Loading...
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 -