. ".. _,' .,  '1 , 
 
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.... ' .. \': '; 
 
 OF CLARKE COUNTY BOARD EDUCATION 
- TABLE OFCONTENrS - 
 
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 
 
. i ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES . 
 
6 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
8 
 
D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
9 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
24 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
26 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
28 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
29 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
30 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
31 
 
K 
 
FIDUCIARY FUND TYPE 
 
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABll..ITIES 
 
AGENCY FUNDS 
 
.32 
 
 CLARKE COUNTY BOARD OF EDUCATION - TABLE OF CONTENtS - 
 
SECTION I 
 
FINANCIAL 
 
ADDmONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS . 
 
33 
 
2 SCHEDULE OF STATE REVENUE 
 
35 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
37 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BynOGRAM 
 
38 
 
5 
 
BY SITE 
 
39 
 
SECTIONn 
 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
REPORT ON COMPLIANCE AND ON INTERNALCONTROL OVER FINANCIAL 
 
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN 
 
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
) 
 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 
 
SECTIONID 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 Washington Street, S. w., Suite 214 
Atlanta, Georgia 30334-8400 
March 14,2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Clarke County Board ofEducation 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general-purpose financial statements ofthe Clarke County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-pwpose financial statements are the responsibility ofthe Clarke County Board ofEducation's management. Our responsibility is to express an opinion on these general-pwpose financial statements based on our audit. 
Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 200 I, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
 
200lARL-13 
 
 As described in the notes to the general-purpose fmancial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
* The general-purpose financial statements of the Board of Education did not contain a 
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the 
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. 
* The Board of Education did not recognize as expenditures, in the year ended 
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The. aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to' in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Clarke County Board ofEducation 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 March 14, 2002, on our consideration ofthe Clarke County Board ofEducation'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. 
2001ARL-13 
 
 Our audit was perfonned for the 'purpose of fonning an opinion on the general-purpose financial 
 
statements of the Clarke County Board of Education taken as a whole. The accompanying 
 
combining statements (Exhibits E through K) 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 
 
procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except 
 
for the effect ofadjustments, ifany, on the Special Revenue Fund, as might have been determined to 
 
be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories 
 
as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth 
 
paragraph, such infonnation is fairly stated, in all material respects, in relation to the general-purpose 
 
financial statements taken as a whole. 
 
. 
 
A copy ofthis report has been filed as a 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, .~~.. 
 
RWH:gp 200 1ARL-13 
 
R sell W. Hinton State Auditor 
 
 CLARKE COUNlY BOARD OF EDUCATION 
 
 CLARKE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001 
 
ASSETS 
Cash "and Cash Equivalents 
Investments 
Accounts Receivable Regular Accounts Long-Term Accounts Receivable from Individuals 
Prepaid Items 
Inventories Consumable Supplies " 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 Long-Term Notes Payable Compensated Absences 
Total Assets 
 
$ 12,183,479.53 $ 2,950,748.32 $ 2,837,939.84 
 
The notes to the general-purpose financial statements are an integral part of this statement -2- 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE AGENCY FUNDS 
 
$ 
 
4,486.88 $ 
 
73,368.40 
 
11,n3,901.42 
 
ACCOUNT GROUP 
GENERAL LONG-TERM 
DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 6,652,943.03 $ 1,489,836.78 
 
21,104,019.61 
 
32,080,695.58 
 
2,858,166.37 
 
4,570,411..36 37,428.00 . 
45,403.83 
 
4,326,084.26 39,363.00 
34,613.52 
 
$ 14,636,554.67 
 
112,582.01 
95,812.87 63,490.05 
14,636,554.67 
 
123,293.95 
97,416.48 30,678.89 
13,440,355.78 
 
4,963,445.33 302,115.81 96,n2.08 381 ,366.40, 
 
4,963,445.33 302,115.81 96,n2.08 381,366.40 
 
18,509,644.22 658,479.38 106,449.32 387,535.29 
 
$ 14,636,554.67 $ 
 
73,368.40 $ 20,380,254.29 $ 53,062,345.05 $ 71,324,446.45 
 
-3- 
 
 CLARKE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001 
 
LIABILITIES AND FUNP EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances. Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others capital Lease Agreements Compensated Absences Long-Term Notes Payable General Obligation Bonds Payable 
Total Uabilities 
FUND EQUITY . 
Fund Balances Reserved For Arbitrage Rebate Tax For Bus Replacement Funds For Continuati.on 9f Federal Programs For Continuation of State Programs For Court Ordered Restitution Payments For Debt Service For Inventories Consumable Supplies Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Designated for Medical Accounts Designated for Self-Insurance Designated for Cedar Shoals Fumishings Undesignated 
Total Fund Equity 
Total Uabilities and Fund EqUity 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPEGIAL 
 
CAPITAL 
 
. REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 1,558,996.18 .$ 190,961,26 1n,15 
 
437,144,88 $ 993,847.99 
18,664,29 
59,797,51 
 
36,376.17 
234,456.26 1,125,739.80 
 
$ 1,750,134.59 $ 1,509,454.67 $ 1,396,572.23 
 
$ 
 
200,200,00 
 
$ 1,441,367,61 
 
37,428,00 
 
112,582.01 $ 
 
95,812,87 63,490,05 
 
537,799.36 93,800,38 
 
9,451,535.19 
 
1,281,990.73 
 
$ 10,433,344.94 $ 1,441,293.65 $ 
 
0.00 1,441,367.61 
 
$. 12,183,479.53 $ 2,950,748.32 $ 2,837,939.84 
 
The notes to the general-purpose financial statements are an integral part of this statement. 
-4- 
 
 EXH/BIT"A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE AGENCY FUNDS 
 
ACCOUNT GROUP 
GENERAL LONG-TERM 
DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 1,663,359.43 
 
$ 2,032,517.23 . 
 
1,806,313.23 
 
1,184,809.25 
 
916,140.32 
 
18,841.44 
 
448.71 
 
234,456.26 . 
 
1,016,912.54 
 
1,125,739.80 
 
2,124,276.37 
 
59,797.51 
 
$ 
 
73,368.40 
 
73,368.40 
 
69,590.72 
 
$ 
 
302,115.81 
 
302,115.81 
 
648,861.42 
 
381,366.40 
 
381,366.40 
 
387,535.29 
 
96,n2.08 
 
96,n2.08 
 
106,449.32 
 
19,600,000.00 
 
19,600,000.00 
 
31,950,000.00 
 
$ 
 
73,368.40 $ 20,380,254.29 $ 25,109l84.18 $ 40,689,887.35 
 
$ 14,636,554.67 $ 
 
73.368.40 $ 20,380,254.29 $ 53,062,345.05 $ 71,324,446.45 
 
-5- 
 
  
 
CLARKE COUNTY BOARD OF EDUCATION 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services . Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services OpEirations 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Payments to Bond Escrow Agent 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 
 
$ 43,174,838,10 $ 27.029,58 
37,045,333,71 3,003.363,74 
 
2,844,352,50 8,556,233,91 
1,531,540,27 
 
$ 83.250,565.13 $ 12,932,126,68 
 
$ 50,629,799,24 $ 5,990.757,79 
 
2.067,452.68 . 1,599,058.53 1,831,322,23 1,089,671,11 5.258,802.55 1.624.725.13 8,497,128,57 5,397.641,59 2,107.189,99 
46,486.12 1.203,75 
786.591.23 1,155,925,89 
 
695,740.57 403.541.37 
312,196.04 7.016,64 16.365.31 
37,529,91 28,367.98. 
501.150.88 .5,057.959.97 
 
356.422,85 51,096,79 
 
$ 82.500,518.25 $ 13,050,626.46 
 
$ 
 
750,046.88 $ -118,499,78 
 
$ $ -170,653.55 
$ -170.653,55 $ 
 
170.653.55 170.653.55 
 
$ 
 
579,393,33 $ 
 
52,153,77 
 
9,853,951.61 
 
1.357.932.33 
 
-1.603.61 32,811.16 
 
FUND BALANCE JUNE 30 
 
$ 10,433,344,94 $ 1,441 ,293.65 
 
The notes to the general-purpose financial statements are an Integral part of this statement -6- 
 
 EXHIBIT "B". 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 46,019,190.60 $ 43,184,875.12 
 
8,583,263.49 
 
7,541,128.98 
 
$ 3,261,517.72 $ 14,332,991.48 
 
54,639,842.91 
 
50,572,423.68 
 
268,152.71 
 
625,905.05 
 
5,428,961.n 
 
5,933,528.74 
 
$ 3,529,670.43 $ 14,958,896.53 $ 114,671,258.n $ 107,231,956.52 
 
$ 56,620,557.03 $ 52,852,275.79 
 
$ 8,061,004.24 
 
2,763,193.25 2,002,599.90 1,831,322.23 1,401,867.15 5,265,819.19 1,641,090.44 8,534,658.48 5,426,009.57 2,107,189.99 
547,637.00 5,059,163.72 
786,591.23 9,216,930.13 
 
3,590,908.38 2,044,499.16 1,860,139.05 1,308,844.12 5,261,994.19 1,275,194.18 7,531,380.61 4,870,449.95 1,4n,049.15 
295,238.55 4,715,291.07 
788,290.66 21,732,240.50 
 
$ 12,350,000.00 1,410,687.50 2,010.14 
 
12,706,422.85 1,461,784.29 2,010.14 
 
13,722,005.49 2,398,437.37 
9,201.56 
 
$ 8,061,004.24 $ 13,762,697.64 $ 117,374,846.59 $ 125,733,439.78 
 
$ -4,531,333.81 $ 1,196,198.89 $ -2,703,587.82 $ -18,501,483.26 
 
$ 
"$ 
 
$ 
170,653.55 -170,653.55 
 
-14,366,885.00 858,703.00 196,803.89 -196,803.89 
 
0.00 $ -13,508,182.00 
 
$ -4,531,333.81 $ 1,196,198.89 $ -2,703,587.82 $ -32,009,665.26 
 
5,972,701.42 
 
13,440,355.78 
 
30,624,941.14 
 
62,562,553.34 
 
-1,603.61 32,811.16 
 
10,063.45 61,989.61 
 
$ 1,441,367.61 $ 14,636,554.67 $ 27,952,560.87 $ 30,624,941.14 - 
 
-7- 
 
 . 
 
CLARKE COUNTY BOARD OF EDUCATION 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
 
BUDGET AND ACTUAL (NON-GAAP BASIS) 
 
. 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "C 
 
.The notes to the general-purpose financial s1atemilnts are an integral part of this s1atement. 8 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHIDIT "D" 
 
NOTES TO THE GENERAL-PURPOSE HNANCIAL STATEMENTS 
 
JUNE 30. 200i 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Clarke County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to 'approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The School District uses funds and an account group to report on its financial position and the results ofits 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 financial statements account for all State, Federal, Taxes and Other funds under control of the' School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account . group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
 
-9- 
 
 I 
 
CLARKE COUNTY BOARD OF EDUCATION 
 
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. 
FIDUCIARY FUND TYPE - the funds used to accolint for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government Units and/or . o~er funds. This fund includes: : 
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, accrued compensated absences, long-term notes payable 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 av~lable spendable resources, are reported in the General Long-Term Debt Account Group. 
. Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. 
Governmental funds are accounted for using the modified accrual basis ofaccounting under which: 
 
- 10- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHffiIT "D" 
 
NOTES TO THE GENERAL-PURPOSE .FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. . 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe 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. 
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. 
BUDGET 
The Clarke County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure 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. 
-11 - 
 
 CLARKE COUNTY BOARD OF EDUCATIONEXHIDrr "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
, JUNE 30, 2001 
 
Note 1: . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The budget process begins,when the Scho()l Di~trict'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 newspap~r ofgeneral circulation in the locality. At the next regular meeting ofthe B.oard after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. :nus final budget is then submitted, in accordance with . provisions of the QUality Basic Educaqon Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may incre~e or decrease the budget at any time' during the year.. All unexpended budget authority lapses at fiscal year-end~ 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcashon hand, demand deposits and short-tenn 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 o.rinsured Federal savings and loan associations. ' 
 
INVESTMENTS. 
 
COMPOSITION OF INVESTMENTS 
 
Investments made by the S~ho<?l District.in nonparticipating interest-earning contracts (such as 
 
certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning . 
 
contracts and money market investments with a maturity at purchase ofone year or less:are reported 
 
at amortized cost. Both participating interest-earning contracts and money market investments'with 
 
a maturity at purchase greater than one,year are reported at fair value. The Official Code ofGeorgia 
 
. Annotated Secti9n 36-83-4 autho*es the School District to invest its funds. In selecting among 
 
options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the , . 
 
objective, given equivalent conditions of safety and liquidity. Funds may be invested in the 
 
following: . 
 
, 
 
, 
 
(1) Obligations issued by the State ofGeorgia 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 acceptallces, 
, 
(6) The Local Government Investment Pool administered by the State ofGeorgia, Officeof Treasury and Fiscal Services, 
 
-12 - . 
 
 "" #',: ' . 
 
; 
 
~. 
 
-'. 
 
CLARKE COUNTY BOARD OF EDUCAnON 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
. JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
RECEIVABLES 
 
REGULAR ACCOUNTS Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonilation 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. 
 
LONG-TERM RECEIVABLES FROM INDIVIDUALS Long-term receivables from individuals consist of amounts due from various individuals for court ordered restitution payments due to the School District. 
 
PROPERTY TAXES - 
 
The Clarke County Board of Commissioners fixed the property tax -levy for the 2000 tax year (calendar year) on June 6, 2000 (levy date), Taxes were due on October 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 Clarke County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collecte9 as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $36,856,534,25 and for school bonds amounted to $2,408.93, 
 
The tax millage rate levied for the 2000 tax year (calendar year) for the Clarke County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
~mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $17,592,100,27 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $25,722,735,29 has been collected or on June 30, 2002, whichever occurs first. 
 
- 13- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHmIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS' 
 
JUNE 30. 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
INVENTORIES 
 
CONSUMABLE SUPPLIES INVENTORY Inventories ofconsumable supplies are reported on the Combined Balance Sheet at weighted average cost. The School District uses the consumption method to account for consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenditures are recorded at the time supplies are utilized.. The inventory reported on the balance sheet is equally offset by a reservation of fund balance which indicates that it does not constitute "available spendable resources" even though it is a component unit of net current assets. . 
.. 
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 fOfservices that will benefit periods subsequent to June 30, 2001, are 
 
recorded as prepaid items. 
 
. 
 
.( 
 
COMPENSATED ABSENCES 
 
Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting acc~ulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. 
 
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 
 
recoirnzed 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-Tenn Debt Account Group. 
 
. 
 
- 14- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHmIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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-purpo,se 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 ofthis data. 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateraL The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 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 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of anyone ofor any combination ofthe 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 ofthe State of Georgia, 
 
- 15 - 
 
 r---------,.---------,----~------------~~--- 
 
CLARKE COUNTY BOARD OF EDUCAnON 
 
EXHIBIT "0" 
 
NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(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 ofdevelopment authorities created by the laws of the State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligat,ions of a subsidiary corporation of the United States governnient, which are fully guaranteed by the United .. States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the . Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association, . 
 
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $10,249,153.01. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
Category 1 -Cash that is insured (e,g" Federal depository insurance) or collateralized with . 
 
. securities held by the School.District or by the School Distiict's agent in the 
 
School District's name, 
 
. 
 
Category 2 - Cash collateralized with securities held by the pledging financial institution's 
 
trust d,epartment or agent in the School District's name, 
 
. 
 
Category 3 - Uncollateralized deposits, (This includes any bank balance that is collateralized 
 
with securities held by the pledging financial institution,' or by its trust 
 
department or agent but not in the School District's name,) 
 
. 
 
.. 
 
.. 
 
'. 
 
. 
 
The School District's deposits are classified by risk category at June 30, 2001, as follows: 
 
Risk Category 
 
.Bank Balance 
 
1 
2 
3 
Total 
 
$ 204,486.88 10,020;411,60 24,254.53 
$10,249.153,01 . 
 
CATEGORIZATION OF INVESTMENTS AtJune 30, 2001, the carrying value ofthe School District's total investments was $21,104,019,61 ' .which is materially the same as fair value, The investments are classified as follows: 
 
-16- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHmIT "D" 
 
NOTES TO THE GENERAL-PURPOSEFINANCIAL STATEMENTS 
 
ruNE 30, 2001 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
Type of Investment 
 
Carrying Amount 
 
. Fair Value 
 
Investments Not Subject to Categorization Local Government Investment Pools Mutual Funds 
 
$19,662,652.00 $19,662,652.00 1,441,367.61 1,441,367.61 
 
Total Investments 
 
$21.104.019.61 $21.104.019,61 
 
The carrying amounts shown above includes amounts maintained in an investment pool bythe State 
ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: 
 
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital;investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1 ,00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. 
 
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U, S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund I on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. 
 
- 17- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHffiIT "0" 
 
NOTES TO. THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
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 r~corded' at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: RISK MANAGEMENT 
 
The School District is exposed t6 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 participat~s in the Georgia School Boards Association Risk 'and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and adininister ' a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineer4tg and other loss prevention and control techniques, and to. . administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, generalliability (inc\uding coveragefor sexual harassment, molestation and abuse) and automobile risks. Payment of excess ~urance for the system varies by line of coverage.. 
 
. 
 
. 
 
The School District is self-insured with regard to unemployment compensation claims. A preniium 
 
is charged when needed by the General Fund to each user fund on the basis ofthe percentage ofthat 
 
fund's payroll to total payroll in order to cover estimated claims budgeted by management based on 
 
known claims,and prior experience. The School District accounts for claims with expenditure and 
 
liabilitybeing reported when it is probable that a loss has occurred, and the amoUnt ofthat loss can 
 
be reasonably estimated. 
 
Changes in the unemployment <:ompensation clm liability d~gthe last two fiscal years are as ' 
 
follows: ' 
 
' 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End ofYear Liability 
 
2000 2001 
 
$ 
 
650.00 $ 11,701.00 $ 12.351.00 $ 
 
$ 
 
, 0.00 $' 19.782.74 $ '19.782.74 $ 
 
0.00, 0.00 
 
The School District participates in the Georgia School Boards Association Workers' Compensation 
Fund, apublic entity risk pool organized on July 1, 1992, to develop, implement, and administer a 
program ofworkers' 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 United States Fidelity and Guaranty 
 
- 18- 
 
 CLARKE COUNTY BOARD OF EOUCAnON 
 
EXHmIT "0" 
 
NOTES TO THE GENERAL-PURPOSE EINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 4: RISK MANAGEMENT 
 
Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit. 
 
The School District has purchased a surety bond to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
All Employees 
 
$ 250,000.00 
 
Note 5: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES 
 
. 
 
The Clarke County Board ofEducation has entered into various lease agreements as lessee for buses 
 
and computers. These lease agreements qualify as capital leases for accounting purposes and, 
 
therefore, have been recorded at the present value ofthe future minimum lease payments as of the . 
 
date oftheir inception. 
 
GENERAL OBLIGATION DEBT OUTSTANDING GeneralObligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 1997 
 
4.25% - 5.125% $19.600.000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: 
 
Capital Leases 
 
Compensated Absences 
 
Long-Term 
Notes . Payable 
 
General Obligation 
Bonds 
 
Total 
 
Balance July I, 2000 
 
$ 658,479.38 $ 387,535.29 $ 106,449.32 $31,950,000.00 $33,102,463.99 
 
Retroactive Restatement of Prior Year Balances 
 
-9.617.96 
 
-9.617.96 
 
Balance July 1,2000 Restated 
 
$ 648,861.42 $ 387,535.29 $ 106,449.32 $31,950,000.00 $33,092,846.03 
 
Deductions Annual Leave Earned and Utilized (Net) Debt Retired Payments 
 
346.745.61 
 
6,168.89 
 
6,]68.89 
 
12,350,000.00 ]2,350,000.00 
 
9677.24 
 
356.422.85 
 
Ba]ance June 30, 2001 
 
$ 302 ] 158] $ 38136640 $ 96772.08 $19600000 00 $20 380 254.29 
 
- 19- 
 
 CLARKE COUNTY BOARD OF EDUCAnON 
 
.EXHIDIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 5: GENERAL LONG-TERM DEBT 
 
At June 30;2001, payments due by fiscal year which includes principal and interest for these Items are as follows: 
 
Fiscal Year Ended June 30 
2002 2003 2004 2005 2006 2007 - 2011 
Total Principal and Interest . 
Deduct: 'Imputed I~terest 
. Net Present Value of Future Minimum Lease Payments 
 
Capital Leases 
 
. Long-Term Notes Payable 
 
General . Obligation 
Bonds 
 
Total Debt 
 
$ 292,174.40 $ 36,314.21 
 
9,677.24 $13,703,750.00 $14,005,601.64 
 
9,677.24 6,867,500.00 6,913,491.45 
 
9,677.24 . 
 
9,677.24 
 
9,677.24 
 
9,677.24 
 
9,677.24 
 
9,677.24 
 
48.385.88 
 
48,385.88 
 
$ 328,488.61 $ 96 772.08 $20 571 250 00 $20 996 510 69 
 
26.372.80 
 
$ 302,1 15.81 
 
LONG-TERM NOTE PAYABLE The long-tenn note payable is an outstanding loan from the U. S. Environmental Protection Agency; . On June 16, 1992, the School District entered into an agreement with the U. S. Environmental Protectio~ Agency (EPA) for assistance in accordance with the provisions of the Asbestos School Hazard Agreement Authorization Act of 1990 in the amount of $174,190.00. The tenns of the agreement (loan) are to repay the amount in 36 semi-annual installments of $4,838.62.. The first payment was mad~ on November 30, 1993. The balance of the loan at June 30, 2001 was $96,772.08. Final payment on the loan must be made by May 30, 2012. The loan provides for no interest charges except when payments are in default (late). Payments on this loan are to be provided from the General Fund. 
 
Note 6: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amouilt of$1,632,947.28 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$1,298,257.91 
 
. Paid to the Teachers Retirement System of Georgia 
 
For Teachers Retirement System (TRS) Employer's Cost 
 
In the amount of$127,155.37 
 
.. 
 
- 20- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHmIT "D" 
 
NOTES TO THE GENERAL-PURPOSE-FiNANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 6: 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 $207,534.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed 
 
by the School District as of June 30, 2001: 
 
... 
 
Project 
 
Unearned Executed Contracts 
 
Cedar Shoals High Renovations Clarke Central High Renovations Hilsman Middle Renovations Whitehead Elementary Renovations 
 
$ 1,553,987.55 50,064.92 23,901.74 1,354.31 
 
$ 1.629.308.52 
 
The amounts described in this note are not reflectedin the general-purpose fihancial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
ARBITRAGE REBATE TAX 
 
The Federal Tax Refoon Act of 1986 requires issuers of tax-exempt debt to make payments to the 
 
United States Treasury ofInvestment Income received at yields that exceed the issuer's tax-exempt 
 
borrowing rates. The U. S. Treasury requires payment every five years. The estimated contingent 
 
liability of$I,441,367.61 at June 30, 2001, is based on tax exempt debt subject to the Tax Reform 
 
Act. This amount will be updated annually for any tax-exempt issuances or changes in yields 
 
through June 30, 2002, at which time payment ofthe final calculated liability for the five-year period 
 
is required to be remitted. 
 
. 
 
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 SchoolDistrict believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The School District is a defendant in various legal proceedings pertaining to matters incidental to the .performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. 
 
- 21 - 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
. EXHffiIT "D" 
 
NOTES TOTHE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 9: SUBSEOUENT EVENTS 
On November 6, 2001, the voters of Athens-Clarke County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational pwposes. The imposition ofthe tax approved by the voters, as stated on,the OfficialBallot of Athens-Clarke County is as follows: '. 
"Shall a one percent sales and use tax for educational purposes continue to be imposed, levied and collected in Clarke County School District for a peqoc;l oftime not to exceed five years (20 calendar quarters), beginning immediately upon the expiration ofthe one percent sales and use  tax for educational purposes whichwas approved by.a majority ofthe voters ofClarke Comity in March, 1997, and'for the raising ofnot more than $87,849,000 for the purpose'ofproviding  funds to pay the costs of replacing approximately 80 portable classrooms with permanent classrooms, which may involve additions to existing schools or may involve the construction of new school facilities, renovations and/or additions to Clarke Central High School, Clarke .Middle School, Alps Road Elementary School, Gaines Elementary School, Cedar Shoals High School, Barnett Shoals Elementary School, Barrow ElementarySchool, Burney-Harris-Lyons Middle School, Chase Street elementary School, Cleveland Road Elementary School, Coile' Middle School, Fourth Street Elementary School, Fowler Drive Elementary School, H. T. Ed'Yards Building, Hilsman Middle School, Oglethorpe Avenue Elementary School, Timothy Road Elementary School, West Broad School Building (which currently houses the Rutland Center), Whit Davis Road .Elementary School, Whitehead Road Elementary School, Winterville Elementary School, the'acquisition, construction and equipping ofan alternative learning center, acquiring any necessary real or personal property and equipment (including acqlliring improved or unimproved land and existing buildings to renovate for future school sites) and adding to, renovating, repairing, improving and equipping other existing educational buildings, properties and facilities of the School District, including, without limitation, Old Winterville High School; athletic, transportation, maintenance and plant services facilities, and . technology upgrades to all School District facilities, and paying expenses incident thereto, at a cost of approximately $87,849,009? 
.Ifthe continuation of the'imposition ofthe tax is approved by the voters~ such vote shall also  constitute approval of the issuance of general obligation debt of Clarke County School 
District, in one or more series, in the aggregate principal amountof$40,000,000 for the above purpose." 
Note 10: ACCUMULATED EMPLOYEES' LEAVE 
Full-tim~ twelve m~nth employees earn" annualleav6 r~gingfrom ten to fifteen days each year 
depending upon the employees' length ofcontinuous Board service with a maximum accumulation ofthirty days. Employees are paid at their current rate ofpay for unused accumulated annual leave upon retirement or termination ofemployment. See Note 1 - Compensated Absences 
 
- 22- 
 
 CLARKE COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 11: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIAi(TRS) 
 
TRS PLAN DESCRIPTION 
 
Substantially all teachers, administrative and clerical personnel employed by local school districts 
 
are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple 
 
employer defined benefit pension plan. TRS provides service retirement, disability retirement and 
 
survivors benefitS for its members in accordance with State statute. The Teachers Retirement 
 
System of Georgia issues a separate stand alone financial audit report and a copy can be obtained 
 
from the Georgia Department of Audits and Accounts. 
 
. 
 
TRS 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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2001 2000 1999 
 
100% 100% 100% 
 
$ 5,572,456.18 $ 5,388,356.70 $ 5,431,185.51 
 
- 23- 
 
 CLARKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET ' SPECIAL REVENUE FUND JUNE 30, 2001 
 
ASSETS 
Cash and Cash 'Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Total AssetS 
LIABILITIES AND FUND EQUITY 
,LIABILITIES 
Cash Overdraft Accounts Payable' Salaries Payable Expired Grant Balances Payable Deferred Revenue 
Total Liabilities 
FUND EqUITY 
Fund Balances 'Reserved' For Continuation of. Federal Programs For Continuation of State 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. 
- 24- 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTIERY PROGRAMS 
 
$ ,1,533,765.51 ' $ 
 
342,442;81 
 
' 44,714.69 ' 
 
50.50 
 
95,812.87 . 63,490.05 
$ 1,737,783.12 $ 
 
" 
342,493.31 
 
" 
 
$ 
 
53,011.99 $ 
 
103,153.73 
 
243,477.48 
 
'239,038.70 
 
300.88 ' 
 
$ 
 
296,489.47 $ , 342,493.31 
 
$ 
 
95,812.87 
 
63,490.05 
 
1,281,990.73 $ 
 
0.00 
 
$ 1,441,293.65 $ 
 
0.00 
 
' $ 1,737,783.12 $=~34=2:=::,4~9;;;:;3.~31~ 
 
 EXHIBIT"E" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
127,598.81 $ 2,003,807.13 $ 1,454,586.66 
 
742,873.08 
 
787,638.27 
 
1,094,181.96 
 
95,812.87 63,490.05 
 
97,416.48 30,678.89 
 
$ 
 
870,471.89 $ 2,950,748.32 $ 2,676,863.99 
 
$ 
 
38,209.51 
 
$ 
 
280,979.16 $ 
 
437,144.88 
 
396,013.05 
 
511,331.81 
 
993,847.99 
 
884,26Q.39 
 
18,363.41 
 
18,664.29 
 
448.71 
 
59,797.51 
 
59,797.51 
 
$ 
 
870,471.89 $ 1,509,454.67 $ 1,318,931.66 
 
$ 
 
10,775.18 
 
421.77 
 
$ 
 
95,812.87 
 
63,490.05 
 
97,416.48 30,678.89 
 
$ 
 
0.00 
 
1,281,990.73 
 
1,218,640.01 
 
$ 
 
0.00 $ 1,441.293.65 $ 1,357,932.33 
 
$ 
 
870,471.89 $ 2,950,748.32 $ 2,676,863.99 
 
-25 
 
 CLARKE 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 General Admi"nistration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services 
/' 
Food Services Operation Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
"Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
See notes to the general-purpose financial statements. 
-26", " 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTIERY PROGRAMS 
 
$ 
 
312,212,00 $ 2,532,140,50 
 
3,275,821,39 
 
1,531 ,540,27 
 
$ 5,119,573.66 $ 2,532,140.50 
 
$ $ 5,056,222.94 
"" 
 
2,071,598.23 
356,448,66 2,247,42 53,849.94 
16,365.31 1,719.54 
28,367.98 1,543.42 
 
$ 5,056,222.94 $ 2,532,140.50 
 
$ 
 
63,350.72 $ 
 
0.00 
 
$ $ 
 
$ 
 
63;350.72 $ 
 
1,346,735.38 
 
-1,603.61 " 32,811.16 
 
-421.77 -421.77 
-421.77 " 421.77 
 
$ 1,441,293.65$====0;:.=00= 
 
 EXHISIT"F" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 2,844,352.50 $ 2,673,227.12 
 
$ 5,280,412.52 
 
8,556,233.91 
 
7,511,268.74 
 
1,531,540.27 
 
1,403,545.95 
 
$ 5.280,412.52 $ 12,932,126.68 $ 11.588,041.81 
 
$ 3,919,159.56 $ 5,990,757.79 $ 5,298,701.84 
 
339,291.91 401,293.95 258,346.10 
7,016;64 
35,810.37 
499,607.46 1,737.03 
 
695,740.57 403,541.37 312,196.04 
7,016.64 16,365.31 37,529.91 28,367.98 501,150.88 5,057,959.97 
 
726,73726 307,898.29 ,292,827.02 
8,921.36 29,558.48 
357.00 35;537.50 188,555.83 4,715,291.07 63,597.00 
 
$ 5.462.263.02 $ 13,050,626.46 $ 11 .667.982.65 
 
$ -181.850.50 $ -118,499.78 $ 
 
-79,940.84 
 
$ 
 
171,075.32 $ 
 
171,075.32 $ 
 
196.803.89 
 
-421.77 
 
$ 
 
171.075.32 $ 
 
170.653.55 $ 
 
196.803.89 
 
$ 
 
-10,775.18 $ 
 
52,153.77 $ 
 
116,863.05 
 
10,775.18 
 
1,357,932.33 
 
1,169,016.22 
 
-1,603.61 32,811.16 
 
10,063.45 61,989.61 
 
$=======0=.0=0,= $ 1,441,293.65 $ 1.357.932.33 - 27- 
 
 ASSETS Cash and Cash Equivalents Investments . Accounts Receivable 
Total Assets. 
 
CLARKE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 
 
EXHIBIT"G" 
 
, BOND PROCEEDS. 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS JUNE 30, 2001 . JUNE 30, 2000 
 
$ 153,302.43 $ 
 
0.00 $ 153,302,43 
 
2,681,368.41 
 
2,681,368.41 $ 9,077,991.82 
 
3,269.00 
 
3,269.00 
 
48,742.53 . 
 
$ 2,837,939,84 $oo=c=-=-==~O.;,;;;;OO== $ 2,837,939.84 $ 9,126,734.35 
 
Total Li~bilities and Fund Equity 
 
$ 2,837,939.84 $ .....=-z....~0,~00:b $ . 2,837,939,84 $ 9,126,734.35 
 
See notes to the general-purpose financial statements., 
 
-28- 
 
  <'" 
.:, 
CLARKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND 
YEAR ENDED JUNE 3D. 2001 
 
EXHIBIT"H" 
 
FUND BALANCE JUNE 30 
 
$ 1,441,367,61 $ 
 
0...0,.0.. $ 1,441,367.61 $ 5,972.701.42 
 
See notes to the general-purpose financial statements. 
 
29 
 
 CLARKE.~COUNT:Y. B0ARD".OFEDUCATION COMmNING:BAi.J~:KfGE,lSHEE;Y bE~T;>SERVICE:FliNb 
'"JUNE30:2'001 
 
EXHIBIT "I" 
 
, 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
Total Assets 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECiAl 
PURPOSE 
LocAL. OPTION 
SALES TAX 
 
TOTALS 
 
JUNE 30. 2001 
 
JUNE 30. 2000 
 
$ 
 
4,486.88 
 
$ 
 
4.486.88 $ 
 
3,912.8~ 
 
$ 11,773,901.42 
 
11,773,901 .42 
 
10,549,173.98 
 
215.45 
 
2.857,950.92 
 
 2,858,166.37 
 
2,887,268.98 .' ,- 
 
$ 
 
4,702.33 $ . 14.631,852.34 $ 14.636,554.67 $ 13.440,355.78 
 
FUND EqUITY 
Fund Balances Reserved For Debt Service Unreserved Undesignated 
 
$ 
 
4,702.33 $ 14,631,852.34 $ 14,636,554.67 $ . 13,440,355.78 
 
0.00 
 
0.00 
 
0.00 
 
.0.00 
 
Total Fund Equity 
 
$ 
 
4,702.33 $ 14,631,852.34 $ 14,636,5M.67 $ 13,440.355.78 . 
 
, ~,~' 
 
See notes to the general-purpose financial statementS. 
. -30-. 
 
 ,, 
 
CLARKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001 
 
EXHIBITJ' 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 
 
REVENUES 
Taxes Other Funds 
Total Revenues EXPENDITURES 
 
$ 2.408.93 $ 14,330.582.55 $ 14,332,991.48 $ 17.146,n1.92 
 
245.82 
 
625,659.23 
 
625,905.05 
 
603,207.87 
 
$ 2,654.75 $ 14,956,241.78 $ 14.958,896.53 $ 17,749,979.79 
 
Debt Service Prindpal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
 
$ 12.350.000.00 $ 12,350,000.00 $ 12.905.000.00 
 
1,410,687.50 
 
1.410.687.50 
 
2.354,118.75 
 
$ 2,010.14 
 
2,010.14 
 
9,201.56 
 
$ 2,010.14 $ 13,760,687.50 $ 13,762,697.64 $ 15.268,320.31 
 
$ 
 
644.61 $ 1,195.554.28 '$ 1,196,198.89 $ 2,481,659.48 
 
OTHER FINANCING SOURCES (USES) 
 
Payments to Bond Esaow Agent 
Operating Transfers In Operating Transfers Out 
Total Other Finandng Sources (Uses) 
 
$ -14.366,885.00 2.262,300.00 -2,262.300.00 
$ -14,366,885.00 
 
Excess of Revenues and Other Finandng Sources over (under) Expenditures and Other Flnandng Uses $ 
FUND BALANCE JULY 1 
 
644.61 $ 1.195.554.28 $ 1.196.198.89 $ -11.885.225.52 4.057.72 13,436.298.06 13,440,355.78 25.325.581 :30 
 
FUND BALANCE JUNE 30 
 
$ 4,702.33 $ 14,631,852.34 $ 14.636.554.67 $ 13.440,355.78 
 
See notes to the general-purpose finandal statements. 
 
- 31 - 
 
 CLARKE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 
 
EXHIBIT"K" 
 
GROUP INSURANCE 
ASSETS Cash and Cash Equivalents . Acrounis Receivable 
 
BALANCE 
 
BALANCE 
 
JUNE 30, 2000 ADDITIONS DEDUCTIONS JUNE 30, 2001 
 
$ 
 
-43.91 $ 12.751.21 . $ 
 
9.929.81 $ 
 
2.n7.49 
 
43.91 
 
43.91 
 
0.00 
 
$===~O.~oo;:., $ 12.751.21 $ 
 
9.973.72 $ =====2~.n===7.;;;;;49= 
 
LIABILITIES Funds Held for Others 
 
. $===~O.~OO;:., $ 12,751.21 $ 
 
9,973.72 $====2~,m===.=49= 
 
DEPENDENT CARE ASSISTANCE PROGRAM 
ASSETS Cash and Cash Equivalents 
 
$ 
 
6,436.70 $ 135,597.00 $ 134,231.57 $===75:.8~02:=.1,;,:;3;.. 
 
LIABILITIES Funds Held for Others 
 
$ 
 
6,436.70 $ 135,597.00 $ 134,231.57 $===75,8.0.2.=.1=3... 
 
UNREIMBURSED MEDICAL EXPENSE PROGRAM 
 
ASSETS 
 
Cash and Cash Equivalents 
 
$ 
 
63,154.02 $ 260,291.92$ 260,657.16 $====62=,7=8=8.7..8. =. 
 
LIABILITIES . Funds Held for Others 
 
$ 63,154.02 $ 260.291.92 $ 260.657.16 $=====6;;;2=,7=8.8....,78= 
 
TOTALS-AGENCY FUNDS 
ASSETS Cash and Cash Equivalents Acrounts Receivable 
 
$ 69,546.81. $ 408,640.13 $ 404,818.54 $ 
 
_ _---.;;4:,:3:.::;.9..:...1 
 
43.91 
 
73,368.40 0.00 
 
$ 69.590.72 $ 408,640.13 $ 404,862.45 $=====7=3=,3=6.8...:;;40= 
 
L1ABILmES Funds Held for Others 
 
$ 
 
69,590.72$ 408,640.13 $ 404.862.45 $=:=:7~35:,3~68~.4~0= 
 
see notes to the general-purpose financial statements. 
 
32 
 
 CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program 
Total Child Nutrition Cluster 
 
 10.553 10.555 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) , 
 
10.550 
 
Total U. S. Department of Agriculture 
 
Defense, U. S. Department of Pass-Through From Georgia ~partment of Education Food and Nutrition Program Fresh Produce Program (1) 
 
10.550 
 
Education, U. S.,Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement Grant 
 
84.027 84.173 84.173 
 
Total Special Education Cluster 
 
Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Tille I Even Start Grants to Local Educational Agencies Comprehensive School Reform Demonstration Project Site Evaluation Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Tit/e VII Immigrant Education Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School 'Program Basic Grant 
 
84.041 84.332 
. 84.213 84.010 84.010 84.281 84.318 
 84.298 84.340 84.162 
84.276 84.186 84.196 
84.048 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
NlA 
 
$ 793,017.21 
 
'(2) 
 
NlA 
 
2,216,913.69 $ 
 
4,790,332.45 (3) 
 
$ 3,009,930.90 $ 
 
4,790,332.45 
 
N/A 
 
225,822.49 
 
225,822.49 
 
$ 3,235,753.39 $ 
 
5,016,154.94 
 
NlA 
 
$ 40,068.00 $ 
 
40,068.00 
 
N/A 
 
$ 1,072,240.11 $ 
 
1,072,240.11 
 
NlA 
 
64,005.93 
 
64,005.93 
 
NlA 
 
27,459.00 
 
27,459.00 
 
$ 1,163,705.04 $ 
 
1,163,705.04 
 
27.029:58 
 
(4) 
 
N/A 
 
47,844.17 
 
47,844.17 
 
NlA 
 
397,327.34 
 
397,327.34 
 
NlA 
 
2,361,508.24 
 
2,361,508.24 
 
NlA 
 
4,300.00 
 
4,300.00 
 
NlA 
 
55,032.75 
 
65.807.93 
 
N/A 
 
122,656.21 
 
122.656.21 
 
NlA 
 
86,582.54 
 
86,582.54 
 
NlA 
 
338,336.03 
 
338,336.03 
 
NlA 
 
43,143.75 
 
43,143.75 
 
NlA 
 
136,092.05 
 
136.092.05 
 
NlA 
 
52,610.00 
 
52,610.00 
 
NlA 
 
60,874.78 
 
60,874.78 
 
NlA 
 
112.080.66 
 
112,080.66 
 
. - 33- 
 
 ~-----~-----------,--------~--------------- - - - 
CLARKE COUNTY BOARD OF EDUCAnON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
. YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Education. U. S, Department of Other Programs Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant I;ducation 
Total.U, S, Department of Education 
Health and Human Services. U, S. Department of Direct Early Head Start 
Justice. U, S, Department of Direct Truancy Reduction Demonstration Program Pass-Through From Children and Youth Coordinating Council Juvenile Justice Delinquency Prevention and Treatment Grant Skills of Survival and Success 
TotalU, S. Department of Justice 
Labor. U. S. Department of Pass-Through From Northeast Georgia Regional Development center . Job Training Partnership Act Summer 2000 
Defense. U. S. Department of Direct Department of the Army R.O,T,C. Program 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84,011 93,600 16,540 
 
NJA $ 66.400,37 $ ..,.-_--::;66::.z..4..:.,:0:.::0..:.::.3:.:".7 
$ .5.075.523.51 $ _......:::5..::;0,:::59:2.2:::6:.::9.:..:,1..:...1 
 
$ 95.473,87 $ ,.--_..;9:::.:5:.L..4;..:.7..:.3.:.::;8~7 
 
$ 7.773,36. $ 
 
7.773,36 
 
16,540 
 
NlA 
 
20.438.88 
 
$ 28.212,24 $ 
 
20.438,88 2::;8:,1;.2::.;1:,:2:.::;,2. :. .4 
 
17,250 
 
NlA 
 
$ 10.914.10 $ _ _.....:.:10:.t:.9~1~4:;:,.1~0 
 
$ 97.318.38 $ 
 
268,393,70 (3) 
 
Total Federal Financial Assistance 
 
$ 8.583.263,49 $ 10.518.485,96 
 
NlA = Not Available 
 
Notes to the SChedule of Expendjtures of Federal Awards 
 
, 
 
., 
 
(1) The amounts shown for the Food Distribution Program and the Fresh Produce Program represents the Federally 
 
assigned value of nonmonetary. assistance for donated commodities received and/or consumed by 'the system 
 
during the current fiscal year. 
 
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included 
 
in the 2001 National School Lunch Program, 
 
(3) Expenditures for this program Include State. and/or Other Funds, . 
 
Expenditures are not maintained by fund source.. 
 
(4) Funds earned on this program do not require reporting of expenditures. 
 
rl 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 acco':';panylng schedule of expenditures of Federal awards Includes the Federal grant activity of the ClarKe County Board of Education and is presented on the modified aeaual basis of accounting which Is the basis of accounting used in the presentation of the general-purpose financial statements: 
 
see notes to the general-purpose financial statements, 
 
- 34- 
 
 CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
J 
 
GENERAL 
 
FUND 
 
REVENUE FUND 
 
TOTAL 
 
GRANTS Community Affairs, Georgia Department of Local Assistance Grant Pass-Through from Unified Govemment of Athens-Clarke County 
 
$ 
 
6,250.00 
 
$ 
 
6,250.00 . 
 
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle 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 A1temative Education Program English Speakers of Other Languages (ESOL) Media center Program . Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors . Migrant Education Education Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Indirect Cost - Govemor's Emergency Fund Indirect Cost - School of Excellence Innovative Programs Mentoring Program Mentor Teachers National Teacher certification Preschool Handicapped Program Remedial Summer School Teachers' Retirement 
 
2,156,318.00 344,910.00 
6,002,681.00 . 1,079,810.00 
2,850,211.00 4,397,963.00 4,271,170.00 1,002,474.00 
. 166,157.00 1,511,895.00 3,593,121.00 
507,715.00 48,541.00 2,333,131.00 512,568.00 354,467.00 505,030.00 932,168.00 263,135.00 6,231,1n.OO 
 
1,015,501.00 305,868.00 221,792.00 48,300.00 43,993.00 1,538.00 272,212.00 $ 8,000.00 
 
312,212.00 
 
40,000.00 21,118.89 
2,072.85 1,298,257.91 
2,000.00 2,000.00 5,000.00 8,500.00 21,679.00 13,4n.00 217,105.00 12,253.52 127,155.37 
 
2,156,318.00 344,910.00 
6,002,681.00 1,079,810.00 2,850,211.00 4,397,963.00 4,271,170.00 1,002,474.00 
166,157.00 1,511,895.00 3,593,121.00 
507,715.00 48,541.00 
2,333,131.00 512,568.00 354,467.00 505,030.00 932,168.00 
" 263,135.00 6,231,1n.00 
1,015,501.00 305,868.00 221,792.00 48,300.00 43,993.00 1,538.00 272,212.00 312,212.00 8,000.00 
40,000:00 21,118.89 
2,072.85 1,298,257.91 
2,000.00 2,000.00 5,000.00 8,500.00 21,679.00 13,4n.00 217,105.00 12,253.52 127,155.37 
 
- 35- 
 
 CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE . YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Lottery Programs Computers in the Classroom Technology Installation 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Public School Employees Retirement 
CONTRACTS . Education, Georgia Department of . Georgia's Reading Challenge Reading First Program Student Achievement - National center on Education and the Economy 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 226,203,00 $ 199,900,00 
 
226,203,00 199,900,00 
 
2,106,037,50 
 
2,106,037,50 
 
.$ 207,534.00 
 
207,534.00 
 
104,541.00 53,230,00 
50,817.56 
 
104,541.00 53,230,00 
50,817.56 
 
$ 43,174,838.10 $ 2,844,352.50 $ 46,019,190.60 
 
See notes to the general-purpose financial statements. 
 
-36- . 
 
 CLARKECOUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "3" 
 
PROJECT 
Retiring the remaining $4,000.000.00 in outstanding principal amount of the School District's series 1987 general obligation school bonds on the earliest possible redemption date at a maximum cost of $4.204,365.00. 
. Maklng payments on the School District's series 1993 general obligation refunding school bonds from January 1, 1998 through July 1,1999 and to fund an escrow account on that date to defease the remaining series 1993 general obligation refunding school bonds to their final maturity date of July 1.2008, at a total cost of $17.890.347.00. 
Providing funds to pay the costs of acquiring. constructing and equipping a new Geclar Shoals High School. Adding to. renovating. repairing, improving and equipping Clarke central High School. Acquiring any necessary real or personal property and equipment and adding to. renovating, repairing, improving and equipping existing educational buildings. properties and facilities of the School District and paying expenses incident thereto, at a cost of approximately $68.000,000.00. 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) (4) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) (4) 
 
PROJECT STATUS 
 
$ 4.204.365.00 $ 4.080.000.00 
 
$ 4.080.000.00 Completed 
 
17.890,347.00 19,431,377.50 
 
1~,431,377.50 Completed 
 
68,000,000.00 62.284,523.58 $ 8.061.004.24 40,605.240.63 Ongoing 
 
$ 90,094.712.00 $ 85.795.901.08 $ 8.061,004.24 $ 64,116.618.13 
 
(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option 
 
sales Tax. 
 
I 
 
l 
 
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.. 
 
(3) The voters ofClarke County approved the Imposition of a 1% sales tax to fund the above p':Ojects. Amounts expended for these projects may include sales tax proceeds. state, local property taxes and/or other funds over the life of the projects. 
 
(4) In addition to the expenditures shown above. the School District has Incurred interest to provide advance funding for the above projects as follows: 
 
Prior Years 
 
$ 5,891.358.34 
 
Current Year Total 
 
1.410,687.50 $ 7,302.045.84 
 
see notes to the general-purpose financial statements. 
 
." 37 
 
 C"""""""----~-------------~-~~~---------~---~--( 
 
CLARKE COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM CqBEI 
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 
 
Primary Grades (1-3) Program 
 
Primary Grades-Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Middle Grades (6-8) Program 
 
Middle SChool (6-8) Program 
 
High School General Education (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Disabilities 
 
category I 
 
category II 
 
category III 
 
Category IV 
 
.category' V 
 
Gifted Student - Category VI 
 
Remedial Education Program 
 
Alternative Education Program 
 
English Speakers of Other Languages (ESOL) 
 
2,678.505.00 $ 428,435.00 
7,456,321.00 1.341.305.00 3.540,431,00 
5,462.998.00 5,305,500.00 1,245.239.00 7.238,626.00 
2.898,134.00 636,694.00 440.307.00 627.330.00 
 
2,087,405.56 $ 1,133.186.66 6,673,171.55 3,057,229,86 4,966,715,91 
48.44 7,887,609,09 6,443.532,10 1.039.589.42 
133,441.10 830,922.55 5,095.069.10 469.027.64 
60.358.99 2.640,327.36 
299,827.95 418.043.16 502,393,34 
 
72,965.01 $ 16,448.19 194,026.44 27,003.81 97.544,26 
211.556.n 224,755,09 474,861.44 
 
2.160.370:57 1,149,634,85 6,867,197.99 3,084.233.67 5,064.260.17 
48.44 . 
8,099,165,86 6.668.287.19 1,514,450.86 
 
5,717.56 20.224.53 72,068.82 
7.530.69 221.40 
48,312.41 405.33 
4.922.89 6,010.98 
 
139,158.66 851,147.08 "5,167,137.92 476.558.33 
60,580.39 2,688.639.n 
300.233.28 422,966.05 508,404,32 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 39,299,825.00 $ 43,737.899.78 $ 1,484.575.62 $ 45,222.475,40 
 
Media center Program Staff and Professional Development 
 
1,157.905.00 326,858.00 
 
1.561,522.90 151,159.72 
 
220.218.15 177.268,42 
 
1.781,741.05 328,428.14 
 
TOTAL aBE FORMULA FUNDS 
 
$ 40,784.588.00 $ 45,450,582.40 $ 1.882.062.19 $ 47,332.644,59 
 
(1) Comprised of State Funds pius Local Five Mill Share. 
 
see notes to the general-purpose financial statements. 
 
- 38 
 
 CLARKE COUNTY BoARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBEl 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "5" 
 
. SITE 
Timothy Elementary School Cleveland Road Elementary School Clarke Evening Program Coile Middle School Fourth Street Elementary School BurneY-Harris-Lyons Middle School Whit Davis ~oad Elementary School Clarke Middle School Whitehead Road Elementary School Barnett Shoals Elementary School Winterville Elementary School Barrow Elementary School Fowler Drive Elementary School Gaines Elementary School Oglethorpe Avenue Elementary School Cedar Shoals High School Alps Road Elementary School Chase Street Elementary School Hilsman Middle School Clarke Central High School Alternative Placement Program Central Office (Alternative Education Program) 
TOTAL 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
1,531,881,00 $ 1,649,717.60 
 
1,169,497.00 
 
1,322,340~92 
 
324.00 
 
2,327,152.00 
 
2,600,124.43 
 
1,530,307.00 
 
1,600,933,40 
 
1-,757,819.00 
 
2,422,291.19 
 
2,052,023.00 
 
2,283,528.60 
 
2,742,187.00 
 
3,200,684.84 
 
1,517,284.00 
 
1,688,174.42 
 
1,826,165.00 
 
2,040,820.82 
 
1,432,012.00 
 
1,663,588.86 
 
1,365,373.00 
 
1,565,060.15 
 
1,643,257.00 
 
1,731,148.79 
 
1,604,584.00 
 
1,716,898.12 
 
1,829,963.00 
 
1,925,117.13 
 
4,617,543.00 
 
5,060,420.84 
 
1,869,056.00 
 
2,032,158.38 
 
1,289,813.00 
 
1,385,475.38 
 
2,328~913.00 
 
2,705,856.05 
 
4,424,689.00 
 
4,723,307.42 
 
3,282.08 
 
440,307.00 
 
1,901,221.98 
 
$ 39,299,825.00 $ 45,222,475.40 
 
See notes to the general-purpose financial statements. - 39- 
 
 / 
 
SECTIONll 
 
COMPLIANCE AND INTERNAL CONfROL REPORTS 
 
 '" 
 
RUSSELL W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
2.54 Washington Slreet. S.w., Suite 214 Atlanta, Georgia 30334-8400 
March 14, 2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Clarke 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 ofClarke County Board ofEducation as ofand for the year ended June 30,2001, and have issued our report thereon dated March 14,2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General' of the United States. 
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures. 
Compliance 
As part of obtaining reasonable assurance about whether Clarke County Board of Education's financial statements are free of material misstatement, we perfonned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detennination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
2001YB-40 
 
 Internal Control Over Financial Reporting 
, 
In planning and perfonning our audit, we considered Clarke County Board of Education's internal control over financial reporting in order to detennine our auditing procedures for the purpose o~ expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and Its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over fmancial reporting that, in ourjudgment, could adversely affect Clarke County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6291-01-01 and FS-6291-01-03. 
 
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions. Our consideration ofthe 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, ofthe reportable conditions described above, we consider item FS-6291-0103 to be a material weakness. 
 
This report is intended solely for the information and use of the audit committee, management, members of the Clarke 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 2001YB-40 
 
Rus ell W. Hinton State Auditor 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S. w., Suite 214 
Atlanta, Georgia 30334-8400 
March 14,2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation 
and Superintendent and Members ofthe Clarke County Board ofEducation 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR. PROGRAM AND ON lNTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance ofClarke County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30,2001. Clarke County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings 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 Clarke County Board of Education's management. Our responsibility is to express an opinion on Clarke County Board of Education's compliance based on our audit. 
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about 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 Clarke 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 Clarke County Board ofEducation's compliance with those requirements. 
2001SA-1O 
 
 In our opinion, the Clarke County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001. . 
Internal Control Over Compliance 
The management of Clarke 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 Clarke County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program inorder to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33. 
Our consideration 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 oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming 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 audit committee, management, members of the Clarke 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 11 W. Hinton State Auditor 
RWH:gp 2001SA-1O 
 
 ) 
SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 CLARKE 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-629l-99-01 FS-629l-99-02 FS-629l-00-01 FS-629 1-00-02 
 
Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL LEDGER . Outstanding Loan 
Finding Control Number: FS-629l-00-0l 
 
This loan is a special Environmental Protection Agency loan that bears no interest. Given the tenns of this loan, the Clarke County Board of Education will continue to carry this loan until paid off. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-629l-00-02 
 
Due to budgetary limitations, the Clarke County Board of Education does not intend to pursue the recording of general fixed assets on the financial statements until the new regulations stated in Governmental Accounting Standards Board Statement Number 34 take effect. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 200 I 
 
I SUMMARY OF AUDITOR'S RESULTS 
 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Clarke CountY Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 
 
- 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Clarke County Board of Education disclosed financial statement reportable conditions related to the following control categories. 
 
Cash and Cash Equivalents 
 
General Fixed Assets 
 
Of the reportable conditions described above, General Fixed Assets is considered to be a material wealmess. 
 
3. Noncompliance MaterIal to the Financial Statements The audit ofthe Clarke County Board ofEducation disclosed no instances ofnoncompliance that weredeemed to be material to the financial statements. 
 
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Clarke County Board ofEducation 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 Clarke CountyBoard ofEducation's report on compliance with requirements applicable to major programs was unqualified. 
 
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Clarke County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
 
7. Maior Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction 
 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.. 
 
9. Low Risk Auditee The Clarke County Board of Education qualified as a.low risk auditee based on a waiver granted by the U. S. Department of Education. 
 
- 1- 
 
 -------~~- 
CLARKE COUNTY BOARD OF EDUCATION', " SCHEDULE OF FINDINGS AND QUESTIONED COSTS, 
YEAR'ENpED JUNE 30, 2001 
 
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
CASH AND CASH EQUIVALENTS In~dequate Cash Management ProcedUres ReportaQle Condition Finding Control Number: FS-629l-0l-0l 
 
An examination ofiriternal control procedures revealed that the School District's cash management 
 
procedures were insufficient to provide for adequate internal control over tIie bank reconciliation 
 
process. The following deficiencies were noted: 
 
' 
 
1) The monthly bank statements for the, general operating/payroll bank account were not reconciled to the general ledger. 
c 
2) Errors disclosed during the bank reconciliation process were carii'ed as reconciling items 
for extended periods oftime. 
 
3) Activity related to the payroll' fund was not reCorded in' the accounting records. 
 
4) There was no administrative review 1'0 ensure the reconciliations were performed timely and correctly. 
 
, The School District should review internal controls to ensure that monthly bank statements are reconciled with the accounting records in a timely manner. 
 
Management's Response: 
 
, Bank reconciliations for the fiscal year ended June 30, 2001 were complicated by a change in banks, a change in software and 'overworked personnel. ' Differences were carried to clear any timing differences and in hopes that they would be useful to the auditors in aiding district personnel ~d 'differences; Time has been set aside to clear the open items and the school distrlct Will riot have this problem in the future. 
 
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance ' Repeated From Prior Year Finding Control Number: FS':6291-01-02 
 
The General Fund had an unpaid'loanoutstanding in the amount of$101,610.70 at December 31, 2000. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows: 
 
-2- 
 
 CLARKE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 3D. 2001 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance I Repeated From Prior Year Finding Control Number: FS-629l-0l-02 
 
"The governing authority ofany county, municipality or other political subdivision ofthis State may incur debt by obtaining temporary loans in each year to payexpenses...Such loans shall be payable on or before December 31 of the calendar year in which such loan is made... ". 
 
Repayment of loans should be made in confonnity with constitutional1imitations: 
 
Management's Response: 
 
This loan is a special Environmental Protection Agency loan that bears no interest. Given the terms of this loan, the Clarke County Board ofEducation will continue to carry this loan until paid off. 
 
GENERAL FIXED ASSETS 
 
Failure to Maintain General Fixed Assets Account Group 
 
Reportable Condition - Material Weakness 
 
Repeated From Prior Year . 
 
. 
 
Finding Control Number: FS-629l-0l-03 
 
The Clarke 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 subsidiaryrecords should includean inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. 
 
Management's Response: 
 
Due to budgetary limitations, the Clarke County Board ofEducation does not intend to pursue the . recording of general fixed assets on the financial statements until the new regulations stated in Governmental Accounting Standards Board Statement Number 34 take effect. 
 
-3- 
 
 CLARKE COUNTY BOARD OF EDUCATION . . SCHEDULE'c>F FINDINGS ANn QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 ill FEDERAL AWARD FINDINGS AND QUESTiONED COSTS. 
No matters were reported. 
:, '.,. 
-4-