Audit report, Dade County Board of Education, Trenton, Georgia, year ended June 30, 1997

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AUDIT REPORT DADE COUNTY BOARD OF EDUCATION
TRENTON, GEORGIA YEAR ENDED JUNE 30, 1997

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

DADE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

19

DEBT SERVICE FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

21

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

22

2 SCHEDULE OF STATE REVENUE

23

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

24

4 SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX FUNDS

25

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

27

6

BY PROGRAM

28

DADE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION III SUMMARY OF AUDITOR'S RESULTS SUMMARY SCHEDULE OF AUDITOR'S RESULTS
SECTION IV AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION V CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 8, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dade County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Dade County Board of Education, as of and for the year ended June 30, 1997, as listed in the table of contents. These generalpurpose financial statements are the responsibility of the Dade County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Board'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 did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

97ARL-13

* School activity accounts maintained at the individual schools are not included in the general-pwpose
fmancial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1997, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1997. Also funds received, subsequent to June 30, 1997, from the Georgia Department of Education for the State's share ofthese 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, 1996, were improperly recorded in the year ended June 30, 1997. To confonn 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 detennined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the fmancial position ofthe Dade County Board of Education as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated April 8, 1998, on our consideration ofthe Dade County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was perfonned for the purpose of forming an opinion on the general-purpose financial statements ofthe Dade County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through H) and the fmancial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-B3, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose fmancial statements. Such infonnation has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such infonnation is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole.
A copy of this report has been filed as a pennanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 97ARL-13

DADE COUNTY BOARD OF EDUCAnON

DADE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30,1997

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

302,095.78 $

62,157.19 $

5,823,022.38

275,202.70

184,492,81

13,080.69 9,803.91

Total Assets

$

577,298.48 $

269,534.60 $

5,823,022.38

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

$

31,265,38 $

150,317.56

7,636.69 68,498.42

$

181,582.94 $ _ _.......:..;76::.1.,1..:.:3:.:::5.:..,:.1-'-1

$

1,395,22

4.00

$

13,080.69

9,803.91

$

5,746,887,27

575,899.26

65,067.06

0.00

$

577,298.48 $

87,951.66 $

5,746,887.27

Total Liabilities and Fund Equity

$

577,298.48 $

269,534.60 $

5,823,022.38

The notes to the general purpose financial statements are an integral part of this statement. - 2-

EXHIBIT "A"

DEBT SERVICE
FUND

$

24,357.06

19.481.23

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30,1997

JUNE 30,1996

$

6,211,632.41 $

524,175.38

479,176.74

263,027.90

$

43,838.29

13,080.69 9,803.91
43,838.29

10,019.02 9,572.24
275,462.89

6,581.161.71 80.405.43

6,581,161.71 80.405.43

789,537.11 139,604.68

$

43,838.29 $

6,705.405.43 $ 13.419,099.18 $

2,011,399.22

$

38,902.07 $

29,894.87

150,317.56

141,951.58

16.41

68.498.42

$

80,405.43

80.405.43

139,604.68

6,625,000.00

6,625,000.00

1,065,000.00

$

6,705.405.43 $

6,963,123.48 $

1,376.467.54

$

43,838.29

0.00

$

43,838.29

$

1,395.22 $

4.00

43,838.29

13,080.69 9,803.91
5,746,887.27

640,966.32

$

6.455,975.70 $

6,866.46 1,064.80 275.462.89 18,607.63
10,019.02 9,572.24
313,338.64
634,931.68

$

43,838.29 $

6,705.405.43 $ 13.419,099.18 $

2,011,399.22

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DADE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1997

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Discount on Bonds Sold 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
Adjustments Prior Year Accounts Receivable
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

$ 8,381,372.09 $ 587,070.24 34,538.27 931,119,32
2,407,348.48 249,101.12 393,853,26 $
$ 11,072,359,96 $ 1,912,042.82 $

1,163,51 1,163.51

$ 7,109,509,83 $ 841,368.75

341,160.17 367,092,45 353,967.29 218,489.49 683,619.78
59,704,54 1,107,314.88
417,944.02 6,330.00 33,084,13 504,98 2,925,50

94,592.85 16,004,26 2,726,99 44,629.42

$ 145,758,07 118.65 6,814,85

521.57 904,850,13

68,498,42

59,199.25 9,440.99

$ 10,770,287.30 $ 1,911,627,47 $ 214,256.49

$ 302,072.66 $

415,35 $ -213,092.98

$ 6,625,000,00 -9,187,75

-655,832,00 $ 5,959,980.25

$ 302,072,66 $

415.35 $ 5,746,887.27

275,225,82

84,242,97

0.00

3,061.67 231.67

FUND BALANCE JUNE 30

$ 577.298.48 $ 87,951,66 $ 5,746,887,27

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

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EXHIBIT"B"

DEBT
SERVICE FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 1997 JUNE 30,1996

$ 8,968,442.33 $ 8,262,851.95

965,657.59

916,532.16

$ 282,566.62 2,689,915.10 2,356,195.07

5,134.42

649,252.31

594,557.53

$ 287,701.04 $ 13,273,267.33 $ 12.130,136.71

$ 7,950,878.58 $ 7,507,476.83

435,753.02 383,096.71 356,694.28 263,118.91 683,619.78 205,462.61 1,107,433.53 424,758.87
6,330.00 33,605.70 905,355.11 71,423.92

419,490.50 397,672.16 342,384.02 208,798.32 653,649.03
53,483.80 1,095,811.46
495,478.20
28,756.75 839,256.90
23,715.46

$ 175,000.00 67,020.00 2,596.00

234,199.25 76,460.99 2,596.00

219,008.99 87,793.75 1,040.00

$ 244,616.00 $ 13,140,787.26 $ 12,373,816.17

$ 43,085.04 $ 132,480.07 $ -243,679.46

$ 17,653.47 $

17,653.47

-948,195.11 655,832.00

6,625,000.00 -9,187.75
-948,195.11 $
655,832.00 -655,832.00

$ -274,709.64 $ 5,685,270.61 $

68,840.00 19,757.41 -19,757.41
68,840.00

$ -231,624.60 $ 5,817,750.68 $

275,462.89

634,931.68

-174,839.46 968,346.58

3.061.67 231.67

-154,009.39
-5,489.02 922.97

$ 43,838.29 $ 6,455.975.70 $ 634,931.68

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DADE 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, 1997

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 7,959,646,00 $ 8,381,372,09

34,538.27

2,124,064.00

2,407,348.48

11,000.00

249,101.12

Total Revenues

$ 10,094,710.00 $ 11,072,359.96

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service

$ 6,756,224.00 $ 7,109,509.83

266,118.00 412,848.00 356,880.00 236,383.00 689,497.00
62,085.00 1,097,881.00
446,811.00 5,730.00 31,682.00

341,160.17 367,092.45 353,967.29 218,489.49 683,619.78 59,704.54 1,107,314.88 417,944.02
6,330.00 33,084.13
504.98 2,925.50 68,640.24

Total Expenditures

$ 10,362,139.00 $ 10,770,287.30

Excess of Revenues over (under) Expenditures $ -267,429.00 $

302,072.66

FUND BALANCE JULY 1. 1996

275,860.29

275,225.82

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

93,388,00 $

587,070,24

808,270.80

931,119.32

393,035.00

393,853.26

$ 1,294,693,80 $ 1,912,042.82

$

431,509.00 $

841,368.75

23,873.00 1,000.00
17,020.00

94,592.85 16,004.26
2,726.99 44,629.42

8,950.00
900.00 811,441.80

118.65 6,814.85
521.57 904,850.13

$ 1,294,693.80 $ 1,911,627.47

$

0.00 $

415.35

96,532,24

64,651.71

FUND BALANCE JUNE 30,1997

$

8,431.29 $ 577,298.48

$

96,532,24 $ ===65~,0~6~7=.0=6

The notes to the general purpose financial statements are an integral part of this statement. -6-

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Dade County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity andhas the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, 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 Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board 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.
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.
-7-

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A fmancial reporting device used to account for general obligation bonds outstanding and material capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its me~surement 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 of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the Geheral Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
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 1997, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1996 and ending in early June 1997. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1996 and ending in August 1997. State
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DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1997, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1997, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1997. Also, the State's portion of the compensation paid in July and August 1997 was received and recorded as revenue in the fiscal year subsequent to June 30, 1997. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1996, were recorded in the year ended June 30, 1997. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Dade County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report:

-9-

DADE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FUND BALANCE JULY 1, 1996
Adjustments Inventories - July 1, 1996 Food Donated Commodities Purchased Foods
Fund Balance July 1, 1996 (Budget Basis)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JUNE 30,1997 (Budget Basis)
CASH AND CASH EQUIVALENTS

Special Revenue
Fund $ 84,242.97
-10,019.02 -9,572.24 $ 64,651.71
415.35 $ 65.067.06

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.

RECEIVABLES

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

PROPERTY TAXES

The Dade County Board of Commissioners fixed the property tax levy for the 1996 tax year (calendar year) on October 20, 1996 (levy date). Taxes were due on December 20, 1996. The lien date for property taxes was January 1, 1996. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1997 since their collection meets the criteria of GASB codification section P70.1 03. The Dade County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of t~es collected to the Board.

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DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tax millage rates levied for the 1996 tax year (calendar year) for the Dade County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

13.93 mills 1.60 mills

15.53 mills

INVENTORIES

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

COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

- 11 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose fmancial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
- 12 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 2: DEPOSITS

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

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

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and 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, 1997, the bank balances were $6,850,018.08. The amounts of the total bank balances are classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 1997, as follows:

Risk Category

Bank Balance

1

$ 225,372.34

2

6,624,645.74

3

0.00

Total

$ 6,850,018.08

Note 3: NON-MONETARY TRANSACTIONS

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

- 13 -

DADE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy excludes coverage for discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

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

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

1996 1997

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

5,654.84 $

$

0.00 $

2,800.00 $

Claims Paid

End ofYear Liability

5,654.84 $

0.00

2,800.00 $

0.00

The Board has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent

$ 50,000.00

Note 5: GENERAL LONG-TERM DEBT

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

- 14-

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 5: GENERAL LONG-TERM DEBT

ADVANCE REFUNDING During fiscal year 1997, the Dade County Board of Education issued $6,625,000.00 in General Obligation Bonds to be used and applied for the educational purposes of adding to, renovating, modifying, repairing and improving existing school buildings and facilities, as well as constructing and equipping school buildings or facilities, and to advance refund $890,000.00 of outstanding bonds. The bond issue of $6,625,000.00 less discount and bond issue cost of$154,945.82 provided net proceeds of$6,470,054.18. Proceeds in the amount of$655,832.00 plus additional debt service funds of$292,363.11 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on the 1990 Bond issue. As a result, the 1990 Series Bonds are considered defeased, and the liability has been removed from the General Long-Term Debt Account Group. Due to the nature of this transaction the economic gain and reduction of debt service payments associated solely with the defeasement of the bond sale is not determinable.

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

Purpose

Interest Rates

Amount

General Government and Refunding - Series 1997

3.9% -4.6 %

$ 6,625,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1996

$ 139,604.68 $ 1,065,000.00 $ 1,204,604.68

Additions

6,625,000.00 6,625,000.00

Deductions Bonds Defeased Payments

59,199.25

890,000.00 175,000.00

890,000.00 234,199.25

Balance June 30, 1997

$ 80.405.43 $ 6,625,000.00 $ 6,705.405.43

At June 30, 1997, payments due, by fiscal year which includes principal and interest for these items are as follows:

- 15 -

DADE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1997

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

1998 1999 2000 2001 2002 2003

$ 47,102.84 $ 516,656.25 $ 563,759.09 26,559.98 1,565,175.00 1,591,734.98 15,765.79 1,609,075.00 1,624,840.79 1,672,075.00 1,672,075.00 1,875,450.00 1,875,450.00 306,900.00 306,900.00

Total Principal and Interest

$ 89,428.61 $ 7,545,331.25 $ 7,634,759.86

Deduct: Imputed Interest

9,023.18

Net Present Value of Future Minimum Lease Payments

$ 80.405.43

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$178,798.96 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $148,540.96

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 $30,258.00

Note 7: CONTINGENT LIABILITIES

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

- 16 -

DADE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1997

Note 8: ACCUMULATED EMPLOYEES' LEAVE

The Board's professional personnel earn one and one-quarter days of sick and personal leave each month with a maximum accumulation of 65 days. Retiring teachers with 10 or more years of service will receive compensation based on a percentage of unused sick and personal leave at their current rate of pay, up to the maximum accumulation. See Note 1 - Compensated Absences

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems 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 Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1997 1996 1995

100% 100% 100%

$ 840,607.79 $ 765,459.78 $ 690,620.48

- 17 -

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

DADE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1997

EXHIBIT"E"

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1997 JUNE 30, 1996

$ 114,499.60 $

65,460.44

$ 179,960.04 $ 126,976.44

$ 184,492.81

184,492.81

133,499.68

13,080.69 9,803.91

13,080.69 9,803.91

10,019.02 9,572.24

Total Assets

$ 137,384.20 $

65,460.44 $

184,492.81 $ 387,337.45 $ 280,067.38

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

$ 4,499.76 $ 44,932.78

Total Liabilities

$ 49,432.54 $

FUND EQUITY

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Undesignated

13,080.69 9,803.91
65,067.06 $

Total Fund Equity

$ 87,951.66 $

$ 11,804.34 53,656.10 65,460.44 $
0.00 $ 0.00 $

117,802.85 $ 14,961.28 51,728.68
184,492.81 $

117,802.85 $ 31,265.38 150,317.56
299,385.79 $

29,278.81 29,527.61 137,001.58
16.41
195,824.41

$

1,064.80

$
0.00 0.00 $

13,080.69 9,803.91
65,067.06
87,951.66 $

10,019.02 9,572.24
63,586.91
84,242.97

Total Liabilities and Fund Equity $ 137,384.20 $

65,460.44 $

184,492.81 $ 387,337.45 $ 280,067.38

See notes to the general purpose financial statements.

-18-

DADE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1997

EXHIBIT"F"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1997 JUNE 30, 1996

REVENUES

State Funds Federal Funds Other Funds

$ 62,240.00 $ 446,509,73 393,853,26

524,830.24 $

$ 484,609.59

587,070.24 $ 931,119.32 393,853.26

776,299.00 887,236.32 377,012.00

Total Revenues

$ 902,602.99 $ 524,830.24 $ 484,609.59 $ 1,912,042,82 $ 2,040,547.32

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation

$ 435,553.59 $
53,983.95 3,505.41
28,060.00

$ 901,122.84

3,727.29

405,815.16 $
40,608.90 12,498.85
2,726.99 16,569.42
118.65 6,814.85
521.57

841,368.75 $ 1,022,984.69

94,592.85 16,004.26
2,726.99 44,629.42
118.65 6,814.85
521,57 904,850.13

119,985.21 7,650.81
16,732.08
5,252.31 945.00
839,256.90

Total Expenditures

$ 901,122,84 $ 524,830,24 $ 485,674.39 $ 1,911,627.47 $ 2,012,807,00

Excess of Revenues over (under) Expenditures $

1,480.15 $

0.00 $

-1,064.80 $

415.35 $ 27,740.32

OTHER FINANCING SOURCES

Operating Transfers In

751.02

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

1,480.15 $

0.00 $

-1,064.80 $

415.35 $ 28,491.34

FUND BALANCE JULY 1

83,178.17

0.00

1,064.80

84,242.97

60,317.68

Food Inventory - Net Change in Period Donated Commodities Purchased Food

3,061.67 231.67

3,061.67 231.67

-5,489.02 922.97

FUND BALANCE JUNE 30

$ 87,951.66 $

0.00 $

0.00 $

87,951.66 $

84,242.97

See notes to the general purpose financial statements.

-19-

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Debt Service
Unreserved Undesignated
Total Fund Equity

DADE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 1997

EXHIBIT"G"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 3D, 1997 JUNE 30, 1996

$

8,259.59 $

16,097.47 $

24,357.06 $ 259,509.96

19,481.23

19,481.23

15,952.93

$

27,740.82 $

16,097.47 $

43,838.29 $ ==2=7=5.,4..=62:=.8=:;9...

$

27,740.82 $

16,097.47 $

43,838.29 $ 275,462.89

0.00

0.00

0.00

0.00

$

27,740.82 $

16,097.47 $

43,838.29 $ ==2=7=5.,4..=62:=.8=:;9=

See notes to the general purpose financial statements.

- 20-

DADE COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND
YEAR ENDED JUNE 30.1997

EXHIBIT "H"

FUND BALANCE JUNE 30

$

27,740.82 $

16,097.47 $

43,838.29 $ 275,462.89

See notes to the general purpose financial statements.

- 21 -

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1997

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Through Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1997 Grant National School Lunch Program 1997 Grant Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1997 Grant State Program Improvement Grants 1997 Grant Title (I Eisenhower Professional Development 1996 Grant 1997 Grant Title VI Innovative Education Program Strategies 1997 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1997 Grant Preschool 1997 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1997 Grant
Total U, S. Department of Education
Labor, U. S. Department of Through Coosa Valley Regional Development Center Job Training Partnership Act 17-95-20-005 01-96-20-005
Total U. S. Department of Labor

CFDA NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 $
10.555 10,550
$

86,189,79
311,284.16 $ 49,035.78
446,509.73 $

(2)
852,087.06 (3) 49,035.78
901,122.84

* 84.010 $ 84,218
84.281 84.281
84.298

313.695.95 $ 15,330.00
13,957.13 12,226.47

313,695.95 15,326.00
1,064.80 13,957,13
12,226.47

84.027 84.173

96,569.78 33,937.64

96,569.78 33,937.64

84.048 $

19,208.27 504,925.24 $

19,208.27 505.986.04

17.250 $ 17.250
$

8,277.85 $ 5,944.77
14,222.62 $

8,277.85 5,944.77
14,222.62

Total Federal Financial Assistance

$

965,657.59 $

Major Programs are identified by an asterisk (*) in front of the CFDA number,

The Board did not provide Federal Assistance to any Subrecipient.
(1 ) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1997 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
See notes to the general purpose financial statements.

- 22-

1,421,331.50

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1997

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grant
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Advanced Placement Exams Alternative Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Lottery Program Instructional Technology
Georgia Forestry Commission Wetlands Grant
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,000.00

$

15,000,00

4,492,379.00 724,678.00 85,603,00 187,541,00 59,673,00
1,310,492,00
270,051,00 69,419.00
175,721.00 277,678.00
76,727,00 330,283,00
13,056.00 54,313,00 -660,431.00 604,528,00
$ 14,064.99
383.47 40,300.00
9,853.24 148,540.96
5,000.00 4,500.00 1,764,00 31,148,00 3,848.43
5,000.00
30,258.00

62,240.00
53,000,00 471,830.24

4,492,379,00 724,678,00 85,603,00 187,541,00 59,673.00
1,310,492.00
270,051,00 69,419,00
175,721,00 277,678,00
76,727,00 330,283,00
13,056.00 54,313.00 -660,431.00 604,528.00 62,240.00 14,064.99
383.47 40,300.00
9,853,24 148,540,96
5,000,00 4,500.00 1,764.00 31,148,00 3,848.43
53,000.00
5,000,00
471,830,24
30,258.00

$ 8,381,372.09 $

587,070.24 $

8,968,442.33

See notes to the general purpose financial statements.

- 23-

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30,1997

SCHEDULE "3"

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Food Services Operation

INSTRUCTIONAL TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

53,000,00 $

382,553,59 $
53,983,95 3,505.41
28,060,00 3,727,29

435,553.59
53,983.95 3,505.41
28,060,00 3,727,29

Total Expenditures

$

53,000,00 $

471,830,24 $ =====52=4=,8=:3=0,=24=

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Instructional Technology Pre-Kindergarten Program

$

440,724,67

53,000,00 31,105.57

$

524,830,24

See notes to the general purpose financial statements,

- 24-

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF SPECIAL PURPOSE LOCAL OPTION SALES TAX FUNDS
YEAR ENDED JUNE 30,1997

SCHEDULE "4"

PROJECT

ESTIMATED COST

AMOUNT EXPENDED IN CURRENT
YEAR

AMOUNT EXPENDED
IN PRIOR YEARS

Retirement of Dade County School District General Obligation School
Bonds Dated June 1, 1990

$ 740,000.00 $ 1,093,953,18 (1) $

0,00

Renovations, Modifications and Private School Road

For Dade Elementary School; Renovations and

Modifications for Davis Elementary School;

Renovations, Modifications and Four-Classroom

Addition for Dade Middle School; Technology

Modification for Dade County High School;

Renovations and Modifications for Dade Primary

School; Construction of Central Office; Construction

of Maintenance and Transportation Building

7,160,000.00

68,498.42 (1)

0,00

$ 7,900,000.00 $ 1,162,451,60 $======0'=00=
(1) The above projects are funded by a combination of Special Purpose Local Option Sales Taxes and State, Local Property Taxes or Other Funds.

See notes to the general purpose financial statements.
- 25-

THIS PAGE LEFT BLAHK

DADE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30,1997

SCHEDULE "5"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

5,820,484,00 $ _ _...:.17.:...1:...L:,2::..;44~,O.:o...O

$ 6,014,983.46 255,212,80 $ _ _-=2;.:;.,07:....!.,.=..:83~3;;..:.2::..:...1
$ 6,270,196.26

-140,906,19 $ 6,129,290,07

$

0,00 $ =======0:=.0=0

See notes to the general purpose financial statements. - 27 -

DADE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1997

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS RegUlar Programs Category II (*) Category III (*) Category IV (*) Category V (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*) Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ 525,056.00

$ 472,550.40 $

1,206,216.00

1,085,594.40

$ 1,731,272.00 90 $ 1,558,144.80 $

548,059.00 90

493,253.10

1,025,182.00 90

922,663.80

559,761.00 90

503,784.90

308,129.00 90

277,316.10

319,976.00 90

287,978.40

$ 4,492,379.00

$ 4,043,141.10 $

0.00 0.00
40,876.00 205,283.00 246,159.00

$ 570,853.00

$ 513,767.70 $

84,124.00

$ 570,853.00 90 $ 513,767.70 $

153,825.00 90

138,442.50

$ 724,678.00

$ 652,210.20 $

$

85,603.00 90 $

77,042.70 $

$ 5,302,660.00

$ 4,772,394.00 $

84,124.00 0.00
84,124.00 0.00
330,283.00

$ 150,423.00 90 $ 135,380.70 $

37,118.00 90

33,406.20

$ 187,541.00

$ 168,786.90 $

0.00 0.00
0.00

$ 5,490,201.00

$ 4,941,180.90 $ 330,283.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

$

16,613.00

43,060.00

$

16,613.00 $

43,060.00

0.00 0.00

$

59,673,00 100 $

59,673.00 $ ===,,;;O~.o=o

- 28 -

SCHEDULE "6"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 472,550.40 $ 446,125.22 $ 23,780.67 $ 469,905.89

1,085,594.40

1,065,859.69

25,879.36 1,091,739.05

$ 1,558,144.80 $ 1,511,984.91 $ 49,660.03 $ 1,561,644.94 $

0.00

493,253.10

543,142.62

19,448.77

562,591.39

0.00

922,663.80

1,073,212.72

32,463.08 1,105,675.80

0.00

503,784.90

763,104.52

48,277.47

811,381.99

0.00

318,192.10

335,902.98

3,919.05

339,822.03

0.00

493,261.40

536,033.89

38,420.74

574,454.63

0.00

$ 4,289,300.10 $ 4,763,381.64 $ 192,189.14 $ 4,955,570.78

$ 597,891.70 $

80,912.16 520,434.79 $
2,339.52 10,868.54

$ 13,040.41

80,912.16 533,475.20
2,339.52 10,868.54

$ 597,891.70 $ 614,555.01 $

13,040.41 $ 627,595.42

0.00

138,442.50

256,471.79

1,537.43

258,009.22

0.00

$ 736,334.20 $ 871,026.80 $ 14,577.84 $ 885,604.64

$ 77,042.70 $

99,507.42 $

1,066.23 $ 100,573.65

0.00

$ 5,102,677.00 $ 5,733,915.86 $ 207,833.21 $ 5,941,749.07

$ 135,380.70 $ 281,067.60

$ 281,067.60

0.00

33,406.20

$ 47,379.59

47,379.59

0.00

$ 168,786.90 $ 281,067.60 $ 47,379.59 $ 328,447.19

$ 5,271,463.90 $ 6,014,983.46 $ 255,212.80 $ 6,270,196.26 $

0.00

$ 16,613.00 43,060.00
$ 59,673.00

$ 44,891.25 $ 44,891.25

14,922.69

14,922.69

$

59,813.94 $

59,813.94 $ ======0=.0:=0

- 29 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

CLAUDE L. VICKERS
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 8, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dade County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Dade County Board of Education as of and for the year ended June 30, 1997, and have issued our report thereon dated April 8, 1998. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the generalpurpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Dade County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Dade County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting.
97YB-40

However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Dade County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6411-97-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over fmandal reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is also considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,

CLV:cm 97YB-40

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 8, 1998

Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dade County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMBCIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Dade County Board of Education with the types of compliance
requirements described in the Us. Office 0/Management and Budget (OMB) Circular A-i33 Compliance
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1997. Dade County Board of Education's major Federal programs are identified in the accompanying Summary Schedule of Auditor's Results. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility of Dade County Board of Education's management. Our responsibility is to express an opinion on Dade County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits o/States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dade 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 Dade County Board of Education's compliance with those requirements.

97SA-I0

In our opinion, the Dade County Board of Education complied, in all material respects, with the requirements ref~rred to above that are applicable to each of its major Federal programs for the year ended June 30, 1997.
Internal Control Over Compliance
The management ofDade County Board ofEducation 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 Dade County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A133.
Our consideration of the 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 of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,

CLV:cm 97SA-10

Claude L. Vickers State Auditor

SECTION III SUMMARY OF AUDITOR'S RESULTS

DADE COUNTY BOARD OF EDUCATION SUMMARY SCHEDULE OF AUDITOR'S RESULTS
YEAR ENDED JUNE 30, 1997
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dade County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dade County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is also considered to be a material weakness.
3. NOIicompliance Material to the Financial Statements The audit of the Dade County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dade County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dade County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 OCa) of OMB Circular A-I33 The Dade County Board of Education's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-B3.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Dade County Board of Education did not qualify as a low risk auditee.
97SAR-l

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

DADE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6411-93-02 6411-94-01

Unresolved - See Corrective ActionlResponse Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 6411-93-02

Dade County Board of Education has chosen not to maintain a system-wide General Fixed Assets Account Group.

SECTION V CURRENT YEAR FINDINGS AND QUESTIONED COSTS

DADE COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1997
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6411-97-01
The Dade County Board of Education has chosen not to 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 of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Note: The Dade County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit fmdings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.