Dade County Board of Education, Trenton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

DADE COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-
SECTIONU COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON'
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 9, 200 I

Honorable Roy E. Barnes, 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 ofthe Dade County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Dade County Board ofEducation'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 applicabie 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.
2000ARL-13

* 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 inclu~ed in the general purpose financial statements.
* The Board.did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded a,s revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to ge!1erally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present 'fairly, in all material respects, the financial position ofthe Dade County Board ofEducation as of June 30, 2000, 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 9, 2001, on our consideration ofthe Dade County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was. performed for the purpose of forming an opinion on the general purpose fmancial statements ofthe Dade County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, 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 financial statements. Such information 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 information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

'.1

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,

S:. W~ ~ell

,OJL
W. Hinton

State Auditor

RWH:gp 2000ARL-13

DADE COUNTY BOARD OF EDUCATION

DADE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2000

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
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

198,172.46 $

206,743.78 $

73,491.31

340,529.92

136,389.92

20,321.94 9,599.68

$

538?02.38 $

373,055.32 $

73,491.31

LIABILITIES AND FUND EQUITY
.,
'j
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food ~ For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
(
I
Total Fund Equity

$

30.34, $

57,849.76 $

505.77

176,443.84

2,239.35

$

30.34 $

236,532.95 $

505.77

$

20,321.94

9,599.68

$

$

538,672.04

106,600.75

$

538,672.04 $

136,522.37 $

72,985.54
0.00 72,985.54

Total Liabilities and Fund Equity

$

538,702.38 $

373,055.32 $

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

73,491.31

EXHIBIT "A"

DEBT SERVICE
FUND
$ 1,047,999.65
337,267.87

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30,1999

$ 1,526.407.20 $ 2,598,138.46

814,187.71

610,760.96

$ 1,385,267.52

20,321.94 9,599.68
1,385,267.52

18,755.60 8,201.40
1,053,801.09

2,239,732.48 546,285.92

2,239,732.48 546,285.92

3,971,198.91 136,389.21

$ 1,385,267.52 $ 4,171,285.92 $ 6,541,802.45 $ 8,397,245.63

$

58,385.87 $

40,540.34

176,443.84

165,369.12

2,239.35

123,898.00

45,206.00

$

546,285.92

546,285.92

136,389.21

3,625,000.00

3,625,000.00

5,025,000.00

$ 4,171,285.92 $ 4,408,354.98 $ 5,536,402.67

$ 1,385,267.52
0.00 $ 1,385,267.52

$

5,515.39

$ 1,385,267.52

1,053,801.09

20,321.94 9,599.68
72,985.54

18,755.60 8,201.40
1,483,040.45 21,729.00

645,272.79

269,800.03

$ 2,133,447.47 $ 2,860,842.96

$ 1,385,267.52 $ 4,171,285.92 $ 6,541,802.45 $ 8,397,245.63

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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, 2000

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
Capital Leases
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change i.n Period, Donated Commodities Purchased Food

GENERAL FUND

,SPECIAL REVENUE
FUND

$ 10,400,837.28 $
3,029,268.73 307,749.92
$ 13,737,855.93 $

678,092.47 1,124,903.31
500,992.52
2,303,988.30

$' 9,073,158.88 $
415,228.68 423,163.45 . 424,233.54 . 315,528.84 942,120,89
61,345.77 1,002,893.92
996,293.92 6,122.50
29,823.17
154,384.29 7,975.42

1,186,497.80 87,288.66 10,560.25 31,892.94
8,549.77 771.60
'1,058,333.57
25,000,00

,$ 13,852,273.27 $

$

-114,417.34 $

2,408,894.59 -104,906.29

478,764.00

110,517.00

'$

364,346.66 $

5,610.71

174,325.38

127,947.04

1,566.34 1,398.28

FUND BALANCE JUNE 30

$

538,672.04 $ ..

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

-4-

136,522.37

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 11,078,929.75 $ 10,801,149.53

1,124,903.31

1,187,254.94

$ 1,905,605.76

4,934.874.49

3,974,357.94

$

25,832.20

38,058.29

872,632.93

908,373.06

$

25,832.20 $ 1,943,664.05 $ 18,011,340.48 $ 16,871.135.47

$ 1,457,616.11 $
$ 1,457,616.11 $ $ -1,431,783.91 $

$ 10,259,656.68 $ 9,785,602.30

502,517.34 433,723.70 424,233.54 347,421.78 942,120.89
61,345.77 1,002,893.92 1,004,843.69
6,122.50 771.60
1,058,333.57 1,487,439.28

553,878.42 492,546.88 417,119.24 290,337.98 901,986.30
67,603.81 1,037,984.89
449,264.55 6,050.00 791.15
1,016,730.04 3,094,386.84

1,400,000.00 209,075.00 3,122.62

1,579,384.29 217,050.42 3.122.62

'1,358,730.75 273,041.75 2.729.24

1,612,19i62 $ 19,330,981.59 $ 19,748,784.14

331,466.43 $ -1,319,641.11 $ -2,877,648.67

589,281.00

$ -1,431,783.91 $ 1,504,769.45

331,466.43 $ 1,053,801.09

-730,360.11 $ -2,877,648.67

2,860,842.96

5,739,042.64

1,566.34 1,398.28

161.25 -712.26

$

72,985.54 $ 1,385,267.52 $ 2,133,447.47 $ 2,860,842.96

-5-

DADE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT"C"

~ ..

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 10,235,069,68 $ 10,400,837,28

4,000.00

2,799,665,00

3,029,268,73

75,000.00

307,749.92

Total Revenues

$ 13,113,734.68 $ 13,737,855.93

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

$ 8,895,011.56 $ 9,073,158.88

400,107.00 408,256.00 437,853,00 '261,850.00 918,313.00
76,160,00 1.016,404.00
575,98~.00
6,12?00

'415,228.68 423.163.45 424,233.54 315.528.84 942,120.89
61.345.77 1,002,893,92
996,293.92 6.122.50

29,823.17 162,359.71

Total Expenditures

$ 12,996,064.56 $ 13,852,273.27

Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES

$

117,670,12 $

-114.~17.34

,

Other Sources

478,764.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

~

FUND BALANCE JULY 1, 1999

117.670,12 $ 115,763,60

364,346,66 174.325,38

Adjustments

575,69

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 680,559,47 $ 678,092,47 1,311,382,00 1,124,903.31

482,236.00

500,992.52

$ 2,474,177.47 $ 2,303,988.30

$ 1,536,140.47 $ 1,186,497.80

32,039.00 9,002.00

87,288.66 10,560,25

23,210.00

31,892.94

400.00 15,050.00

8,549.77

957,900.00

771.60 1.058,333.57

25,000.00

$ 2,573,741.47 $ 2,408,894.59

$ -99.564,00 $ -104.906.29

22.200.00

110,517,00

$ -77,364,00 $

5,610,71

127,304.42

100,990,04

60,192,42

FUND BALANCE JUNE 30. 2000

$ 232,858,03 $ 538p2.04

$ 110,132.84 $ 106,600.75

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

DADE COUNTY BOARD OF EDUCATION

EXHillIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Dade County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has thepower 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 gro':!p to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by, the Board. 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 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 ofa Board's educational activities. Governmental Fund Types include:

GENERAL FUND - the fund used to account for all financial 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.

-7-

DADE COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30, 2000

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 fmancial resources to be used for the acquisition or construction of major capital facilities.

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

ACCOUNT GROUP

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

BASIS OF ACCOUNTING

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

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

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

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

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

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

the current period. Those revenues considered susceptible to accrual are property taxes, local option

sales taxes, intergovernmental grants and investment income.

,.

.'

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 Fundteachersl~d bus drivers'contracts, and the resources available fromthe Georgia Department of Education for the State's shareofthese contracts., During fiscal year 2000, a
substantial number of personnel of the Board were employed for a one hundred and ninety day

. \, - 8 -

DADE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSEFINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. 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 ofEducation's budget is a complete fmancial 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 ofbudget 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 ofthis tentative budget by the Board, such budget is advertised at

least once in a newspaper of general circulation in the locality. At the next regular meeting 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(c), to the Georgia

Department of Education. The Board may increase or decrease the budget at any time during the

year. All unexpended budget authority lapses at fiscal year-end.

.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual

presents actual and budgeted data for the 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 EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SpecialRevenue
Fund

FUND BALANCE JULY 1, 1999

$ 127,947.04

Adjustments __Inventories-- July 1, 1999
Food - Donated Commodities
Purchased Foods

-18,755.60 -8,201.40

Fund Balance July 1, 1999 (Budget Basis)

$ 100,990.04

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

5,610.71

.FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 106,600.75

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Ge~rgia Laws OCGA 45-8-14 authorize the Board to deposit its funds .in one or t:Jlore solvent b~S, insured Federal savings and loan associations, or insured State .chartered building and loan associations.

RECEIVABLES

.:;" .

"

Receivables consist ofgrant 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 w'ould necessitate the need for an allowance for uncollectible receivables...
(
PROPERTY TAXES

The Dade County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on February 15,2000 (levy date). Taxes were due on April 15, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the cwTent fiscal year or within 60 .- days after year-end are reported as revenue in fiscal year 2000. 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 taxes collected to the Board.

- - 10-

DADE COUNTY BOARD OF EDUCAnON

EXHIDIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1999 tax year (calendar year) for the Dade County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

13,04 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Locai option Sales Tax revenue during the fiscal year amounted to $1,905,605.76 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $2,914,444.92 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES

Inventories of donated food commodities used in the preparation of meals are reported on the

Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported

on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded

as revenues and expenditures at the time commodity items are received. Purchased foods inventories

are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet

for donated food commodities and for purchased foods are equally offset by reservations of fund

balance which indicates that these amounts do not constitute "available spendable resources" even

though they are a component of net current assets.

.

COMPENSATED ABSENCES

Compensated absences represent obligations of the 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 ofthese 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

- 11 -

DADE COUNTYBOARD OF EDUCAnON

EXHIBIT ltD" .

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the-full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following type of interfund transaction:

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..

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS

.COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides ~hat there shall not be on dep.osit at any time in any depository fora time longer than ten days a sum ofmoney which has not
been secured by surety bond, by guarantee ofinsunince, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than . 110 percent ofthe public funds being secured after the deguction 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 4~-8.,.11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoper~tingfunds pl,aced in demand deposit checking accounts.

Acceptable security for deposits consists of anyone of or any co~binationof 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 t!le Federal Deposit Insurance Corporation,

.

..

.

"

.

.'.

0) Bonds, bills,. notes, certificates of ind~~tednessor other direct obligations of the United

States or of the State of Georgia,

. - 12 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

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

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

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

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

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $2,378,318.78. 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 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 financial 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, 2000, as follows:

Risk Category

Bank Balance

1

$ 1,247,999.65

2

0.00

3

1,130.319.13

Total

$ 2.378.318.78

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (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 EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL 'PURPOSE FINANCIAL STATEMENTS

" ' JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss 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'sinsurance 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 Boardis 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!:>e reasonably estimated.

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

1999, 2009

Beginning of Year Liability

Claims,and Changes in Estimates

Claims Paid

End ofYear Liability

$'

0.00 $

1,414.00 $ , 1,414.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

The Board has purchased 'surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount'

Superintendent Principals

$ 50,000.00 $ 10,000.00 - $ 25,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Dade County Board ofEducation has entered into various leaSe agreements as lessee for school buses and computer equipment. 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 inceptiol1.
. ' .,

'- 14-

DADE COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Refunding - Series 1997 3.9% - 4.6%

$ 3,625,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1999

$ 136,389,21 $ 5,025,000.00 $ 5,161,389,i1

Additions Capital Leases

589,281.00

589,281.00

Deductions Debt Retired

179,384.29 1,400,000.00 1,579,384.29

Balance June 30, 2000

$ 546,285.92 $ 3,625,000.00 $ 4.171.285.92

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30 .

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004

$ 194,863.92 $ 1,672,075,00 $ 1,866,938.92

194,863.92 1,875,450.00 2,070,313.92

124,175.87

306,900.00

431,075.87

106,556.40

106,556.40

Total Principal and Interest $ . 620,460.11 $ 3,854.425.00 $ 4.474,885,11

Deduct: Imputed Interest

74,174.19

Net Present Value of Future Minimum Lease Payments $ 546,285.92

- 15 -

DADE COUNTY BOARD OF EDUCAnON

EXHIBIT "Di

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 6: PRIOR YEAR DEFEASEMENT OF'DEBT

In fiscal year 1997, the Board defeased certain general obligation bonds'by placing the proceeds of

new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.

Accordingly, the trust account assets and the liability for the defeased bonds are not included in the

Board's general purpose financial statements. At June 30, 2000, $250,000.00 of bonds are

outstanding and are considered defeased.

.

f

Note 7: ON-BEHALF PAYMENTS

')
, The Board has recognized revenues and expenditures in the amount of $171,505.73. for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

. !.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health msurance of Non-Certified Personnel In the amountof$135,877.n

Office of Treasury and Fiscal Services ~aid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $35,628.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000:

Project

Unearned Executed Contracts

.. Central Office Building

$ 5,780.27

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

Note 9: CONTINGENT LIABILITIES
Amounts received or receivable principally from th~ 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
to disallowances, if any, will be immaterial its overall financial position.

- 16-

'. ~ "... "

DADE COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: CONTINGENT LIABILITIES

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 10: 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 of65 days. Retiring teachers with 10 or more years ofservice in the Dade County School System will receive compensation based on a percentage ofunused sick and personal leave at their current rate of pay, up to the maximum of 45 days. See Note 1 Compensated Absences

Note 11: 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 of the 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 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage: Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 1,014,660.97 $ 1,016,864.56 $ 919,009.61

- 17 -

DADE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

176,476.05 $

85,202.50

6,814.00

20,321.94 ,9,599.68

Total Assets

206,397.67 $===9;;;;2=,0=16::;';;;.50=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable

Total Liabilities

FUND EQUITY

o ,

Fund Balances

Reserved

For Continuation of Federal Programs

For Inventories

Food

Donated Commodities

Purchased Food

Unreserved

Undesignated

Total Fund Equity

Total Liabilities and Fund Equity

$

16,368.90' $

23,316.56

53,506.40

68,699.94

$

69,875.30' $'

92,016.50

$

20,321.94

9,599.68

106,600.75 $

$

136,522.37 $

0.00 0.00

$

206,397.67 $===9;;;;2==,0,,;,;16=.5=0,=

See notes to the general pU!pose financial statements. - 18-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

261,678.55 $

237,938.37

129,575.92

136,389.92

168,328.27

20,321.94 9,599.68

18,755.60 8,201.40

$

129,575.92 $

:427,990.09 $ ==4=3;,;;3:1::,2:=23::.;.=64=

$

54,934.77 $

54,934.77 $

99,841.18

18,164.30

57,849.76

40,066.30

54,237.50

176,443.84

165,369.12

2,239.35

2,239.35

$

129,575.92 $

291,467.72 $ . 305,276.60

.$

5,515.39

$

20,321.94

9,599.68

18,755.60 8,201.40

$

0.00

106,600.75

95,474.65

$

0.00 $

136,522.37 $

127,947.04

$

129,575.92 $

427,990.09 $==4=3=35,2=:23=,6=4=

- 19-

DADE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Student Transportation Services Other Support Services Food Services Operation
Debt Service Principal
Total Expenditures
Excess of Revenues over (under) Expenditure~
OTHER FINANCING SOURCES
Capital Leases
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

.$

74,940.00 $

489,430.24

500,992.52

$ 1,065,362.76 $

603,152.47 603,152.47

$

542,405.30

53,852.95 2,797,31

$ 1,054,236,66

4,096.91

$ 1,054,236.66 $

$

11,126.10 $

603,152.47 0.00

$

11,126,10 $

122,431,65

1,566.34 1,398.28

0.00 0.00

$

136,522,37 $ =======0=.0=0=

See notes to the general purpose financial statements.. .; - 20-

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

678,092.47 $

644,163.86

$

635,473.07

1,124,903.31

1,187,254.94

500,992.52

473,698.99

$

635,473.07 $ 2,303,988.30 $ 2,305,117.79

$

644,092.50 $ 1,186,497.80 $ 1,107,414.68

33,435.71 7,762.94
31,892.94 8,549.77 771.60
25,000.00

87,288.66 10,560.25 31,892.94 8,549.77
771.60 1,058,333.57
25,000.00

110,699.36 32,386.76 21,425.40
7,107.13 791.15
1,016,730.04

$

751,505.46 $ 2,408,894.59 $ 2,296,554.52

$ -116,032.39 $ -104,906.29 $

8,563.27

110,517.00

110,517.00

$

-5,515.39 $

5,610.71 $

8,563.27

5,515.39

127,947.04

119,934.78

1,566.34 1,398.28

161.25 -712.26

$

0.00 $

136,522.37 $ ==1=2.7..5,9.4..7.=.04===

- 21 -

DADE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30,2000

EXHIBIT "G"

ASSETS Cash and Cash Equivalents

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30, 2000 JUNE 30,1999

$ 73,491,31 $=====,;;;,O;,;;;'O~O $ - 73,491.31 $ 1,674,347.49

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund EqUity

$

505.77

$

505.77

$ . 72,985.54
- 0.00 $ $ 72,985,54 $

Total Liabilities and Fund Equity

$ 73,491,31 $

$

50.5. ,77 $

474.04

123,898.00

45,206.00

$

505.77 $ 169,578.04

$
0.00 0.00 $

72,985.54 $ 1,483,040.45 21,729.00

0.00.

0.00

72,985.54 $ 1,504,769.45

0.00 $

73,491.31 $ 1,674,347.49

See notes to the general purpose financial statements.

-22 -

DADE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000

EXHIBIT nH"

FUND BALANCE JUNE 30

$

72,985,54 $

0.00 $

72,985.54 $ 1,504,769.45

See notes to the general purpose finandal statements.

- 23-

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

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
2000~rant
National School Lunch Program 2000 Grant

10.553 10.555

Total Child Nutrition Cluster

. OtherPrograms' Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)

10.550

Total U. S. Department of Agriculture

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

94.004

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

84.027 84.173

Total'Special Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States High School Program Basic Grant

84.010
84.281 84.298 84.340
84.048

Total U. S. Department of Education

Labor, U. S: Department of Pass-Through From Coosa Valley Regional Development
Center Job Training Partnership Act

17.250

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD
.. .. \'

N/A

$ 107,442.33

N/A

322.031.12 $

$ 429,473.45 $

(2) 994,279:87 (3) 994,279.87

N/A

59,956.79

59,956.79

$ 489,430.24 $ .1,054,236.66

N/A

$

3,934.54 $

9,449.93

N/A

$ 127.228.93 $

NlA

46,377.65

$ 173,606.58 $

127,228.93 46,377.65
173,606.58

NlA

353,011.34

NlA

7,532.07

N/A

11.595.33

NlA

55,217.00

NlA

25,156.71

$ 626,119.03 $

353,011.34 (4) 7,532.07 11,595.33
55,217.00
25,156.71 626,119.03

NlA

$

5,419.50 $

5,419.50

Total Federal Financial Assistance
NlA = Not Available

.,24 -

$ 1,124,903.31 $ 1,695,225.12

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures in the amount of $110,517.00 associated with the inception of a capital lease have been excluded from this schedule.'
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subredpient.
The accompanying schedule of expend(tures of Federal awards includes the Federal grant activity of the Dade County Board of Education and is presented onihe modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

- 25-

DADE COUNTY BOARDOF.EDUCATION SCHEDULE OF STATE REVENUE . YEAR ENDED JUNE 30, 1999

. SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of auality 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 Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Year2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom
Georgia Department of Community Affairs Governor's Emergency Funds (1)
Office of Planning and Budget Georgia Council for the Arts
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 5,461,814.00
1,470,696,00 161,553.00 238,594.00 66,888,00
1,557,743.00

I $ 5,461,814.00
1;470,696,00
161,553.00 238,594,00
66,888.00 1,557,743.00

280,057~00 61,675,00
193,536.00 268,135.00
68,949.00 162,501.00 . 20,381.00
57,685.00 -895,712.00 874,770.00
$
11,346.35

74,940.00

280,057.00 61,675.00
193,536.00 268,135.00
68,949.00 162,501.00
20,381.00 57,685.00 -895,712.00 874,770.00 74,940,00 11,346.35

38,981,00 6,435.78
135,877.73 5,000,00 4,000.00 3,240.00
27,536.00 3,144.42
11,190.00

38,981.00 6,435.78
135,877.73 5,000.00 4,000,00 3,240.00
27,536,00 3,144.42
11,190.00

13,628.00 56,618.00

13,628.00 56,618.00

10,000.00

10,000.00

10,000.00

10,000.00

532,906.47

532,906.47

35,628.00

35,628.00

49,193.00

49,193,00

$ 10,400,837.28 $ 678,092.47$' 11,078,929.75

(1) The purpose of the funds are to assist with construction of a dugout and locker room with restrooms and showers for the Dade County High School baseball team.

See notes to the general purpose financial statements,

. - 26-

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

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

$ 740,000.00 $ 740,000.00

$ 1,093,953.18

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 modifications 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 7,160,000.00 $ 1,457,616.11 4,824,024.15

$ 7,900,000.00 $ 7,900,000.00 $ 1,457,616.11 $ 5,917,977.33

,(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The Board's current estimate of total cos~ for the prpjects. Includes all cost from project inception to completion.

(3) The voters of Dade County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, loqal property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board has incurred interest to provide,advance funding for the above projects as follows:

Prior Years

$ 481,831.25

Current Year

209,075.00

Total

$ 690,906.25

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

,.

DADE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

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

$

7,495,158.00 $

230,819.00

$

7,873.008.94

280,944.04 $

$

8,153,952.98

233,005.23

-152,357.67 $ _ _..:8:.r.,:,0:.::0:..:.1.c:,5::::9=.;5.::::3.:.,.1

$

0.00 $====.,;,;O~.O;;;;.O

See notes to the general purpose financial statements. - 29 -

DADE COUNTY BOARP OF EDUCATION -

_ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM

- GENERAL FUND'- QUALITY BASIC EDUCATION PROGRAMS

-

YEAR ENDED JUNE 30. 2000

-

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 EPUCATION PROGRAM t') Total Fourteen Weighted Programs
MEPIACENTER PROGRAMS Salaries
J. Operations Total.Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

584,909.00

$

526,418.10 $

1,499,001.00

1,349,100.90

$ 2,083,910.00 90 $ 1,875,519.00 $

608,027.00 90

547,224.30

1,177,699.00 90

1,059,929.10

750,609.00 90

675,548.10

286,797.00 90

258,117.30

554,772.00 90

499,294.80

$ 5,461,814.00

$ 4,915,632.60 $

1,055.00 1,055.00 _64,831.00 85,527.00
151,413.00

$

867,221.00

$

780,498.90 $

0.00

$

867,221.00 90 $

780,498.90 $

603,475.00 90

543,127.50

$ 1,470,696.00

$ 1,323,626.40 $

$

161,553.00 90 $

145,397.70 $

$ 7,094,063.00

$ 6,384,656.70 $

0.00
0.00 11,088.00 162,501.00

$

190;701.00 90 $

171,630.90 $

47,893.00 100

47,893.00

0.00

$

238,594.00

$

219,523.90 $

0.00

Total Fourteen Weighted and Media Center.Programs $ 7,332,657.00

$ 6,604,180.60 $

162,501.00

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

$

21,700.00

45,188.00

$

_21,700.00 $

45,188.00

$

66,888.00 100 $

66,888.00 $

-- 30 -

0.00 0.00
0.00

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

527,473.10 $

554,781.94 $

13,884.35 $

568,666.29

1,349,100.90

1,341,693.79

35,359.05

1,377,052.84

$ 1,876,574.00 $ 1,896,475.73 $

49,243.40 $ 1,945,719.13 $

0.00

612,055.30

681,950.89

22,309.16

704,260.05

0.00

1,059,929.10

1,280,163.21

58,513.64

1,338,676.85

0.00

761,075.10

967,526.16

37,261.20

1,004,787.36

0.00

258,117.30

388,285.68

11,090.35

399,376.03

0.00

499,294.80

644,978.77

46,462.81

691.441.58 .

0.00

$ 5,067,045.60 $ 5,859,380.44 $

224,880.56 $ 6,084,261.00

$

780,498.90

$

152,299.02 644,923.54 $
64,871.95 17,197.56

$ 5,404.41
661.00

152,299.02 650,327.95
65,532.95 17,197.56

$

780,498.90 $

879,292.07 $

6,065.41 $

885,357.48

0.00

543,127.50

568,679.24

1,807.52

570,486.76

0.00

$ 1,323,626.40 $ 1,447,971.31 $

7,872.93 $ 1,455,844.24

$

156,485.70 $

222,644.33 $

251.74 $

222,896.07

0.00

$ 6,547,157.70 $ 7,529,996.08 $

233,005.23 $ 7,763,001.31

$

171,630.90 $

343,012.86

$

343,012.86

0.00

47.893.00

$

47,938.81

47,938.81

0.00

$

219,523.90 $

343,012.86 $

47,938.81 $

390,951.67

$ 6,766,681.60 $ 7,873,008.94 $

280,944.04 $ 8,153,952.98 $

0.00

$

21,700.00

45,188.00

$ ===66=,;;;;88..8.=.0=0

$

49,396.96 $

49,396.96

19,622.02

19,622.02

$

69,018.98 $

69,018.98 '$ =======0;;;.;;;;00;;,

31 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

r

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 9, 2001

Honorable Roy E. Barnes, 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 ofDade County Board ofEducation as of and for the year ended June 30, 2000, and have issued our report thereon dated April 9, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in 90vemment Auditing Standards, issued by the Comptroller General ofthe United States.
Compliance
As part ofobtaining reasonable assurance about whether Dade County Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amoUnts. However, providing an opinion on compliance with those provisions was not an objective 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.
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. However, we noted a certain matter involving the internal control
2000YB-40

.J ,

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect 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 ofFindings and QuestioI1ed Costs as item FS-6411-00-0 1.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Dade County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2000YB-40

Ru 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
April 9, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members. of the State Board of E.ducat.ion

and

.

Superintendent and Members of the

Dade County Board of Education

REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON lNTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-B3

Ladies and Gentlemen:

Compliance

We have audited the compliance ofDade County Board of Education with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Dade County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grap.ts applicable to each of its major Federal programs is the responsibility ofDade County Board ofEducation's management. Our responsibility is to express an opinion on Da~e County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance 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-B3, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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.

2000SA-IO

;.

In our opinion, the Dade County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
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 A-B3.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course 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 management, members of the Dade County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~tJ4..::h:. ssell W. Hinton State Auditor
RWH:gp 2000SA-IO

.,
.;

SECTION ill 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, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6411-98-0l FS-6411-99-0 1

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6411-99-01

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

SECTION IV FINDINGS AND QUESTIONED COSTS

- - - - - - ----~~

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

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 considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit ofthe Dade County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dade County Board of Education did not disclose any reportable conditions in internal control over major programs.

5. Type ofReport Issued on Compliance for Major Programs The auditor's opinion on the Dade County Board 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-l33 The Dade County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3.

7. Major Programs

Federal awards audited as major programs are as follows:

84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational

Agencies

84.027 Individuals with Disabilities Education Act - Part B - Special Education -

Flow Through

84.173 Individuals with Disabilities Education Act - Part B - Special Education -

Preschool

.

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

- 1-

DADE COUNTY BOARD OF EDUCATION .. SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee
The Dade County Board of Education was audited as a low riskauditee basedon a waiver granted by the D.,S. Department of Education. " II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Main'tain GeneralFixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6411~00-Ol The Dade County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting recorqs 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 ac~ounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, 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. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. , ': '
..
',.
- 2,.