.~.:~~ ...." '::../~~ ~'~r''''1 ." .. ~ ' ... .JJ ' .. :.1,; " ,,'I~ ~,'. .. _.\~.: BANKS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS" SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES . ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 8 ADDmONAL FINANCIAL INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 20 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 22 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 24 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 25 I FIDUCIARY FUND TYPE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND 26 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 27 2 SCHEDULE OF STATE REVENUE 29 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 31 I " ... ';:~ '. I BANKS,COUNfY BOARD OF EDUCATION - TABLE OF CONTENTS - I SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM' . 32 ' 5 BY SITE 33 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVERCOMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR ~INGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV I FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL " ! ;ELL W. HINTON :iTATE AUDITOR (404) 656-2174 I I DEPARTMENT OF AUDITS AND ACCOUNTS I 254 WashinglOn Stre6t, S.W., Suite 214 Atlanta, Georgia 30334-8400 .. ..': ,-,. -~ Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Banks County Board ofEducation INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION ... SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS i Ladies and Gentlemen: I We have audited the accompanying general-purpose: financial statements ofthe Banks 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 Banks County Board ofEducation's art management. Our responsibility is to express opinion on these general-purpose financial statements based on our audit. I We conducted our audit in accordance with auditihg standards generally accepted in the United States ofAmerica and the standards applicable to fin~cial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe lJnited States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes eX$lining, 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 tnanagement, as well as evaluating the overall financial statement presentation. We belie,ve that our audit provides a reasonable basis for our opinion. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certainaccounting practices and policies which, in our opinion, vary in some respects from generally accep~ed accounting principles. These variances are described as follows: 2001ARL-13 * The general-purpose [mancial 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 schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be inch~ded in the general-purpose financial statements. I * The Board of Education did not recognize as expenditures, in the year ended I June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services comp~eted prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from ~e Georgia Department ofEducation 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 comp~eted prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To 9onform to generally accepted accounting . principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurreCt, 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. I . In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the finan~ial position ofthe Banks County Board ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in ~onformity with accounting principles generally accepted in the Uni~ed States of America. I I I In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2002, on our consideration ofthe Banks County Board ofEducation's internal control over financial reporting and our tests of its compliance with certait1. 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. : Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Banks County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expend,itures of Federal Awards as required by U. S. Office ofManagement and Budget Circular A-133,4udits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing 2001ARL-13 ,.1 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infonnation is fairly stated, in all material respects, in relation to the general-purpose;financial statements taken as a whole. I A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made I available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- 6-24. . ' Respectfully submitted, ill.~ R ell W. Hinton State Auditor RWH:gp 2001ARL-13 BANKS COUNTY BOARD OF EDUCATION i1 EXHIBIT "A" DEBT SERVICE FUND FIDUCIARY FUND TYPE AGENCY FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000 $ 1.850,979.73 $ 17,912.75 $ 3,348.783.53 $ 1,636,378.19 3,801.290.37 3,801.290.37 2,711,000.00 664.087.88 1.044,357.88 1.166.533.38 2.145.00 $ 6.316,357.98 10,171.35 3.232.47 6.316.357.98 10,035.09 3.709.06 4.116,273.75 233,642.02 135,341.59 233.642.02 135.341.59 2,693,72625 174.708.40 .$ 6.316,357.98 $ 17,912.75 $ 6,685,341.59 $ 14,893,177.19 $ 12,514,509.12 $ 151,579.89 $ 354,927.27 . 103.998.87 93,080.88 23.168.07 25,716.43 301.922.32 $ 17,912.75 17,912.75 22.135.64 $ 135.341.59 135,341.59 174,708.40 6,550,000.00 6,550,000.00 6,810,000.00 $ 17.912.75 $ 6,685.341.59 $ 6,982,001.17 $ 7,782,490.94 $ 6,316.357.98 0.00 $ 0.00 $ 6,316,357.98 $ 0.00 $ 35.661.24 $ 6.316.357.98 4,116,273.75 10.171.35 3,232.47 89,169.94 10.035.09 3.709.06 112,503.60 20,104.94 1,472,139.34 21,104.94 432,730.50 $ 7,911,176.02 $ 4,732,018.18 $ 6,316,357.98 $ 17,912.75 $ 6,685,341.59 $ 14,893,177.19 $ 12,514,509.12 -3- .l BANKS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration' School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Capital Outlay Debt Service Principal Interest Total expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases 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 FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 8,762,867.98 $ 15.39 4,586,555.05 316,016.81 $ 13,665,455.23 $ . 118,309.07 1,171,444.26 345,634.68 1,635,388.01 $ 8,437,695.53 $ 328,114.88 253,837.79 342,784.90 251,169.05 760,053.57 151.542.70 1',078,354.31 834,259.64 14,173.25 130.012,48 2.648.69 88,893.96 491,942.11 6,676.16 39,371.03 3,962.32 11,304.59 26,740.71 53,954.63 925,446.83 39,366.81 9,528.54 $ 12,722,436.10 . $ $ 943.019.13 $ 1,559,398.38 75,989.63 $ -16,261.06 $ -16,261.06 $ 926,758.07 $ 442.330.65 75,989.63 60,910.18 . -6,802.72 6,462.29 FUND BALANCE JUNE 30 $ 1,369,088.72 $ 136,559.38 The notes to the general-purposefinancial statements are an integral part of this statement. -4- EXHIBIT-B- CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 200.000.00 $ 9,081,1n.05 $ 7,812,310.47 1,171,459.65 1,082,537.22 $ 2.587.897.59 7,174,452.64 6,749.073.12 6,720.42 218,906.64 887,278.55 859,598.92 $ 206,720.42 $ 2,806,804.23 $ 18,314,367.89 $ 16,503,519.73 $ 8.929,637.64 $ 7,982.141.97 $ 246,315.14 334,791.04 293.208.82 346.747.22 262,473.64 760,053.57 151,542.70 1,078.354.31 861,000.35 14,173.25 183,967.11 928,095.52 88,893.96 246,315.14 495,733.91 273,216.99 322,609.19 257,892.66 668,860.41 145,450.84 952,658.84 648,137.91 12,255.40 170,269.59 986,458.53 72,682.46 1,357,476.03 $ 260,000.00 346,720.00 299,366.81 356,248.54 280,215.26 376,907.42 $ 246,315.14 $ 606,720.00 $ 15,134,869.62 $ 15,002,967.41 $ -39,594.72 $ 2,200,084.23 $ 3,179,498.27 $ 1,500,552.32 $ 16,261.06 $ 16,261.06 $ 52,472.48 $ 16,261,06 1,093,491.48 -16,261.06 -1,093,491.48 $ 0.00 $ 52,472.48 $ -23,333.66 $ 2,200,084.23 $ 3,179,498.27 $ 1,553,024.80 112,503.60 4,116,273.75 4,732,018.18 3,185,809.18 -6,802.72 6,462.29 -8,303.50 1,487.70 $ 89,169.94 $ 6,316,357.98 $ 7,911,176.02 $ 4,732,018.18 -5- BANKS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT C The notes to the general-purpose financial statements are an integral part of this statement. -7- BANKS COUNTY BOARD OF EDUCAnON EXHmIT "D" NOTES TO THE GENERAL-PURPOSE'FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Banks County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. Ari 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 ofpurchase. A General Fixed Assets Account Group is- not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 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 undercontrol 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: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. 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. - 8- BANKS cotJNrv BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 200i Note I: 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. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital, facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: AGENCY FUND - the fund used to acC01,lIlt 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 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 funds are accounted for, using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e:, expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and ~vailable). "Measurable" means the amount of the transaction can be determined and "available" neans collectible within the current period or soo~ enough thereafter to be used to pay liabilities of -9- BANKS COUNTY BOARD OF EDUCAnON EXHIDIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS , JUNE 30. 2001 Note 1: SUMMARY OF SIGNlFICANT ACCOUNTING POLICIES the current periqd. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales'taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal y(:ar 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 ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001.' Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of EducatIon to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe.twelve monthly payments, due for July and August 2001, had not been made. ,Payments for these two mont!ts 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 com. pleted prior.to June 30, 2000, were recorded in the year epded June 30, 2001. . Generally accepted accounting principles require that revenues be recorded when available and measurable ~d that expenditures be recorded when in. curred, rather than when ~ funds are received or disbursed. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. ' . . BUDGET The Banks County Board ofEducation's budget is a complete financial plan for the School District's fiscal. year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget . for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate,level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. - 10- , ~. BANKS COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in .authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to dePosit its funds in one or more solvent banks or insured Federal savings and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made .by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the Scllool District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State.of Geqrgia or by other states, (2) Obligations issued by the United states government, I (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 ofGeorgia, Office of Treasury and Fiscal Services, - 11 - BANKS COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (7) Repurchase agreements, and (8)' Obligations of other political subdivisions of the State of Georgia. RECEIVABLES . ' Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnation available. Receivables are recorded when either the asset or revenue' recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Banks County Board of Commissioners fixed the propertY tax levy for the 2000 tax year (calendar year) on November 13,2000 (levy date). Taxes were due on February 14, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Banks County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $4,560,941.33. The tax millage rate levied for the 2000 tax year (calendar year) for the Banks County Board of Education was as follows (a mill equ~ls $1 per thousand dollars of assessed value): School Operations 12.38 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,587,897.59 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $2,215,096.31 has been collected or on June 30, 2002, whichever occurs first. ' INVENTORIES FOOD INVENTORIES Inventories of donated food conunoditiesused in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet - 12 _. BANKS COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES to THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE ~O. 2001 , . 'Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 asse~s. GENERAL OBLIGATION BONDS , The School District issues general obligation, bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond pre~umsand discounts, as well as issuance costS, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General LOng-Term Debt Account Group. INTERFUND TRANSACTIONS The School District has the following types of iriterfund transactions: I Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions ofexpenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS I ,I 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 ofoperations ,in conformity with generally accepted accounting principles. Neither are such data comparable to':a consolidation. Interfund eliminations have not been made in the aggregation of this data. I Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time .longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value ofsuch surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public' funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 15-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case qfdperating funds placed in demand deposit checking accounts. :. - 13 - BANKS COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 . Note 2: DEPOSITS AC,ceptable security for deposits consi~ts 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 ofGeorgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, .. (3) Bonds, bills, notes, certificates of indebtedness or otherdirect obligations of the United . States or of the Stat~ of Georgia, (4) Bonds, bills, notes, certificates ofindebtedness 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.authoriied the use ofthe bonds for this purpose, (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. '. . CATEGORIZATION OF DEPOSITS At June 30, 2001, the baitk balances were $7,934,144.54. The amounts ofthe 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 witp 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 bankbalance 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'~ deposits are ciassified by risk category at June 30, 2001, as Iollows: - 14- BANKS COUNTY BOARD OF EDUCAnON EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS Risk Category Bank Balance 1 $ 5,752,234.15 2 2,181,910.39 3 0.00 Total $ 7,934,144.54 Note 3: NON-MONETARY TRANSACTIONS i 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. - Inventofies Note 4: RISK MANAGEMENT The School District is exposed to various risks: of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job rela;ted illness or injuries to employees; natural disaster and unemployment compensation. The School District has obtained commercial insUrance for risk ofloss associated with vehicles. In addition, the School District participates in th~ Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on accourtt of general liability, property damage, including safety engineering and other loss prevention and pontrol techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for p~operty, boiler and machinery, general liability (including coverage for sexual harassment, mQlestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthie past three years. The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. 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 ilie amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. ' - 15 - ,-----------~~~---~~----~ -- BANKS COUNTY BOARD OF EDUCAnON EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 4: RISK MANAGEMENT The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent Each Principal Financial Officer $ 5,000.00 .$ 5,000.00 ,$ 5,000.00 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Banks County Board of Education has entered into various lease agreements as lessee for football stadium lights and office equipment. These lease agreements qualIfy as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the qate of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government :- Series 1996 . 4.30% - 7.00% $ 6.550.000,00 . . . Thechanges in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: - 16- BANKS COUNTY BOARD OF EDUCATION EXHIDIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 I Note 5: GENERAL LONG-TERM DEBT C~pital , Leases General Obligation Bonds Total Balance July 1,2000 $ 174,708.40 $ 6,810,000.00 $ 6,984,708.40 Deductions . Debt Retired Balance June 30, 2001 I I 39,366.81' ,, I 260,000.00 299,366.81 I $ 13?.341.59 $ 6,550,000.00 $ 6,685.341.59 I At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: ' , I Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 Total Principal and Interest Deduct: Imputed Interest Capital Uases I $ , 49,202.73 44,134.01 42,249.45 15, ,057.00 I $ 150,643.19 i , 15.301.60 . General Obligation Bonds $ 599,820.00 603,210.00 600,670.00 602,395.00 603,135.00 3,059,857.50 3,746,757.50 $ 9,815,845.00 Total Debt $ 649,022.73 647,344.01 642,919.45 617,452.00 603,135.00 3,059,857.50 3,746,757.50 $ 9,966.488.19 Net Present Value ofFuture Minimum Lease ~aymeitts Note 6: SHORT-TERM DEBT $ 135.341.59 i The School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-t~rm debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, ParagraphV of me Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent :>fthe total gross income from taxes collected in ~e preceding year and requires all short-term debt '0 be repaid no later than December 31 of the cal~ndar year in which the debt was incurred. - 17 - ,--------~----~-~------- BANKS COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSEFINANCIAL STATEMENTS JUNE 30, 2001 Note 6: SHORT-TERM DEBT Tax Anticipation Notes Beginning -Balance -Additions Payments Ending Balance $=-=~O~.O~O $1.000.000.00 $1.000,000.00 $'====l!!:O~.O~O Note 7: 'ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $194,272.35 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. Georgia pepartment ofEducation Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$149,486.52 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$6,174.83 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$38,61 1.00 Note 8: CONTINGENT LIABILITIES 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 9: SUBSEOUENT EVENTS On September 18, 2001, the voters of Banks County voted in favor of a Special Pwpose Local Option Sales Tax referendum for educational pwposes. _The imposition ofthe tax approved by the voters, as stated on the Official Ballot of B~s County, is as follows: "Shall a special one percent sales and use tax be continued in Banks County for a period of time not to exceed 20 calendar quarters, commencing upon the expiration of the special one percent sales and use tax currently being levied in Banks County, and for the raising of not more than $16,000,0000.00 for the pwposes ofproviding funds to payor to be applied toward the cost of (i) the acquisition, construction, equipping and furnishing of a new middle school and other school buildings and facilities, (ii) the acquisition, construction, equipping and - 18- I ,,;~.'~. ~'1.'. i BANKS COUNTY BdARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 I EXHffiIT "D" Note 9: SUBSEQUENT EVENTS I furnishing of a high school athletic complex, (iii) adding to, renovating, improving and equipping existing school buildings and facilities, (iv) acquiring new school equipment, and (v) acquiring any property necessary or; desirable therefor, both real and personal, the maximum cost of such projects to be funded from the proceeds of such tax not to exceed $16,000,000.00. If continuation of the tax is approved by the voters, such vote shall also constitute approval ofthe issuance ofgeneral obligation debt ofBanks County School District in the principal amount of $12,050,000,00 for the above purposes,' including capitalized interest through October 1, 2002." ' Note 10: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) ,, I TRS PLAN DESCRIPTION , Substantially all teachers, administrative and clencal personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan~ TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone,financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. i TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute,and as advised by their independent actuary. The required employer contribution rate is 11,29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 855,481.57 $ 786,966.02 $ 726,947.29 - 19- BANKS COUNTY BOAR'D OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food ~> Total Assets SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 182,799.44 $ 0.00 1,343.42 10,171.35 3,232.47 $ 197,546.68 $ 0.00 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total liabilities FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 11,888.57 $ 49,098.73 $ 60,987.30 $ 0.00 0.00 $ 10,171.35 3,232.47 123,155.56 $ $ 136,559.38 $ 0.00 0.00 $ 197,546.68 $======O.=OO~ See notes to the general-purpose financial statements. -20 - . EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, ,2000 I $ 49,256.04 $ 232,055.48 $ 178,541.91 45,915.05 47,258.47 , 38,401.49 I 10,171.35 3,232.47 10,035.09 3,709.06 $ 95,171.09 $ 292,717.77 $ ===2=3=0=,6.8..7....5;;,;5= $ 90.50 $ 18,830.97 $ . 30,719.54 50,936.00 54,344.30 103,443.03 93,080.88 21,995.82 21,995.82 25,669.99 $ 95,171.09 $ 156,158.39 $ . 169,tn.37 I $ 10,171.35 $ 10,035.09 3,232.47 3,7p9.06 I $ 0.00 123,155.56 47,166.03 $ 0.00 $ 136,559.38 $ 60,910.18 I $ 95,171.09 $ 292,717.77 $ ===2=3=0=,6.8..7....5;;,;5= - 21 - ,-------------~-~~------ BANKS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS ,. $ 63,862.00 $ 591,939.78 345,634.68 $ 1,001 ,436.46 $ 54,447.07 54,447.07 $ 54,447.07 $ 925,446.83 $ 925,446.83 $ $ 75,989.63 $ 54,447.07 0.00 $ 75,989.63 $ 69,910.18 -6,802.72 6,462.29 0.00 0.00 $ 136,559.38 $====0;;,;.=00.... See notes to the general-purpose financial statements. -22 - EXHIBIT "FlO FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30,200~ . $ 118,309.07 $ 146,930.12 $ 579,504.48 1,171,444.26 1,082,485.17 345,634.68 303,8'85.69 , $ 579,504.48 $ 1,635,388.01 $ 1,533,300.9~ I $ 437,495.04 $ 491,942,11 $ 545,030.19 I I 6,676.16 ~,676.16 I 18,280.96 39,371.03 3,962.32 39,371.03 3,962,32 43,301.94 'I 11,304.59 26,740.71 11,304.59 26,740.71 5,403,94 I 53,954.63 53,954.63 47,189,90 925,446.83 986,449.23 $ 579,504.48 $ 1,559,398.38 $ 1,645,6.5.6.16 $ 0.00 $ 75,989.63 . $ -112,355.18 ' I ; 16,8~3.05 I $ 0.00 $ 75,989.63 $ -95,552.13 . I , 0.00 60,910.18 163,278.11 -6,802.72 6,462.29 ~8,303.50I 1,487.70 I, , I., $ 0.00 $ 136,559.38 $ 60,910.18 i~ - 23- ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets BANKS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 EXHIBIT"G" REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION TOTAlS JUNE 3D! 2001 JUNE 30, 2000 $ 89,169.94 $ 89,169.94 $ 30,819.92 $ 50,000.00 50,000.00 383,606.00 $ 50,000.00 $ 89,169.94 $ 139,169.94 $ 414,425.92 See notes to the general-purpose financial statements. - 24 BANKS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITl:JRES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED ~UNE:30, 2001 EXHIBIT "H" See notes to the general-purpose financial statements. -25- BANKS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2001 EXHIBIT "I" PUBLIC LIBRARY FUND ASSETS Cash and Cash ~qu!valents LIABILITIES Funds Held for Others . BALANCE JULY.1 , 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2001 .. $ . 22,135.64 .$ 65,424.42 $ ,. 69,647.31 $ 17,912.75 $ 22,135.64 $ 65,424.42 $ ., 69,647.31 $ 17,912.75 See notes to the general-purpose financial statements. - 26- I B~ARD BANKS COUNTY 6F EDUCATION SCHEDULE OF EXPENDITURES 'OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Total Child Nutrition Cluster Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds Total U. S. Department of Agriculture Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement Total Special Education Cluster Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Educcition Program Strategies Class Size Reduction Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Union County Board of Education Elementary and Secondary Education Act Title III Technology Literacy Challenge Fund Grants Total U. S. Department of Education CFDA I NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD * : 10.553 I 10.555 NlA $ 147,696.14 NlA 392,404.07 $ $ 540,100.21 $ (2) 873,607.26 (3) 873,607.26 I : 10.5r ~ 10.665 NlA 51,839.57 51,839.57 NlA 15.39 (4) $ 591,955.17 $ _ _~92=.;5",,-,44.;..;..;;;6.;.;;;.8..;;.3 I 84.027 , I 84.1~3 : 84.173 NlA $ 150,204.00 $ NlA 14,261.00 NlA 5,878.00 $ 170,343.00 $ 150,204.00 14,261.00 5,878.00 170,343.00 !84,Or N/A 184.281 N/A ! rI 84.2J8 84 N/A NlA 184 NlA ; ; 84.318 NlA 253,482.09 16,000.00 14,990.00 45,359.00 74,486.09 253,482.09 16,000.00 14,990.00 45,359.00 74,486.09 4.844.30 4,844.30 $ 579,504.48 $ _ _.=.57,-=9~,5:.:04~.4=-8 Total Federal Financial Assistance N/A = Not Available - 27- $ 1,171,459.65 $ ===1,,..504;:,;;,9;;,;;5=1=.3.1.. BANKSCOUNTIf'BOARD'OF EDUCATION, . ' SCHEDULE'OF,jEXPENDITURES\0FFEDERAL AWARDS YEI\R ENDEEi'JUNE 30;2001 SCHEDULE "1" Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary , a~sistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) EXpenditures for the SChO()I 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) Funds eamed on this program do not require reporting of expenditures. Major Programs are identified by an asterisk (0) 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 Banks 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. - 28- - : I' BANKS COUNTY BOARD Of EDUCATION SCHEDULE Of STATE REVENUE SCHEDULE "2" YEAR ENDED JUNr'"G:NMENTAI. FUND TYPES AGENCYIFUNDING GRANTS Community Affairs, Georgia Department of Local Assistance Grant Education, Georgia Department of Quality Basic Education Di~lnsUuctionalCost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Bementary Grades (4-5) Program Middle School (6-8) Program . High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Genter Program Staff and Professional Development Indi~Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food services Vocational Education Other State Programs At-Risk Summer School Program Environmental SCience Program Health Insurance Mentoring Program Mentor Teachers ,Preschool Handicapped Program Remedial Summer SChool Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Office of Treasury and Fiscal services Public School Empl0)'98s Retirement CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program I' GENERAL FUND SPECIAL REVENUE fUND CAPITAL PROJECTS FUND TOTAL $ 200,000.00 $ 200,000.00 I I $ 3!Kl.798.00 I ~,793.00 1,282,924.00 ~5,560.oo ~,197.00 ~ 1,0!i5,106.00 828,565.00 t,548.oo ~9,099.OO 2~1,995.00 695,355.00 51,379.00 1 9,044.00 78,039.00 ~9,315.00 80,028.00 31,829.00 1~,436.00 54,306.00 1'j7'661.00 391,574.00 1p9,484.00 i3.486.oo 9,967.00 i'5,628.00 2,815.00 $ 303,287.17 63,862.00 2,371.83 750.00 149,486.52 4,000.00 3,097.00 1 8,426.00 2,709.63 6,174.83 6,079.07 48,368.00 r"OO f~,623.00 r~oo 390,798.00 85.793.00 1,282,924.00 65,560.00 582,197.00 1,065,106.00 828,565.00 350,548.00 19,099.00 241,995.00 695,355.00 51,379.00 9,044.00 78,039.00 59,315.00 80,028.00 31,829.00 185,436.00 54,306.00 1,367,661.00 391,574.00 109,484.00 63,486.00 9,967.00 15,628.00 52,815.00 63,862.00 303,287.17 2,371.83 750.00 149,486.52 4,000.00 3,097.00 28,426.00 2,709.63 6,174.83 6,079.07 48,368.00 38,611.00 25,623.00 30,400.00 See notes to the general-purpose financial statements. $ 8,762,867.98 $ 118,309.07 $ 200,000.00 $ 9,081,1n.05 - 29- I BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OptiON SALES TAX PROJECTS YEAR ENDED JUNE :30, 2001 SCHEDULE "3" PROJECT For the retirement of $10,598,975.00 of general obligation debt consisting of the principal ,and interest on the School District's series 1996 general obligation 'school bonds for the years 1997 through 2007 and the payment to redeem said bonds maturing in the years 2009 through 2017 ORIGINAL ESTIMATED COST (1) I 'CURRENT ESTIMA, TED COSliS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS $ 10,598,975.00 $ 10,598,975.00 $ 606,720.00 $ 1,927,965.02 Ongoing (1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. I ' : (2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. (3) The voters of Banks County approved the imposition of a 1% saies tJ to fund the above project. Amounts expended for this project may include sales tax proceeds, sfute. local property taxes and/or other funds over the life of the project. ~ I :i I, I, I , !I I. ,I I ,, , j. 3ee notes to the general-purpose financial statements. I I I :I :I :I :I I - 31 T i "I BANKS COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM Ve ,is considered to be'a material weakness. F~ancial ~t~tLents 3. Noncompliance Material to the ' The audit ofthe Banks CountyBoard ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the fiDkcial statements. 4. Reportable Conditions in Internal controlotL Major Programs " The audit report for the Banks County Bbard ofEducation did not disclose any reportable conditions in internal control over major '~rograms. ' , ;I 5. Type ofReport Issued on Compliance for Major Programs The auditor's opinion on the Banks CountYiBoard ofEducation's report on compliance with requirements applicable to major programs waS unqualified. ~lction Circul~A~133 6. Audit Findings Required to be Rep'orted'bk .510Ca) ofOMB The Banks County Board ofEducation's atldit did not disclose audit findings required to be ,I , reported by section .510(a) ofOMB Circular'A-133. i 7. Maior Programs :' ' Federal awards audited as major programS are as follows: 10.553 Food and Nutrition Program ~ IFood Services - School Breakfast Program "I 10.555 Food and Nutrition Program .:, Food Services - National School Lunch Program 8. Type "A" Program Dollar Threshold i I, The dollar threshold for type "A" progtmls was $300,000.00. I 9. Low Risk Auditee The Banks County Board of Education qualified as a low risk auditee based on a waiver I , granted by the U. S. Department of Education. , , l! BANKS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS . YEAR ENDED JUNE 30,2001 . II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-6061-01-01 On December 31,2000, the General Fund had an outstanding loan in the amount of$l ,000,000.00. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia provides, in part, as follows: "The governing authority ofany county, municipality or other political subdivision ofthis state may incur debt by obtaining temporary loans in each year to pay expense.. ,.Stich loans shall be payable on or before December 31 of the calendar year in which such loan is made...." This condition occurred because management chose not to.comply with this code section. Repayment ofloans should be made in conformity with the above quoted code section. . GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Repc>rtable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6061-01-02 The Banks County Board of Education 4id not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintai~ed ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. - 2-