Audit report, Bartow County Board of Education, Cartersville, Georgia, year ended June 30, 1998 [June 30, 1998]

AUDIT REPORT BARTOW COUNTY BOARD OF EDUCATION
CARTERSVILLE, GEORGIA YEAR ENDED JUNE 30, 1998

BARTOW 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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

10

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

30

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

31

BARTOW COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

32

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

33

3 SCHEDULE OF STATE REVENUE

35

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

36

5 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

37

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

6

OVERALL

39

7

BY PROGRAM

40

SECTIONll
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 INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-B3

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

BARTOW COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

W. RUSSELL

HJNTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June II, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Bartow County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Bartow County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Bartow 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fInancial statements are free of material misstatement. An audit includes 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 either the Federal donated commodities inventory or purchased foods inventory at June 30, 1998, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
As described in the notes to the general purpose fInancial statements, the Board's fInancial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

98ARL-13B

The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board 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 included in the general purpose financial statements.
The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries and the corresponding employer's cost ofrelated benefits,earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share ofthese 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, 1997, were improperly recorded in the
year ended June 30, 1998. 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 fmancial statements ofthese variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories 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 Bartow County Board of Education as of June 30, 1998, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated June 11, 1999, on our consideration of the Bartow County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
The year 2000 supplementary information on Schedule n 1" is not a required part of the basic fmancial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurernent and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Bartow County Board ofEducation is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Bartow County Board of Education does business are or will become year 2000 compliant.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Bartow County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133,
98ARL-13B

Audits o/States, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfY ourselves as to the accuracy of the food service inventories as discussed in the third paragraph and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly presented in all material 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 of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~uJ.~ Russell W. Hinton State Auditor
RWH:gp
98ARL-13B

BARTOW COUNTY BOARD OF EDUCAnON

BARTOW COUNTY BOARD OF EDUCATION
COMBINE;D BAlANCE SHE;5T ALL FUND TYPES ANp ACCOUNT GROUP
JUNE 30 1998

cash and cash Equivalents
Investments
Accounts Receivable
Due from Other Funds
In_ Food Donated COmmodities Pun:hased Food
AmounlAvaoable In Dab! service Fund
Amount to be Provided In Future Years ForPaymenlol: Bond Debt Cspltal Lease Agreements
TotalAssels
LlABlLmES AND FUND EQUITY
~
Cssh Overdraft Aooounls Payable Salaries Payable Notes Payable Interest Payable Expired Grant Balances Payable Contracts Payable Relslnsgea Payable Due to Other Funds Deferred Revenue Cspltal L.... Ag_menta Compensated Absences Accrued Worker's Compensation General Obligation Bonds Payable
Total Uabilitles
FUNp 50UIlY
FWld Balances Re_ For Bus Replacement Funds For Continuation of Federal programs For Debt Service For EndO'M'l18nt Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Designated for Self-Insurance Deficit Undesignated
Total Fund Equity
Total liabilities and Fund Equity
The notes to the general purpose financial statements are an integral part of this statement
-2-

GENERAL FUND

GOVERNMENTAL FUND lYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

4,778,152.19 $

789,383.80

901,981.05

10,783,580.75

1,054,074.03

538,081,80

2,088,877.84

89,041.33 39,388,24

8735207.27 $ 1435 874.77 $ 12850 238.59

83,797.88 $ 4,995,000.00

88,925.23 394,799.94
89,241.58

1,884,871.11
322,880.53 370,104.00

5 058 797.88 $

550 988.75 $ 2 377,835.84

133,972.32 $

85,082.81

239,283.91 1,303 143.38 1676409.61

89,041.33 39,388.24

8,840,998.72 3,831,808.23

671415.64 884 908.02 $

0.00 10472 802.95

8 735 207.27 $ 1 435 874.77 $ 12850 23a.59

EXHIBIT "A"

DEBT SERVICE
FUND 449,078.59
2.753.19

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND
498.15
20,102.42
335.88

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30 1998

JUNE 30 1997

5.998.112.53

22.452.358.00

11.705.844.22

3.787.820.00

3.881.902.34

3.518.387.00

6,161.073.00

451.831.78

89.041.33 39.388.24
451.831.78

81.088.00
39,889.~0
948.572.00

451831.78 $

44.858.188.22 2712700.39

44.858.188.22 2712700.39

48,783.440.00 3871227.00

20 938.25 $ 48 022 700.39 $ 89518789.05 $ 87439830.00

2.712.700.39
45 310 000.00 48 022 700.39 $

1,684.871.11 150.722.89 $ 394.799.94
4.995.000.00
89.241.58 322.880.53 370.104.00
2.712.700.39
45.310 000.00
58 010 100.44 $

135.326.26 384.159.74 4,995.000.00 83.307.00 23.549.00
8.181.073.00 135,973.00
3.871.227.00 4.747.00
385.285.00 47 380 000.00
83 279 827.00

451.831.78
0.00 451831.78 451831.78 $

20.948.04
-9.79 0.00 20 938.25

133.972.32 85.082.81 451.831.78 $ 20.948.04
89.041.33 39.388.24 8.840.998.72 3.831.808.23
239,293.91 9.79
1974559.02
13508 888.81 $

948.572.00 21.012.00 120.975.00
20.99G.n5.00
235.595.00 1 839074.00 24 1BO 003.00

20938.25 $ 48 022 700.39 $ 69516789.05 $ 87439 630.00

-3-

BARTOW COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GO\IERNMENTAb FUNp mES
YEAR ENDED JUNE 30 1998

~
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
Capital OuUay Debt Service
Principal Interest Payln9 Agent Fees
Total Expenditures
Excess of Revenues over (under) ExpendRures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obli9ation Bonds Par Value
Sale or Loss Recovery Operating Transfers In Operating Transfers Out
Total Other Financing Souroes (Uses)
Excess of Revenues and Other Financing Souroes over (under) Expenditures and Other Financin9 Uses
FUND BAlANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 37,186,411.22 $ 17,962.87
18,889,445.87 860.281.59
$ 58.n4,101.55 $

1,275,262.01 3,790,437.84
1.551.998.86
8,617,698,51

$ 36,628,752.75 $
2,033,879.78 814,438.03
1,307,754.03 442,860.41
4,799,269.38 955,985,06
4,830,707.96 2,415,139.42 1,186,524.52
58,397.45 2,301.39

2,333,860.62
250,836.28 87,162.50 98,7n.42 127,932.63
213.25
8,850,11 14,685,67
8,406.89 26,069.98 3,191,729.58

958,526.61 175,079.50

$ 58,409 416,29 $

$

364,685.26 $

6 146,325,09 471,371.42

$

$

-535925,43

$

-535,925,43 $

$

-171,240.17 $

1,847,649.78

58,087.80
58,087.80
529,459,22 347,994.31
7,955.14 -500.65

FUND BALANCE JUNE 30 The notes to the general purpose financial statements are an integral part of this statement.
-4-

$ 1,676,409.61 $

884,908.02

EXHIBIT"B"

CAPITAl. PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS (Memorandum Only!
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$ 1,443,007.40

$ 39,904,680.63 $ 40,662,890,00

3,808,400,71

3,122,383,00

3,812,776.53 $ 4,071,070,58

26,573,292,98

1.047,769,58

25,153.79

3,505,201,62

22,378,164,00

$ 6.303,553,51 $ 4,096.224.37 $ 73 791 ,575,94 $ 66,163.437.00

$ 17,305,563.55 $
$ 17,305.563.55 $ $ -11,002.010,04 $

$ 38,962,413,57 $ 35,222,880,00

2,264,716.04 701,600,53
1,404,531,45 570,593,04
4,799,482,63 955,985,06
4,839,558.07 2,429,825.09 1,194,931,41
84,467,43 3,194,030.95 17,305,563.55

2,264,915.00 381,664,00
1,196,507,00 555,240,00
4,122,825,00 998,625,00
5,154,796,00 2,391,915.00 1,420,802.00
58,027,00 3,306,159,00 10,163,293.00

2,050,000,00 2,538,063,96
2,880.32

3,008,526,61 2,713,163,46
2880.32

1,576,427,00 1,362,599,00
1683.00

4,590964.28 $ 84,452,269.21 $ 70,178.357.00

-494,739.91 $ -10,680,693.27 $ -4.014,920.00

$

477,837.63

$

477,637.63

$ -10,524,172.41 $ 20,996,775.36

$ 24,530,645,00

171,247.00

$

535,925,43

6,252,397,00

-535,925,43

-6,252.397,00

$

0.00 $ 24,701 892.00

~94,739.91 $ -10,680,693,27

946,571.69

24,138,991.14

20,686,972.00 3,452,019,00

7,955,14 500,65

$ 10.472.602,95 $

451:831.78

13,485,752.36 $ 24,138991.00

-5-

BARTOW COUNTY 1l000D OF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL !NON-GMP BASIS>
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 1998

EXHIBITC

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

Stale Funds Federal Funds
Taxes Other Funds

$ 34,925,013.00 $ 37,186,411.22

17,862.87

17,084,884.10 18,889,445.87

515,000.00

880,281.59

Total Revenues

$ 52,5Q4,8n.l0 $ 58,n4,101.55

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 Transportetion Services Central Support Services Other Support Services Food Services Operation
DeblService

$ 32,812,172.43 $ 36,628,752.75

1,734,811.81 279,290.00
1,073,425.40 394,852.55
4,266,490.61 1,021,784.36 4,984,201.83 2,557,696.11 2,249,625.55

2,033,879.78 614,436.03
1,307,754.03 442,660.41
4,799,269.38 955,985.06
4,830,707.96 2,415,139.42 1,186,524.52
58,397.45 2,301.39
1,133,606.11

Total Expendilures

$ 51,384,330.65 $ 58.409.416.29

Excess of Revenues over (under) Expendilures

$ 1,120,546.45 $ 384,685.26

OTHER FINANCING SOURCES IUSES>

Other Sources OIherUses

$ -535,925.43

Tolel other Financing Sources (Uses)

$ -535.925.43

Excess of Revenues and Other Financing Sources over (under) Expenditures end Other Financing Uses $ 1,120,546.45 $

-171,240.17

FUND BALANCE JULY 1 1997

760,464.89

1,847,849.78

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

9,076.60

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,275,262.01

$ 2,940,352.72

3,790,437.84

1,500,471.50

1,551.996.66

$ 4.440,824.22

6,617,696.51

955,445.00 $ 2,333,660.62

173,072.00 72,608.00
9,000.00 142,534.78

250,836.26 87,162.50 96,m.42 127,932.63 213.25

31,500.00 3,058,664.44

8,850.11 14,685.67 8,406.89 26,069.98 3,191,729.58

$ 4,440,824.22 $ 6,146,325.09

$

0.00 $ 471,371.42

$

58,087.80

$

58,087.80

$

0.00 $ 529,459.22

347,994.31

347,994.31

93,065.60

7,955.14 -500.65

FUND BALANCE JUNE 30 1998

1.890.087.94 $ 1,676,409.61

441,079.91 $ 884,908.02

The notes to the general purpose financial statements are an integral part of this statement. -7-

BARTOW COUNTY BOARP OF EDUCATION STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXpENpABLE TRUST FUNp YEAR ENDEp JUNE 30 1998

EXHIBIT "0"

OPERATING REVENUES None Recorded
OpERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Total Income (Loss)
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
BLANCHE D. CARVER FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$

0.00 $

0.00 $

~o:;:.o:=.o

$

1,520.00 $

1,520.00 $

2,661.00

$

-1,520.00 $

-1,520.00 $

-2,661.00

1,444.20

1,444.20

836.00

$

-75.80 $

-75.80 $

-1,825.00

21,012.05

21,012.05

22,837.00

$

20,936.25 $

20,936.25 $

21,012.00

The notes to the general purpose financial statements are an integral part of this statement. -8-

BARTOW COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 1998

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities: Interest Received on Investments
Net Decrease in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
BLANCHE D. CARVER FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1998 JUNE 30,1997

$

-1,520.00 $

-1,520.00 $

-2,661.00

1,018.60

1,018.60

836.00

$

-501.40 $

-501.40 $

-1,825.00

999.55

999.55

2,825.00

Cash and Cash Equivalents - June 30

$

498.15 $

498.15 $

1,000.00

The notes to the general purpose financial statements are an integral part of this statement. -9-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Bartow County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance ofa school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board 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 govermnental 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 Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by govermnental 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 ofthese 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 Board, in compliance with generally accepted accounting principles applicable to govermnental 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 ofa Board's educational activities. Govermnental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation and from the Federal government to accomplish specific educational objectives.
- 10-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major 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 trust fund used to account for assets held by a government unit in a trustee capacity. This fund includes:

NONEXPENDABLETRUSTFUND Blanche D. Carver Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to graduating seniors of the Bartow County High Schools.

ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and material 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 of these funds present increases (Le., revenues and other financing sources) and decreases (Le., 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.

.

All nonexpendable trust funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (Le., 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 ofthe current period. Those revenues

- 11 -

BARTOW COUNTY BOARD OF EDUCATION

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
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 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
RESTATEMENT OF PRIOR YEAR FUND BALANCES
In fiscal year 1997, $3,457,000.00 was transferred from bond proceeds maintained in the Capital Projects Fund to the General Fund for the purpose ofreimbursing qualifying capital expenditures made in the General Fund. A detailed analysis of capital expenditures charged to the General Fund revealed that only $1,133,266.78 in capital expenditures were actually made in the General Fund that qualified for reimbursement by bond proceeds. As a result, the fund balance of the General Fund was overstated at June 30, 1997, by $2,323,733.22 and the fund balance of the Capital Projects Fund was understated by a like amount. The fund balances of both the General Fund and the Capital Projects Fund at July 1, 1997 have been restated in the financial statements shown in this report to reflect the correct amounts. No itemized restatements have been made on the face of the financial statements as such would make the statements unduly complex and difficult to understand.

- 12-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Bartow County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure 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.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circu1ation 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 ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. 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
COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and 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 and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(I) 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,
- 13 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 ofTreasury and Fiscal Services,
(7) Repurchase agreements, and

(8) Obligations ofother 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 information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Bartow County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on September IS, 1997 (levy date). Taxes were due on November 15, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Bartow County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1997 tax year (calendar year) for the Bartow County Board ofEducation was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

~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 $7,824,459.24 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $46,862,640.76 has been collected or on June 30, 2002, whichever occurs first.

- 14-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
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 of the Board 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 ofthis obligation as this amount is deemed immaterial to the general purpose fmancial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General L6ng-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the fmancial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General L6ng-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expendituresl expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
- 15 -

BARTOW COUNTY BOARD OF EDUCATION

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, results ofopemtions or cash flows in conformity with generally accepted accounting principles. Neither are such data compamble to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain corrections and reclassifications have been made to the compamtive data to conform to the current year classifications. (See Restatement of Prior Year Fund Balances)

DEFICIT FUND BALANCE

The fund reporting a deficit fund balance position at June 30, 1998, is as follows:

Fund TypelFund Name

Deficit Balance

Nonexpendable Trust Fund Blanche D. Carver Fund

$

9.79

The Board intends to fund this deficit with interest revenues in the subsequent period.

Note 2: DEPOSITS AND INVESTMENTS

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 of money which has not been secured by surety bond, by guamntee ofinsurance, or by collateral. The aggregate of the face value of such 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 of the amount ofdeposit insurance.. OCGA Section 45-8-11 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 ofindebtedness or other direct obligations of the United States or of the State of Georgia,

- 16 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 2: DEPOSITS AND INVESTMENTS

(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,

(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe 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 and 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, 1998, the bank balances were $12,745,182.99. 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 Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board'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 Board's name.)

The Board's deposits are classified by risk category at June 30, 1998, as follows:

Risk Category

Bank Balance

1

$ 420,102.42

2

11,434,412.70

3

890.667.87

Total

$12745 18299

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

- 17 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 2: DEPOSITS AND INVESTMENTS

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1998, the carrying value ofthe Board's total investments was $11,685,541.80. The investments are classified as to risk categories as follows:

Type oflnvestment

Repurchase Agreements

$,

Local Government

Investment Pools

Total Investments

Risk Categories

Carrying Amount

Fair Value

Ol/-'0!l!!0 $ 988821228 $,_ _.....0~ 00 $ 9.888.212.28 $ 9,888,212.28

1797329.52 1797329.52
$ J! 685541 80 $ J! 685 541 80

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 Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the 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. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist offunds 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.

- 18 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 2: DEPOSITS AND INVESTMENTS
Investments in Georgia Fund 1 and Fund 6 are directed toward short-tenn instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any ofits agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration ofapproximately one year. The weighted average maturity for Georgia Fund Ion June 30,1998 was 29 days. The average investment duration for Fund 6 on June 30, 1998 was .96 years.
Note 3: NON-MONETARY TRANSACTIONS
The Board 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: RISK MANAGEMENT
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.
The Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk of loss on account ofgeneral liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control 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 Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.
The Board has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the Board. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount 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.
Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

- 19 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 4: RISK MANAGEMENT

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1997 1998

$

0.00 $ 325,225.00 $ 268,141.00 $

57,084.00

$

57,084.00 $ 242,598.67 $ 299,682.67 $

0.00

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims 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.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End.ofYear Liability

1997 1998

$

0.00 $

9.055.00 $

9,055.00 $

0.00

$

0.00 $

10.195.80 $

10.195.80 $

0.00

The Board has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Superintendent All Employees

$ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Bartow County Board ofEducation has entered into various lease agreements as lessee for buses, motor vehicles and equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

- 20-

BARTOW COUNTY BOARD OF EDUCATION

EXlllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 5: GENERAL LONG-TERM DEBT

PUIJ?9se
General Government - Series 1993 General Government - Series 1994 General Government - Series 1997

Interest Rates
5.00% - 5.70% 3.55% - 4.60% 4.00% - 5.125%

Amount
$16,020,000.00 5,670,000.00
23,620,000.00

$45,310 000 00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Balance July 1, 1997
Deductions Payments
Balance June 30,1998

Capital Leases

General Obligation
Bonds

Total

$ 3,671,227.00 $47,360,000.00 $51,031,227,00

958,526.61 2,050,000.00 3,008.526.61 $ 2 712 700 39 $45 310,000 00 $48 022 700 39

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
1999 2000 2001 2002 2003 2004-2008 2009 - 2013 2014 - 2018

Capital Leases

General Obligation
Bonds

Total Debt

$ 1,118,261.16 1,118,261.16 715,449,66

$ 6,620,933.13 7,407,488.76 7,437,575.00 7,487,985.00 7,541,360.00 10,535,454.60 10,782,525.00 2,182,705.00

$ 7,739,194,29
8,525,749.92 8,153,024.66 7,487,985.00 7,541,360.00 10,535,454.60 10,782,525.00 2,182,705.00

Total Principal and Interest

$ 2,951,971.98 $59 996 026 49 $62 947 998 47

Deduct: Imputed Interest

239,271.59

Net Present Value of Future Minimum Lease Payments

$ 2 712 ioo 39

- 21 -

BARTOW COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$813,165.52 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance of Non-Certified Personnel In the amount of$669,708.52

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$143,457.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 1998, together with funding available:

Unearned Executed Contracts

Funding Available From State

GSFIC 97/96S-608-001

$ 4 342 867,20 $ 711 03830

The amounts described in this note are not reflected in the general purpose financial statements.

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 Board believes that such disallowances, if any, will be inunaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 9: SUBSEOUENTEVENTS

In the subsequent fiscal year, the Board authorized two issuances ofgeneral obligation bonds in the amounts of $9,995,000.00 and $4,845,000.00. Both issues were dated November I, 1998. The proceeds from these bonds will be used for the purpose of refunding a portion of the General Obligation Bonds, Series 1993.

- 22-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 10: ACCUMULATED EMPLOYEES' LEAVE

Certain 12 month employees earn vacation leave at the rate of .833 days per month, up to ten days a year, with a maximum accumulation of 30 days and are paid at their current rate of pay for any unused armual vacation leave up to the maximum upon retirement or termination of employment. See Note 1 - Compensated Absences

Note 11: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS)

lRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defmed benefit pension plan. lRS 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.

lRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to lRS. The Board makes monthly employer contributions to lRS at rates adopted by the lRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1998 1997 1996

100% 100% 100%

$ 4,131,828.00 $ 3,722,694.00 $ 3,332,951.47

- 23-

BARTOW COUNTY BOARP OF EPUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUNp
JUNE 30 1998

EXHIBIT"G"

Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY

FEDERAL

. TOTALS

PROGRAMS PROGRAMS JUNE 30, 1998 JUNE 30, 1997

$ 839,716.43 $ 106,016.84

$ 945,733.27 $ 686,229.00

48,267.30

4,359.00 $ 485,435.30

538,061.60

57,961.00

89,041.33 39,388.24

89,041.33 39,388.24

81,086.00 39,889.00

Total Assets

$ 1,016,413.30 $ 110,375.84 $ 485,435.30 $ 1,612,224.44 $

LIABILITIES AND FUND EQUITY
LIABILITIES
cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds
Total Uabilities
FUND EqUITY
Fund Balances Reserved For Continuation 01 Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$ 31,348.85 $ 185,219.44

$ 23,577.16 86,798.68

176,349,67 $ 31,999.42 122,781.82 89,241.58

$ 216,568.09 $ 110,375.84 $ 400,372.49 $

$ 89,041.33 39,388.24
671,415.64 $
$ 799,845.21 $

$ 85,062.81 $

0.00 0.00 $

0.00 85,062.81 $

176,349,67 86,925.23 $ 394,799.94 69,241.58
727,318.42 $
85,062.81
89,041.33 $ 39,388.24 671,415.84 884,908.02 $

99,948.00 345,828.00
23,549.00 47,846.00 517,171.00
81,086.00 39,889.00 227,019.00 347,994.00

Tolal Liabilities and Fund Equity

$ 1,016,413.30 $ 110,375.84 $ 485,435.30 $ 1,612,224.44 $ 865,165.00

See notes to the general purpose financial statements.

-24-

BARTOW COUNTY BOARP OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANp CHANGES IN FUND BALANCES
SPEC~lREVENUEFUNP
YEAR ENDEp JUNE 30 1998

EXHIBIT"H"

SCHOOL FOOD
SERVICES FUND

lOTTERY PROGRAMS

FEDERAl PROGRAMS

TOTAlS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

State Funds Federal Funds Other Funds
Total Revenues
EXPENPITIJRES
Current instruction Support Services Pupil Services Improvement of Instructional Services Educationel Media Services General Administration School Administration Maintenance and Operation 01 Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expendilures
OTHER FINANCING SOURCES
Operating Transfers in
Excess of Revenues and Other Financing Sources over (under) Expendilures
FUNP BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodilies Purchased Food

$ 263,468.00 $ 1,011,794.01

$ 1,275,262.01 $ 1,332,794.00

1,808,572.86

$ 1,981,864.98 3,790,437.84 3,017,019.00

1,551,996.66

1,551,998.66 1,264,188.00

$ 3,624,037.52 $ 1,011,794.01 $ 1,981,864.98 $ 6,617,696.51 $ 5,614,001.00

$ 910,203.21 $ 1,423,457.61 $ 2,333,680.82 $ 1,716,961.00

$ 3,179,641.11

60,901.69 10.00
1,242.26
8,850.11 10,629.63 7,868.68
12,088.45

189,934.57 87,152.50 96,m.42 126,690.37
213.25
4,056.04 538.23
26,069.98

250,836.26 87,162.50 96,m.42 127,932.63
213.25 8,850.11 14,685.67 8,406.89 26,069.98 3,191,729.56

499,221.00 81,414.00 3,578.00
157,105.00 101,580.00 27,054.00
14,398.00
18,139.00 3,306,159.00

$ 3,179,641.11 $ 1,011,794.01 $ 1,954,889.97 $ 6,146,325.09 $ 5,925,609.00

$ 444,396.41 $

O.OD $ 26,975.01 $ 471,371.42 $ -311,608.00

444,396.41 $ 347,994.31
7,955.14 -500.65

58,087.80

58,087.80

281,152.00

O.OD $ 0.00

85,062.81 $ 0.00

529,459.22 $ 347,994.31

-30,456.00 378,450.00

7,955.14 -500.65

FUND BALANCE JUNE 30

$ 799,845.21 $

0.00 $ 8M62.81 $ 864,908.02 $ 347,994.00

See notes to the general purpose financial statements.

-25-

BARTOW COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUNp JUNE 30 1998

Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

$

0.00

$

342,764.53

$ 10,783,580.75

267,581.76

350,000.00

Total Assets

$

,;:0,;::.00:::, $ 11,051.142.51 $ _ _,;:6;::92:1;1,,7:.:;64;;;::.5;;03

LIABILITIES ANp FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable Due to Other Funds
Total liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 4,410,145.79 $

322,660.53 370,104.00

$ 4.410,145.79 $ _ _""6""9.2.,.7""64",,,,.5,,,-3

$ 6,640,996.72

$

--->0"'.00""-

$....;.._ _--->0"'.00""- $

0.00 $ 6.640,996.72 $

--->0"l'.0""0 ""0"'.0""0

$

....0.;;,;.00-. $ 11,051.142.51 $ _ _.::6~92:;",7:.:64=.5:::.3

See notes to the general purpose financial statements.

-26-

EXHIBIT "I"

SPECiAl PURPOSE LOCAl OPTION
SALES TAX

LOTIERY PROJECT

TOTALS

JUNE 30. 1998

JUNE 30, 1997

$ 2.442,508.25

$ 2,785,272,78 $ 17,090,450.00

10,783,560.75

1,150,898.00

1,389,097.98 $

59,998.10

2,066,677.84

2,755,427.00

6,113,227.00

$ 3,831.606.23 $

59,998.10 $ 15,635,511,37 $ 27.110.002.00

$

59,998.10 $ 4,470,143.89

322,660.53

370,104.00

$ 6,113,227.00

$

59,998.10 $ 5.162,908.42 $ 6.113.227.00

$ 3,831,606.23 0.00 $
$ 3,831 ,606.23 $

$ 6,640,996.72 $ 20,996,775.00 3,831,608.23

0.00

0.00

0.00

0,00 $ 10.472,602.95 $ 20.996,775.00

$ 3,831,608.23 $

59,998.10 $ 15,635,511.37 $ 27,110,002.00

-27-

BARTOW COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1998

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Tolal Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSES)
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out
Tolal Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditlires and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00

$

350,ooo.OD

$ 1,028,939.88

$

O.OD $ 1,028,939.88 $

350,000.00

$

22,861.55 $

304,792.05

150,184.03

$

477,837.63 $

$

-477,837.63 $

709,801.81 $ 113,530.94

439,034.80 11,687,144.24 2,504,919.36

823,332.75 $ 14,631 ,098.40

205,607.13 $ -14,281,098.40

$

477,837.63

$ 14,281,098.40

$ -14,496,823.41

$

477,837.63 $ -14,496,823.41 $ 14,281,098.40

$

O.OD $ -14,291,216.28 $

0.00

O.OD

20,932,213.00

O.OD

FUNp BALANCE JUNE 30

$

0.00 $ 6,640,996.72 $

O.OD

See notes to the general purpose financial statements.

-28 -

EXHIBIT"J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$ 1,093.007.40 $ 1.443,007.40 $ 5,906,338.00

$ 3,812,776.53

3,812.776.53

18,829.70

1,047.769.58

77,247.00

$ 3,831,60623 $ 1.093,007.40 $ 6,303,553.51 $ 5,983,585.00

$ 9.906.049.00

$

0.00 $

15.000.00 $ 1,186,698.16

1,358,294.77

13,463.762.00

2,655,103.39

$

0.00 $ 1.373,294.77 $ 17,305,563.55 $ 9,906,049.00

$ 3,831.606.23 $

-280,287.37 $ -11.002,010.04 $ -3.922,484.00

$ 24.530,845.00

$

946,338.81 $ 15.705,274.84

4.305.399.00

-730,613.80

-15,227,43721

-3,916.805.00

$

215,725.01 $

477.837.63 $ 24,919,239.00

$ 3,831,606.23 $ 0.00

-84.562.36 $ -10,524,172.41 $ 20.996,775.00

84,562.36

20,996.775.36

0.00

$ 3.831,606.23 $

0.00 $ 10.472,602.95 $ 20,996?75.oo

-29-

BARTOW COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 1998

EXHIBIT"K"

~ Cash and Gash Equivalents Accounts Receivable
Total Assats

PROPERTY TAXES FOR BOND DEBT

SPECiAl PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30.1998

JUNE 30. 1997

$

411,094.63 $

37,983.96 $

449,078.59 $

933,742.00

2.753.19

2753.19

22.263.00

$

413[847.82 $

37,983.96 $

451,831.78 $

956,005.00

LIABILITIES AND FUND EqUITY

LIABILITIES

Deferred Ravenue

FUND EqUITY

Fund Balances

Raserved

For Dabt Service

$

Unreserved

Undesignated

Total Fund Equity

$

413,847.82 $ 0.00
413,847.82 $

$

9.433.00

37,983.96 $ 0.00
37.983[96 $

451,831.78 $ 0.00
451,831.78 $

946,572.00 0[00
946.572.00

Total Liabilities and Fund Equity

$

413[847.82 $

37.983.96 $

451,831.78 $

956,005.00

See notes to the general purpose financial statements.

-30-

BARTOW COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
PEBT SER\I!CE FUND yEAR ENpED JUNE 30 1998

EXHIBIT"L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

REVENUES

Taxes Other Funds

$

59,387,87 $ 4,011,682,71 $ 4,071,070.58

23,147.58

2,006.23

25,153.79 $ 1.427,405.00

Total Revenues EXPENDITURES

$

82,535,43 $ 4,013,688,94 $ 4,096,224.37 $ 1,427405.00

Debt Service

Principal

Intarest

$

Paying Agent Fees

Total Expenditures

$

Excess of Revenues over (under) Expendilures $

FUND BALANCE JULY 1

$ 576,401,25
1,739.88
578,141.13 $
-495,605.70 $
909453.52

2,050,000.00 $ 1,961,682,71
1,140,44
4,012,823.15 $
865,79 $
37,118.17

2,050,000.00 $ 2,538,083.96
2,880.32
4,590,964.28 $
-494,739,91 $
946,571.69

605,000.00 '1,174,280.00
1,683.00
1,780,963.00
-353,558.00
1,300,130,00

FUND BALANCE JUNE 30

$

413,847.82 $

37,963.96 $

45a31.78 $

946,572.00

See notes to the general purpose financial statements.

-31-

BARTOW COUNTY BOARD OF EDUCATION

SCHEDULE "1"

SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1998

At June 30, 1998, the Bartow County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.

Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000

issue.

'

Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance.

Remediation Stage - When changes are made to systems and equipment.

Validationfresting Stage - The process of ensuring that the changes made to systems and equipment wiil produce a year 2000 compliant system.

It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage.

The Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As of June 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department ofEducation has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software.

See notes to the general purpose financial statements. - 32-

BARTOW COUNTY BOARD OF EDUCATION S~HEDULE OF EXPENDITURES OF FEpERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1)
Total U. S. Department of AgricuRure
Appalachian Regional Commission Direct Appalachian State Research, Technical Assistance and Demonstration Projects Contract No. GA-12693-97
Corporation for National and Community Service Pass-Through From Georgia Department of Education Leam and Serve America School and Community Based Programs 1998 Grant
Education, U. S. Department of Direct Impact Aid 1998 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agendes 1998 Grant TRleli Eisenhower Professional Development 1998 Grant TrtleX Public Charter Schools 1998 Grant Title VI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant Safe and Drug-Free Schools 1998 Grant

CFDA ~
10.553 10.555 10.550
23.011
94.004
64.041
64.010 64.281
. 64.282 64.298 64.276 64.027 64.173 64.186 -33-

PAS8THROUGH
ENTITY ID
NUMBER
N1A $ N/A N1A
$
$
N/A $
$
N1A N1A N1A N1A
N/A
N1A N1A N/A

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

332,945.04

(2)

1,285,403.73 $ 190,224.09

2,989,417.02 (3) 190,224.09

1.808,572.86 $ . 3,179,641.11

6,182.45 $

19,607.08 (3)

679.45 $

679.45

1,780.42

(4)

617,300.25 $ 19,704.40
465,965.40 45,222.90

617,300.25 19,704.40
380,902.59 45,222.90

10,000.00

10,000.00

585,220.04 106,499.43 47,656.72

585,220.04 106,449.43
47,656.72

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Education. U. S. Department of Pess-Through From Georgia Department of Education Vocational Education - Basic Grants to Stales High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant
Total U. S. Department of Education
labor, U. S. Department of Pass-Through From Coosa Valley Regional Development Commission Job Training Partnership Ad. 17-96-20-001

CFDA NUMBER
84.048 84.243
17.250

PASSTHROUGH
ENTITY 10
NUMBER
N/A $ N/A
$
N/A $

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

42,142.00 $ 13.000.00 1.954,491.56 $

100.229.80 (3) 13.000.00 1.925,686.13

38.474.39 $

38,474.39

Total Federal Financial Assistance N/A = Not Available

$ 3.808.400.71 $

Notes to the Schedule of Expendijures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1996 National School lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Funds earned on this program do not require reporting of expenditures.

Major Programs are identified by an asterisk (') in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipienl

The accompanying schedule of expendijures of Federal awards includes the Federal grant aclivity of the Bartow 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 general purpose financial statements.

5,184.088.16

See notes to the general purpose financial statements.

-34-

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1998

SCHEDULE "3"

AGENcyJFUNplNG
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Repillcement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Ad Valorem Tax Adjustment Altemative Program Apprenticeship Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Student Records Tuition for the. Multi-Hendicapped Lottery Programs A1temetive School Program Exceptional Growlh-Capital Oo1lay Instructional Technology Assistive Technology Classroom Technology
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 20,366,177.00 4,478,965.00 464,714.00 875,844.00 279,290.00 5,570,289.00
1,220,987.00 390,890.00 719,022.00
2,045,461.00 198,n6.00
1,443,402.00 554.00
92,571.00 115,369.00 -4,396,275.00 1,624,496.00
$ 81,429.54
255,853.00 90,100.00 32,964.00 1,000.00
669,708.52 5,000.00 373.60
102,000.00 117,350.00
1,206.08 18,043.50 179,424.00

$ 20,366,177.00 4,476,965.00 464,714.00 875,844.00 279,290.00 5,570,289.00

263,468.00 $ 350,000.00

1,220,987.00 390,890.00 719,022.00
2,045,461.00 198,726.00
1,443,402.00 554.00
92,571.00 115,369.00 -4,396,275.00 1,624,496.00 263,468.00 431,429.54

255,853.00 90,100.00 32,964.00 1,000.00
669,708.52 5,000.00 373.60
102,000.00 117,350.00
1,206.06 18,043.50 179,424.00

4,132.00

1,093,007.40

4,132.00 1,093,007.40

17,075.00 277,351.00

17,075.00 2n,351.00

713,236.01

713,236.01

143,457.00

143,457.00

See notes to the general purpose financial statements.

$ 37,166,411:22 $ 1,275,262.01 $ 1,443,007.40 $ 39,904,680.63 -35-

BARTOW COUNTY BOARP OF EPUCATION SCHEDULE OF APPROIIED LOCAL OPTION SALES TAX pROJECTS
YEAR ENDED JUNE 30 1998

SCHEDULE "4"

Constructing and aquipping school buildings and other buildings or facilities useful or dasirable in connection therewith, including two new elementary schools, two new middle schools and a new high school, adding to, renovating, repairing, equipping and improving existing school buildings and facilities useful or desireble in connaction therewith, including classroom additions, and acquiring the necessary property therefor, both real and personal, and sites for future schools
Retiring previously incurred general obligation indebtedness evidenced by the Bartow County School Dismet General Obligation School Bonds, Series 1993, maturing in the years 2005 through 2014 and the Bartow County School Disbicl General Obligation School Bonds, Series 1994, maturing in the years 1998 through 2004

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR
YEARS

$ 45,087,100,00 $ 57,243,520,00 $ 16,827,725.92 $ 6,367,110.88

9,600,000.00

9,502,306,25

1,822,802,50

0,00

$ 54,687,100.00 $ 66,745,826.25 $ 18,650,528.42 $ 6,367,110.88

(1) The Board's original cost estimata as specified in the resolution calling for the imposition of the Local Option SalesTax,
(2) The Board's currant estimate of total cost for the projecL Includes all cost from project inception to completion,
(3) The voters of Bartow 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.
(4) In addition to the expenditures shown above, the Board incurred currant year interest expenditures in the amount of $1,385,281.46 to provide advanced funding for the above projects.

see notes to the general purpose financial statements.

-36-

BARTOW COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS
YEAR ENDEp JUNE 30 1998

SCHEDULE "5"

EXPENDITURES
Current Instruction SUpporl5ervices Pupil services Improvement 01 Instructional services General Administration Maintenance and Operation 01 Plant Student Transportation Services central Support Services Food Services Operaticn

ALTERNATIVE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

4.132.00 $

17.075.00 $ 269.482.34 $

7.866.66

619.513.87
80,901.69 10.00
1.242.28 8.860.11 10.829.83
12.088.45

910.203.21
80.901.89 10.00
1.242.28 8.850.11 10.829.63 7.868.66 12.088.45

Total Expenditures

4 132.00 $ _...:1,:;7.;::07~5~.00;;.

277.351.00 $

....l.7.l:130:.23~6.~0.:.' $ 1.011.794.01

RECAP: 5aJaries and Benefits Pre-Kindergarten Program Other Expendl1ures Alternative School Program Instructional Technology Aasistive Technology Classroom Technology Pre-Kindergarten PrognIm

663.247.08 4.132.00 17.075.00
277.351.00 49.988.93
1,011,794.01

See notes to the general purpose financial statements.

- 37-

BARTOW COUNTY BOARp OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND QUALITY BASIC EpUWION PROGRAMS YEAR ENPED JUNE 30 1998

SCHEDULE "6"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expend~ures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpend~urefor Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

27,627,102.00 $

763,227.00

$

30,606,486.39

1,288,608.53 $

1,140,755.63

$

31,895,094.92

-422,871.62

$

31 ,472,223.30

$

0.00 $

0.00

See notes to the general purpose financial statements. 39

BARTOW COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EpUCATlON PROGRAMS YEAR ENDED JUNE 3D 1998

GENERAL ANp CAREER EDUCATION PROGRAMS Kindergarten (1 Grades 1 - 3 (1 Sub-Total- K3 Grades 4 - 5 ("l G",des6-8(1 Grades 9 - 12 (1 High SChool !.aborIItori (1 Vocational Education Le_es (1 Total Gene"'l end Coreer Education Ptograms
SPECIAL EDUCATION PROGRAMS Regular Programs CoteglllYl ("I Cotegoryll(1 Category III (') Category IV ("l CoteglllYV(') Sub-TotaI- Regular Category VI (Gifted) ("l Total Speclel Education PIOll",ms
REMEDIAL EDUCATION PROGRAM Cl Total Fourteen weighted Programs
MEDIA CENTER PROGRAMS Sslaries Opellltions
Total Media eo- Programs
Total Fourteen Weighted and Media Conter Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

ORIGINAL -1L

REQUIRED ORIGINAL

MID-TERM

$ 2,452,863,00

$ 2,207,576.70

6,375,265.00

5,737,738.50

$ 8,828,128.00 90

7,945,315.20 $

2,762,717,00 90

2,488,445.30

4,281,959.00 90

3,853,763.10

2,310,881.00 90

2,079,884.90

1,124,605.00 90

1,012,144.50

1,057,807.00 90

952,026.30

20,388,177.00

18,32l1,559.3O $

481,134.00 461,134.00 461,134,00 461,134.00
1,443,402.00

4,087,339.00

3,678,605.10 $

0,00

4.087,339.00 90

389.626.00 90

$ 4,476.965.00

$

464.714.00 90

25,307.656.00

3,678,605.10 350,883.40
4,029,268.50 418,242.60 $
22,m,07o.4O $

0,00
0.00 0.00 1,443,402.00

711.563.00 90

640,406.70 $

0.00

164.281.00 90

147,852.90

875.644.00

$

788,259.60 $

0.00

$ 26.183.700.00

$ 23.565.330.00

1.443.402.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Program.
r) Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

90.998.00 198,2lI2.00

80,998.00 198,292.00

279.290.00 100 $

279,290.00 $

0,00 0.00
~O.:::OO::.

- 40-

SCHEDULE"T'

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNOEREXPENDITURE
FOR REQUIRED ALLOTMENT

2,207,576.70

2,776,742.13

24,736.67

2,801,478.60

6,218.872.50

7,147,271.45

96,368,22

7,243,637.67

8,426.449.20

9,924,013.68

121,102.89

10,045,116.47 $

0.00

2,967,579,30

3,679,062.10

93,749.19

3,772,811,29

0.00

3,853,763.10

3,717,612.55

136,150.55

3,853,763,10

0.00

2,680,998.90

3,799,316.51

167,391,36

3,966,707.87

0.00

1,012,144.50

1,084,908.31

18,275.42

1,103,183.73

0.00

952,026.30

1,470.099.16

95,403.95

1.685,503.11

0.00

19,772.961.30

23,675.012.21

632,073.36 $ 24,307,085.57

3,678,605,10

1,492,960.98 987,295.91
1,766,751.11 584,455.69 15,181.99

482,119.78 2,718.75 6,741.09 295.98 6,952.50

1,975,100.76 990,014.66
1,773,492.20 584,751.67 22,134.49

$ 3,678,605.10 $ 4,846,665.68

498,828.10

5,345,493.78

0.00

350,663.40

512,677.76

7,640.84

520,318.60

0.00

4,029,268.50

5,359,343.44 $

505,468.94

5,865,812.38

418,242.60

421,268.02 $

2,213.33

423,481.35

0.00

24,220,472.40

29,455,623.67

1,140,755.63

30,596,379.30

\

840,405.70

1,150,662.72

$ 1,150,862.72

O.DD

147,852.90

147,852.90

147,852.90

O.DD

788.259.60

1,150,862.72

147,852.90

1,298.715.62

$ 25,008,732.00 $ 30,606,486.39

1128M08.53

31.895.094.92

0.00

80.998.00 198,292.00
279,290.00

$

283.138.98

0.00

283,138.98

283,138.98 0.00
283,138.98 $

..::;0.::00::,

- 41 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. IIINTON
STATE AUDITOFI
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 11, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Bartow County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Bartow County Board of Education as of and for the year ended June 30,1998, and have issued our report thereon dated June 11, 1999. 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 generally accepted auditing standards and the standards applicable to fmancial audits contained in Govermnent Auditing Standards, issued by the Comptroller General ofthe United States.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 1998, 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 Bartow County Board of Education's financial statements are free of material misstatement, we perfonned tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detennination 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.

98YB-40

Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Bartow County Board ofEducation's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted 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 ourjudgement, could adversely affect Bartow County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6081-98-01.
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 the fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperfonning 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, the reportable condition described above is considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~(4""@ W. ~~ Russell W. Hinton State Auditor
RWH:gp 98YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 11, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Bartow County Board of Education
REPORT ON COMPUANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB ClRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Bartow County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Bartow County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bartow County Board of Education's management. Our responsibility is to express an opinion on Bartow County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; 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 ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above tha~ could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Bartow 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 Bartow County Board of Education's compliance with those requirements.

98SA-IO

In our opinion, the Bartow County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended JundO, 1998.
Internal Control Over Compliance
The management of Bartow County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Bartow County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33.
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 ofone or more of the internal control components does not reduce to a relatively low level ofrisk 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 for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~~I.QfL ui.~- Rnssell W. Hinton State Auditor
RWH:gp 98SA-1O

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

BARTOW COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6081-97-I

Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-608l-97-1
, The School System does not maintain a General Fixed Asset Account Group as required by generally accepted accounting principles due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6081-97-2

Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
SUMMARY OF AUDITOR'S RESULTS
1. Type ofReoort Issued on the Financial Statements The auditor's opinion on the Bartow 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 Bartow County Board ofEducation 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 Bartow County Board ofEducation 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 Bartow County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Reoort Issued on Compliance for Major Programs The auditor's opinion on the Bartow 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-B3 The Bartow County Board ofEducation's audit did not disclose audit findings required to be reported by section .5 IO(a) ofOMB Circular A-B3.
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 84.282 Elementary and Secondary Education Act - Title X - Public Charter Schools
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Bartow County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation.
-I -

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-608l-98-0l The Bartow County Board ofEducation 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 pmpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. Management's Response: We agree that we did not maintain a system-wide General Fixed Assets Account Group. This is a very expensive process to begin. During fiscal year 2000, we will begin this process by recording a11land and equipment purchased and buildings constructed in FY 2000 and thereafter. We will also study the feasibility ofadding purchases from other years and items on hand by location to this fixed asset fund group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
- 2-