3,927,045.74
Craig-Houghton Elementary School 1,601,66
Meadowbrook Elementary School 2,328,914.00 2,241,801,84
Morgan Road Middle School 2,438,774.00 2,722,175.56
Jamestown Elementary School 2,565,298.00 2,512,864,82
Collins Elementary School 1,662,002.00 1,781,838.47
Goshen Elementary School 1,961,217.00 1,988,030,32
Glenn Hills Middle School 3,001,751,00 3,529,400,29
Foreman Elementary School 2,298,738,00 2,280,834.21
Tobacco Road Elementary School 2,111,011.00 2,217,105,55
McBean Elementary School 1,486,312,00 1,638,362.13
Lake Forest Hills Elementary School 1,822,908,00 2,213,955,00
Spirit Creek Middle School 2,466,816.00 2,677,870,31
Buller High School 3,465,851.00 4,127,496.62
Garrett Elementary School 1,033,969,00 1,163,775,44
Hephzibah Elementary School 1,369,861,00 1,405,560.18
Langford Middle School 1,790,397.00 2,271,112.99
National Hills Elementary School 648,532,00 794,872. 19
Rollins Elementary School 1,562,108,00 1,606,593.10
Walker Traditional Elementary School 2,028,411,00 2,188,948.97
Windsor Spring Road Elementary School 2,310,683,00 2,400,125.65
Hephzibah Middle School 2,654,412,00 2,794,291.17
Barton Chapel Elementary School 1,900,635.00 1,852,412.58
Copeland Elementary School 1,424,422.00 1,528,295,12
Glenn Hills Elementary School 1,706,066,00 1,771,415,15
Hephzibah High Scllool 3,311,519,00 4,079,284.21
Merry Elementary School 1,477,168.00 1,660,574,78
Warren Road Elementary School 1,546,964,00 1,617,807,20
Craig Elementary School 1,143,865.00 1,353,502.23
Homsby Elementary School 1,123,120.00 1,078,641,61
East Augusta Middle School 1 :550,044.00 1,870,556.01
Westside High School 2,344,691.00 3,136,990.47
Bayvale Elementary Schoel 1,465,615,00 1,511,188.24
Glenn Hills High School 3,405,604.00 4,041.951.97
Houghton Elementary School 937,042,00 844,967.56
Milledge Elementary School 1,145,408,00 1.119,971.15
Reynolds Elementary School 1,244,182.00 1,315,713.42
Sego Middle School 2,639,825.00 2,906,066.98
Jenkins Elementary School 356,409,00 407,411,31
Johnson Magnet 1,234,824.00 1,742.784,45
Josey High School 3,338.012.00 4,214,188,78
Blythe Elementary School 1,318,223.00 1,427,477.73
Gracewood Elementary School 1,399.249.00 1,431,681,20
Lamar Elementary School 1,358,516.00 1,355,070.74
Monte Sano Elementary School 1,261.395.00 1,312,785,20
Academy of Richmond County High School 3,118,070.00 3,964,256.11
Southside Elementary School 1,385,986.00 1,431,424.63
Wheeless Road Elementary School 1,771,091.00 1,865,014.84
Davidson Magnet School 1,992,764.00 2,589,962,66
Terrace Manor Elementary School 1,765,237,00 1,707,994.27
Bungalow Road Elementary School 1,327,108.00 1,308,782.22
Hains Elementary School 1,147,091.00 1,034,407.01
Murphey Middle School 2,032.497.00 2,270,707.78
Tubman Middle School 1,884,232.00 2,271,732,14
Wilkinson Gardens Elementary School 1,450,282,00 1,386,129,89
Tult Middle School 1,773,134.00 2,075,609.08
Laney High School 2,104,877.00 2,792,106.42
Sand Hills Psychoeducational Program 4,108.99
Richmond County Alternative School 1,126,388,14
Central Office (Altemative Education Program) 1,613,121.00 1 ,034,213,10
TOTAL $ 106,311,258.00 $ 118,929,237.58
(1) Comprised of State Funds plus Local Five Mill Share,
See notes to the general-purpose financial statements,
- 45-
SECTION IT
COMPLIANCE AND INTERNAL CONTROL REPORTS
DEPARTl\1ENT OF AUDITS AND ACCOUNTS
254 Wa~hington Street. S.W., Suite 214
Atl:.lnta. Georgia 30334-X400
RtISSEJ.J. \V. HIl\TON
STATE AUDITOR
1404\ 656.2174
February 14,2002
Honorable Roy E. Barnes, Governor
Members of the General Assembly
Members of the State Board of Education
and
Superintendent and Members of the
Richmond County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE \VITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Richmond County Board of Education as of and for the
year ended June 30, 2001, and have issued our report thereon dated February 14,2002. This report
was qualified for a scope limitation and for various departures from generally accepted accounting
principles, as identified in the auditor's report on the general-purpose financial statements. Except as
discussed in the following paragraph, 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.
We did not observe the taking ofthe consumable supplies inventory at June 30, 2001, nor could we
satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative
procedures.
Compliance
As part of obtaining reasonable assurance about whether Richmond 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 of our tests disclosed no instances of noncompliance
that are required to be reported under Government Auditing Standards.
2001 YB-41
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Richmond 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
control over financial reporting.' However, we noted a certain matter involving the internal control
over financial reporting and its operation that we consider to be a reportable condition. Reportable
conditions involve matters coming to our attention relating to significant deficiencies in the design or
operation of the internal control over financial reporting that, in our judgment, could adversely affect
Richmond County Board of Education's ability to record, process, summarize and report financial
data consistent with assertions of management in the financial statements. The reportable condition
is described in the accompanying Schedule of Findings and Questioned Costs as item FS- 7211-01-
01.
A material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that misstatements in amounts
that would be material in relation to thetinancial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned
functions. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control that might be reportable conditions and, accordingly,
would not necessarily disclose all reportable conditions that are also considered to be material
weaknesses. However, we consider item FS-7211-0 I-a I to be a material weakness.
This report is intended solely for the information and use of the management, members of the
Richmond 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.
espectfully submitted,
~~
R sell W. Hinton
State Auditor
RWH:gp
200 I YB-41
DEPARTMENT OF AUDITS AND ACCOUNTS
254 WashillgLOIl Slrcct. S,W.. Suitc 214
Atlanta, Georgia 30334-X4()()
RUSSELL \V. HI:\TON
STATE AUDITOR
(404) 656.2174
February 14, 2002
Honorable Roy E, Barnes, Governor
Members of the General ,Assembly
Members of the State Board of Education
and
Superintendent and Members of the
Richmond County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR
PROGRAM AND ON lNTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Richmond County Board of Education with the types of
compliance requirements described in the u.s. Office of Management and Budget (OMB) Circular
A -133 Compliance Supplement that are applicable to each of its major Federal programs for the year
ended June 30,2001. Richmond County Board of Education's major Federal programs are identified
in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and
Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants
applicable to each of its major Federal programs is the responsibility of Richmond County Board of
Education's management. Our responsibility is to express an ppinion on Richmond County Board of
Education's compliance based on our audit. '
We 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 OMB Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and
OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance
about whether noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major Federal program occurred. An audit includes examining,
on a test basis, evidence about the Richmond 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 Richmond County Board of Education's compliance with those requirements.
2001 SA-l 0
In our opinion, the Richmond County Board of Education complied, in all material respects, with the
requirements.referred to above that are applicable to each of its major Federal programs for the year
ended June 30, 2001.
Internal Control Over Compliance
The management of Richmond 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 Richmond County Board of Education's internal control over compliance with
requirements that could have a direct and material effect on a major Federal program in order to
detennine our auditing procedures for the purpose of expressing our opinion on compliance and to
test and report on internal control over compliance in accordance withOMB Circular A-I33.
Our consideration of the internal control over compliance would not necessarily disclose all matters
in the internal control that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to a
relatively low level of risk that noncompliance with applicable requirements of laws, regulations,
contracts and grants that would be material in relation to a major Federal program being audited may
occur and not be detected within a timely period by employees in the normal course of performing
their assigned functions. We noted no matters involving the internal control over compliance and its
operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the
Richmond 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.
espectfully submitted,
I ~4~~~
Ru ell W. Hinton
State Auditor
R WH:gp
200ISA-IO
.,
SECTION ill
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
RICHMOND COUNTY BOARD OF EDUCATION
AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200 1
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
FINDING CONTROL NUMBER AND STATUS
FS-7211-99-02
FS- 7211-00-01
No Further Action Warranted
Unresolved - See Corrective Action/Responses
CORRECTIVE ACTIONIRESPONSES
GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group
Finding Control Number: FS- 7211-00-01
The Richmond County Board of Education does not maintain a system-wide General Fixed
Assets Account Group. The School District does maintain a fixed asset property listing for
all State and Federal Programs, a property inventory of all the schools' equipment as well
as a schedule of all buildings required for insurance purposes.
We have budgeted funds in the Fiscal Year 2002 budget to hire an outside firm to come in
and take an inventory of our general fixed assets. We plan to present a schedule of general
fixed assets in Fiscal Year 2002.
SECTION IV
FINDINGS AND QUESTIONED COSTS
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements
The auditor's opinion on the Richmond County Board of Education's financial statements
was qualified for a scope limitation and for various departures from generally accepted
accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements
The audit report for the Richmond County Board of Education disclosed a financial
statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness. ,
3. Noncompliance Material to the Financial Statements
The audit of the Richmond County Board of Education disclosed no instances of
noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs
The audit report for the Richmond County Board of Education did not disclose any
reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs
The auditor's opinion on the Richmond County Board of Education's report on compliance
with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported bv Section .510(a) ofOMB Circular A-133
The Richmond County Board of Education's audit did not disclose audit findings required,to
be reported by section .510(a) ofOMB Circular.A-133.
7, 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
10.559 Summer Food Service Program for Children
8. Type "A" Progr'am Dollar Threshold
The dollar threshold for type "A" programs was $828,225.30.
9. Low Risk Auditee
The Richmond County Board of Education qualified as a low risk auditee based on a waiver
granted by the U. S. Department of Education.
- 1 -
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200 I
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group
Reportable Condition - Material Weakness
Repeated From Prior Year
Finding Control Number; FS-7211-01-01
The Richmond 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 the maintenance of a General Fixed Assets Account Group. These subsidiary records
should include an inventory of land, buildings and equipment owned by the School District and
should include, but may not be limited to, date acquired, acquisition cost, estimated replacement
cost, location and description, Detailed records should be maintained of all additions and deletions
to the Generai Fixed Assets Account Group.
Management's Response:
The Richmond County Board of Education has hired an outside firm to take an inventory of our
general fixed assets. We will include general fixed assets within our formal accounting records
beginning with fiscal year 2002.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
- 2 -