...
, ,', .,'

. ,.: ~~

.... '"1'-

-.. './ '

....... : ',\,

-.,:1 -;"',:~ ~~...:";-.1 ~, ,--

:-' " ~.

, t- ".'

. - ' ..'r .
"''-'j '. "-":' ,,;

'\" t

.\

.. ,., _1

1:.,. '.~' 'f .':1:-

f_

f

..' :','.'

.,'"

, , ~;

BARTOW couNTY BoARD OF EDucAtiON
-TABLEOFCONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARI;>S

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

11

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND B~CES

31

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

BARTOW COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

34

2 SCHEDULE OF STATE REVENUE

36

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

37

EARNINGS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

38

5.

BY SITE

'39

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 WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

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

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

{USSELJ. W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Strcet. S.W.. Suite 214 Atlanta. Gcorgia 30334-X400
February 12, 2002

Honorable Roy E. Barnes, Governor Members of the 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 INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose fmancial statements of the Bartow County Board of Education, as of and for the year ended June 30, 200 I, as listed in the table of contents. These general-purpose financial statements are the responsibility of the 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 auditing standards generally accepted 'in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overallfmancial 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, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

200 IARL-13

As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual 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 of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the 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, ~d 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 ofthe Bartow County Board ofEducation as ofJune 30, 2001, and the results ofits operations and the cash flows ofits nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated February 12, 2002, on our consideration of the Bartow County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
200lARL-13

Our audit was perfonned for the purpose of fonning 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 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States. Local Governments. and Non-Profit Organizations. are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effect ofadjustments, 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 ofthe food service inventories as discussed in the third p~agraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
':)~~.,QOw .~
~J:sell w. Hinton
State Auditor
RWH:as 2001ARL-13

BARTOW COUNTY BOARD OF EDUCATION

,------------------------------------------

EXHiBIT 'A'

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$ 12,881.81 $

949.05

20,102.42

72.95

ACCOUNT GROUP
GENERAL LONGTERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

841,005.00 $ 2.389.371.68

14,271,496.29

6,947.791.48

3.601,998.35

5,934,397.60

$

12.954.76

157,455.81 83,459.68
12,954.76

150,440.49 40,755.80
3,O4O~33

30,582,045.24

30.582,045.24

36,271.959.67 628,924.11

$ 12,954.76 $

21,051.47 $ 30,595,000.00 $ 49,556,415.13 $ 52,366.681.16

$ 6,806.221.75 $ 2.032,808.91

159,236.84

326.330.46

534.141.28

484,365.85

4,995.000.00

79,508.44

7,712.93

66.380.00

24,304.46

628.924.11

$ 30,595,000.00

30,595,000.00

36.275,000.00

$ 30,595,000.00 $ 38,185,284.33 $ 44.829,710.70

$ 12.954.76 $
0.00 $ 12,954.76 $ $ 12.954.76 $

20,946.04
105.43 21,051.47

$

6.135.90 $

27,575.64

12;954.76

3,040.33

20.946.04

20.946.04

157,455.81 83,459.68 5.333,115.91

150.440.49 40,755.80. 2,567.723.99

322,946.96 5.434.115.74

312.387.16 4,414,101.01

$ 11,371,130.80 $ 7,536.970.46

21.051.47 $ . 30.595,000.00 $ 49,556,415.13 $ 52.366,681.16

-3-

BARTOW COUNTY BOARD OF EDUCATION

COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

i

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
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
. Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES>
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 51,087,566.57 $ 1,740,535.32

60,822.00

4,482,670.38

24,033,431.19

1,343,749.58

2,319,927.94

$ 76,525,569.34 $ 8,543,133.64

$ 51,020,303.55 $ 3,090,493.29

1,592,917.98 1,145,869.93 1,746,416.34
774,264.39 5,581,835.78 1,125,807.56 6,313,367.79 3,454,461.47
923,273.06 24,409.34
948,736.80

493,620.86 87,265.49 15,792.38
243,248.13 4,888.01
16,222.85 1,910.49 3,464.92
28,222.65 4,764,340.72

628,924.11 22,858.57

$ 75,303,446.67 $ 8,749,469.79 $ 1,222,122.67 $ -206,336.15

$

-6,000.00

$

-6,000.00

$ 1,216,122.67 $ -206,336.15

3,360,372.75

1,584,130.19

7,015.32 42,703.88

FUND BALANCE JUNE 30

$

The notes to the general-purpose financial statements are an integral part of this statement -4-

4,576,495.42 $ 1,427,513.24

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 394,555.00

$ 53,222,656.89 $ 48,670,802.09

4,543,492.38

4,752,305.15

3,844,672.01 $ 7,249,180.46

35,127,283.66

32,039,462.22

161,333.95

145.47

3,825,156.94

3,412,683.48

$ 4,400,560.96 $ 7,249,325.93 $ 96,718,589.87 $ 88,875,252.94

$ 54,110,796.84 $ 44,609,808.99

$

865.80

1,640,303.24

2,086,538.84 1,233,135.42 1,762,208.72 1,017,512.52 5,586,723.79 1,126,673.36 6,329,590.64 3,456,371.96
926,737.98 52,631.99
4,764,340.72 2;589,040.04

3,428,145.49 1,665,996.02 1,644,n4.82
991,939.58 4,460,618.68 1,392,032.08 5,722,322.13 3,133,872.72
554,133.38 65,147.98
4,198,135.46 10,014,586.84

$ 5,680,000.00 1,553,752.50 5,659.00

6,308,924.11 1,576,611.07
5,659.00

6,429,895.40 1,896,198.89
4,255.00

$ 1,641,169.04 $ 7,239,411.50 $ 92,933,497.00 $ 90,211,863.46

$ 2,759,391.92 $

9,914.43 $ 3.785,092.87 $- -1,336,610.52

$

6,000.00

$

6.000.00

$ 2,765,391.92 $ 2,567,723.99

$

6,000.00

-6,000.00

$

0.00

9,914.43 $ 3,785,092.87 $ -1,336,610.52

3,040.33

7,515,267.26

8,783,518.n

7,015.32 42,703.88

61,349.34 7,009.67

$ 5,333,115.91 $

12,954.76 $ 11,350,079.33 $ 7,515,267.26

-5-

BARTOW COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INONGAAP 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

-------------------------

BARTOW COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEA~ ENDED JUNE 30, 2001

EXHIBIT "0"

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

ENDOWMENT FUND
BLANCHE D. CARVER FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 3D, 2001

JUNE 3D, 2000

$

0.00 $

0.00 $

0.00

$

2,000.00 $

2,000.00 $

1,964.75

$

-2,000.00 $

-2,000.00 $

-1,964.75

1,348.27

1,348.27

1,034.29

$

-651.73 $

-651.73 $

-930.46

21,703.20

21,703.20

22,633.66

$

21,051.47 $

21,051.47 $===2=1010:,7=:0=3.=20=.

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, 2001

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

Cash and Cash Equivalents - June 30

ENDOWMENT FUND
BLANCHE D. CARVER FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

-2,000.00 $

-2,000.00 $

-1,964,75

1,348.27

1,348.27

1,369.97

$

-651.73 $

-651.73 $

-594.78

1,600.78

1,600.78

2,195.56

$

949.05 $

949.05 $ ==~1,;,6~0~0.~78~

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

BARTOW COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Bartow 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To confonn 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 confonn to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
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.

- 11 -

BARTOW COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXH~IT "F"

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 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 ofwhich 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 fmancial reporting device used to account for general obligation debt outstanding.
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.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese 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:
- 12-

BARTOW COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200i

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues"are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to b~ used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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 of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis ofaccounting, 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,
BUDGET
The Bartow County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources, There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The . budget for all governmental funds is prepared by fund, function and object. The legal level of
- 13-

BARTOW COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting 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 Section20-2-167(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-term investments with

original maturities of three months or less from the date of acquisition in authorized financial

institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one

or more solvent banks or insured Federal savings and loan associations.

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 School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured of.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,

- 14-

BARTOW COUNTY BOARD OF EDUCATION

EXHffiIT ifF"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables 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 of Commissioners fixed the property tax' levy for the 2000 tax year (calendar year) on September 15,2000 (levy date). Taxes were due on November 15,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001, The Bartow 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 $22,939,797.28 and for school bonds amounted to $122.47.

The tax millage rate levied for the 2000 tax year (calendar. year) for the Bartow County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

18.61 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 $11,093,730.00 and was recorded in the Capital Projects and Debt Seryice Funds. The State will terminate collection ofthis tax once an additional $16,514,045.84 has been collected or on June 30, 2002, whichever occurs first.

-: 15 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note J: 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 ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating l~ave in which payment is probable and can be reasonably ~stimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
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 Long-Term Debt Account Group ~ this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit 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 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 expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.

- 16-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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 ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations . have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year 'classifications.

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 ofmoney which has not been secured by surety bond~ by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of anyone of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

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

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

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the

State of Georgia, and

.

- 17-
r

BARTOW COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

(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 AtJune 30, 2001, the bank balances were $3,143,820.99. 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 with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 335,634.23

2

2,808,186.76

3

0.00

Total

$ 3,143,820.99

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $13,279,434.58 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:
J"
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The"pool is not

- 18 -

BARTOW COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Note 2: DEPOSITS AND INVESTMENTS
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does . not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments~ operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, .banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.
Note 3: NON-MONETARY TRANSACTIONS
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: 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 related illness or injuries to employees; natural disaster and unemployment compensation.
The School District 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 of general 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 ofthe 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 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.

- 19-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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 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 School District. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit.

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

2000 2001

Beginning of Year Liabilitv

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $ 353,864.67 $ 353,864.67 $

0.00

$

0.00 $ 171.502.92 $ 171,502.92 $

0.00

The School District 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 ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can . be reasonably estimated.

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $

3.498.00 $

3.498.00' $

0.00

$

0.00 $ 10.544.00 $ 10.544.00 $

0.00

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

Position Covered

Amount

Superintendent All Other Employees

$ 50,000.00 $ 100,000.00

- 20-

BARTOW COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1993 General Government - Series 1994 General Government - Series 1997 General Government - Refunding - Series 1998 General Government - Refunding - Series 1999

5.00% - 5.70% 3.53% - 4.60% 4.00% - 5.125% 3.60% - 4.15% 3.67% - 4.40%

$ 2,500,000.00 3,220,000.00 10,180,000.00 4,700,000.00 9,995,000.00

$30.595,000.00

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 2001, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2000 .'

$ 691,077.07 $36,275,000.00 $36,966,077.07

Retroactive Restatement of Prior Year Balances

-62,152.96

-62,152.96

Balance July 1,2000 Restated

$ 628,924.11 $36,275,000.00 $36,903,924.11

Deductions Debt Retired

628,924.11 5,680,000.00 6,308,924.11

Balance June 30, 2001

$==o=lO~.O~O $30.595.000.00 $30.595,000.00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

- 21 -

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003 2004 2005 2006 2007 - 2011 2012 - 2014

$ 7,281,762.50 7,332,547.50 2,006,355.00 2,066,000.00 2,072,575.00 10,674,267.50 6,510,710.00

Total Principal and Interest

$37.944.217.50

Note 6: SHORT-TERM DEBT

The School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-tenn debt is to provide cash for operations until property tax collections are received by the School District each November. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount ofshort-teml debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-tenn debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred.

Tax Anticipation Notes

Beginning Balance

Additions

Payments

Ending Balance

$4.995,000,00 $==dO~,OQ!,O $4,995,000,00 !!!:$==="O~,O~O

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1999, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's general-purpose financial statements. At June 30, 2001, $13,520,000.00 of bonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures iIi the amount of $889,821.93 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies,

- 22-

BARTOW COUNTY BOARD OF EDUCATION

EXHffiIT tlF"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$721,434.9~

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$168,387.00

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

02G/O 1S-608-00 1

$ 28.221.30

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

Note 10: 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 11: SUBSEOUENT EVENTS

On September 18,2001, the voters of Bartow County voted in favor of a Special PUrpose Local. Option Sales Tax Referendum (commencing upon the expiration ofthe current 1 percent sales and use tax) which authorized the issuance of $40,000,000.00 Bartow County School District General Obligation School Bonds. As ofthe date ofthis report, the School District issued general obligation bonds in the amount of$10,000,000.00 dated December 1,2001. The proceeds from these bonds will be used for the cost of acquiring, constructing, and equipping new school facilities, adding to, renovating, repairing, equipping, and improving existing school facilities, and acquiring and installing system-wide technology improvements. The imposition ofthe tax approved by the voters, as stated on the Official Ballot Bartow County, is as follows:

- 23-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

,, ,

JUNE 30, 2001

i

Note 11: SUBSEQUENT EVENTS
"Shall a special I percent sales and use tax be imposed in Bartow County for a period oftiine not to exceed five years (20 consecutive calendar quarters) commencing upon the expiration of , the current 1 percent sales and use tax for educational purposes for the raising ofnot more than $98,000,000 for the purpose of (a) for the Bartow County School District, (i) retiring a portion ofpreviously incurred general obligation indebtedness at a maximum cost of $9,733,980 and (ii) acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, including, but not limited to, three new elementary schools, a new high school, renovation of a current high school into a middle school and additional classrooms and physical education facilities, acquiring, installing and equipping system-wide technology improvements, acquiring and equipping school buses and related equipment, adding to, renovating, repairing, equipping and improving existing school buildings and facilities useful or desirable in connection therewith, including classroom additions, acquiring the necessary property therefore, both real and personal, and sites for future schools (the "Bartow Projects"), the maximum ofthe Bartow Projects to be paid with sales tax proceeds will be $66,480,620..... Ifthe tax is approved by the voters ofthe Bartow County School District, such vote shall constitute approval of the issuance of general obligation debt of the Bartow County School District in the aggregate principal amount of $40,000,000 to fund all or a portion of the Bartow Projects and for other purposes more specifically described in the Notice of Election."
Note 12: ACCUMULATED EMPLOYEES' LEAVB
Certain 12 month employees earn vacation leave at the rate of .833 days per month, up to ten days per year, with a maximum accumulation of30 days. Upon retirement or termination ofemployment, employees are paid at their current rate of pay for any unused annual vacation leave up to the maximum accumulation. See Note 1 - Compensated Absences
Note 13: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System 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.
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

- 24-

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 i

Note 13: RETIREMENT PLANS

TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 5,181,412.01 $ 4,552,724.32 $ 4,590,872.93

- 25-

BARTOW COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$ 461,102.35 $ 157,391.94

977,959.29

14,597.26

157,455.81 83.459.68

$ 1,694,574.39 $ 157,391.94

Total Liabilities and Fund Equity See notes to the general-purpose financial statements.
- 26

$ 1,694,574.39 $ 157,391.94

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

208,679.85 $

827,174.14 $

918,692.33

977,959.29

822,936.99

32,393.01

46,990.27

415,213.76

157,455.81 83,459.68

150,440.49 40,755.80

$

241,072.86 $ 2,093,039.19 $ 2,348;039.37

$

48,598.07 $

186,338.89

$

234,936.96 $

$ 147,246.81 518,279.14
665,525.95 $

128,993.70 154,184~87 473,015.39
7,715.22
763,909.18

$

6,135.90 $

6,135.90 $

27,575.64

157,455.81 83,459.68

150,440.49 40,755.80

0.00

1,180,461.85

1,365,358.26

$

6,135.90 $ 1,427,513.24 $ 1,584,130.19

$

241,072.86 $ 2,093,039.19 $ 2,348,039.37

- 27-

BARTOW COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

FUND BALANCE JUNE 30

$ 1.421,377.34 $====;;;O,~OO;;",

See notes to the general~purpose financial statements.
- 28-

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,740,535.32 $ 1,471,064.91

$ 2,520,996.01

4,482,670.38

4,695,488.50

2,319,927.94

2,116,449.81

$ 2,520.996.01 $ 8,543,133.64 $ 8,283,003.22

$ 1,715,559.93 $ 3,090,493.29 $ 2,920,988.43

431,912.70 87,265.49 15,792.38
243,028.73 752.69
16,222.85 213.41
3,464.92 28,222.65

493,620.86 . 87,265.49 15,792.38
243,248.13 4,888.01 16,222.85 1,910.49 3,464.92
28,222.65 4,764,340.72

498,272.96 77,507.87 95,719.26
219,557.83 5,929.36
39,950.45 4,716.82
37,314.90 4,196,493.21
700.00

$ 2.542,435.75 $ 8,749,469.79 $ 8,097,151.09

$

-21,439.74 $ -206,336.15 $

185,852.13

27,575.64

1,584,130.19

1,329,919.05

7,015.32 42,703.88

61,349.34 7,009.67

$

6,135.90 $ 1,427,513.24 $ 1,584.130.19

- 29-

BARTOW COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT.

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 726,928,09

$ 4,241,978,88

$ 4,241,978,88

5,953,21

1,873,268,03 $ 394,555,00

2,267,823,03

4,595A25,19

$ 6,115,246,91 $ 394,555,00 $ 6,509,801,91 $ 5,328,306.49

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Retainages Payable

$

782,131.00 $ 328,175,00 $ 1,110,306,00 $ 2,759,737.00

845.50

66,380,00

66,380.00

Total Liabilities

$

782,131.00 $ 394,555.00 $ 1,176,686.00 $ 2,760,582.50

FUND EQUITY

Fund Balances Reserved For SPLOST Projects Unreserved Undesignated

$ 5,333,115,91 0.00 $

$ 5,333,115.91 $ 2,567,723.99

0,00

0.00

0.00

Total Fund Equity

$ 5,333,115.91 $

0.00 $ 5,333,115.91 $ 2,567,723.99

Total Liabilities and Fund Equity $ 6,115,246.91 $ 394,555,00 $ 6,509,801.91 $ 5,328,306.49

See notes to the general-purpose financial statements.

- 30-

BARTOW COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

EXHIBIT "J"

See notes to the general-purpose financial statements.

- 31 -

BARTOW COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT "K"

Cash and Cash Equivalents Accounts Receivable Due from Other Funds
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$ 3,092,62 $

9,789.19 $

72.95

TOTALS

12,881.81 $ 72.95

5,700.96 36.96
2,697.59

$

3,165,57 $

9,789.19 $.

12,954.76 $==~8;e;:,4~3~5.=51~

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Due to Other Funds

Total Liabilities FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undesignated

Total Fund Equity

$

3,165.57 .$ 0.00
3,165.57 $

$

2.697.59

2,697.59

$

5,395,18

9.789.19 $ 0.00
9,789.19 $

12.954.76 $ 0.00
12.954.76 $

3,040.33 0.00
3,040.33

Total Liabilities and Fund Equity $

3,165.57 $

9,789.19 $

12,954.76 $ ==~8==,4=3=5.=51~

See notes to the general-purpose financial statements.

32

BARTOW COUNTY BOARD OF EDUCATION

EXHIBIT "L"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30, 2001

FUND BALANCE JUNE 30

$ 3,165,57 $

9,789,19 $

12,954,76 $ ===3;,04=0=,3=3=

See notes to the general-purpose financial statements,

- 33

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAMIGRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD'

EXPENDITURES IN PERIOD

Agriculture. U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553
. 10.555

NJA

$ 391,025.74

(2)

NJA

1,347,454.94 $

4,541,147.03 (3)

Total Child Nutrition Cluster

$ 1.738,480.68 $

4,541.147.03

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

NJA

223,193.69

223.193.69

Total U. S. Department of AgriCUlture

$ 1,961,674.37 $ 4.764,340.72

Appalachian Regional Commission Direct Appalachian State Research, Technical Assistance and Demonstration Programs

23.011

$

60,000.00 $

60,000.00

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool

84.027 84.027 84.173

Total Special Education Cluster

Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Title X Public Charter Schools Safe and Drug-Free Schools Vocational Education Basic Grants to States High School Program Basic Grant

84.041 84.332
84.010 84.281 84.298 84.340 84.282 84.186
84.048

Total U. S. Department of Education

NJA

$

45.639.82 $

45.639.82

NJA

1,058,002.22

1,058.002.22

NJA

95,070.57

95,070.57

$ 1,198,712.61 $

1.198.712.61

822.00

(4)

NJA

53.979.09

73,179.49

NJA

878,413.21

878,413.21

NJA

36.197.57

36.197.57

NJA

59,205.00

59.205.00

NIA

163.180.00

163,180.00

NJA

43.207.20

45,446.54

NlA

4.733.00

4,733.00

NlA

74,533.00

74,533.00

$ 2.512,982.68 $

2,533.600.42

34

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Department of Pass-Through From Coosa Valley Regional Development Commission Job Training Partnership Act

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250

N/A

$

8.835.33 $ _ _.........:8::.:;,8:.::3:.:::5:.:.3=..3

Total Federal Financial Assistance
N/A = Not Available

$ 4.543,492.38 $ """,==.07'0;,36;;,;6;,;;7. ;.,;7,;6;,;.4,;",7

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 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 2001 National School Lunch Program:
(3) Expenditures for this program include State. and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

Major Programs are identified by an asterisk (*) 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 activlty 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 the general-purpose financial statements.

See notes to the general-purpose financial statements.

- 35-

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE '2"

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECTS

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Constructing and equipping school buildings

and other buildings or facilities useful or

desirable in connection therewith, including

two new elementary schools, two new

middle schools and a new high sC.hool,

adding to, renovating, repairing, equipping

and improving existing school buildings

and facilities useful or desirable in

connection therewith, including classroom

additions, and acquiring the necessary

property therefor, both real and personal,

and sites for future schools

$ 45,087,100.00 $ 48,n3,OOO.00 $

1,640,303.24 $ 40,701,150.03

Ongoing

Retiring previously incurred general obligation indebtedness evidenced by the Bartow County School District General Obligation School Bonds, Series 1993, maturing in the years 2005 through 2014 and the Bartow County School District General Obligation School Bonds, Series 1994, maturing in the years 1998 through 2004

9,600,000.00

9,502,306.25

1,876,192.50

5,513,273.75 Ongoing

$ 54.687,100.00 $ 58,275,306.25 $ 3,516,495.74 $ 46,214,423.78

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option . Sales Tax.

(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of 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 School District has incurred interest eJCpense to provide advance funding for the above projects as follows:

Prior Years Current Year Total

$ 3,480.989.85 617,245.00
$ 4,098,234.85

(5) The Bartow County Board of Education issued General Obligation Refunding Bond Issues 1998 and 1999 to refund portions of the 1993 Bond Issue. The amount expended in the Current Year includes debt service on the replacement refunding issues.

See notes to the general-purpose financial statements.

37

BARTOW COUNTY BOARD OF EDUCATION GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM (aBEl
EARNINGS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION

AllOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category III

Category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other languages (ESOl)

3,047,628.00 $ 3,320,238.10 $

189,667.00

245,508.74

8,559,049.00

8,118,465.82

1,204,203.00

1,151,073.53

3,987,579.00

5,088,887.07

6,533,420.00

7,403,928.06

4,892,662.00

6,589,804.87

1,714,998.00

1,400,225.68

8,032,037.00

68,106.89

436,807.10

292,270.71

6,010,777.90

238,019.52

1,224,579.00

1,137,889.12

549,470.00

357,614.95

478,879.00

573,977.01

80,408.00

46,906.67

84,746.54 $ 4,662.94 392,527.08 18,246.24 223,663.23 395,953.47 511,513.51 304,084.51
917,138.35
3,395.11 97,664.73 26,606.19
7,242.73 22,663.00
156.89

3.404,984.64 250,171.68
8,510,992.90 1,169,319.77 5,312,550.30 7,799,881.53 7,101,318.38 1,704,310.19
68,106.89 1,353,945.45
292,270.71 6,014,173.01
335,684.25 1,164,495.31
364,857.68 596,640.01
47,063.56

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

40,494,579.00 $ 42,480,501.74 $ 3,010,264.52 $ 45,490,766.26

Media Center Program Staff and Professional Development

1,222,585.00 361,239.00

1,452,751.82 73,366.33

273,054.41 289,508.17

1,725,806.23 362,874.50

TOTAlQBEFORMULAFUNDS

$

42,078,403.00 $ 44,006,619.89 $ 3,572,827.10 $ 47,579,446.99

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

- 38-

BARTOW COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
EARNINGS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Woodland Middle School at Euharlee White Elementary School Adairsville Elementary School Mission Road Elementary School South Central Middle School Cass Middle School Allatoona Elementary School Woodland High School , Adairsville Middle/High School Kingston Elementary School Adairsville Middle School Hamilton Crossing Elementary School Taylorsville Elementary School Adairsville High School Cass High School Cloverleaf Elementary School Emerson Elementary School Pine Log Elementary School STARS Preschool Center Bartow CrossRoads Academy Central Office (Alternative Education Program) Maintenance Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$ 2,032,599.00 $ 2,282,055.58

2,106,535.00

2,107,200,91

2,167,727.00

2,378,939.19

2,716,262.00

2,769,518.27

2,248,645.00

2,798,432,15

2,999,217,00

3,417,213.59

2,379,232.00

2,592,358.48

3,696,907,00

4,572,853.39

10.00

1,976,045.00

2,055,381.10

1,679,227.00

1,811,883.54

2,184,950.00

2,496,287,33

2,713,564.00

2,735,600.00

1,807,459.00

2,279,094.02

3,497,680.00

4,574,785.27

2,374,329.00

2,385,210.75

1,960,014.00

2,093,282.85

1,475,308.00

1,520,515.49

160,833.58

422,197.85

478,879.00

33,284.23

3,828,69

$ 40,494,579.00 $ 45,490.766.26

See notes to the general-purpose financial statements. - 39-

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

~USSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-X400
February 12, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the 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 30,2001, and have issued our report thereon dated February 12,2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-pwpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Bartow County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-40

Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Bartow County Board of Education's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted 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 ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Bartow County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the fmancial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6081-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions. Our consideration 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 solely for the infonnation and use of the management, members of the Bartow County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~ ... OlLW.~ Russell W. Hinton State Auditor
RWH:as 2001YB-40

1USSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-X400
February 12,2002

. Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bartow County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofBartow County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30,2001. Bartow County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, 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 ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about wheth~r noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the 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.
2001SA-30

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 June 30, 2001.
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 iIiternal 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-133.
We noted a certain matter involving the internal control over compliance and its operation that is considered 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 compliance that, in our judgment, could adversely affect the Bartow County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The report~ble condition is described in the accompanying .Schedule of Findings and Questioned Costs as item FA-6081-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness.
This report is intended solely for the information and use of the management, members of the Bartow County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~~.~to~~ State Auditor
RWH:as 2001SA-30

SECTIONm 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 QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6081-99-0 1 FS-6081-00-0 1

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6081-01-01

We did not maintain a system-wide General Fixed Assets Account Group. It is the intention ofthis system to contract with a finn to catalog and value fixed assets as ofJune 30, 2002. This will provide a starting point for inclusion in the entity-wide financial statements as required under GASB 34.

SECTION IV FINDINGS AND QUESTIONED COSTS

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the 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 ofthe 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 of Education, disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Bartow County Board ofEducation disclosed a reportable condition in internal control over major programs for the following c'ompliance requirement.
Special Tests and Provisions
The reportable condition described above ~s not considered to be a material weakness.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Bartow County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Bartow County Board of Education's audit disclosed an audit finding required to be reported by section .51 O(a) ofOMB Circular A~133. This audit fipding is included in section N of this report.
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
8. Type "A" Program Dollar Threshold' The dollar threshold for type "A" programs was $300,000.00.
- 1-

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Bartow County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
!
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-608l-0l-01
The Bartow County Board of.Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District .being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.
Management's Response:
The School District has sent out requests for proposal to several different vendors in order to begin implementation of a general fixed assets system.. It is anticipated that implementation will be completed in fiscal year 2003.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
SPECIAL TESTS AND PROVISIONS Inadequate Accountability of Central Warehouse Inventories Reportable Condition U. S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-6081-01-01
A review of the Bartow County Board of Education's internal control policies and procedures over the Child Nutrition Cluster Program (CFDA Nos. 10.553 and 10.555) noted that the storage facility did not maintain adequate inventory records, including but not limited to, beginning balance, receipts, disbursements and losses. The School District did not reconcile the physical ending
':'2 -

BARTOW COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SPECIAL TESTS AND PROVISIONS Inadequate Accountability of Central Warehouse Inventories Reportable Condition U. S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-6081-01-01 inventory balance to the commodity records. In addition, analytical procedures to compare receipts, usage/distribution and ending inventory for the current audit period to the previous audit period could not be performed due to deficiencies in inventory records. The Code ofFederal Regulations section 250.16 states in part:
"Accurate and complete records shall be maintained with respect to the receipts, distribution/use and inventory of donated foods ... " The weakriess identified in the Child Nutrition Cluster Program was the result of management's failure to establish appropriate controls over accountability of commodities. The School District should review the procedures in place, design policies' and procedures that would enhance accountability of commodities relative to the above control category, and implement tho,se policies and procedures to ensure adequate internal control over the Child Nutrition Cluster Program. Management's Response: The software system that has been implemented in food services does keep a perpetual inventory. The school nutrition services department has put a procedure in place so that an actual inventory will be taken monthly and the results will be reconciled to the system records. Any variances will be documented and any patterns of unexplainable variances will be thoroughly investigated.
- 3 -'