Dade County Board of Education, Trenton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

... ., ,.....~.~,.-,..:

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

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADD.ITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

I.

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

I

AND CHANGES IN FUNJ? BALANCES

22

I

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26 .

3. SCHEDULE OF APPROVED LOCAL OPTION SN-,ES TAXPROJECTS

27

EARNINGS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

28

5

BY SITE

29

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 ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION Ill

Al)DITEE'S RESPONSE TO PRIOR YEAR-FINDINGS AND QUESTIONED COSTS

I
I

SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

SECTION I FINANCIAL

I' I
I

' i

'I

: R1,ssu.1. \V. H1r-.Toi'.

STATE AUDITOR

I

(40<) 656-2174

I

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 3<i:B4-X400
February 14, 2002 _

I

Honorable Roy E. Barnes, Governor

Members of the General Assembly

I

Members of the State Board of Education

I

and Superintendent and Me~bers 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, 2001, 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Stan~ards, fasued by the Comptroller General ofthe 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 iI1cludes 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 op1111on.

As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL~13

* The general-purpose financial statements of the Board ofEducation did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education f~r the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Dade County Board ofEducation as of June 30, 2001, and the results of its operations for the year. then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated February 14, 2002, on our consideration of the Dade County Board of Education's internal control over financial reporting and our tests of its 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 re.suits of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Dade County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the
2001ARL-13

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. A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
RWH:gp 2001ARL-13

. I
'I .
DADE COUNTY BOARD OF EDUCATION

DADE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001

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

$

145,346.63 $

0.00

$

283,829.08

124,956.02

24,999.97 6,472.77

$

283,829.08 $

301,775.39 $

0.00

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Capital Lease Agreements General Obligation Bonds Payable

.

Total Liabilities

FUND EQUITY

Fund Balances Reserved For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue . Unreserved Undesignated

Total Fund Equity

$

109,600.10

60.00 $

. 32,064.72

141,554.76

$

109,660.10 $

173,619.48

$

24,999.97

6,472.77

$

174 168.98

96,683.17 $

$

174 168.98 $

128,155.91 $

0.00 0.00

Total Liabilities and Fund Equity

$

283,829.08 $

301,775.39 $======0.=00=

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

EXHIBIT"A"

DEBT SERVICE
FUND
$ 1,345,487.88
331,918.23

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

1,490,834.51 $ 1,526,407.20

740,703.33

814,187.71 "'

$ 1,677,406.11

24,999.97 6,472.77
1,677,406.11

20,321.94 9,599.68
1,385,267.52

422,593.89 527,994.36

422,593.89 527,994.36

2,239,732.48 546,285.92

$ 1,677,406.11 $ 2,627,994.36 $ 4,891,004.94 $ 6,541,802.45

$

109,600.10

32,124.72 $.

58,385.87

141,554.76

176,443.84

2,239.35

$

527,994.36

527,994.36

546,285.92

2,100,000.00

2,100,000.00

3,625,000.00

$ 2,627,994.36 $ 2,911,273.94 $ 4,408,354.98

$ 1,677,406.11
, '
i
0.00 $ 1677406.11

$ 1,677,406.11 $. 1,385,267.52

24,999.97 6,472.77

20,321.94 9,599.68
72,985.54

270,852.15

645,272.79

$ 1,979,731.00 $ 2,133,447.47

$ 1 677,406.11 $ 2,627,994.36 $ 4,891,004.94 $ 6,541,802.45

: I
HI' e
Ii --- ------

-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction
Support Services Pupil Services Improvement of Instructional Services Educational Media Services Gerieral 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 in Period Donated Commodities Purchased Food

GENERAL. FUND

SPECIAL REVENUE
FUND

$ 11,244,181.94 $ 662,904.03

1,338,207.37

3,235,940.91

350,603.68

508,023.25

$ 14,830,726.53 $ 2,509,134.65

$ 10,364,713.13 $ 1,198,416.00

271,652.67 257,270.76 460,536.67 950,821.13 1,141,708.24
54,937.20 1,016,813.04
654,522.01 5,995.74
2,179.65 10,685.43

92,314.14 60,350.28 23,878.22
5,344.37 473.48
1,090,005.74

120,471.94 26,121.~8

41,019.62 7,250.38

$ 15,338,429.59 $ 2,519,052.23 $ -507,703.06 $ .-9,917.58

143)00.00

$ -364,503.06 $ -9,917.58

538,672.04

136,522.37

4,678.03 -3 126.91

FUND BALANCE JUNE 30

$ 174,168.98 $

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

-4-

128,155.91

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only). YEAR ENDED

JUNE 30 1 2001

JUNE 30, 2000

$ 11,907,085.97 $ 11,078,929.75

1,338,207.37

1,124,903.31

$ 1,907,798.26

5,143,739.17

4,934,874.49

$. 364.94

57 841.34

916,833.21

872,632.93

$

364.94 $ 1,965,639.60 $ 19,305,865.72 $ 18,011,340.48

$ 11,563,129.13 $ 10,259,656.68

$ 73,350.48

363,966.81 317,621.04 460,536.67 974,699.35 1,141,708.24
54,937.20 1,016,813.04
659,866.38 5,995.74 473.48
1,092,185.39 84,035.91

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

$ 1,525,000.00
147,075.00 1 426.01

1,686,491.56 180,447.36 1 426.01

1,579,384.29 217,050.42 3,122.62

$ 73,350.48 $ 1,673,501.01 $ 19,604,333.31 $ 19,330,981.59

$ -72,985.54 $ 292,138.59 $ -298,467.59 $ -1,319,641.11

143,200.00

589,281.00

$ -72,985.54 $ 292,138.59 $ -155,267.59 $ -730,360.11

72,985.54

1,385,267.52

2,133,447.47

2,860,842.96

4,678.03 -3 126.91

1,566.34 1,398.28

$===o=.o=o= $ 1,677,406.11 $ 1,979,731.00 $ 2 1133,447.47

-5 -

[ I

DADE COUNTY BOARD OF EDUCATION

EXHIBIT"C"

COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL - (NON-GAAP BASIS)

.

GENERAL AND SPECIAL REVENUE FUNDS

YEAR ENDED JUNE 30. 2001

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 10,989,472.41 $ 11,244,181.94

83,979.00

3,090,034.00

3,235,940.91

86,000.00

350,603.68

Total Revenues

$ 14,249,485.41 $ 14,830,726.53

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 ~ervice
Total Expenditures

$ 9,956,990.41 $ 10,364,713.13

274,698.56 290,450.00 485,762.00 480,670.00 1,170,221.78
54,700.00 1,113,817.00
686,784.83 6,295.00

271,652.67 257,270.76 460,536.67 950,821.13 1,141,708.24
54,937.20 1,016,813.04
654,522.01 5,995.74

2,179.65 10,685.43 146,593.92

$ 14,520,389.58 $ 15,338,429.59

Excess of Revenues over (under) Expenditures $ -270,904.17 $ -507,703.06

OTHER FINANCING SOURCES

Other Sources

143,200.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-270,904.17 $

FUND BALANCE JULY 1. 2000

340,705.72

-364,503.06 538,672.04

FUND BALANCE JUNE 30. 2001

$

69,801.55 $ =====17=4""1=68==98==

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 603,584.47 $ 662,904.03 1,254,913.00 1,338,207.37

470,484.00

508,023.25

$ 2,328,981.47 $ 2,509,134.65

$ 1,280,393.47 $ 1,198,416.00
92,314.14 60,350.28
23,878.22

5,344.37

1,017,676.00

473.48 1,090,005.74

48,270.00

$ 2,298,069.47 $ 2,519,052.23

$ 30,912.00 $ -9,917.58

$ 30,912.00 $ -9,917.58

131,632.27

106,600.75

$ 162,544.27 $==9=6=,6=8=3.=17=

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

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Dade County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.

FUND ACCOUNTING

The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform _to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.

The general-purpose financial statements account for all State, Federal, Taxes and Other funds under

control of the School District, in compliance w_ith generally accepted accounting principles

applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account

group presented in this report are as follows:



GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:

GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

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

ACCOUNT GROUP

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

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement

focus. All governmental funds are accounted for using a current financial resources measurement

focus. With this measurement focus, only current assets and current liabilities generally are

included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues

and

other

financ. ing

sources)

and

decreases
.

(i.e.,

expenditures

and

other

financing

uses)

in

net

current

assets. Their reported fund balance is considered a measure of available spendable resources.

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

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

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and ,;available" means collectible within the current period or soon enough thereafter to be used to pay ljabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual.. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in. which all eligibility requirements have been satisfied.

-9-

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures are generally recognized when the related fund liability is incurred.

A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School . District subsequent to June 30, 2001. Also, the State's portion of the compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

BUDGET

.

.

. The Dade County Board ofEducation's budget is a complete financial plan for the School District's

fiscal year and is based upon estimates of expenditures together with probable funding sources.

There is no statutory prohibition regarding overexpenditure 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 budgetf~r governmental funds was

. prepared on a basis other than generally accepted .accounting principles.

The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in acco.rdance 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:

- 10 -

. DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 2000

$ 136,522.37

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

-20,321.94 -9,599.68

Fund Balance July 1, 2000 (Budget Basis)

$ 106,600.75

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

-9,917.58

FUND BALANCE JUNE 30, 2001 (Budget Basis)

$ 96,683.17

CASH AND CASH EQUIVALENTS

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

RECEIVABLES

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

PROPERTY TAXES

The Dade County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 25, 2000 (l~vy date). Taxes were due on January 25, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Dade County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $3,215,361.16.
- 11 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIA.L STATEMENTS

JUNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 2000 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

13.0 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,907,798.26 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $1,006,646.66 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 Balanc~ 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 School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. 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-TermDebt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as.issuance costs, are recognized in the financial statements during the year bonds ~e issued. In addition, general

- 12 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

INTERFUND TRANSACTIONS

The School District has the following type 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.

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 principies. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be eq~al to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of.deposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool.ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United

States or of the State of Georgia,



- 13 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 of development authorities created by the laws of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $2,500,773.46. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

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

Risk Category
1 2 3
Total

Bank Balance
$ 1,545,487.88 0.00
955,285.58
$ 2,500,773.46

Note 3: NON-MONETARY TRANSACTIONS

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

- 14 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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

The School District 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 omissic:ms policy excludes coverage for discrimination. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

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

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

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

890.00 $

890.00 $

0.00

'.fhe School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent Each Principal

$ 50,000.00 $ 10,000.00

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 inception.

- 15 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

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%

$ 2,100,000.00

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000

$ 546,285.92 $ 3,6+5,000.00 $4,171,285.92 .

Additions Capital Leases

143,200.00

143,200.00

Deductions Debt Retired

161,491.56 1,525,000.00 1,686,491.56

Balance June 30, 2001

$ 527,994.36 $ 2,100,000.00 $ 2,627,994.36

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total . Debt

2002 2003 2004 2005 2006
Total Principal and iterest

$ 228,886.83 $ 1,875,450.00 $2,104,336.83

158,198.79

306,900.00

465,098.79

140,579.31

140,579.31

34,022.91

34,022.91

34,022.92

34,022.92

$ 595,710.76 $ 2.182,350.00 . $ 2.778,060.76

Deduct: Imputed Interest

67,716.40

Net Present Value of Future Minimum Lease Payments $ 527,994.36

- 16 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

I
I
I
. Note 6: SHORT-TERM DEBT
i'
The School District obtains temporary loans in advance of property tax collections, depositing the
proceeds in its General Fund. This short-term debt is to provide cash for operations until property
tax collections are received by the School District each January. Article IX, Section V, Paragraph V
of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75
percent of the total gross income from taxes collected in the preceding year and requires all short-
term debt to be repaid no later than December 31 of the calendar year in which the debt was
incurred:

Beginning Balance

Additions

Payments

Ending Balance

Temporary Loans

$====0"'=.0"""'0 $ 200,000.00 $ 200,000.00 $====0,..,.0"""'0

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $169,735.69 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $136,487.69

Office of Treasury and Fiscal Services

i .

Paid to the Public School Employees Retirement System

For Public School Employees Retirement (PSERS) Employer's Cost

In the amount of $33,248.00

Note 8: 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 granter agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9: SUBSEQUENT EVENTS

On September 18, 2001, the voters ofDade County voted in favor ofa Special Purpose Local Option Sales Tax Referendum for education purposes. The imposition ofthe tax by the voters, as stated on the Official Ballot Dade County was as follows:

- 17 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 9: SUBSEQUENT EVENTS
"Shall a one-percent sales and use tax for educational purposes be imposed in the Dade County School District for a period of time not to exceed 20 consecutive calendar quarters, commencing upon the expiration ofthe existing one-percent sales and use tax for educational purposes, and for the raising of not more than $15,000,000.00 for the purpose of. .. constructing and equipping of new classrooms and a driveway and parking facilities for the Dade County Elementary School, new classrooms and building modifications for the Davis Elementary School, replacement ofthe heating and air-conditioning system and installation of an intercom system for the Dade County Middle School, constructing road and parking improvements and building modifications for the Dade County High School, constructing a new driveway for the school maintenance and transportation department and renovating, repairing, improving and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, including acquiring any necessary property therefore, both real and personal.
If the imposition of the tax is approved by the voters, such vote shall also cons_titute approval of the issuance of general obligation debt of the Dade County School District in a principal amount not to exceed $10,000,000 for... the above described capital outlay projects, including costs."
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 of 65 days. Retiring teachers with 10 ormore 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 districts are covered by the Teachers Retirement.System of Georgia (TRS), which is a cost-sharingmultiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. T.he Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Aud.its and Accounts.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the T~S Board of Trustees in accordance with State statute and as advised
- 18 -

DADE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 11: RETIREMENT PLANS

by their independent actuary. The required employer contribution rate is 1L29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$1,110,872.07 $ 1,014,660.97 $1,016,864.56

- 19 -

DADE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

155,799.81 $

60,584.98

24.00

24,999.97 6 472.77

$

187,296.55 $ ===6=05=84==98=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

4,788.18 $

14,329.08

54,352.46

46,255.90

$

59 140.64 $

60,584.98

$

24,999.97

6,472.77

96,683.17 $

0.00

$

128,155.91 $

0.00

$

187,296.55 $ ===6=0=,5=84==98=

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

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

216,384.79 $

261,678.55

$

124,932.02

124,956.02

136,389.92

24,999.97 6 472.77

20,321.94 9,599.68

$

124,932.02 $

372,813.55 $ ==4=2=7=,9=90==09=

$

71,038.16 $

71,038.16 $

54,934.77

12,947.46

32,064.72

57,849.76

40,946.40

141,554.76

176,443.84

2,239.35

$

124,932.02 $

244,657.64 $

291,467.72

i
i
$ $

$
0.00 0.00 $

24,999.97 $ 6,472.77
96,683.17
128,155.91 $

20,321.94 9,599.68
106,600.75
136,522.37

$

124,932.02 $

372,813.55 $ ==4=2=7=9,=90==:0=9=

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Student Transportation Services Other Support Services . Food Services Operation
Debt Service Principal Interest
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 in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY .PROGRAMS

$

77,202.00 $

490,370.68

508,023.25

$ 1,075,595.93 $

585,702.03 585,702.03

$

508,195.77

47,335.19 25,678.84

$ 1,085,513.51

4,492.23

$ 1,085,513.51 $

$

-9,917.58 $

585,702.03 0.00

$

-9,917.58 $

0.00

136,522.37

0.00

.4,678.03 -3 126.91

$ 128,155.91 $ ======o=.o=o=

See notes to the general-purpose financial statements. - 22 -

I
EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

662,904.03 $

678,092.47

$

847,836.69

1. ,338,207 .37

1,124,903.31

508,023.25

500,992.52

$

847.,836.69 $ 2,509,134.65 $ 2,303,988.30

$

690,220.23 $ 1,198,416.00 $ 1,186,497.80

44,978.95 34,671.44 23,878.22
5,344.37 473.48

92,314.14 60,350.28 23,878.22
5,344.37 473.48
1,090,005.74

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

41,019.62 7 250.38

41,019.62 7 250.38

25,000.00

$

847,836.69 $ 2,519,052.23 $ 2,408,894.59

$

0.00 $

-9,917.58 $ -104,906.29

110,517.00

$

0.00 $

-9,917.58 $

5,610.71

0.00

136,522.37

127,947.04

4,678.03 -3 126.91

1,566.34 1 398.28

0.00 $

128,155.91 $ ==1=3=6=,5=22=,3=7=

- 23 -

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

* 10.553 * 10.555

N/A

$ 103,850.25

(2)

N/A

322,172.13 $ 1,021,165.21 (3)

Total Child Nutrition Cluster

$ 426,022.38 $ 1,021,165.21

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition .Program Food Distribution Program (1)

10.550

N/A

64,348.30

64,348.30

Total U.S. Department of Agriculture

$ 490,370.68 $ 1,085,513.51

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

94.004

N/A $ 11,065.46 $

11,065.46

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B Special Education Capacity Building Grant Flow Through Preschool
Total Special Education Cluster

84.027 84.027 84.173

N/A $ 9,553.25 $

NIA

192,886.22

N/A

45,257.00

$ 247,696.47 $

9,553.25 192,886.22 45,257.00
247,696.47

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

84.348 84.010 84.281 84.318 84.298 84.340
84.048

N/A

33,361.39

33,361.39

N/A

302,194.95

302,194.95

N/A

23,305.42

23,305.42

N/A

125,000.00

125,000.00

N/A

19,457.00

19,457.00

N/A

60,000.00

60,000.00

NIA

25,756.00

$ 836,771.23 $

25,756.00 836,771.23

Total Federal Financial Assistance
N/A = Not Available

24

$ 1,338,207.37 $ 1,933,350.20

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

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 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA numbe_r.
The School District did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dade County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

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

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Ear1y1ntervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Category V Gifted Student- Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Costs Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer Program Lottery Program Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Reading First Program
Human Resources, Georgia Department of After School Program Drug Free and Prevention Family Connection Tobacco Use Prevention Project

See notes to the general-purpose financiai statements.

-26-

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 570,757.00 59,864.00
1,413,115.00 132,323.00 686,257.00
1,405,783.00 1,087,798.00
505,383.00
11,365.00 134,308.00 571,786.00 133,683.00
5,576.00 537,942.00 122,395.00 106,832.00 234-,610.00 64,024.00 1,548,024.00

$ 570,757.00 59,864.00
1,413,115.00 132,323.00 686,257.00
1,405,783.00 1,087,798.00
505,383.00
11,365.00 134,308.00 . 571,786.00 133,683.00
5,576.00 537,942.00 122,395.00 106,832.00 234,610.00
64,024.00 1,548,024.00

307,253.00 83,278.00 67,020.00 10,606.QO 18,732.00 199,167.00 851,272.00
$ 77,202.00 22,845.84
2,000.00 3,220.78
750.00 136,487.69
5,000.00 -153.00 29,876.00 3,592.63
53,595.00

307,253.00 83,278.00 67,020.00 10,606.00 18,732.00 199,167.00
851,272.00 77,202.00 22,845.84
2,000.00 3,220.78
750.00 136,487.69
5,000.00 -153.00 29,876.00 3,592.63
53,595.00

532,107.03

532,107.03

33,248.00

33,248.00

49,193.00
22,811.00 11,975.00 49,730.00 4,452.00

49,193.00
22,811.00 11,975.00 49,730.00 4,452.00

$ 11,244,181.94 $ 662,904.03 $ 1-1,907,085.97

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
. YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR(3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS

PROJECT STATUS

Retirement of Dade County School District General Obligation School Bonds dated June 1; 1990

$ 740,000.00 $ 1,093,953.13

$ 1,093,953.18 Com'pleted

1

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 6,355,090.05 $ 73,350.48 6,281,640.26 Completed

$ 7,900,000.00 $ 7,449,043.18 $ 73,350.48 $ 7,375,593.44

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

(2) The School District's current estimate of total cost for the projects. 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, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding

for the above projects as follows:



Prior Years

$ 690,906.25

Current Year

147,075.00

Total

$ 837,981.25

See notes to the general-purpose financial statements.

- 27 -

DADE COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM {QBE)
EARNINGS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category 111 Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program : Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

631,487.00 $ 590,712.g6 $

15,184.32 $

605,897.28

66,234.00

73,599.58

73,599.58

1,563,475.00 1,604,452.28

47,389.20

1,651,841.48

146,403.00

266,877.21

269.39

267,146.60

759,277.00

748,071.49

16,393.75

764,465.24

149.34

11,292.26

11,441.60

1,555,363.00 1,508,065.51

24,340.96

1,532,406.47

1,203,544.00 1,505,830.24

54,762.87

1,560,593.11

559,158.00

640,013.20

39,555.60

679,568.80

947,876.00

143,260.33

143,260.33

712,699.82

5,255.06

.717 ,954.88

106,995.91

106,995.91

17,799.08

17,799.08

595,180.00

651,879.15

1,030.24

652,909.39

135,418.00

215,825.96

215,825.96

118,199.00

162,456.80

677.05

163,133.85

$

8,281,614.00 $ 8,948,688.86 $ 216,150.70 $ 9,164,839.56

259,573.00 70,837.00

399,735.10 17,153.73

27,400.55 53,683.27

427,135.65 70,837.00

TOTAL QBE FORMULA FUNDS

$

8,612,024.00 $ 9,365,577.69 $ 297,234.52 $ 9,662,812.21

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

- 28-

t ,
DADE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
EARNINGS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE Dade Elementary School Dade County High School Davis Elementary School Dade Middle School . Dade County CrossRoads Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,945,151.00 $

3,237,240.01

2,144,605.00

2,637,707.84

1,110,178.00

1,237,227.31

1,963,481.00

1,974,966.22

77,016.73

118,199.00

681.45

$

8,281,614.00 $ ==9=,1=6=4=,8=3=9=5=6

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS
II
1

Russu.1. \\'. H1:-.ToN
STATE AUDITOR (40Ji 656-2174

.
.-
-~~ Hi:
~-
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington S1rcet. S.W., Suite 214 Atlanta. Georgia 30334-X400
February 14, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the 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, 200 I, and have issued our report thereon dated February 14, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether 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
2001YB-40

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its op.eration that we consider to be reportable conditions. 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 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. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6411-01-01 and FS-6411-01-02.
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 cours(;! 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, of the reportable conditions described above, we consider item FS-6411-0101 to be a material weakness.
This report is intended solely for the information and use of the 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 2001YB-40

State Auditor

', RussE1.1. \V. H1:s.ToN

1i

STATE AUDITOR

1,

fJQJ) 656-2174

I

" '

254 Washing1on S1rccl. S.\V.. Suite 214 Atlanta. Georgia 30334-8400
February 14, 2002.

Honorable Roy E. Barnes, Governor Members of the .General Assembly Members of the State Board of Education
and Superintendent and Members of the Dade County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR 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 U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Dade County"Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of 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 auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and (?MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major.Federal program occurred. An audit includes examining, on a test basis, evidence about the 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.
2001SA-10

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, 2001.

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

i

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 0MB Circular A-133.

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 solely for the information and use ofthe management, members ofthe 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,
-- ~.ih.k

RWH:gp 2001SA-10

State Auditor

i .

r :I

SECTION III 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, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6411-99-01 FS-6411-00-01

Further Action Not Warranted Unresolved - No _Corrective Action hnplemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6411-00-01

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

' .
'I
;1
d

SECTION IV FINDINGS AND QUESTIONED COSTS

DADE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001

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 financial statement reportable conditions related to the following control categories.

Employee Compensation

General Fixed Assets

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the 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 Dad~ 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 audito(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 .5 lO(a) of 0MB Circular A-133 The Dade County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

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

9. Low Risk Auditee The Dade County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.

- 1-

~----------------------------------------------
DADE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS:-6411-01-01
The Dade County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generallyaccepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, bui.ldings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
EMPLOYEE COMPENSATION Salary Overpayment/Underpayment Reportable Condition Amount: $10,173.81 Finding Control Number: FS-6411-01-02
A sample of forty-four employees' payroll records was examined to test the accuracy ofpayroll cost. Our testing revealed the following discrepancies:
1. The School District overpaid two employees during the 2000-2001 school year. The total overpayment amount of $10,257.13 was the result of salary payments that were not in agreement with School District approved pay schedules and signed cont~acts.
2. The School District underpaid one employee during the 2000-2001 school year. The underpayment amount of $83.32 was the result of a calculation error.
The School District should seek reimbursement ofoverpayments for deposit to the School District's Ge~eral Fund. Payment should be made to the employee that was underpaid.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-2 -