Chattooga County Board of Education, Summerville, Georgia, report on audit of the fiscal year ended June 30, 2001

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CHAITOOGA COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

CHATTOOGA COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS -
SEcnONn COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
May21,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Chattooga County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Chattooga County Board of Education, as of and for the year ended June 30, 200 I, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Chattooga County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 0plmon.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

... The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
... School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
... The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Chattooga County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 21, 2002, on our consideration of the Chattooga County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Chattooga County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing
2001ARL-13

procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
~.~
Ru sell W. Hinton State Auditor
RWH:gp 2001ARL-13

CRAnOOGA COUNTY BOARD OF EDUCAnON

-------------- ----------------- --
CHAnOOGA COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GRQUP JUNE 30. 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
Amount Available In Debt Service Fund
Amount to be ProVIded in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

413,01885 $

153,860.63 $

82,523.04

618,357.59

401,181.76

986,770.00

148.77

19,8n.03 11,448.83

$ 1,031,376.44 $ 586,368.25 $ 1,069,441.81

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undeslgnated
Total Fund Equity

$

144.335.90 $

52,742.87

5,203.26

180,626.32

443.39 $

26,029.68

18,000.00 15.696.20

$

149,539.16 $ 259,842.26 $

33.696.20

$

685.73

$

19,877.03

11,448.83

$ 1,035,745.61

881,151.55

295,200.13

0.00

$

881.837.28 $ 326,525.99 $ 1,035,745.61

Total liabilities and Fund Equity

$ 1,031,376.44 $

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

- 2

586,368.25 $ , 1069,441.8,

EXHIBIT "A"

DEBT SERVICE
FUND

$

855,483.48

219,589.72

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$ 1,504,886.00 $ 5,707,391.15

2,225,899.07

645,400.01

148.77

$ 1,075.073.20

19.877.03 11,448.83
1.075,073.20

21.842.95 11.089.35
871.258.89

1.114.926.80 867,064.03

1.114,926.80 867.064.03

2,343.741.11 269,472.00

$ 1,075,073.20 $ 3,057,064.03 $ 6,819,323.73 $ 9,870,195.46

$

197,078.77 $

53,337.76

185.829.58

190,420.39

1,275.000.00

443.39

18,000.00

162,321.34

15.696.20

79,465.11

26,029.68

$

867.064.03

867,064.03

269,472.00

2,190.000.00

2,190.000.00

3,215,000.00

$ 3,057,064.03 $ 3,500,141.65 $ 5,245,016.60

$ 1,075.073.20
0.00 $ 1,075,073.20

$ $ 1,075,073.20
685.73

18,654.66 871,258.89
685.73

19,877.03 11,448.83 1,035,745.61

21,842.95 11,089.35 2,367.391.37

1.176,351.68

1,334,255.91

$ 3,319,182.08 $ 4,625,178.86

$ 1,075,073.20 $ 3,057,064.03 $ 6,819,323.73 $ 9,870,195.46

-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School AdminIstration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
capital OuUay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 12,571,785.19 $ 25,551.61
4,656,159.69 252,627.04
$ 17,506,123.53 $

468,744.80 2,222,863.53
371,805.36
3,063.413.69

$ 12,373,422.28 $
445,594.21 424,564.46 515,183.16 304,189.06 1,217,787.25 147,845.99 1,870,551.45 785,711.47
35,256.21
38,142.87
31,275.97 48,707.03

1.461,530.09
228,741.36 151,876.33
1,892.42 2,139.08
22,890.62 36,767.65
6,523.07 1,129,363.63

$ 18,238,23141 $ $ -732,107.88 $

3,041,724.25 21,68944

$

628,868.00

$

-133,272.04

$

495,595.96 $

38,263.59 38,263.59

$ -236,511.92 $ 1,118,349.20

59,953.03 268,179.40

-1,965.92 359.48

FUND BALANCE JUNE 30

$

881,837.28 $ ====3=2=6=,5=2=5':,9.9..

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

-4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE '30, 2000

$

986,770.00

$ 14,027,299.99 $ 12,163,883.53

2,248,415.14

1,819,235.67

$ 1,326,545.23

5,982,704.92

6,027,870.23

46,694.45

25,249.61

696,376.46

809,890.02

$ 1,033,464.45 $ 1,351,794.84 $ 22,954,796.51 $ 20,820,879.45

$ 2,458,526.69 $
$ 2,458,526.69 $ $ -1,425,062.24 $

$ 13,834,952.37 $ 12,256,595.08

674,335.57 576,440.79 515,183.16 306,081.48 1,219,926.33 147,84599 1,893,442.07 822,479.12
35,256.21 6,523.07 1,129,363.63 2,496,669.56

817,454.74 502,680.49 488,894.11 235,681.12 1,248,863.96 125,847.00 1,561,344.80 702,380.71 38,998.40 26,017.87 1,053,692.29 2,016,372.37

1,025,000.00 123,777.50 795.00

1,056,275.97 172,484.53 795.00

985,000.00 202,125.00

1,149,572.50 $ 24,888,054.85 $ 22,261,947.94

202,222.34 $ -1 ,933,258.34 $ -1 ,441 ,068.49

$

93,41648 $

$

93,416.48 $

$ 1,591.97
1,591.97 $

628,868.00 $ 133,272.04 -133,272.04
628,868.00 $

269,472.00 25,949.98 -25,949.98
269,472.00

$ -1,331,645.76 $ 2,367,391.37

203,814.31 $ -1,304,390.34 $ -1,171,596 49

871,258.89

4,625,178.86

5,794,440.16

-1,965.92 359.48

2,402.45 -67.26

$ 1,035,745.61 $ 1,075,073.20 $ 3,319,182.08 $ 4,625,178.86

5-

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

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 12.139.909.40 $ 79.831.64
4.439.04600 140,00000

12.571.785.19 25,551.61
4.656.159.69 252,62704

Total Revenues EXPENDITURES

$ 16.798.78704 $ 17.506.12353

Current Instruction Support services Pupil services Improvement of Instructional services Educabonal Media services General Administration SChool Admimstrabon Business Admlnistrabon Maintenance and Operation of Plant Student Transportabon services Central Support services Other Support Sel'Vlces Focxl services Operation
capital OUUay Debt service

$ 12,243.480 44 $ 12,373.422 28

482,64044 315,117 50 505.500.98 212.010.00 1.112.684.00 124,413.00 1,144,78000 648,491.00
44.029 00 2,27500

445,59421 424,564.46 515,183,16 304.189.06 1.217,787.25 147,845.99 1.870,55145 785.711.47
35,256.21

38.14287 79,98300

Total Expenditures

$ 16.835.421.36 $ 18,238,231.41

Excess of Revenues over (under) Expenditures

$

-36.634 32 $ -732.107.88

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses
Total Other Financing Sources (Uses)

$

628.868.00

-133.27204

$

495.59596

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

FUND BALANCE JULY 1, 2000

-36.634.32 $ -236.511.92

720,434.00

1,118,349.20

Adjustments

-90,433.00

FUND BALANCE JUNE 30. 2001

$

593,36668 $

881.837.28

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 482.267,95 $ 468.744 80

1.901,285 45

2.222,863.53

336.534.83

371.805.36

$ 2.720,088 23 $ 3,063.41369

$ 1,783,951.21 $ 1.461,53009

271,35000 297,298.40

228.741,36 151,87633

700.00 319.00

1.89242 2,139.08

4,580.00 70,356.00

22,890.62 36.767.65

31,816.00 1,069.862.58

6,523.07 1,129.363.63

$ 3,530.233.19 $ 3,041,72425 $ -810.144 96 $ 21.68944

$

38.263.59

$

38.263,59

$ -810.144.96 $ 182,325.00 -6.32500

59.953.03 235,247.10

$ -634,144.96 $ 295,200 13

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

CHAnOOGA COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Chattooga County Board of Education (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 School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose fmancial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 8-

CHATIOOGA COUNTY BOARD OF EOUCAnON

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.

ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as . liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

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

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and

available). "Measurable" means the amount of the transaction can be determined and "available"

means collectible within the current period or soon enough thereafter to be used to pay liabilities of

the current period. The School District considers receivables collected within sixty days after year-

end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the

School District gives (or receives) value without directly receiving (or giving) equal value in

exchange, include property taxes, local option sales taxes, intergovernmental grants and donations.

Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue

from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual.

Revenue from grants and donations is recognized in the fiscal year in which all eligibility

requirements have been satisfied.

-

CHAITOOGA COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30.2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Chattooga County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report:
- 10-

CHATIOOGA COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS,

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 2000

$ 268,179.40

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

-21,842.95 -11,089.35

Fund Balance July 1,2000 (Budget Basis)

$ 235,247.10

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

59,953.03

FUND BALANCE JUNE 30, 2001 (Budget Basis)

$ 295,200.13

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Chattooga County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 1,2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Chattooga County Tax Commissioner bills and collects the

- 11 -

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

CRATIOOGA COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $3,056,526.60.

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

School Operations

~mills

SALES TAXES

Local Option Sales Tax revenue during the fiscal year amounted to $1,496,472.74 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe School District.

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational pufposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,326,545.23 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $1,444,783.38 has been collected or on December 31,2003, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30,2001, are recorded as prepaid items.

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

- 12-

CRATTOOGA COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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
11 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.
Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe
securities pledged to secure a pool ofpublic funds shall be not less than 11 percent ofthe daily pool
- 13 -

CHAITOOGA COUNTY BOARD OF EDUCATION

EXHffiIT liD"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS
balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the 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.
CATEGORIZAnON OF DEPOSITS At June 30,2001, the bank balances were $1,429,734.21. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

- 14-

-I



CHATIOOGA COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

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

Risk Category

Bank Balance

1 2 3
Total

$ 200,000.00 896,659.65 333,074.56
$ 1,429,734.21

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

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

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster (earthquakes). The School District has neither sigmficantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years.

The School District has elected to self-insure for all losses related to natural disaster (flood). The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

BegInning of Year Liability

Claims and Changes m Estimates

Claims Paid

End of Year Liability

2000 2001

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

2,890.25 $

2,890.25 $

0.00

- 15 -

CHAITOOGA COUNTY BOARD OF EOUCAnON

EXHmIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 4: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent Each Principal

$ 20,000.00 $ 5,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Chattooga County Board of Education has entered into a lease agreement as lessee for energy management systems. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1998

3.85%

$ 2,190,000.00

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000

$ 269,472.00 $ 3,215,000.00 $ 3,484,472.00

Additions Capital Leases

628,868.00

628,868.00

Deductions Debt Retired
Balance June 30, 2001

31,275.97 1,025,000.00 1,056,275.97 $ 867,064.03 $ 2,190,000.00 $ 3,057,064.03

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

- 16-

CHATTOOGA COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005 2006 2007 - 2011

$ 106,644.00 $ 1,154,315.00 $ 1,260,959.00

106,644.00 1,163,120.00 1,269,764.00

106,644.00

106,644.00

106,644.00

106,644.00

106,644.00

106,644.00

666,526.00

666,526.00

Total Principal and Interest $ 1,199,746.00 $ 2,317.435.00 $ 3,517,181.00

Deduct: Imputed Interest

332,681.97

Net Present Value of Future Minimum Lease Payments $ 867,064.03

Note 6: SHORT-TERM DEBT

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

Tax Anticipanon Notes

Beginnmg Balance

Additions

Payments

Endmg Balance

$L275.00Q 00 $=~dO~.O~O $L275,OQO.00 $==dO~.O!Q,\O

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $229,759.15 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$186,858.15

- 17 -

CHATIOOGA COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 7: ON-BEHALF PAYMENTS

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $42,901.00

Note 8: SIGNIFICANT COMMITMENTS

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

Project Menlo Elementary Additions and Renovations

Unearned Executed Contracts
$ 402,809.04

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

Note 9: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 10: SUBSEOUENT EVENTS

On November 6, 2001, the voters of Chattooga County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of Chattooga County, is as follows:

"Shall a special one percent sales and use tax for educational purposes for the Chattooga County School District (the "Chattooga District") and the independent school district of the City of Trion (the "Trion District") be imposed within Chattooga County for a period not to exceed 20 calendar quarters and for the purpose of providing funds to pay (1) for the Chattooga District, the cost ofthe acquisition, construction and equipping ofa new elementary school; acquiring any necessary property therefore, both real and personal; rehabilitating, adding to, repairing, renovating, extending and improving Pennville Elementary School, North Summerville Elementary School, Summerville Elementary School, Lyerly School, Chattooga High School, Summerville Middle School and Menlo School, and related facilities useful or desirable in connection therewith, including without limitation roofreplacements and repairs, mechanical system repairs and replacements, additional parking and paving, and security systems; system-wide technology additions and improvements; and purchasing school furnishings, equipment and fixtures, at a maximum cost of $8,550,000?

- 18-

..........

CRAnOOGA COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 10: SUBSEQUENT EVENTS

Ifthe imposition ofthe tax is approved by the voters ofthe Chattooga District, such vote shall also constitute approval ofthe issuance of general obligation debt ofthe Chattooga District in the principal amount of up to $7,780,000 for the purpose set forth in clause (1) of the above question, repayable from the proceeds of the aforesaid sales and use tax, for the purpose of funding such portions ofthe above projects as may be acquired, constructed and equipped with the proceeds of general obligation debt and to pay capitalized interest on such debt through August 1, 2002, inclusive."

Note 11: ACCUMULATED EMPLOYEES' LEAVE

Personnel employed on a twelve month basis shall be entitled to ten days of annual leave. Annual leave will be accumulated at the rate of .83 days per month and will be accumulative to thirty days. The School District currently is paying employees, at the current rate ofpay, for unused leave up to the maximum accumulated vacation leave at the time of termination or retirement; however, the School District does not have a written policy to support these payments. See Note 1 Compensated Absences

Note 12: RETIREMENTPLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 1,304,981.09 $ 1,235,990.05 $ 1,255,295.05

- 19-

CHATTOOGA COUNTY BOARD OF EDUCATION COMBINING BALANCE SH'EET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

355,582.31 $

39,689.72

5,025.79

19,877.03 11.448.83

Total Assets

$

391,933.96 $ ===3=::9=,6:::.89=.=:72=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payabl~ Deferred Revenue
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 20-

$

13,741.87 $

9,016.58

51,666.10

30,673.14

$

65.407.97 $

39,689.72

$

19,877.03

11,448.83

295,200.13 $

0.00

$

326,525.99 $

0.00

$

391,933.96 $ ......-=:..3.=9=,6.8..9=..7..2. =

EXHIBIT WE"

FEDERAL PROGRAMS

TOTALS

JUNE 30. 2001

JUNE 30. 2000

$

395,272.03 $

463,615.73

$

396,155.97

401,181.76

3,013.41

19,877.03 11,448.83

21,842.95 11,089.35

$

396,155.97 $

827,779.65 $ ===-4..9.=9.,5=61=.4..4=

$

241,411.40 $

241,411.40

29,984.42

52,742.87 $

49,407.49

98,287.08

180,626.32

181,974.55

443.39

443.39

26,029.68

26,029.68

$

396,155.97 $

501,253.66 $

231,382.04

$

18,654.66

$

19,877.03

11,448.83

21,842.95 11,089.35

$

0.00

295,200.13

216,592.44

$

0.00 $

326,525.99 $

268,179.40

$

396,155.97 $

827,779.65 $ ==4=9=9,5:=61=.44===

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 22-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

83,770.00 $

749,418.22

371,307.36

$ 1,204,495,58 $

384,974.80 384,974,80

$

315,433,11

36,833,19 15,316.11

$ 1,125,887.89

$ 1,125,887.89 $

$

78,607.69 $

991.51 22,890,62
423.00
2,549.70
394,437.24
-9,462.44

$

78,607,69 $

249,524.74

-1,965.92 359.48

9,462.44
0,00 0.00

$

326,525.99 $ =====--==0;;,,;..-00,,==

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

468,744.80 $

446,814.69

$ 1,473,445.31

2,222,863.53

1,812,683.04

498.00

371,805.36

355,482.23

$ 1,473,943.31 $ 3,063,413.69 $ 2,614,979.96

$ 1,146,096.98 $ 1,461,530.09 $ 1,198,453.68

191,908.17 136,560.22
1,892.42 1,147.57
36,344.65 6,523.07 926.04

228,741.36 151,876.33
1,892.42 2,139.08 22,890.62 36,767.65 6,523.07 1.129,363.63

136,185.74 71,959.71 8,902.67
1,737.54
11,464.70 25,816.11 25,867.37 1,053,692.29

$ 1,521 ,399.12 $ 3,041,724.25 $ 2,534,079.81

$

-47,455.81 $

21,689.44 $

80,900.15

28,801.15

38,263.59

25,949.98

$

-18,654.66 $

59,953.03 $

106,850.13

18,654.66

268,179.40

158,994.08

-1,965.92 359.48

2,402.45 -67.26

$

0.00 $

326,525.99 $===2;:,;;6.8=,1.7..9..4..0=

- 23-

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable Prepaid Items

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 1.061,293,04

$ 1,061,293.04 $ 2,609,1 n.82

$

986,nO.00

986,nO.00

148,n

148,77

Total Assets

$ 1,061,441,81 $

986,770.00 $ 2,048,211.81 $ 2,609,177.82

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retalnages Payable
Totalliabllllies
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated
Total Fund Equity

$ $ 10,000.00
15,696,20
$ 25,696.20 $

978,770.00 $ 8,000,00

978,770.00 18,000.00 $ 15,696.20

986,770.00 $ 1,012,466,20 $

162,321.34 79,465.11
241,786,45

$ 1,035,745.61 0.00 $
$ 1,035,745,61 $

$ 1,035,745.61 $ 2.367,391.37

0,00

0.00

0,00

0,00 $ 1,035.745,61 $ 2,367,391,37

Totalliabllilies and Fund Equity

$ 1,061,441,81 $

986,no,00 $ 2,048,211 81 $ 2,609,177.82

see notes to the general-purpose finanCial statements,

- 24-

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

EXHIBIT"H"

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

State Funds Other Funds

$

$

46,694 45

986,770.00 $

986,770.00 46,694 45 $

181,36520

Total Revenues

$

46,694 45 $

986,770,00 $ 1,033,464 45 $ 181,365,20

EXPENDITURES

capital OuUay Salanes Employee Benefits Building and Building Improvements

$

9,822.96

75144

909,77694 $

$ 1,538,175 35

9,82296 75144
2,447,95229 $

1,951,867,51

Total Expenditures

$ 920,35134 $

1,538,17535 $ 2.458,526,69 $ 1,951,867 51

Excess of Revenues over (under) Expenditures

$ -873,656 89 $

-551.40535 $ -1.425,06224 $ 1,770,50231

OTHER FINANCING SOURCES (USES)

Operattng Transfers In Operating Transfers Out

$ $ -457,98887

551,405.35 $

551.405.35 -457,988,87

Total Other Financing Sources (Uses)

$ -457,988,87 $

551,40535 $

93.41648

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other FinanCing Uses $ -1,331,64576 $

0.00 $ -1,331,645.76 $ -1,770,502.31

FUND BALANCE JULY 1

2,367 ,391.37

0,00

2,367,391,37

4,137,89368

FUND BALANCE JUNE 30

$ 1,035,745,61 $

000 $ 1,035,74561 $ 2,367,391.37

See notes to the general-purpose finanCial statements

- 25-

CHATTOOGA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENPITURES OF FEpERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE'1'

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10555

NlA

$ 198,717.84

(2)

NlA

492,541 83 $

1,067,72934 (3)

Total Child Nutrition Cluster

$ 691,259.67 $

1,067,72934

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

NlA

Pass-Through From Office of Treasury and Fiscal Services

National Forest Reserve Funds

10.665

NlA

58,158.55 45890

58,158.55 (4)

Total U. S Department of Agnculture

$ 749,87712 $

1,125,88789

Appalachian Regional Commission Direct Parent Child Teacher Force 3 Grant TelecommUnications Programs Community Connection Grant Pass-Through From Georgia Department of Community Affairs Teleconferencing and Distance Learning DemonstralJon Grant

23011 23002

$ 39,02397 $
127,648.53

39,023.97 127,648.53

23,002

NlA

20,01600

20,016.00

Total Appalachian Regional Commission

$ 186,688.50 $

186,688.50

Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs

94 Q04

NlA

$ 12,42000 $

13,30320 (3)

Education, U. S Department of SpeCIal Education Cluster Pass-Through From Georgia Department of Education Individuals with Dlsabihbes Educabon Act Part B SpeCIal EducalJon Flow Through Preschool capacity Building Improvement

84 027 84,173 84027

NlA

$ 328,27084 $

NlA

57,315.59

NlA

9,425.54

328,74803 (3) 59,350.13 (3) 9,59512 (3)

Total Special Education Cluster

$ 395,011.97 $

397,693.28

Other Programs Direct 21st Century COmmunity Learning Center Pass-Through From Georgia Department of Education Elementary and Secondary EducalJon Act Title I Grants to Local Educational AgenClBs Title II Eisenhower Professional Development Title III Technology Uteracy Challenge Fund Grants

84 287

84 010

NlA

84.281

NlA

84.318

NlA

104,191.73
489,67938 10,680.57
111,73002

104,68973 (3)
509,505.87 (3) 10,68057
130,384 68 (3)

- 26

CHATTOOGA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENPED JUNE 30, 2001

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Education. U. S Department of Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title VI Innovative Education Program Strategies Class Size Reduction Vocational Education - BaSIC Grants to States High SChool Program Basic Grant
Total U. S. Department of Education
Health and Human Services. U. S. Department of Direct Abstinence Education Grant Pass-Through From Georgia Department of Human Resources Block Grants for Prevenbon and Treatment of Substance Abuse Grant-in-Aid
Total U. S Department of Health and Human serviceS
Labor, U. S. Department of Pass-Through From Coosa Valley Regional Development Commission VVondorcelnvestmentAct

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84,298 84 340
84 048

NlA

$ 19,007.00 $

NlA

76,67200

19,00700 79,620,34 (3)

NlA

27.27631

29,738,12 (3)

$ 1,234,248,98 $

1,281,319.59

93.235

$ 20,702,61 $

20.70261

93,959

NlA

25.09271

$ 45.795,32 $

25,21602 (3)
4..:.:5:;.:;.9::..;1c:8.:.:.6~3

17259

NlA

$ 19,385.22 $

1..:.:9~.3~8::;5::.2=-2

Total Federal Financial Assistance
= NlA Not Available

$ 2,248,415 14 $_~2,.6.7;,;;2_.5_0_3_0,",,3

Notes to the Schedule of Exoendltures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the current fiscal year
(2) expenditures for the SChool Breakfast Program were not maintained separately and are Included In the 2001 Nabonal SChool Lunch Program
(3) expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source
(4) Funds earned on this program do not require reporting of expenditures

Major Programs are Identified by an asterisk (") In front of the CFDA number.

The School District did not provide Federal Assistance to any SubreClplent

The accompanying schedule of expenditures of Federal awards Includes the Federal grant acbvlty of the Chattooga County Board of EducabOn and is presented on the modified accrual baSIS of accounting which 15 the baSIS of accounting used in the presentation of the general-purpose finanCIal statements.

see notes to the general-purpose financial statements

- 27-

CHATIOOGA COUNTY BOARP OF EPUCATION SCHEDULE OF STATE REVENUE YEAR ENPED JUNE 30, 2001

SCHEDULE "2"

AGENCYlfUNplNG

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Govemor's Emergency Funds (1)

$

8,000,00

s

8,00000

Educal1on, Georgia Department of Quality BaSIC Education Dlrec1 Instruc1lonal Cost Kindergarten Program Kindergarten Program - Early Intervenlion Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program VocatIOnal Laboratory (9-12) Program Students wlth Dlsabllilles Category I Category II Category 11\ Category IV Category V Supplemental Speech Gifted Student - Category VI Remedial Education Program Altemative Educallon Program Media Center Program Staff and ProfeSSional Development Indlrec1 Cost Categoncal Grants Pupil Transportation RegUlar Bus Replacement Nursing Services PnnClpal Supplements Vocational SUperviSOrs EducalJon Equalizallon Funding Grant Food Services VocalJonalEducalion Other State Programs At-Risk Summer School Program EnVIronmental SCience Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Lottery Programs Applied Technology Labs

544,321,00 256,81100 1,360,496 00 614,16000 834,671,00 400,682,00 1,017,179,00 1,020,72100 421,799,00
64,81300 230,96500 1,172,201.00 168,90500
6,07700 3,779.00 237,955.00 139,241,00 102,17300 254,765.00 70,461,00 1,711,357.00
367,999,00 114,701,00 69,777.00 11,85900
16,484,00 762,81200
S 83,77000
120,873.51
4,060,99 1,258,06 186,85815 5,000,00 3,42300 41,66800 4,494 41
57,119.24

544,321,00 256,811,00 1,360,496 00 614,16000 834,671,00 400,68200 1,017,17900 1,020,72100 421,799.00
64,813,00 230,965,00 1,172,201.00 168,905.00
6,077.00 3,77900 237,955,00 139,24100 102,17300 254,76500 70,461.00 1,711,35700
367,99900 114,701,00 69,777.00
11,859.00 16,484 00 762,812.00 83,77000 120,87351
4,060,99 1,258,06 186,858 15 5,000.00 3,42300 41,66800 4,49441
57,119.24

Georgia State FmanCing and Investment CommiSSion Reimbursement on Construction ProJec1s

S 986,77000

986,770.00

Office of Planning and Budget Georgia Council for the Arts

6,250.00

6,250.00

Office of School Readiness Pre-Kindergarten Program

327,855,56

327,855.56

Office of Treasury and Fiscal Services Public School Employees Rellrement

42,90100

42,90100

- 28

CHAUOOGA COUNTY BOARp OF EDUCATION SCHEPULE OF STATE REYENUE YEAR ENPEP JUNE 30, 2001

SCHEDULE "2"

AGENC)'ffUNpING
CONTRACTS Children's Trust Fund CommiSSion Family Connection
Education. Georgia Department of Georgia's Reading Challenge Reading First Program
Human Resources. Georgia Department of Through Chaltooga County Board of Hea"h Family Connection
National Center on Educabon and the Economy Georgia Target Assistance Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

1,509,64

28,615,00 53.158,00

$

1,50964

28.615,00 53,158 00

36.551.43 50.000 00

36,55143 50100000

$ 12.571?8519 $ 468?44.80 $ 986,77000 $ 14,027.29999

(1) The purpose of the funds are for Pennville Elementary School for the purchase of handicap acceSSible playground equipment

See notes to the general-purpose finanCIal statements.

29

CHAITOOGA COUNTY BOARD OF EPUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

Adding to, renovating, repainng, Improving and equipping eXIsting school buildings and other buildings, facilities and grounds useful or desirable rn connection thereWIth, acquinng Instructional and administrative technology Improvements for eXisting schools and acqulnng any necessary property therefor, both real and personal

$ 4,800,000 00 $ 4,924,957 80 $ 21582,304.19 $ 2,342,65361

PROJECT STATUS
Ongoing

(1) The School Distnct's onginal cost estimate as specified In the resolution calling for the Imposition of the Local Option Sales Tax
(2) The School Dlstnct's current estimate of total cost for the project. Indudes all cost from project Inception to completion
(3) The voters of Chattooga County approved the Imposition of a 1% sales tax to fund the above project and retire assoCIated debt Amounts expended for thiS project may Include sales tax proceeds, state, local property taxes and/or other funds over the life of the project

See notes to the general-purpose finanCIal statements.

- 31 -

CHATIOOGA COUNTY BOARP OF EDUCATION GENERAL FUNp aUALlTY BASIC EDUCATION PROGRAM (aBEl
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE aBE' PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Pnmary Grades (13) Program

Pnmary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocallonal Laboratory (9-12) Program

Students wtth Disabilities

category I

category II

Category III

category IV

Gifted Student - category VI

Remedial Educallon Program

A1temative Education Program

618,258,00 $ 291,694,00 1,545,296.00 697,584 00 948,04700 455,108,00 1,155,34600 1,159,369 00 479,093,00 1,870,422.00
270,279.00 158,155,00 116,051,00

545,800,55 $ 274,439.35 1,992,511.86 439,988.52 1,268,215.29 1,810,21910
1,487,957.56 641,34265
38,674.84 310,116,25 1,149,937.24 130,55918 299,16627 176,922 53 173,49301

24,777.79 $ 1,31180
64,532.93 7,56289
47,66580 SO,26832

570,578.34 275,751,15 2,057,044 79 447,551 41 1,315,881.09 1,860,487.42

71,710.57 80,15186

1,559,668.13 721,494 51

1,701,80 29,60894
2,89548 6,14817 1,224.59 3,229.55

38,67484 311,81805 1,179,54618 133,454 66 305,314.44 178,147,12 176,722,56

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

9,764,702.00 $ 10,739,344,20 $ 392,790 49 $ 11,132,134,69

Medlll center Program Staff and Professional Development

289,36900 80,03200

441,083.04 42,470,77

56,23665 48,40723

497,31969 90,87800

TOTAL aBE FORMULA FUNDS

$

10,134,103,00 $ 11,222,898.01 $ 497,434.37 $ 11,720,33238

(1) Compnsed of State Funds plus Local FIve Min Snare

See notes to the general-purpose fiflllncial statements,

32 -

-
CHATIOOGA COUNTY BOARD OF EDUCATION GENERAL FUND - gUALlTY BASIC EDUCATION PROGRAM rgBEl
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Chattooga High School Lyerly Elementary School Summerville Middle School Menlo Elementary School North Summerville Elementary School Pennville Elementary School Summerville Elementary School Preschool (Nutrition Center) Chattooga CrossRoads Academy Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

2,199,115.00 $

2,755,611.58

1,012,486.00

1,114,562.10

1,539,007.00

1,721,876.39

1,237,332.00

1,357,118.31

796,709.00

946,635.79

1,005,399.00

1,113,068.18

1,858,603.00

2,028,731.80

4,843.14

89,687.40

116,051.00

$

9,764,702.00 $ 11,132,134.69

See notes to the general-purpose financial statements. - 33-

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

tlJSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S w., Suite 214
Atlanta. Georgia 30334-H400
May 21, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Chattooga County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofChattooga County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated May 21,2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Chattooga County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

2001YB-40

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Chattooga County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgment, could adversely affect Chattooga County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6271-0102.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness.
This report is intended solely for the information and use of the management, members of the Chattooga County Board of Education, 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:gp 2001 YB-40

Russ II W. Hinton State Auditor

R.lISSELL W. HINTON
STATE AUDITOR
(4()4) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S w., Suile 214
Atlanta, Georgia 30334-R400
May21,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Chattooga County Board of Education
REPORT ON COMPLIANCE WITH REQUlREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Chattooga County Board of Education with the types of
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular
A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Chattooga COlliity Board ofEducation'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 ofits major Federal programs is the responsibility ofChattooga County Board of Education's management. Our responsibility is to express an opinion on Chattooga 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 ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Chattooga 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 Chattooga County Board ofEducation's compliance with those requirements.
2001SA-IO

In our opinion, the Chattooga County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Chattooga County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Chattooga County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Chattooga County Board of Education, 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,
~.~
Rus ell W. Hinton State Auditor
RWH:gp 200ISA-IO

SECTIONlli AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

CRATTOOGA COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6271-99-01 FS-6271-99-02 FS-6271-00-01

Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABrr..ITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $685.73 Finding Control Number: FS-6271-99-01

The finding will be resolved by Georgia Department of Education through a future increase in the School District's local five mill share portion of QBE Allotments in a subsequent fiscal period.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6271-00-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements at this time.

SECTIONIV . FINDINGS AND QUESTIONED COSTS

CHATTOOGA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Chattooga County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Chattooga County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Chattooga County Board of Education disclosed no instances of noncompliance that were deemed material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Chattooga County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Chattooga County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-B3 The Chattooga County Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-B3.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Chattooga County Board ofEducation qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
-I -

CHATTOOGA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200 I
n FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Maintain Separate Accountability Nonmaterial Noncompliance Finding Control Number: FS-6271-01-01
For the year under review, separate ledgers for each capital outlay project, funded in part by the Georgia State Financing and Investment Commission, were not maintained and designated by project name and number as required by Chapter 41 ofthe Financial Management For Georgia Local Units of Administration handbook. Extensive audit procedures were used to prepare the combining financial statements on a project basis utilizing source documentation available. The School District should take appropriate action to restructure its accounting records and maintain them in compliance with the instructions contained in Chapter 41.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6271-01-02
The Chattooga County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.
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CHATTOOGA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

REPORTING Erroneous Project Completion Reports Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6271-01-01

A comparison ofproject completion reports to the accounting records for various Federal programs disclosed that expenditures were understated in various completion reports. These conditions occurred because the School District incorrectly recorded some current year expenditures in the prior year and failed to correctly account for salary/benefit accruals as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA). These accounting deficiencies resulted in completion reports' expenditures being understated in the following programs:

U. S. Department of Education Through Georgia Department of Education

Amount

Special Education Cluster Individuals with Disabilities Education Act Part B - Special Education Flow Through (CFDA 84.027) Preschool (CFDA 84.173) Capacity Building Improvement (CFDA 84.027)

$ 477.19 2,034.54 169.58

Elementary and Secondary Education Act Title I - Grants to Local Educational Agencies (CFDA 84.010) Title ill - Technology Literacy Grants (CFDA 84.318) Title VI - Class Size Reduction (CFDA 84.340)

19,826.49 5,384.68 2,948.34

Vocational Education - Basic Grants to States High-School Program Basic Grant (CFDA 84.048)

2,461.81

Corporation for National and Community Services Through Georgia Department of Education

Learn and Serve America School and Community Based Programs (CFDA 94.004)

883.20

$ 34,185.83

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CHATTOOGA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 200 I III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS REPORTING Erroneous Project Completion Reports Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6271-01-01 Procedures should be implemented to ensure that completion reports are accurate and are reconciled to the accounting records. The School District should submit corrected completion reports to the Georgia Department of Education for the above grants.
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