Carroll County Board of Education, Carrollton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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CARROLL COUNTY BOARD OF EDUCATION
CARROLLTON, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Russell W. Hinton State Auditor

CARROLL 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

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

CARROLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

34

N

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

35

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

36

2 SCHEDULE OF STATE REVENUE

38

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

41

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

42

5

BY SITE

43

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-l33

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

CARROLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RIISSEl.1. \". HI~T()!'O
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W, Suite 214 Atlanta, Georgia 30334-X400
April 25, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Carroll 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 Carroll County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Carroll County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
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 ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes 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.
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:

2001ARL-14

* 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, 200 I. 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 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 Carroll County Board of Education as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note I to the general-purpose financial statements, for fiscal year 2001, the Board of Education recorded a liability for compensated absences within the general-purpose financial statements. This change is in accordance with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 25, 2002, on our consideration ofthe Carroll County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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.
2001ARL-14

Our audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Carroll County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through N) 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-l33, 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 effects ofthe matters referred to in the third paragraph, such infonnation is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pennanent 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,

RWH:gp 2001ARL-14

Ru ell W. Hinton Sta e Auditor

CARROLL COUNTY BOARD OF EDUCAnON

CARROLL COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Compensated Absences

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 9,568,052.09 $

761,533.88 $ 2,722,740.00

15,000.00

651,248.64

652,328.47

1,550,973.56

62,010.00 46,415.06

Total Assets

$ 10,219,300.73 $ 1,537,287.41 $ 4,273,713.56

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Designated for Self-Insurance Designated for Local Capital Outlay Undesignated
Total Fund Equity

$

161,274.23

727,723.37

103.44

$

342,904.87 250,842.30

$

889,101.04 $

593,747.17

$

$

64,498.36

10,154,802.37

$ 10,219,300.73 $

62,010.00 46,415.06
$

3,152,243.37

539,761.31 648,186.37 $

527,723.02 0.00
3,679,966.39

Total Liabilities and Fund Equity

$ 10,219,300.73 $ 1,537,287.41 $

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

-2-

4,273,713.56

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EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

563.66 $

22,390.89

42,250.28

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$ 13,075,280.52 $ 13,831,318.75

57,250.28

55,700.00

2,854,550.67

2,490,786.69

62,010.00 46,415.06

51,185.74 52,887.05

$

563.66

563.66

552.61

8,549,436.34 2,054,916.46

8,549,436.34 2,054,916.46

12,539,447.39 1,921 ,822.84

$

563.66 $

64,641.17 $ 10,604,916.46 $ 26,700,422.99 $ 30,943,701.07

$

161,274.23 $

162,376.59

727,723.37

691,507.61

103.44

79,449.78

342,904.87

208,272.75

250.842.30

622,856.47

$

32,151.27

32,151.27

14,433.72

$ 2,054,916.46

2.054,916.46

1.921,822.84

8,550,000.00

8,550,000.00

12.540,000.00

$

32,151.27 $ 10.604,916.46 $ 12,119,915.94 $ 16,240,719.76

$

563.66

$

27,965.70

0.00

4,524.20

$

563.66 $

32,489.90

$

563.66 $

552.61

27,965.70

27,965.70

62,010.00 46,415.06
3,152,243.37

51,185.74 52,887.05 1,763,728.84 3,531,878.94

64,498.36 527.723.02 10,699,087.88

214,120.75 9,060,661.68

$ 14,580,507.05 $ 14,702,981.31

$

563.66 $

64,641.17 $ 10,604,916.46 $ 26,700,422.99 $ 30,943,701.07

-3-

CARROLL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Principal Interest
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
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

$ 52,935,114.96 $
20,984,461.91 1,386,016.40

2,622,522.62 6,467,430.56
1,828,084.53

$ 75,305,593.27 $ 10,918,037.71

$ 49,228,604.79 $
2,135,905.33 1,462,566.00 1,992,489.06
829,267.85 5,300,687.69
482,196.21 5,921,760.54 4,227,767.92
552,998.32 23,842.54 1,142.82
350,119.05 406,974.95 209,078.77

4,587,812.69 591,376.76 580,430.66 537.33 284,540.81
5,440.87 116,701.87 4,645,920.22
199,113.85

$ 73,125,401.84 $ 11,011,875.06

$ 2,180,191.43 $

-93,837.35

$

$

-670,487.46

$

-670,487.46 $

$ 1,509,703.97 $ 8,709,596.76

129,405.46
129,405.46
35,568.11 666,314.08
10,824,26 -6,471.99 -58,048.09

FUND BALANCE JUNE 30

$ 10,219,300.73 $

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

648,186.37

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EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

165,000.00

$ 55,722,637.58 $ 51,625,524.53

6,467,430.56

5,882,905.25

4,515,630.94 $ 4,470,232.50

29,970,325.35

27,715,262.20

357,071.51

11.05

3,571,183.49

3,519,705.22

$ 5,037,702.45 $ 4,470,243.55 $ 95,731,576.98 $ 88,743,397.20

$ 7,194,425.84 $
$ 7,194,425.84 $ $ -2,156,723.39 $

$ 53,816,417.48 $ 49,007,604.55

2,727,282.09 2,042,996.66 1,993,026.39 1,113,808.66 5,300,687.69
482,196.21 5,921,760.54 4,233,208.79
552,998.32 140,544.41 4,647,063.04 350,119.05 606,088.80 7,403,504.61

4,337,443.64 2,511,983.91 1,730,356.29 1,043,876.44 5,273,232.72
471,856.03 5,624,458.75 3,570,010.62
260,454.20 146,397.78 4,316,359.22 336,634.10 546,482.09 15,001,469.60

3,990,000.00 480,232.50

3,990,000.00 480,232.50

3,820,000.00 638,848.95

4,470,232.50 $ 95,801,935.24 $ 98,637,468.89

11.05 $

-70,358.26 $ -9,894.071 .69

$

541,082.00

$

541,082.00

$ -1,615,641.39 $ 5,295,607.78

$

670,487.46 $

151,052.35

-670,487.46

-151,052.35

$

0.00 $

0.00

11.05 $

-70,358.26 $ -9,894,071.69

552.61

14,672,071.23

24,561,478.98

10,824.26 -6,471.99 -58,048.09

-3,719.64 8,383.58

$ 3,679,966.39 $

563.66 $ 14,548,017.15 $ 14,672,071.23 - 5-

CARROLL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 49,758,466,56 $ 52,935,114,96

19,246,242,00 525,000,00

20,984,461,91 1,386,016.40

Total Revenues

$ 69,529,708,56 $ 75,305,593,27

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 Enterprise Operations Community Services Operations
Capital Outlay

$ 47,451,998,84 $ 49,228,604,79

1,427,663,77 1,407,822,86 2,115,359,14
512,214,13 5,262,126.62
494,504,00 5,503,929.25 3,795,320.49
540,408.06
3,800,00
163,500.00

2,135,905,33 1,462,566,00 1,992,489,06
829,267,85 5,300,687,69
482,196,21 5,921,760,54 4,227,767.92
552,998.32 23,842.54 1,142,82
350,119,05 406,974.95 209,078,77

Total Expenditures

$ 68,678,647,16 $ 73,125,401,84

Excess of Revenues over (under) Expenditures

$ 851,061.40 $ 2,180,191.43

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 518,000.00 $ -1,272,833,35

-670,487,46

Total Other Financing Sources (Uses) $ -754,833.35 $ -670,487,46

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

96,228,05 $ 1,509,703,97

FUND BALANCE JULY 1, 2000

7,794,479,22

8,709,596,76

Adjustments

-21,316,77

FUND BALANCE JUNE 30,2001

$ 7,869,390,50 $ 10,219,300,73

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 2,579,361,92 $ 2,622,522,62

6,465,672,80

6,467,430,56

1,745,794,00

1,828,084,53

$ 10,790,828,72 $ 10,918,037,71

$ 4,322,696,78 $ 4,587,812,69

628,680,00 643,915,00
6,000,00 321,396,13

591,376,76 580,430,66
537,33 284,540,81

30,450,00

5,440,87

117,987.09 4,415,277,00

116,701.87 4,645,920,22

208,127.80 48,000,00

199,113.85

$ 10,742,529.80 $ 11,011,875.06

$

48,298,92 $

-93,837,35

$

90,390,20 $

129,405,46

$

90,390.20 $

129,405,46

$ 138,689,12 $ 790,078,62 -79,514,79

35,568.11 562,241,29 -58,048,09

$ 849,252.95 $

539,761,31

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

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

EXHIBIT "D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded Operating Income
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

CARROLL COUNTY BOARD OF EDUCATION TEACHER
DEVELOPMENT SCHOLARSHIP FUND

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

$

0,00 $

0,00 $

0.00

$

0.00 $

0.00 $

0.00

$

0.00 $

0.00 $

0.00

1,579.82

1,579.82

1,307.96

$

1,579,82 $

1,579.82 $

1,307.96

30,910.08

30,910.08

29,602.12

$

32,489.90 $

32,489.90 $ =====3=00.;;;,9=10=.=08==

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

-8-

_._-_ ----_.__.

...

CARROLL 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 Flows from Investing Activities:
Interest Received on Investments Purchase of Investments Sale of Investments Net Cash Provided by Investment
Activities Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

CARROLL COUNTY BOARD OF EDUCATION TEACHER
DEVELOPMENT SCHOLARSHIP FUND

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

$

0.00 $

0.00 $

0.00

$

1,579.82 $

1,579.82 $

1,307.96

-30,250.28

-30,250.28

-28,700.00

28,700.00

28,700.00

28,300.00

$

29.54 $

29.54 $

907.96

$

29.54 $

29.54 $

907.96

2,210.08

2,210.08

1,302.12

$

2,239.62 $

2,239.62 $ ===20!:,2=1=0.=08==

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

CARROLL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Carroll 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 conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
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.

- 10-

CARROLL COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLE TRUST FUND Carroll County Board of Education Teacher Development Scholarship 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 assist State University of West Georgia juniors and seniors who have committed to a career in education or to veteran teachers who are returning to school to upgrade their teaching credentials.
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and accrued compensated absences.
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.
- 11 -

CARROLL COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after 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.

- 12 -

CARROLL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Notel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Carroll County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the fund 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 Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report:

- 13 -

CARROLL COUNTY BOARD OF EDUCAnON

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 2000

$ 666,314.08

Adjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods

-51,185.74 -52,887.05

Fund Balance July 1,2000 (Budget Basis)

$ 562,241.29

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

35,568.11

Residual Equity Transfers

-58,048.09

FUND BALANCE JUNE 30, 2001 (Budget Basis)

$ 539,761.31

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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

- 14-
- - - ~ ~ ~ - - _ . _ . . . .

CARROLL COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

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 Carroll County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 11,2000 (levy date). Taxes were due on December 20,2000 (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 Carroll County Tax Commissioner bills and collects the property taxes for the School District, withholds 1% of taxes 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 $20,018,723.26.

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

School Operations

17.3 mills

- 15 -

CARROLL COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 $8,985,863.44 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $20,074,356.51 has been collected or on December 31, 2002, whichever occurs first.
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 of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
For fiscal year 2001, the School District began recording the dollar value of accumulated compensated absences at June 30 in the General Long-Term Debt Account Group. This is a change in accounting principle.
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. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:

...._._--_._-_...... - - _ .

- 16-

CARROLL COUNTYHQARD OF EDUCATION NOTES TO THE GENERAL-P~ ")SE FINANCIAL STATEMENTS
JUN.: ,'U, 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, 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 of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the 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,
- 17 -

CARROLL COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

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

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

(6) Industrial revenue bonds and bonds of development 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 or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $16,206,787.80. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

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

Risk Category

Bank Balance

1

$ 268,166.23

2

0.00

3

15,938,621.57

Total

$16,206,787.80

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
- 18 -
--_._---

CARROLL COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has 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 Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 292,789.12 $ 292,789.12 $

0.00

$

0.00 $ 331,916.05 $ 331,916.05 $

0.00

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 12,582.00 $ 12,582.00 $

0.00

$

0.00 $

7,100.00 $

7,100.00 $

0.00

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

- 19 -

CARROLL COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

Position Covered

Amount

Superintendent Each Principal and Assistant Principal All Other Employees

$ 100,000.00 $ 20,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1998 General Government - Series 1999

3.7% -4.0% 3.1% - 3.85%

$ 3,325,000.00 5,225,000.00

$ 8,550,000.00

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

Compensated Absences

General Obligation
Bonds

Total

Balance July 1,2000

$

0.00 $12,540,000.00 $12,540,000.00

Retroactive Restatement of Prior Year Balances

1,921,822.84

~21,822.84

Balance July 1, 2000 Restated

$ 1,921,822.84 $12,540,000.00 $14,461,822.84

Additions Annual Leave Earned and Utilized (Net)

133,093.62

133,093.62

Deductions Debt Retired

3,990,000.00 3,990,000.00

Balance June 30, 2001

$ 2.054,916.46 $ 8,550.000.00 $10,604,916.46

- 20-

CARROLL COUNTY BOARD' )F EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE .'l'.JANCIAL STATEMENTS

JUNE 30, 200 I

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003
Total Principal and Interest

$ 4,501,612.50 4,551,187.50
$ 9,052,800.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $1,254,240.50 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $1 ,025,282.53

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $48,236.97

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$180,721.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project Temple Middle School

Unearned Executed Contracts
$ 2.469.341.17

The amount described in this note is not reflected in the general-purpose financial statements.

- 21 -

CARROLL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
Note 9: SUBSEQUENT EVENTS
On September 18, 2001, the voters of Carroll County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition ofthe tax by the voters, as stated in part on the Official Ballot of Carroll County, is as follows:
"Shall a special one percent sales and use tax be imposed in Carroll County (such tax to be a continuation ofthe existing 1% sales and use tax and not an additional sales and use tax) for a period oftime not to exceed five years (20 calendar quarters) commencing upon the expiration of the existing one percent sales and use tax currently in force, and for the raising of not more than $110,000,000 for the purposes of (i) funding the acquisition, construction and equipping of capital outlay projects consisting of four new elementary schools, one new middle school and two new high schools, the acquisition of future school land sites, and additions, renovations, modifications and improvements at existing schools and facilities within the Carroll County School District, and (ii) capitalized interest on the School District Debt hereinafter referred to (collectively the "Carroll County School Projects"), the maximum cost of such Carroll County School Projects not to exceed $80,135,000. Ifimposition ofthe tax is approved by the voters within the Carroll County School District, such vote shall also constitute approval of the issuance of general obligation School District Debt of Carroll County School District in the principal amount of$65,000,000 for the above purposes."
Note 10: RESIDUAL EQUITY TRANSFER
The Carroll County School District's fiscal agent responsibilities for the Burwell Psychoeducational Center were terminated effective June 30, 2000. The balance of this program, $58,048.09 was transferred to the West Georgia Regional Educational Service Agency, which assumed responsibility effective July 1,2000.
Note 11: ACCUMULATED EMPLOYEES' LEAVE
All employees who are eligible for retirement benefits and who have a minimum of three years of service with the School District earn annual leave and sick leave at rates of .84 days and one and one-fourth days per month of service, respectively. Maximum accumulations for classified and
- 22-

CARROLL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 11: ACCUMULATED EMPLOYEES' LEAVE

certified employees are twenty and twenty-five days respectively for annual leave and ninety days for sick leave. An employee will be paid for unused accumulated annual leave at their current rate of pay if the employee leaves the system in good standing. An employee will be paid for unused accumulated sick leave upon retirement at the daily rate of $30.00. See Note 1 - Compensated Absences

Note 12: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRffiUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board 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%

$ 5,320,592.56 $ 5,122,249.62 $ 5,108,060.77

- 23 -

CARROLL 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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

749,018.94 $

312,260.74

15,000.00

1,983.61

62,010.00 46,415.06

Total Assets

$

874,427.61 $ ==3=1=2=,2=60=.=74==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

19,701.95 $

67,260.38

220,098.57

245,000.36

$

239,800.52 $

312,260.74

$

62,010.00

46,415.06

526,202.03 $

0.00

$

634,627.09 $

0.00

Total Liabilities and Fund Equity
See notes to the general-purpose financial statements. - 24-

$

874,427.61 $ ===3=12;;,0,=26=0=.7;,,4;,.,

__ _-_ __ -_ ,._~-

.. ,,--,,-

- .-,._- "",--_ ".

.. ,~-

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 1.061,279.68 $

981,422.21

15,000.00

15,000.00

$

632,196.10 $

18,148.76

652,328.47

536,518.38

62,010.00 46,415.06

51,185.74 52,887.05

$

632,196.10 $

18,148.76 $ 1.837.033.21 $ 1.637,013.38

$

295,156.32 $

74,311.90

262,624.44

103.44

$

632,196.10 $

4.589.48 $ 4,589.48 $

299,745.80 $
161.274.23 727,723.37
103.44
1.188,846.84 $

37,365.32 162.376.59 691,507.61
79,449.78
970.699.30

$

62,010.00 $

51.185.74

46,415.06

52,887.05

$

0.00 $ _ _....;1...;:;.3;..c;..5..;:;..59"-'.=28;.....

539.761.31

562.241.29

$

0.00 $

13,559.28 $

648,186.37 $ _--...:6:.::6c:::.6L:;.3..:..14.;.:..0:::.,:8::--

$

632,196.10 $

18.148.76 $ 1,837,033.21 $ 1,637,013.38

- 25-

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
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
Residual Equity Transfer
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements. - 26-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

331,418.00 $ 2,241,106.94

2,522,125.24

1,821,538.39

$ 4,675,081.63 $ 2,241,106.94

$ 2,040,835.09
238,913.76 12,110.69

$ 4,645,059.62

3,671.62 1,447.00

$ 4,645,059.62 $ 2,296,978.16

$

30,022.01 $

-55,871.22

$

$

$

30,022.01 $

600,252.81

10,824.26 -6,471.99

55,871.22 55,871.22
0.00 0.00

$

634,627.09 $===~O~.;;;,;OO~

EXHIBIT"H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ $ 3,945,305.32
$ 3,945,305.32 $

49,997.68 $ 6,546.14

2,622,522.62 $ 6,467,430.56 1,828,084.53

4,595,568.02 5,882,905.25 1,778,983.38

56,543.82 $ 10,918,037.71 $ 12,257,456.65

$ 2,546,977.60
352,463.00 568,319.97
537.33 233,543.09 $

1,769.25 115,254.87
860.60 199,113.85

$ 4,018,839.56 $

$

-73,534.24 $

$ 4,587,812.69 $ 5,427,864.77

50,997.72

591,376.76 580,430.66
537.33 284,540.81
5,440.87 116,701.87 4,645,920.22 199,113.85

883,601.78 768,082.51
314,981.44 221,999.78 115,823.50
21,587.95 125,358.02 4,313,019.46 145,267.97

50,997.72 $ 11 ,011 ,875.06 $ 12,337,587.18

5,546.10 $

-93,837.35 $

-80,130.53

$

91,077.95

-17,543.71

$

73,534.24

$

0.00 $

58,048.09

-58,048.09

$

146,949.17 $

151,052.35

-17,543.71

$

129,405.46 $

151,052.35

5,546.10 $ 8,013.18

35,568.11 $ 666,314.08

70,921.82 590,728.32

10,824.26 -6,471.99 -58,048.09

-3,719.64 8,383.58

$

0.00 $

13,559.28 $

648,186.37 $====6=6=6,3=14,;,;,.=08=

- 27-

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

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Designated for Local Capital Outlay Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

527,723.02 $

0.00

$

527,723.02 $====O;;;,;'=OO~

$

527,723.02

0.00 $

$

527,723.02 $

-'o;..:...o::..;o'-
.:::..:O.~OO:::-

$

527,723.02 $====;;;,;O.=OO~

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

---_ _----

EXHIBIT "I"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 2,195,016.98 $ 2,722,740.00 $ 4,702,120.16

1,550,973.56

1,550,973.56

1,424,616.84

$ 3,745,990.54 $ 4,273,713.56 $ 6,126,737.00

$

342,904.87 $

342,904.87 $

208,272.75

250,842.30

250,842.30

622,856.47

$

593,747.17 $

593,747.17 $ _----'8:;..;:3'-'-1 1=29::.:;.2=2,,-

z....;.,

$ 1,763,728.84

$ 3,152,243.37 $ 3,152,243.37

3,531,878.94

0.00

527,723.02 0.00

0.00

$ 3,152,243.37 $ 3,679,966.39 $ 5,295,607.78

$ 3,745,990.54 $ 4,273,713.56 $ 6,126,737.00

- 29-

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

REVENUES
State Funds Taxes Other Funds
Total Revenues EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
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
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

56,214.25 $

67,109.44

$

56,214.25 $

67,109.44

$

69,573.23 $

309,080.00

1,521 ,758.28

$

69,573.23 $ 1,830,838.28

$

-13,358.98 $ -1,763,728.84

$

541,082.00

$

541,082.00

$

527,723.02 $ -1,763,728.84

0.00

1,763,728.84

$

527,723.02 $====O;;;.,;;,;OO~

See notes to the general-purpose financial statements. - 30-

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

165,000.00 $

165,000.00

4,515,630.94

4,515,630.94 $ 4,010,105.81

233,747.82

357,071.51

498,419.91

$ 4,914,378.76 $ 5,037,702.45 $ 4,508,525.72

$

36,084.50 $

414,737.73 $

976,689.98

4,790,093.43

6,311,851.71

12,726,625.21

467,836.40

467,836.40

809,794.27

$ 5,294,014.33 $ 7,194,425.84 $ 14,513,109.46

$

-379,635.57 $ -2,156,723.39 $ -10,004,583.74

$

541,082.00 $ 3,531,766.91

-3,531 ,766.91

$

541,082.00 $

0.00

$

-379,635.57 $ -1,615,641.39 $ -10,004,583.74

3,531,878.94

5,295,607.78

15,300,191.52

$ 3,152,243.37 $ 3,679,966.39 $ 5,295,607.78

- 31 -

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

EXHIBIT "K"

ASSETS Cash and Cash Equivalents

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

563.66 $

0.00 $

563.66 $====5=52=.6=1=

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$

563.66

0.00 $

$ -'0;.;.;.0:..;;;0_

563.66 $ 0.00

552.61 0.00

Total Fund Equity

$

563.66 $

0.00 $

563.66 $ ====5=52=.6=1=

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

CARROLL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001

EXHIBIT "L"

REVENUES
Taxes Other Funds
Total Revenues EXPENDITURES
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 4,470,232.50 $ 4,470,232.50 $ 4,243,814.25

$

11.05

11.05

10.80

$

11.05 $ 4,470.232.50 $ 4,470.243.55 $ 4,243,825.05

$

0.00 $ 3.990,000.00 $ 3.990,000.00 $ 3,820.000.00

480.232.50

480.232.50

638,848.95

$

0.00 $ 4,470,232.50 $ 4,470.232.50 $ 4,458.848.95

$

11.05 $

0.00 $

11.05 $ -215.023.90

552.61

0.00

552.61

215.576.51

FUND BALANCE JUNE 30

$

563.66 $

0.00 $

563.66 $ ==~5~52;=.=61~

See notes to the general-purpose financial statements.

- 33-

CARROLL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001

EXHIBIT"M"

Cash and Cash Equivalents Investments

NONEXPENDABLE TRUST FUND
CARROLL COUNTY BOARD OF EDUCATION TEACHER
DEVELOPMENT SCHOLARSHIP
FUND

AGENCY FUNDS

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

2,239.62 $

20,151.27 $

22,390.89 $

4,643.80

30,250.28

12,000.00

42,250.28

40,700.00

Total Assets

$

32,489.90 $

32,151.27 $

64,641.17 $ =.....;4~5,3=43=.=80==

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

$

32,151.27 $

32,151.27 $

14,433.72

27,965.70 4,524.20
32,489.90

$

27,965.70 $

27,965.70

4,524.20

2,944.38

$

32,489.90 $

30,910.08

Total Liabilities and Fund Equity

$

32,489.90 $

32,151.27 $

64,641.17 $ =~4~5:,3~43~.=80;;..

See notes to the general-purpose financial statements.

34 -

CARROLL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001

EXHIBIT"N"

QUINTON PRINCE SCHOLARSHIP FUND
ASSETS Cash and Cash Equivalents Investments

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

941.35 $

590.05 $

12,000.00

500.00 $

1,031.40 12,000.00

Total Assets

$

12,941.35 $

590.05 $

500.00 $ ==1;,,;;3,;,;:,0;,;;;3,;,;1',;,40~

LIABILITIES Funds Held for Others

$

12,941.35 $

590.05 $

500.00 $==1=3=,0=31=.4==,0,=

SPECIAL ACTIVITIES ACCOUNT
ASSETS Cash and Cash Equivalents

$

1,492.37 $ 4,464.69 $

4,272.67 $====1=,6=84=.3=9,=

LIABILITIES Funds Held for Others

$

1,492.37 $ 4,464.69 $

4,272.67 $ ====1=,6=84=.3=9=

OTHER ACTIVITIES ACCOUNT
ASSETS Cash and Cash Equivalents

$====0.=00= $ 39,806.16 $ 22,370.68 $ ====1=7.,4=35=.4=8=

LIABILITIES Funds Held for Others

$====0.=00,== $ 39,806.16 $ 22,370.68 $ ====1=7.,4=35=.4=8=

TOTALS - AGENCY FUNDS ASSETS
Cash and Cash Equivalents Investments
Total Assets

$

2,433.72 $ 44,860.90 $ 27,143.35 $

20,151.27

12,000.00

12,000.00

$

14,433.72 $ 44,860.90 $

27,143.35 $ =====3=2;,0;,1=5=1.=27==

LIABILITIES Funds Held for Others

$

14,433.72 $ 44,860.90 $

See notes to the general-purpose financial statements.

- 35-

27,143.35 $ =====3=2;,0;1'=5=1.=27==

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Even Start Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education
Health and Human Services, U. S. Department of Administration for Children and Families Head Start Pass-Through From Carroll County Department of Family and Children Services Family Preservation and Support Services Time Limited Reunification and Family Visitation
Total U.S. Department of Health and Human Services

---~ ...

-----

'---'

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

N/A $ 534,241.44

N/A

1,702,812.79 $

$ 2,237,054.23 $

(2) 4,381,674.25 (3)
4,381,674.25

10.550 10.558

N/A

263,385.37

263,385.37

N/A

21,685.64

$ 2,522,125.24 $

(2) 4,645,059.62

84.173 84.027 84.173

N/A $ 33,466.21 $

N/A

1,029,074.29

N/A

124,492.27

$ 1,187,032.77 $

33,466.21 1,029,074.29
124,492.27
1,187,032.77

84.213 84.010 84.281 84.298 84.340
84.276
84.048

N/A

207,327.00

270,480.80 (3)

N/A

1,810,851.74

1,810,851.74

N/A

40,752.01

40,752.01

N/A

68,959.72

68,959.72

N/A

277,826.00

277,826.00

N/A

18,843.38

18,843.38

N/A

101,541.98

$ 3,713,134.60 $

101,541.98 3,776,288.40

93.600 93.556 93.556
36 -

N/A $ 27,275.23 $

N/A

57,653.17

N/A

99,072.49

$ 184,000.89 $

27,275.23
75,152.75 (3) 91,953.35 (3)
194,381.33

._-~,., " " - - - ' ' ' ' ' ' ' ' ' '

.._-_._---

CARROLL 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 Community Action for Improvement, Incorporated Workforce Investment Act

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.259

N/A

$

48,169.83 $ _ _--'4~8'_'1~,69;:..;.~8;:..;3

Total Federal Financial Assistance
N/A = Not Available

$ 6,467,430.56 $ ===-8=,6=6=3=,8=9=9=1=8

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 Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

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 activity of the Carroll 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.

- 37-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Governor's Emerge.ncy Funds (1) Local Assistance Grants (2)

$

23,500.00

$ $ 30,000.00

23,500,00 30,000.00

Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program Special Education Supplemental Speech Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Applied Technology Labs Computers in the Classroom

1,790,333,00 1,303,131,00 5,346,420.00 3,812,321,00 3,359,073,00
789,402,00 4,978,245.00 5,384,511,00 1,409,996.00
232,800.00 921,303,00 3,677,039.00 853,546,00 126,552.00 1,256,091,00 808,516,00 460,875.00
15,447,00 1,093,514.00
314,495,00 6,648,208.00

1,790,333,00 1,303,131,00 5,346,420,00 3,812,321,00 3,359,073.00
789,402.00 4,978,245,00 5,384,511.00 1,409,996,00
232,800,00 921,303,00 3,677,039.00 853,546,00 126,552.00 1,256,091.00 808,516.00 460,875.00
15,447.00 1,093,514.00
314,495.00 6,648,208.00

1,613,789.00 439,616,00 239,464,00 51,686.00 55,339.00
4,037,657,00 $
177,980,90

331,418.00

85,000.00 20,033.62
750.00 1,025,282.53
5,000,00 14,833,00 170,414.00 14,864,94 48,236.97

237,518.00

135,000,00

1,613,789.00 439,616.00 239,464.00 51,686.00 55,339,00
4,037,657.00 331,418.00 177,980.90
85,000.00 20,033.62
750,00 1,025,282.53
5,000.00 14,833,00 170,414.00 14,864,94 48,236.97
135,000.00 237,518,00

Office of School Readiness Pre-Kindergarten Program

2,003,588,94

2,003,588.94

Office of Treasury and Fiscal Services Public School Employees Retirement

180,721.00

180,721,00

- 38-

._-_ _-_ __ .....

;._-_ ...

..".

_--- ._---,.. , .....

~ -----_..

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

SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Student Achievement Grant
Georgia State University Reading Recovery Program
Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

87,129.00

50,000.00

12,000.00

$ _....:4::.::9i.::,9:::c97:...::.6~8~

$

87,129.00

50,000.00

12,000.00

49,997.68

$ 52,935,114.96 $ 2,622,522.62 $ 165,000.00 $ 55,722,637.58

(1) The purpose of the funds are to provide for a local history collection to be housed in the Media Center of Mount Zion High School and to purchase band uniforms and instruments for Temple High School and Mount Zion High School.
(2) The purpose of the funds are to improve athletic facilities at Central High School and Temple High School.

See notes to the general-purpose financial statements.

- 39-

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

SCHEDULE "3"

PROJECT
CARROLL COUNTY SCHOOL PROJECTSMaximum cost of $46,934,306,25 (includes capital outlay for building three (3) schools, acquiring land for schools and additions, improvements, renovations, modifications and equipping of all existing schools)

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

$ 46,934,306.25 $ 46,934,306.25 $ 7,124,852.61 $ 26,016,306,18 Ongoing

FINAL INSTALLMENT OF OUTSTANDING BONDED INDEBTEDNESS - Total cost of $305,693.75 (represents remaining principal and interest on debt for 1974 general obligation school bonds)

305,693.75

305,693.75

305,693.75 Completed

$ 47,240,000.00 $ 47,240,000.00 $ 7,124,852.61 $ 26,321,999.93

(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 Carroll 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 to provide advance funding for the above projects as follows:

Prior Years

$ 1,089,310,63

Current Year

480,232.50

Total.

$ 1,569,543.13

See notes to the general-purpose financial statements.

41 -

CARROLL COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (OBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE 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 Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

1,990,069.00 $ 1,920,022.82 $

1,448,510.00

1,461,730.36

5,942,880.00

5,995,803.95

4,237,635.00

3,569,862.38

3,733,822.00

4,722,014.69

877,470.00

943,562.10

5,533,632.00

5,670,215.54

5,985,222.00

6,423,145,13

1,567.298.00

1,767,333.14

6,476,728.00

356,130.95

911,798.19

4,998,018.67

440,458.36

50,379.39

1,396,225.00

1,392.124.38

898,716.00

790,389.65

512,292.00

935,973.33

73,444.67 $ 22,884.72 207,842.03 62,330.84 214,948.36 124,946.40 263.181.12 444,776.72 215.726.80
10,982.91 11,539.79 91.325.38 40,969.88 4,179.60 25,398.23 11,796.60 38,052.70

1,993,467.49 1,484,615.08 6,203,645.98 3,632,193.22 4,936,963.05 1,068,508.50 5,933,396.66 6,867,921.85 1,983,059.94
367,113.86 923,337.98 5,089,344.05 481.428.24 54,558.99 1,417,522.61 802,186.25 974,026.03

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

40,600,499.00 $ 42,348,963.03 $ 1,864.326.75 $ 44,213,289.78

Media Center Program Staff and Professional Development

1,215,510.00 349,581.00

1,526,595.51 253,539.09

417,141.51 208,624.45

1.943,737.02 462,163.54

TOTAL OBE FORMULA FUNDS

$

42,165.590.00 $ 44,129,097.63 $ 2,490.092.71 $ 46,619,190.34

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

See notes to the general-purpose financial statements.

- 42-

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

SCHEDULE "5"

Sharp Creek Elementary School Jonesville Middle School Mount Zion Elementary School Central Middle School Temple High School Central Evening Program Bay Springs Middle School Villa Rica Elementary Mount Zion High School Roopville Elementary School Whitesburg Elementary School Temple Elementary School Bowdon Elementary School Central High School Bowdon High School Villa Rica Primary School Central Elementary School Sand Hill Elementary School Villa Rica High School Burwell Psychoeducational Program Carroll County/Carrollton City Alternative Technical High School of Carroll County Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,174,841.00 $

2,114,872.97

1,904,958.00

1,760,311.45

2,026,552.00

2,229,320.49

2,949,625.00

3,286,972.54

1,827,746.00

1,943,423.02

242,086.00

429,187.24

2,879,023.00

2,992,711.20

1,782,974.00

1,811,583.07

1,228,087.00

1,530,216.07

1,391,881.00

1,466,355.76

1,614,382.00

1,676,523.01

1,871,855.00

1,923,904.71

2,513,395.00

2,798,678.39

3,571,219.00

3,746,013.02

1,433,364.00

1,535,712.08

2,060,329.00

2,124,233.13

3,660,666.00

4,194,778.57

2,138,936.00

2,358,857.93

2,816,288.00

2,827,426.68

44,327.90

573,515.85

731,327.21

512,292.00

113,037.49

$

40,600,499.00 $ 44,213,289.78

See notes to the general-purpose financial statements. - 43-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Rl'SSEI. L \\'. H II\TON
STATE AUDITOR
140416562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-X400
April 25, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Carroll 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 Carroll County Board ofEducation as ofand for the year ended June 30,2001, and have issued our report thereon dated April 25, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. 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.
Compliance
As part of obtaining reasonable assurance about whether Carroll 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 of financial 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Carroll County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-41

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 Carroll County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6221-0 1-0 I.
A material weakness is a condition in which the design or operation of one or more ofthe 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 normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6221-01-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Carroll 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.
~~ .. JQ lh~ RespectfullY submitted, _ \ R sell W. Hinton State Auditor
RWH:gp 2001 YB-41

RliSSEl.L ''''. HI~T()N STATE AUDITOR 140416562174

DEPARTMENT OF AUDITS AND ACCOUNTS
~54 Washington Street. S.W" Suite 214 Atlanta. Georgia 30334-1\400
April 25, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Carroll 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 of Carroll County Board ofEducation with the types ofcompliance
requirements described in the u.s. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Carroll County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Carroll County Board of Education's management. Our responsibility is to express an opinion on Carroll County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ufthe 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 whether 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 Carroll 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 Carroll County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Carroll County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30,2001.

Internal Control Over Compliance

The management of Carroll 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 Carroll 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-133.

Our consideration ofthe 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 ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.

This report is intended solely for the information and use ofthe management, members ofthe Carroll 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,

~d QJ.~:4~

~

s

s

e

l

l W.

Hinton

State Auditor

RWH:gp 2001SA-IO

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

CARROLL 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-6221-99-01 FS-6221-00-0 1

Further Action Not Warranted Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-622 1-00-01

The School District and administration recognize the importance ofmaintaining a General Fixed Assets Account Group. However, staffing limitations and budgetary considerations preclude our being able to employ sufficient staffto carry out the process. Therefore, the School District chooses to not maintain a General Fixed Assets Account Group.

SECTIONN FINDINGS AND QUESTIONED COSTS

CARROLL 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 Carroll County Board of Education's financial statements was qualified 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 Carroll County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Carroll County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Carroll County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Carroll County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .5 I O(a) ofOMB Circular A-I33 The Carroll County Board ofEducation's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Carroll County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
-I -

CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6221-01-01 The Carroll 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 of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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