Carroll County Board of Education, Carrollton, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)

CARROLL COUNTY BOARD OF EDUCATION
CARROLLTON, GEORGIA
ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011
(Including Independent Auditor's Reports)

CARROLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

B

STATEMENT OF ACTIVITIES

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

G

STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

H

NOTES TO THE BASIC FINANCIAL STATEMENTS

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND

Page
i
1 2 3 4 5 6 7 8
27

CARROLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I
FINANCIAL
SCHEDULES
SUPPLEMENTARY INFORMATION
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM

Page
28 30 32 33

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

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

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

CARROLL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
March 29, 2012

Honorable Nathan Deal, 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 BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Carroll County Board of Education as of and for the year ended June 30, 2011, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Carroll County Board of Education's management. Our responsibility is to express opinions on these 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 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 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions.
In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Carroll County Board of Education, as of June 30, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

2011ARL-11

In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2012, on our consideration of the Carroll County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
Management's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through x and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Carroll County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,

RWH:al 2011ARL-11

Russell W. Hinton, CPA, CGFM State Auditor

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011
INTRODUCTION
Our discussion and analysis of the Carroll County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2011. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2011 are as follows:
On the district-wide financial statements, the assets of the School District exceeded liabilities by $183 million. Of this amount, $14.4 million is unrestricted and is available for spending at the School District's discretion.
The School District had $137.9 million in expenses relating to governmental activities; only $95.6 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $57.7 million were adequate to provide for these programs.
As stated above, general revenues accounted for $57.7 million or 38% of all revenues totaling $153.3 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest.
OVERVIEW OF THE FINANCIAL STATEMENTS
This report consists of several parts including management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the district-wide and fund financial statements.
The district-wide financial statements include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status.
The fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statement provides information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial
i

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011
statements reflect the School District's most significant funds. In the case of the Carroll County School District, the General Fund, District-wide Capital Projects Funds, and Debt Service Funds are the most significant funds.
The financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements.
District-wide Statements
The District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the district-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into accounts all of the current year's revenues and expenses regardless of when cash is received or paid.
These two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors.
The Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities.
Fund Financial Statements
The School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds.
Governmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled within the financial statements.
ii

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 Fiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the district-wide financial statements because it cannot use these assets to finance its operations. FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Recall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for this fiscal year. By far the largest portion of the District's net assets, (85.8 percent) reflect its investment in capital assets (e.g., land and improvements, building and building improvements, vehicles, furniture, equipment and construction in progress), less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its students; consequently, these assets are not available for future spending. Although the District's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
iii

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Table 1 Net Assets

Governmental Activities
Fiscal Year 2011

Governmental Activities
Fiscal Year 2010*

Assets Current and Other Assets Capital Assets, Net

$ 111,029,780 $ 49,125,256 193,884,102 184,439,797

Total Assets

$ 304,913,882 $ 233,565,053

Liabilities Current and Other Liabilities Long-Term Liabilities

$ 16,264,172 $ 105,645,177

22,747,335 47,907,833

Total Liabilities

$ 121,909,349 $ 70,655,168

Net Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted

$ 157,104,033 $ 148,572,830

11,543,742

8,230,527

14,356,758

6,106,528

Total Net Assets

$ 183,004,533 $ 162,909,885

Total Liabilities and Net Assets

$ 304,913,882 $ 233,565,053

* Fiscal Year 2010 amounts do not reflect the restatement for Capital Assets. See Note 2 in the basic Financial Statements
Table 2 shows the Changes in Net Assets for this fiscal year.

iv

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Table 2
Change in Net Assets

Revenues

Program Revenues

Charges for Services and Sales

$

Operating Grants and Contributions

Capital Grants and Contributions

Total Program Revenues

$

Governmental Activities Fiscal Year 2011
3,737,316.00 $ 84,044,197.00 7,817,938.00 95,599,451.00 $

Governmental Activities Fiscal Year 2010*
3,952,245.00 81,248,506.00 1,469,530.00 86,670,281.00

General Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous

$

34,161,750.00 $

34,536,483.00

10,811,218.00 555,531.00
10,779,283.00
74,048.00 1,296,398.00

11,692,161.00 579,296.00
10,538,366.00
85,111.00 1,427,999.00

Total General Revenues

$

57,678,228.00 $

58,859,416.00

Total Revenues

$ 153,277,679.00 $ 145,529,697.00

Program Expenses 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt

$

84,920,741.00 $

86,794,667.00

4,140,951.00 2,964,501.00 3,067,041.00 2,889,713.00 9,107,225.00
774,256.00 9,031,260.00 7,746,956.00
795,397.00 251,966.00

4,317,213.00 2,796,468.00 2,608,519.00 2,966,599.00 8,813,734.00
725,740.00 8,435,847.00 7,532,699.00
789,370.00 475,407.00

2,258,000.00 429,532.00
7,570,690.00 1,909,179.00

2,105,557.00 513,068.00
7,099,045.00 2,371,663.00

Total Expenses

$ 137,857,408.00 $ 138,345,596.00

Increase in Net Assets

$

15,420,271.00 $

7,184,101.00

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CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011
* Fiscal Year 2010 amounts do not reflect the restatement for Capital Assets. See Note 2 in the basic Financial Statements
Governmental Activities
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. It identifies the cost of these services supported by tax revenue and unrestricted State entitlements. The table shows each functions net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the District's taxpayers by each of these functions.
Table 3 Governmental Activities

Total Cost of Services Fiscal Year 2011

Net Cost of Services Fiscal Year 2011

Total Cost of Services Fiscal Year 2010*

Net Cost of Services Fiscal Year 2010*

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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt

$

84,920,741.00

4,140,951.00 2,964,501.00 3,067,041.00 2,889,713.00 9,107,225.00
774,256.00 9,031,260.00 7,746,956.00
795,397.00 251,966.00

2,258,000.00 429,532.00
7,570,690.00 1,909,179.00

19,713,393 $

86,794,667.00

2,521,977 700,964 562,340 (28,503)
5,177,552 770,226
4,727,533 5,415,292
780,033 139,410

4,317,213.00 2,796,468.00 2,608,519.00 2,966,599.00 8,813,734.00
725,740.00 8,435,847.00 7,532,699.00
789,370.00 475,407.00

166,775 412,226 (710,440) 1,909,179

2,105,557.00 513,068.00
7,099,045.00 2,371,663.00

27,700,249
2,260,959 1,068,729
748,372 61,659
4,960,832 722,202
4,116,240 5,697,315
785,142 398,585
2,105,557 (755,094) (567,095) 2,371,663

Total Expenses

$ 137,857,408.00 $ 42,257,957.00 $ 138,345,596.00 $ 51,675,315.00

* Fiscal Year 2010 amounts do not reflect the restatement for Capital Assets. See Note 2 in the basic Financial Statements

vi

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011
FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS
Governmental Funds. The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the District's net resources available for spending at the end of the fiscal year. The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $240.2 million and total expenditures and other financing uses of $172.3 million. General Fund equity increased by $2.4 million during the year. The Capital Projects Fund equity increased by $59.6 million. Construction of school facilities to be re-paid by SPLOST sales tax receipts were forward funded with a $56.5 million bond issue. Capital Projects fund equity at June 30, 2011, was $68.2 million to be used in the continuing construction of school facilities.
General Fund Budgeting Highlights
The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund.
During the course of fiscal year 2011, the School District amended its general fund budget as needed in particular due to student growth and facility safety needs.
For the General Fund, the actual revenues of $134.87 million were over the final budgeted amounts of $134.85 million by $14 thousand. This difference (actual vs. final budget) was due primarily to charges for services over final budget of $1.7 million, property taxes under final budget by $246 thousand, state revenues over budget by $1.84 million, Federal revenue under budget by $4.5 million and miscellaneous revenues over budget by $1.19. The charges for services and miscellaneous revenue over final budget were due to the inclusion of the principals' accounts in our financial statements, but not in the budget.
The actual expenditures of $132.5 million were under the final budgeted amount of $134.3 million by $1.8 million. General Fund revenues were greater than expenditures by $2.4 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At fiscal year ended June 30, 2011, the School District had $193.9 million invested in capital assets, including school buildings, athletic facilities, buses and other vehicles, computers, and other equipment, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation.
vii

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Table 4 Capital Assets (Net of Depreciation)

Governmental Governmental

Activities

Activities

Fiscal

Fiscal

Year 2011

Year 2010*

Land Construction in Progress Land Improvements Buildings and Improvements Equipment

$8,215,855 695,511
2,183,362
177,382,871 5,406,503

$8,215,855 28,073,947 1,639,554
140,432,190 6,078,251

Total

$193,884,102 $184,439,797

* Fiscal Year 2010 amounts do not reflect the restatement for Capital Assets. See Note 2 in the basic Financial Statements
Due to the ongoing growth in the county, the School District has numerous construction projects including new buildings, additions and renovations.
Debt
At fiscal year ended June 30, 2011, the School District had $104.1 million in bonds payable, and $1.5 million in other long-term debt. Table 5 summarizes the School District's debt which includes general obligation bonds and compensated absences outstanding.

viii

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Table 5 Debt at June 30
Year 2011

Year 2010

Bonds and Notes Payable Unamortized Bond Premium Loss on Debt Refunding Capital Leases Compensated Absences

$ 93,865,000.00 10,685,094.00 (448,507.00) 952,672.00 590,918.00

$ 45,225,000.00 765,569.00
1,349,517.00 567,747.00

Total

$ 105,645,177.00 $ 47,907,833.00

At June 30, 2011, the School District's assigned bond ratings were "A+" as determined by Fitch Ratings, Inc.
CURRENT ISSUES
Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations.
Economic Slowdown State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. During fiscal year 2011, the Carroll County Board lost over $12 million in state funding shifting the burden to the local tax base. The current millage rate is 19.6 mills with a maximum of 20 mills. Currently, a mill of tax in Carroll County generates $1.6 million. Despite these challenges, the Carroll County School District is strong financially and we remain optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students.
Capital Improvements The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs.

ix

CARROLL COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. Greg Denney, Chief Financial Officer for the Carroll County School System, 164 Independence Drive, Carrollton Georgia 30117. You may also email your questions to Mr. Denney at greg.denney@carrollcountyschools.com.
x

CARROLL COUNTY BOARD OF EDUCATION

CARROLL COUNTY BOARD OF EDUCATION
STATEMENT OF NET ASSETS JUNE 30, 2011

EXHIBIT "A"

ASSETS
Cash and cash equivalents Receivables:
Taxes Intergovernmental:
State Federal Other Inventory Prepaid items Deferred charges Capital assets (nondepreciable) Capital assets (net of accumulated depreciation)
Total assets
LIABILITIES
Accounts Payable Salaries and benefits payable Accrued interest payable Contracts & Retainage payable Bonds payable due within one year Bonds payable due in more than one year Capital leases due within one year Capital leases due in more than one year Compensated absences due in less than one year Compensated absences due in more than one year
Total liabilities
NET ASSETS
Investment in capital assets, net of related debt Restricted for:
Debt service Continuation of federal programs Unrestricted
Total net assets

Governmental Activities

$

95,508,826

2,872,016

9,369,708 2,061,549
28,463 203,956
235,688 749,574 8,911,366 184,972,736 304,913,882

1,337,288 14,343,679
524,232 58,973
9,163,398 94,938,189
324,958 627,714 413,643 177,275 121,909,349

157,104,033
9,472,933 2,070,809 14,356,758 $ 183,004,533

The accompanying notes are an integral part of these financial statements. 1

CARROLL COUNTY BOARD OF EDUCATION
STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2011

EXHIBIT "B"

Functions/Programs

Governmental activities:

Instruction

$

Support services:

Pupil services

Improvement of instructional

services

Educational media services

General administration

School administration

Business administration

Maintenance and operation of facilities

Student transportation services

Central support services

Other support services

Enterprise operation

Food services operation

Community service operation

Interest on long-term debt

Total governmental activities

$

Expenses
84,920,741
4,140,951
2,964,501 3,067,041 2,889,713 9,107,225
774,256 9,031,260 7,746,956
795,397 251,966 2,258,000 7,570,690 429,532 1,909,179 137,857,408

Charges for Services

Program Revenues Operating Grants and
Contributions

Capital Grants and Contributions

$

23,495 $ 59,389,787 $ 5,794,066

1,618,974

2,091,225 1,622,596

2,263,537 1,760,217 2,864,668 3,929,673
4,030 4,231,363 1,797,619
15,364 112,556
6,039,103 17,306

744,484 53,548
72,364 534,045
619,431

$ 3,737,316 $ 84,044,197 $ 7,817,938

Net (Expense) Revenue and
Changes in Net Assets Governmental Activities
$ (19,713,393)
(2,521,977)
(700,964) (562,340)
28,503 (5,177,552)
(770,226) (4,727,533) (5,415,292)
(780,033) (139,410) (166,775) 710,440 (412,226) (1,909,179) (42,257,957)

General revenues: Taxes: Property taxes, levied for general purposes Sales taxes: For debt service Intangible taxes Grants and contributions not restricted to specific programs
Unrestricted investment earnings Other
Total general revenues Change in net assets
Net assets, beginning of year (Restated) Net assets, end of year

34,161,750
10,811,218 555,531
10,779,283 74,048
1,296,398 57,678,228 15,420,271 167,584,262 $ 183,004,533

The accompanying notes are an integral part of these financial statements.
2

CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "C"

BALANCE SHEET GOVERNMENTAL FUNDS
JUNE 30, 2011

ASSETS
Cash and cash equivalents Receivables:
Taxes Intergovernmental:
State Federal Other Prepaid Expenses Inventory
Total assets

General

$

18,858,028 $

1,940,629

8,658,584 2,061,549
7,533 235,688

203,956

$

31,965,967 $

DistrictWide Capital
Projects 67,586,368 $
711,124 19,582
68,317,074 $

LIABILITIES AND FUND BALANCES

LIABILITIES

Accounts Payable

$

Salaries and benefits payable

Retainage payable

Deferred revenue

Total liabilities

FUND BALANCES Nonspendable Restricted for:
Capital outlay Debt service Continuation of federal programs Unassigned Total fund balances

Total liabilities and fund balances

$

1,324,373 $ 14,343,679 1,548,225 17,216,277
439,644
1,866,853 12,443,193 14,749,690 31,965,967 $

12,915 58,973
71,888
68,245,186 $
68,245,186 68,317,074 $

Debt Service
9,064,430 931,387
1,348
9,997,165

Total Governmental
Funds

$

95,508,826

2,872,016

9,369,708 2,061,549
28,463 235,688
203,956
$ 110,280,206

$

1,337,288

14,343,679

58,973

1,548,225

17,288,165

9,997,165
9,997,165 9,997,165

439,644
68,245,186 9,997,165 1,866,853
12,443,193 92,992,041

Amounts reported for governmental activities in the statement of net assets are different because

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds

Cost

238,486,302

Less accumulated depreciation

(44,602,200)

193,884,102

Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds

Property taxes

1,548,225

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds

Bonds

(93,865,000)

Bond premium, net of amortization

(10,685,094)

Bond issuance costs, net of amortization

749,574

Loss on refunding of general obligation debt

448,507

Accrued interest

(524,232)

Capital leases

(952,672)

Compensated absences

(590,918)

(105,419,835)

Net assets of governmental activities

$ 183,004,533

The accompanying notes are an integral part of these financial statements.
3

CARROLL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011

REVENUES Property taxes Sales taxes Other taxes State funds Federal funds Charges for services Investment earnings Miscellaneous Total revenues

General

$

33,878,570

555,531 76,542,247 $ 18,815,278
3,737,316 42,076
1,296,398 134,867,416

District Wide
Capital Projects

Debt Service

Total Governmental
Funds

$ 7,283,893

$ 11,171,893

24,647 7,308,540

7,325 11,179,218

33,878,570 11,171,893
555,531 83,826,140 18,815,278
3,737,316 74,048
1,296,398 153,355,174

EXPENDITURES Current: Instruction Support services: Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of facilities Student transportation services Central support services Other support services Enterprise operations Food services operation Community services operation Capital outlay Debt service: Principal retirement Interest and fees Bond issuance costs Total expenditures

81,914,151
4,140,951 2,964,501 2,709,034 2,863,963 9,084,054
774,256 9,010,961 7,486,634
795,397 204,221 2,258,000 7,345,336 429,532
42,180
396,845 52,924
132,472,940

8,671,816
652,393 9,324,209

14,495,000 2,141,750 1,000
16,637,750

81,914,151
4,140,951 2,964,501 2,709,034 2,863,963 9,084,054
774,256 9,010,961 7,486,634
795,397 204,221 2,258,000 7,345,336 429,532 8,713,996
14,891,845 2,194,674 653,393
158,434,899

Excess (deficiency) of revenues over (under) expenditures

2,394,476

(2,015,669)

(5,458,532)

(5,079,725)

OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets Transfers in Transfers out Bonds issued Premium on bonds sold Payment to refunded bond escrow agent Total other financing sources (uses)

1

5,260,066

(5,260,066)

56,572,769

14,672,231

10,301,204

(8,558,507)

1

61,613,907

11,373,790

1 5,260,066 (5,260,066) 71,245,000 10,301,204 (8,558,507) 72,987,698

Net change in fund balances

2,394,477

59,598,238

5,915,258

67,907,973

FUND BALANCE, beginning of year FUND BALANCE, end of year

12,355,213

$

14,749,690 $

8,646,948 68,245,186 $

4,081,907 9,997,165 $

25,084,068 92,992,041

The accompanying notes are an integral part of these financial statements. 4

CARROLL COUNTY BOARD OF EDUCATION

EXHIBIT "E"

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds

$

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation expense in the current year.

Capital outlay Depreciation expense

$ 8,961,891 (3,971,624)

The net effect of the disposal of fixed assets is to decrease net assets

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.

Property taxes Sales taxes

$

283,180

(360,675)

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items.

Principal payments - bonds Principal payments - capital leases Bond premium Bond issuance costs Issuance of general obligation debt Payment of refunded general obligation debt into escrow account

$ 14,495,000 396,845
(10,301,204) 653,393
(71,245,000) 8,558,507

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Change in compensated absences Bond premium amortization expense Bond issuance costs amortization expense Change in accrued interest

$

(23,171)

381,679

(95,627)

(557)

$

67,907,973
4,990,267 (220,339)
(77,495)
(57,442,459)
262,324 15,420,271

The accompanying notes are an integral part of these financial statements. 5

CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F"

STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011

ASSETS

Private Purpose
Trust

Agency Fund

Cash Investments

$

2,285

$

446,593

38,424

11,000

Total assets

$

40,709

$

457,593

LIABILITIES Funds held for others

$

-

$

457,593

NET ASSETS Held in trust for private purposes

$

40,709

The accompanying notes are an integral part of these financial statements. 6

CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "G"

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2011

ADDITIONS

Private Purpose
Trust

Investment earnings: Interest

$

229

Change in Net Assets

229

Net assets, beginning of year

40,480

Net assets, end of year

$

40,709

The accompanying notes are an integral part of these financial statements.
7

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The Carroll County Board of Education (the "School District") was established under the laws of the State of Georgia and operates under the guidance of a School Board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Carroll County Board of Education.
District-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.

8

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The School District reports the following major governmental funds:
General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted and reported in another fund.
District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.
Debt Service Fund accounts for and reports financial resources that are restricted, committed or assigned including taxes (sales) legally restricted for the payment of general long-term principal, interest.
The School District reports the following fiduciary fund types:
The Private Purpose Trust Fund reports a trust arrangement under which principal is to be invested and preserved intact with the resultant income to be used to assist 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 account for assets held by the School District as an agent for various funds, governments or individuals.
Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds 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.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
9

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1 June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
New Accounting Pronouncements
In fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds.
Restatement of Prior Year Net Assets
For fiscal year 2011, the School District restated construction in progress Capital Assets due to errors and omissions. The School District increased construction in progress by $4,674,377. The result is an increase in Net Assets at July 1, 2010, of $4,674,377. This change is in accordance with generally accepted accounting principles.
Cash and Cash Equivalents
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
10

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Investments
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of the State Treasurer,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
The School District does not have a formal policy regarding investments that addresses credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.
Receivables
Receivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

11

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property Taxes

The Carroll County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on September 4, 2010 (levy date). Taxes were due on December 1, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. 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, at the fund reporting level, during the fiscal year ended June 30, 2011, for maintenance and operations amounted to $33,878,570.

Tax millage rates levied for the 2010 tax year (calendar year) for the Carroll County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

18.10 mills

Sales Taxes

Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $11,171,893 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

Inventories

FOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

Prepaid Items

Payments made to vendors for services that will benefit periods subsequent to June 30, 2011, are recorded as prepaid items.

Capital Assets

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated.

12

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District.

Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide

statements are as follows:

Capitalization Estimated

Policy

Useful Life

Land Land Improvements Buildings and Improvements Intangible Assets All Equipment

All $10,000 $10,000 $10,000 $5,000 to 10,000

N/A 15 to 80 years 20 to 80 years 15 to 20 years
3 to 20 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

Amortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years.

Compensated Absences

Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.

Vacation leave is awarded on a fiscal year basis to all full time personnel employed on twelve month

basis, according to the following guidelines:

Classified Employees

10 days per year

Certified Employees with 0-5 years experience in Carroll County

12 days per year

Certified Employees with 6-10 years experience in Carroll County

15 days per year

Certified Employees with 11 plus years experience in Carroll County

18 days per year

No other employees are eligible to earn vacation leave.

Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 20 days for Classified Employees and 25 days for Certified Employees.

13

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Changes in compensated absences liability during the last three fiscal years are as follows:

Beginning of Year Liability

Increase

Decrease

End of Year Liability

2009 2010 2011

$ 631,517 $ 426,968 $ 469,989 $ 588,496 $ 588,496 $ 373,531 $ 394,280 $ 567,747 $ 567,747 $ 398,517 $ 375,346 $ 590,918

General Obligation Bonds

The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt.

In the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets.

Net Assets

The School District's net assets in the District-Wide Statements are classified as follows:

Invested in capital assets, net of related debt This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt.

Restricted net assets These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties.

Unrestricted net assets Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes.

14

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Balances

The School District's fund balances are classified as follows:

Nonspendable Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.

Restricted Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.

Committed Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes.

Unassigned The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund.

Fund Balances of the Governmental Funds at June 30, 2011, are as follows:

FUND BALANCES

No n s p en d ab le

Prepaid Assets

$

Inventories

Res tricted

Continuation of Federal Programs

$

Capital Projects

Debt Service

Un as s ig n ed

235,688.00 203,956.00 $
1,866,853.00 68,245,186.00 9,997,165.00

439,644.00
80,109,204.00 12,443,193.00

Fund Balance, June 30, 2011

$

92,992,041.00

15

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
It is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end of not less than 12-14% of annual operating expenditures for the subsequent fiscal year budget, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance.
When multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Note 3: 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 of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. At June 30, 2011, all deposits were secured by surety bond, insurance or collateral as specified above.
Acceptable security for deposits consists of any one 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,

16

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 3: DEPOSITS (Continued)

(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 of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk.

Note 4: 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 2 - Inventories

Note 5: CAPITAL ASSETS

The following is a summary of changes in the capital assets during the fiscal year:

G o v e rn m e n t a l a c t iv it ie s :

B a la nc e J u ly 1, 2 0 10

P rio r Ye a r C o rre c t io n s

Re s tate d B e g inning
B a la nc e

In c re a s e s

D e c re a s e s / T ra n s f e rs

B a la nc e J u n e 3 0 , 2 0 11

C a pita l a s s e ts , no t be ing de pre c ia te d:

La nd

$

C o ns truc tio n in pro gre s s

To ta l c a pita l a s s e ts no t be ing

de pre c ia te d

8,215,855 28,073,947
36,289,802

$

- $

4,674,377

4,674,377

8,215,855 $ 32,748,324
40,964,179

- $ 6,340,460
6,340,460

- $ (38,393,273)
(38,393,273)

8,215,855 695,511
8,911,366

C a pita l a s s e ts , be ing de pre c ia te d: B uildings a nd im pro ve m e nts Equipm e nt La nd Im pro ve m e nts To ta l c a pita l a s s e ts be ing de pre c ia te d

166,393,843 16,614,097 6,436,692
189,444,632

-

166,393,843

-

16,614,097

-

6,436,692

-

189,444,632

39,731,871 573,318 709,515
41,014,704

(884,400)
-
(884,400)

206,125,714 16,303,015 7,146,207
229,574,936

Le s s a c c um ula te d de pre c ia tio n fo r: B uildings a nd im pro ve m e nts Equipm e nt La nd im pro ve m e nts To ta l a c c um ula te d de pre c ia tio n

(25,961,653) (10,535,846)
(4,797,138) (41,294,637)

-

(25,961,653)

(2,781,190)

-

(28,742,843)

-

(10,535,846)

(1,024,727)

664,061

(10,896,512)

-

(4,797,138)

(165,707)

-

(4,962,845)

-

(41,294,637)

(3,971,624)

664,061

(44,602,200)

To ta l C c a pita l a s s e ts , be ing de pre c ia te d, ne t

148,149,995

-

148,149,995

37,043,080

(220,339)

184,972,736

Go ve rnm e nta l a c tivitie s c a pita l a s s e ts , ne t

$ 184,439,797 $ 4,674,377 $

189,114,174 $ 43,383,540 $

(38,613,612) $

193,884,102

17

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 5: CAPITAL ASSETS (Continued) Capital assets being acquired under capital leases as of June 30, 2011, are as follows:

Governmental Funds

Equipment Less: Accumulated Depreciation

$ 1,482,022 148,202

$ 1,333,820

Current year depreciation expense by function is as follows:

Instruction Support Services:
Education Media Services General Administration Maintenance and Operation of Facilities Student Transportation Services Food Services Operation

$
$ 330,895 23,800 32,163
734,208
$

2,575,244
1,121,066 275,314
3,971,624

Note 6: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2011, consisted of the following:

Transfers To Debt Service fund
Total governmental funds

Transfers From Capital Projects Fund
$ 5,260,066 $ 5,260,066

Transfers are used to move unused bond proceeds in the Capital Projects Fund to the Debt Service Fund to service outstanding debt.
Note 7: 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; acts of God and unemployment compensation.
18

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 7: RISK MANAGEMENT (Continued)

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 of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability, errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage.

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

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

Beginning of Year

Claims and Changes in Estimates

Claims Paid

End of Year

2010 2011

$

-$

17,217 $ 17,217 $

-

$

- $ 226,337 $ 226,337 $

-

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $400,000 loss per occurrence, up to $1,000,000.

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

Position Covered

Amount

Superintendent Each Principal and Assistant Principal All Other Employees

$100,000 $20,000
$100,000

19

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 8: LONG TERM DEBT

CAPITAL LEASES The Carroll County Board of Education has entered into various lease agreements as lessee for HVAC, lighting retrofit and buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.

ADVANCE REFUNDING During fiscal year 2011, the Carroll County Board of Education issued $71,245,000 in General Obligation Bonds. A portion of the issue was used to advance refund $8,100,000 of outstanding bonds. The bond issue of $71,245,000, plus premiums of $10,301,203.55 less underwriters and bond issue cost of $655,072.88 provided net proceeds of $80,891,130.67. The total net proceeds plus additional debt service funds of $8,558,506.50 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions of the 2007 Bond issue. As a result, portions of the 2007 Series Bonds are considered defeased, and the liability for these portions has been removed from the District-wide Statement of Net Assets. The Carroll County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments in fiscal year 2012 and 2013 by a combined amount of $8,575,000. This advanced refunding restructured a portion of the debt service, provided cash flow savings for 2 years, but extended the debt service into fiscal year 2015. The net effect is an economic loss of about $108,002.98.

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

Purpose

Interest Rates

Amount

General Government Series 2007 General Government Series 2011

3.67% - 3.77 % 1.08% - 3.37 %

$22,620,000 $71,245,000

$93,865,000

20

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 8: LONG TERM DEBT (Continued)

The changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows:

Balance July 1, 2010

Additions

Reductions

Balance June 30, 2011

Due Within One Year

G.O. Bonds

$

Unamortized Bond Premium

Loss on Debt Refunding

45,225,000 $ 765,569 -

71,245,000 $ 10,301,204
(448,507)

(22,605,000) $ (381,679) -

93,865,000 $ 9,130,000

10,685,094

257,652

(448,507)

(224,254)

Total bonds payable

$ 45,990,569 $ 81,097,697 $ (22,986,679) $ 104,101,587 $ 9,163,398

Capital Leases Compensated absences

$ 1,349,517 $ 567,747

- $ 398,517

(396,845) $ (375,346)

952,672 $ 590,918

324,958 413,643

Total long-term liabilities $ 47,907,833 $ 81,496,214 $ (23,758,870) $ 105,645,177 $ 9,901,999

The following is a summary of future annual debt service payments on long-term debt:

Fiscal Year Ended June 30

Capital Leases

Principal

Interest

2012 2013 2014

$ 324,958 $ 307,733 319,981

37,021 24,983 12,735

Totals

$ 952,672 $

74,739

Fiscal Year Ended June 30

Loss on Debt Refunding

General Obligation Debt

Principal

Interest

Unamortized Bond Premium

2012 2013 2014 2015 2016 2017-2021 2022-2023

$

(224,254) $ 9,130,000 $ 3,782,674 $

(224,253)

13,490,000

4,018,600

8,030,000

3,369,900

8,350,000

3,048,700

8,700,000

2,718,950

34,715,000

7,460,650

11,450,000

863,000

257,652 126,238 648,021 784,372 1,324,224 5,706,657 1,837,930

Totals

$

(448,507) $ 93,865,000 $ 25,262,474 $

10,685,094

21

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 9: ON-BEHALF PAYMENTS

The School District has recognized revenues and costs in the amount of $359,489 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 $234,251
Georgia Department of Education Paid the Teachers Retirement System For Teachers Retirement (TRS) In the amount of $40,268

Office of State Treasurer Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $84,970

Note 10: SIGNIFICANT COMMITMENTS
The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011, together with funding available:

Project

Unearned Executed Contracts

Carroll County College Central High School Mount Zion High School Athletic Facility Sandhill Elementary Additions/Renovations Technical High Academy Project Technical High School Temple High PE Facility Temple Middle School Villa Rica High Gym Villa Rica High Parking Villa Rica/Temple Parking Lot

$ 106,105 2,550
2,821,442 159,750
1,254,114 67,375
168,300 57,000
193,275 7,333
458,936

$ 5,296,180

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

22

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 11: SIGNIFICANT 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 costs 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 of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements.
Note 12: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
Plan Description. The TRS is a cost-sharing multiple employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. 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.
On October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits.
TRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service.
Normal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years.
Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability, and spousal benefits are also available.

23

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 12: RETIREMENT PLANS (Continued)

Funding policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual covered salary. Employer contributions required for fiscal year 2011 were 10.28% of annual covered salary.

Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2011 2010 2009

100% 100% 100%

$ 7,431,613 $ 7,232,354 $ 7,232,746

Note 13: POST-EMPLOYMENT BENEFITS

Georgia School Personnel Post-employment Health Benefit Fund

Plan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the
Department of Community Health. Pursuant to Title 45, Chapter 18 of the Official Code of Georgia Annotated, the authority to establish and amend the benefit provisions of the plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for School OPEB Fund. That report may be obtained from the Department of Community Health at 2 Peachtree Street, Atlanta, Georgia 30303.

Funding Policy. The contribution requirements of the plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage.

Participating employers are statutorily required to contribute in accordance with the employer contribution rate established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2011, were as follows:

24

CARROLL COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2011

EXHIBIT "H"

Note 13: POST-EMPLOYMENT BENEFITS (Continued)

Certified employees
Period July 2010 - April 2011 May 2011 June 2011

Percentage of Covered Payroll 21.955% of covered payroll for August through May coverage 1.429% of covered payroll for June through July coverage

Non-certified employees

$162.72 per month for July December $218.20 per month for January - May $246.20 per month for June

No additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retire benefits. Such additional contribution amounts are determined annually by the Board of Community Health in accordance with the School plan for other post-employment benefits and are subject to appropriation.

The School District's contribution to the health insurance plans for the fiscal years ended June 30, 2010 and June 30, 2011, respectively, were $11,284,197 and $11,568,808, which equaled the required contributions.

Retiree health benefits were previously funded through the Georgia Retiree Health Benefit Fund (GRHBF). In 2009, the General Assembly revisited the GRHBF and enacted legislation that, effective August 31, 2009, separated the GRHBF into two new funds: the Georgia School Personnel Postemployment Health Benefit Fund and the Georgia State Employees Post-employment Health Benefit Fund. The purpose of this change was to assure employers responsible for planning and funding future retiree health costs that their contributions will be dedicated to their respective retiree populations. Funds in the GRHBF were transferred to the Georgia State Employees Post-employment Health Benefit Fund or the Georgia School Personnel Post-employment Health Benefit Fund as described in the plan financial statements. The statue that created the GRHBF is repealed effective September 1, 2010.

25

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CARROLL COUNTY BOARD OF EDUCATION
GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
FOR THE FISCAL YEAR ENDED JUNE 30, 2011

SCHEDULE "1"

REVENUES Property taxes Other taxes State funds Federal funds Charges for services Investment earnings Miscellaneous
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 facilities Student transportation services Central support services Other support services Enterprise operations Food services operation Community services operation Capital outlay Debt service: Principal retirement Interest and fiscal charges Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES) Proceeds from sale of capital assets Transfers out Total other financing sources (uses)
Net change in fund balances
FUND BALANCE, beginning of year
FUND BALANCE, end of year

Budget

Original (1)

Final (1)

Actual

Variance With Final Budget

$ 34,124,686 $ 34,124,686 $ 33,878,570 $

470,000

470,000

555,531

76,515,856

74,703,456

76,542,247

19,307,422

23,348,990

18,815,278

2,064,350

2,064,350

3,737,316

35,500

35,500

42,076

106,000

106,000

1,296,398

132,623,814

134,852,982

134,867,416

(246,116) 85,531
1,838,791 (4,533,712) 1,672,966
6,576 1,190,398
14,434

84,044,138
4,522,262 3,779,621 2,733,783 1,847,183 9,058,860
728,641 9,103,955 8,359,341
869,771 193,296
7,518,953
53,173
132,812,977
(189,163)

85,548,915
4,522,262 3,779,621 2,733,783 1,847,183 9,058,860
728,641 8,986,903 8,026,625
819,276 243,791
7,518,953
502,941
134,317,754
535,228

81,914,151
4,140,951 2,964,501 2,709,034 2,863,963 9,084,054
774,256 9,010,961 7,486,634
795,397 204,221 2,258,000 7,345,336 429,532
42,180
396,845 52,924
132,472,940
2,394,476

(3,634,764)
(381,311) (815,120)
(24,749) 1,016,780
25,194 45,615 24,058 (539,991) (23,879) (39,570) 2,258,000 (173,617) 429,532 (460,761)
396,845 52,924
(1,844,814)
1,859,248

-

-

1

(863,815)

(1,437,815)

-

(863,815)

(1,437,815)

1

(1,052,978)

(902,587)

2,394,477

12,355,213

12,355,213

12,355,213

$ 11,302,235 $ 11,452,626 $ 14,749,690 $

1 1,437,815 1,437,816
3,297,064
-
3,297,064

Notes to the Schedule of Revenue, Expenditures and Changes in Fund Balances - Budget to Actual
(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements. 27

CARROLL COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

SCHEDULE "2"

Funding Agency Program/Grant
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program - Cash National School Lunch Program - Commodities (1)
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education ARRA - Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program
Total Other Programs
Total U. S. Department of Agriculture
Education, U. S. Department of Education for Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth
Education Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants
School Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants
Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States - ARRA Preschool Grants - ARRA Preschool Grants
Total Special Education Cluster
Title I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Education Agencies Title I - Improving the Academic Achievement of the Disadvantaged Title I - Distinguished School Awards Title I - School Improvement
Total Title I, Part A Cluster
28

CFDA Number

PassThrough
Entity ID
Number

Total Expenditures

10.553 10.555 10.555

N/A

See Note (2)

N/A $

6,423,045

N/A

529,910

6,952,955

10.582

N/A

10.579

N/A

12,469 68,909
81,378
7,034,333

84.196

N/A

84.318

N/A

* 84.388

N/A

36,062 9,430 798,593

* 84.027

N/A

* 84.391

N/A

* 84.392

N/A

* 84.173

N/A

* 84.389

N/A

* 84.010

N/A

* 84.010

N/A

* 84.010

N/A

2,401,876 1,400,626
45,432 101,401
3,949,335
1,317,080 3,027,290
6,678 111,276
4,462,324

CARROLL COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

SCHEDULE "2"

Funding Agency Program/Grant

CFDA Number

Other Programs Pass-Through From Georgia Department of Education Education Job Fund English Language Acquisition Grants Improving Teacher Quality State Grants Vocational Education - Basic Grants to States

* 84.410 84.365
* 84.367 84.048

Total Other Programs

Total U. S. Department of Education

Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program
Total Expenditures of Federal Awards

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Donation Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year.

(2) Expenditures for the funds earned on the School Breakfast Program ($1,322,251.98) were not maintained separately and are included in the National School Lunch Program.

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 fund financial statements.

PassThrough
Entity ID
Number

Total Expenditures

N/A

2,836,289

N/A

51,545

N/A

675,875

N/A

138,438

3,702,147

12,957,891

54,362 $ 20,046,586

See notes to the basic financial statements. 29

CARROLL COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2011

SCHEDULE "3"

Agency/Funding
Grants Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program

Governmental

Fund Types

Capital

General

Projects

Fund

Fund

Total

$

2,224,808 $

- $

2,224,808

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 Upper Elementary Grades - Early Intervention (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 Program for Intellectually Gifted Students - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Twenty Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Vocational Supervisors Nursing Services Mid Term Hold Harmless

4,431,377 421,328
10,559,871 898,006
5,235,858 716,543 11,732
8,490,185 7,195,353 2,527,831 3,075,527
577,470 668,434 356,963 1,543,718 462,254 304,946
1,810,116 3,415,561 3,696,056
1,587,873 29,270 213,348 607,911

-

4,431,377

-

421,328

-

10,559,871

-

898,006

-

5,235,858

-

716,543

-

11,732

-

8,490,185

-

7,195,353

-

2,527,831

-

3,075,527

-

577,470

-

668,434

-

356,963

-

1,543,718

-

462,254

-

304,946

-

1,810,116

-

3,415,561

-

3,696,056

-

1,587,873

-

29,270

-

213,348

-

607,911

30

CARROLL COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2011

SCHEDULE "3"

Agency/Funding
Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs
CTAE Middle School Dual Enrollment Health Insurance Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Residential Treatment Teachers' Retirement Virtual Schools Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Special Education Programs Total Quality Basic Education Formula Earnings QBE Allotment (Operating Costs) QBE Contra Account (Debit)
Office of State Treasurer Public School Employees Retirement
Other Funds from Other State Agencies

Governmental

Fund Types

Capital

General

Projects

Fund

Fund

Total

$

10,779,283 $

236,078

227,942

(10,177,310)

- $ 10,779,283

-

236,078

-

227,942

-

(10,177,310)

10,650 11,666 234,251 93,825 264,651 534,044 324,381 40,268 1,025

-

10,650

-

11,666

-

234,251

93,825

-

264,651

-

534,044

324,381

-

40,268

1,025

-

7,283,893

7,283,893

14,069,363 272,475
(1,569,904)

14,069,363 272,475
(1,569,904)

84,970

-

84,970

42,250

-

42,250

$

76,542,247 $

7,283,893 $ 83,826,140

See notes to the basic financial statements. 31

CARROLL COUNTY BOARD OF EDUCATION SCHEDULE "4"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Project

Original Estimated Cost(1)

Current Estimated Costs(2)

Expended In Current Year (3)

Expended In Prior Years (3)

Project Status

(A) Providing funds to pay or to be applied toward the cost of capital outlay projects within the Carroll County School District, consisting of acquiring, constructing, adding to, renovating, modifying, repairing, improving and equipping existing schools and other buildings and facilities and acquiring any property necessary or desirable therefore, both real and personal; acquiring real estate for the construction of new schools and facilities; constructing and equipping new schools and facilities and acquiring any property necessary or desirable therefore, both real and personal. $

105,420,000

$ 105,420,000

$ 10,813,566

$ 77,545,668 Ongoing

$ 105,420,000 $ 105,420,000 $ 10,813,566 $ 77,545,668

(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 project(s). 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.

See notes to the basic financial statements 32

CARROLL COUNTY BOARD OF EDUCATION

SCHEDULE "5"

GENERAL FUND - SCHEDULE OF QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES BY PROGRAM FOR THE FISCAL YEAR ENDED JUNE 30, 2011

Description

Allotments From Georgia Department of Education (1)(2)

Eligible QBE Program Costs

Salaries

Operations

Total

Direct Instructional Funds:

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

Upper Elementary Grades-Early Intervention (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

English Speakers of Other Languages (ESOL)

5,025,080 $ 4,230,704 $

510,695

550,304

12,060,416

10,951,246

1,068,613

778,406

5,912,234

7,085,730

833,973

929,725

12,765

-

9,619,886

8,997,127

8,218,089

9,188,610

2,819,133

1,934,498

13,053,172

-

-

376,446

-

817,152

-

7,128,948

-

2,079,773

-

919,733

3,480,975

3,829,738

661,027

725,617

759,539

1,072,882

407,713

331,388

70,735 3,321
278,874 7,278
104,857 5,867 -
163,236 270,134 159,768
9,172 2,781 61,532 33,880 57,082 36,900 2,658 16,497 1,399

$ 4,301,439 553,625
11,230,120 785,684
7,190,587 935,592 -
9,160,363 9,458,744 2,094,266
385,618 819,933 7,190,480 2,113,653 976,815 3,866,638 728,275 1,089,379 332,787

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

64,443,310

61,928,027

1,285,971

63,213,998

Media Center Program Staff and Professional Development

1,753,890 346,279

2,520,046 42,908

165,783 -

2,685,829 42,908

TOTAL QBE FORMULA FUNDS

$

66,543,479 $ 64,490,981 $ 1,451,754 $ 65,942,735

(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction.

See notes to the basic financial statements. 33

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
March 29, 2012

Honorable Nathan Deal, 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 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Carroll County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Carroll County Board of Education's basic financial statements and have issued our report thereon dated March 29, 2012. 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.
Internal Control Over Financial Reporting
Management of Carroll County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Carroll County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Carroll County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Carroll County Board of Education's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness.

2011YB-41

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider item FS-6221-11-01 in the accompanying Schedule of Findings and Questioned Costs to be a material weakness.
Compliance and Other Matters
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 of laws, regulations, contracts and grant agreements, 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 of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
We noted certain matters that we have reported to management of Carroll County Board of Education in a separate letter dated March 29, 2012.
Carroll County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Carroll County Board of Education's response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of the management, members of the Carroll County Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:al 2011YB-41

Russell W. Hinton, CPA, CGFM State Auditor

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400
March 29, 2012

Honorable Nathan Deal, 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 REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited Carroll County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. 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 of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the 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.
In our opinion, the Carroll County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011.

2011SA-10

Internal Control Over Compliance
Management of Carroll County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Carroll County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the 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, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Carroll County Board of Education's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of management, members of the Carroll County Board of Education, others within the entity, 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,

RWH:al 2011SA-10

Russell W. Hinton, CPA, CGFM State Auditor

SECTION III 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, 2011

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

No matters were reported.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FA-6221-10-01

Previously Reported Corrective Action Implemented

- 1 -

SECTION IV FINDINGS AND QUESTIONED COSTS

CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2011

I SUMMARY OF AUDITOR'S RESULTS

Financial Statements

Type of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information

Unqualified

Internal control over financial reporting: Material weakness identified? Significant deficiency identified?

Yes None Reported

Noncompliance material to financial statements noted:

No

Federal Awards

Internal Control over major programs: Material weakness identified? Significant deficiency identified?

No None Reported

Type of auditor's report issued on compliance for major programs: All major programs

Unqualified

Any audit findings disclosed that are required to be reported in

accordance with OMB Circular A-133, Section 510(a)?

No

Identification of major programs: CFDA Numbers

Name of Federal Program or Cluster

84.010, 84.389 84.027, 84.173, 84.391, 84.392 84.410 84.367 84.388

Title I, Part A Cluster Special Education Cluster Education Jobs Fund Improving Teacher Quality State Grants School Improvement Grants Cluster

Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee?

$601,398 No

- 1 -

CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2011
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CAPITAL ASSETS Restatement of Beginning Capital Assets Material Weakness Finding Control Number: FS-6221-11-01 Condition: The School District did not capitalize all applicable construction expenses when incurred. Criteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that construction in progress is reported in accordance with generally accepted accounting principles (GAAP). Questioned Cost: N/A Information: During the fiscal year, the School District capitalized $4,676,377 of prior year's expenses associated with construction in progress that were not capitalized during the year the expenses were incurred. The School District restated beginning capital assets to correct these errors. Cause: The School District's policy for reporting construction in progress was not in accordance with GAAP. Effect: Material restatement of beginning net assets. Recommendation: Management should revise the capital assets policy to ensure that all applicable construction expenses are capitalized in accordance with GAAP.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
- 2 -

SECTION V MANAGEMENT'S RESPONSES

CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2011

Finding Control Number: FS-6221-11-01

We concur with this finding. The School District will implement policies and procedures to insure that Construction in Progress is calculated and reported in accordance with Generally Accepted Accounting Principles.

Contact Person: Telephone: Fax: E-mail:

Greg Denney, CFO (770) 832-3568 (770) 836-2739 greg.denney@carrollcountyschools.com