Audit report, DeKalb County Board of Education, Decatur, Georgia, year ended June 30, 1999

AUDIT REPORT DEKALB COUNTY BOARD OF EDUCATION
DECATUR, GEORGIA YEAR ENDED JUNE 30, 1999

DEKALB COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

E

COMBINED STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

~
2 4 7 8 9 10
26 28 30 32 34 35

DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION]

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING STATEMENTS

M

PROPRIETARY FUND TYPE- INTERNAL SERVICE FUNDS

COMBINING BALANCE SHEET

N

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

6

BY PROGRAM

llgr
36 37 39 42 44 45 47 48

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERJsAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
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! FINANCIAL

RussELL \\'. H1NTO~
STATE AUDITOR (4041656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2'.'4 \\,l',hrngton Strci.:L S.W.. Suill'21..:J. Atlanta, (jcorgia 303:,4_;,.:400
May 12,2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the DeKalb County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the DeKalb County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

99ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To confom1 to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not reco6wze as expenditures, in the year ended June 30, 1999. a portion of salaries
and the con-esponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30. 1999, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incun-ed, rather than when funds are received or disbursed.
* The Board did not record inventories of purchased foods and Federal donated commodities housed
at the various school sites in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
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 refen-ed to in the preceding paragraph, the general purpose financial statements refen-ed to above present fairly, in all material respects, the financial position of the DeKalb County Board of Education as of June 30, 1999, and the results of its operations and the cash flows of its proprietary funds 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 May 12, 2000, on our consideration of the DeKalb County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the DeKalb County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through N) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-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 presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.

RWH:gp 99ARL-13

Respectfully submitted,
~ ~ ~..4d:.::f:, RJsell W. Hinton
State Auditor

DEKALB COUNTY BOARD OF EDUCATION

DEKALB COUNTY BQARD QF EDUCATION COMBINED BALANCE SHEET
All FUND TYPES AND ACCQLJNT GROUP JUNE 30 1999

Cash and Cash Equivalents
Investments
Accounts Receivable
Notes Receivable
Inventories Food Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Compensated Absences

GENERAL FUND
34,856,582 91
13,004,589.22
942,709 60

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

10,374,144.22

64,309,273.53

1,641,945.55

61,990,54 t .29

3.120,711.09

13,491,842.16

150,000.00

Total Assets

$ 48803881.73 $ 15136800,86 $ 139941656.98

LIABILITIES ANO FLJNO EQUITY
~
Cash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Retained Eamings Reserved for Inventories Unreserved Deficit Undesignated
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Federal Capital Outlay For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Sett-Insurance Designated for Insurance Reserve Fund Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

16,845,249.08 895,557.91
152,525.54

2,132, 145.83 4,115,418.12
88,323.70

65,000,000.00
4,244,802.49 1,379,903.80

17,893 332.53

6 335 887.65 $ 70 624 706.29

1,246, 106.37 188,631.20 100,210.50
2,000,000.00 927,589.53
26 448 011.60 30 910 549.20

74,450.35
8 726 462.86 8 800 913.21

487,060.48 34,266,587.37 10,957,655.27
23 605,647.57 69 316 950.69

$ 48803881.73 $ 15136800.86 $ 139941,656.98

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

EXHIBIT ~A"

DEBT SERVICE
FUND 5,595 46
599.65

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUNDS
2,576,628 39
676,344 11

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30 1999

JUNE 30 1998

112,122,224.51

57,061,690.50

77,313,420.17

47,495,355.71

17,555,862.50

17,648,643 72

150,000.00

150,000 00

302,252.64

6,195 11

302,252.64 6,195.11

231,273.58 1.069.86

82,448,804.89 15,633,640.52 6 889 200.79

82,448,804.89 15,633,640.52
6 889 200.79

86,448.930 14 6,555,301.59 6 498 929.24

6 19511 $

302252.64 $ 3252972.50 $ 104977841.31 $ 312421601.13 $ 222091194.34

562,219.99 2,678.60 3,017.13

58,000.90

625 916.62 $

3,252,972.50

15,633.640.52 6,889,200.79 82 455 000.00

3 252 972.50 $ 104 977 841.31

562,219.99 18,980.073.51 5,013,993.16 65,000,000.00
240,849.24 58,000.90
4,244,802.49 1,379,903.80 3,252,972.50 15,633,640.52 6,889,200.79 82 455 000,00
203 710 656.90

265,867.33 15,577,532.92 4,802,601.33
197,810.05 130,346.21 3,962.322.11 1,193,387.38 3,536,487.00 6,555,301.59 6,498,929.24 86 450 000.00
129 170 585.16

302,252.64 -854,091.44 228,174.82
6,195.11

0.00 6195.11

0.00 -323 663.98

302,252.64
-854,091.44 228,174.82
1,246,106.37 263,081.55 6,195.11 100,210.50
487,060.48 34,266,587.37 10,957,655.27
2,000,000.00 927,589.53
58 780 122.03
108 710 944.23

231,273.58
-955,621.04 555,623.08
322,438.75 35,303.46 1,069.86 19,222.75
122,793.54 1,871,662.33 36,345,360.14 2,605,243.80
2,000,000.00 791,832.39
48 974 406.54
92920609.18

6195.11 $

302252.64 $ 3252972.50 $ 104977841.31 $ 312421601.13 $ 222091194.34

-3-

DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1999

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 Enterprise Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

GENERAL FUND

SPECIAL REVENUE
FUND

$ 271,320,839.29 $ 1,452,596.70
277,248,943.51 8 128 005.57

14,739,559.11 37,267,271.83
12 019 607.81

$ 558 150 385.07 $ 64 026 438.75

$ 358,154,361.16 $ 23,359,728, 73

28,249,659.86 27,433,844.76 13,274,183.96
3,415,747.08 32,029,541.85 15,804,779.21 51,021,062.80 25,149,453.52
9,050,649.64 132,958.22 87,190.79
5,860.81

3,006,732.35 1,836,640.60
35,491.28 27,386.46 322,084.03
1,947.23 29,655.92 84,826.00 185,784.59
32,233,178.99 833,757.03

1,570,776.74 350,350.59

2,065,024.78 323,539.02

$ 565,730,420.99 $ 64,345, 777,01

$ -7,580,035.92 $

-319 338.26

$ 12,714,140.45 $
-6 783 649.16
$ 5 930 491.29 $

2,056,882.96 2,056 882.96

$ -1,649,544.63 $ 32,560,093.83

1,737,544.70 7,063,368.51

FUND BALANCE JUNE 30

$ 30 910,549.20 $_.,;8;,e,8=0"'0:.:;,9.,;13=.2~1~

The notes to the general purpose financial statements are an integral part of this statement. -4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only}

YEAR ENDED

JUNE 30 1999

JUNE 30 1998

10,126,475.90 34,200.25
72,842,979.70 $ 2 860 134.04
$ 85,863,789.89 $

$ 296,186,874.30 $ 272,460,105.09

38,754,068.78

35,464,338.58

8,372,183.13

358,464,106.34

326,349,276.66

23 007 747.42

19 947 463.22

8 372 183.13

716 412 796.84 $ 654,221,183.55

$

153,988.41

74,584,418.35 $
$ 74 738 406.76 $ $ 11125383.13 $

381,514,089.89 $ 364,274,431.74

31,256,392.21 29,270,485.36 13,309,675.24 3,443,133.54 32,351,625.88 15,960,714.85 51,050,718.72 25,234,279.52 9,236,434.23
132,958.22 32,320,369.78
833,757.03 74,590,279.16

26,922,060.74 27,420,960.90 12,858,311.46 3,336,868.25 29,428,550.58 4,870,614.67 44,978,351.09 24,948,795.92 11,738,741.31
72,189.63 30,087,721.87
746,696.57 30,328,982.58

3,995,000.00 4,368,598.75
3 459.13

7,630,801.52 5,042,488.36
3 459.13

10,638,551.71 5,226,105.22
14 452.53

8,367,057.88 $ 713,181,662.64 $ 627,892,386. 77

5125.25 $ 3,231,134.20 $ 26,328,796.78

$ 4,726,766.20 $ 4 726 766.20 $ 15,852,149.33 $
53 464 801.36

$ 12,714,140.45 $ 8,508,853.30

6,783,649.16

9,785,579.93

-6,783,649.16

-10,085,579.93

$ 12 714 140.45 $ 8,208,853.30

5,125.25 $ 15,945,274.65 $ 34,537,650.08

1 069.86

93,089,333.56

58,551,683.48

$ 69,316,950.69 $

6,195.11 $ 109,034,608.21 $ 93,089,333.56

-5-

DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 1999

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 254,995,997.00 1,195,284.00
268,329,823.00 7,589,406.00

$ 271,320,839.29 1,452,596.70
277,248,943.51 8,128,005.57

Tota! Revenues

$ 532,110,510.00 $ 558,150,385.07

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 Enterprise Operations
Capital Outlay Debt Service

$345,731,715.00
25,401,873.00 27,740,217.00 13,464,071.00
2,951,629.00 30,227,660.00
5,031,064.00 45,811,271.00 25,075,280.00 10,755,146.00
43,513.00 94,273.00

358,154,361.16
28,249,659.86 27,433,844.76 13,274,183.96
3,415,747.08 32,029,541.85 15,804,779.21 51,021,062.80 25,149,453.52
9,050,649.64 132,958.22 87,190.79
5,860.81 1,921,127.33

Total Expenditures

$ 532,327,712.00 $ 565,730,420.99

Excess of Revenues over (under) Expenditures

$ -217,202.00

-7,580,035.92

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

2,090,000.00 $ 12,714,140.45

-1,939,117.00

-6,783,649.16

Total Other Financing Sources (Uses)

$ 150,883.00 $ 5,930,491.29

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

-66,319.00

-1,649,544.63

FUND BALANCE JULY 1 1998

30,718,768.00

32,560,093.83

FUND BALANCE JUNE 30 1999

$ 30,652,449.00 $ 30,910,549.20

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

S 13,416,403.00 35,964,287.00

14,739,559.11 37,267,271.83

12,130,319.00 12,019,607.81

$ 61,511,009.00 $ 64,026,438.75

$ 24,659,614.00 $ 23,359,728.73

2,683,701.00 2,154,072.00
35,087.00 11,928.00 257,442.00
11,088.00 4,000.00
148,066.00

3,006,732.35 1,836,640.60
35,491.28 27,386.46 322,084.03
1,947.23 29,655.92 84,826.00 185,784.59

31,773,151.00 849,416.00

32,233,178.99 833,757.03

2,388,563.80

$ 62,587,565.00 $ 64,345,777.01

$ -1,076,556.00 $ -319,338.26

2,099,117.00 -550,000.00

2,056,882.96

$ 1,549,117.00 $ 2,056,882.96

$ 472,561.00 7,458,226.00

1,737,544.70 7,063,368.51

$ 7,930,787.00 $ 8,800,913.21

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

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "D"

COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS

YEAR ENDED JUNE 30 1999

OPERATING REVENUES Group Dental Premiums Sales-Food Supplies Total Operating Revenues
OPERATING EXPENSES Current Enterprise Operations Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Income Before Transfers
TRANSFERS FROM OTHER FUNDS Net Income (Loss)
RETAINED EARNINGS JULY 1 Inventory - Net Change in Period
RETAINED EARNINGS JUNE 30

DENTAL RESERVE
FUND

WAREHOUSE SERVICE FUND

TOTALS (Memorandum Onl~!
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

s 2,861,046.62

$ 2,861,046.62 $ 2,983,642.56

$ 1,439,574.78

1,439,574.78

1,469,356.13

$ 2,861,046.62 $ 1,439,574.78 $ 4,300,621.40 $ 4,452,998.69

$ 2,759,517.02 $ 1,773,273.38 $ 4,532,790.40 $ 4,242,628.98 $ 101,529.60 $ -333,698.60 $ -232, 169.00 $ 210,369.71

6,250.34

6,250.34

2,138.71

$ 101,529.60 $ -327,448.26 $ -225,918.66 $ 212,508.42

300,000.00

$ 101,529.60 $ -327,448.26 $ -225,918.66 $ 512,508.42

-955,621,04

786,896.66

-168,724.38

-653,141.61

70,979.06

70,979.06

-28,091.19

$ -854,091.44 $ 530,427.46 $ -323,663.98 $ -168,724.38

The notes to the general punpose financial statements are an integral part of this statement. -8-

DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30 1999

EXHIBIT "E"

Cash Flows from Operating Activities: Cash Received from Premiums Cash Paid for Sales Food Supplies Cash Paid for Group Dental Claims Cash Paid for Group Dental Processing Fees
Net Cash Provided (Used) by Operating Activities
Cash Flows from Noncapital Financing Activities: Transfers from Other Funds
Cash Flows from Investing Activities: Interest Received on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

DENTAL RESERVE
FUND

WAREHOUSE SERVICE FUND

TOTALS (Memorandum Onl)'.)
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 2,861,046.62 $ 1,439,574.78 $ 4,300,621.40 $ 4,452,998.69

-1,771,362.07

-1,771,362.07

-1,473,264.41

-2,535,320.92

-2,535,320.92

-2,711,871.35

-296,541.41

-296,541.41

-240,043.18

$

29,184.29 $ -331,787.29 $ -302,603.00 $

27,819.75

$ 300,000.00

$

6,250.34 $

6,250.34 $

2,138.71

$

29,184.29 $ -325,536.95 $ -296,352.66 $ 329,958.46

-825,274.83

559,407.50

-265,867.33

-595,825. 79

Cash and Cash Equivalents - June 30

$ -796,090.54 $ 233,870.55 $ -562,219.99 $ -265,867.33

Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Decrease in Accounts Payable Decrease in Claims Payable Increase in Accounts Payable

$ 101,529.60 $ -333,698.60 $ -232, 169.00 $ 210,369.71

-45.29

-72,345.31

-72,345.31

-182,504.67

1,911.31

1,911.31

Net Cash Provided (Used) by Operating Activities

$

29,184.29 $ -331,787.29 $ -302,603.00 $

27,819.75

The notes to the general purpose financial statements are an integral part of this statement. -9-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The DeKalb County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To 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 of a Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation and from the Federal government to accomplish specific educational objectives.
- 10 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees.
PROPRIETARY FUND TYPE - the funds used to account for activities ofthe Board similar to those found in the private sector, where cost recovery and the determination of net income is useful or necessary for sound fiscal management. Internal Service funds are a type of proprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the Board.
INTERNAL SERVICE FUNDS Dental Reserve Fund - the fund used to account for the Board's dental insurance risk financing and related activities.
Warehouse Service Fund - the fund used to account for food inventories purchased by the Board for the School Food and Nutrition Program and Athletic Fund.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, accrued compensated absences 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 of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
- 11 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement of results of operations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities 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 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 1999, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities.

- 12 -

DEKALB CQl JNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note I: S1 JMMARY OF SIGNIFICANT ACC01 JNTJNG POLICIES
BUDGET
The DeKalb County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the functional/object/project/program level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,

"13"

DEKALB cm JNTY BOARD OF EDl )CATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAi STATEMENTS

JUNE 30 1999

Note I: Sl JMMA RY OF SIGNIFICANT ACCOl lNTING POLICIES

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State ofGeorgia.

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.

NOTES RECEIVABLE

The notes receivable consists ofa promissory note from Yeshiva High School, Incorporated for the purchase of property from the Board. The maturity date for the note is October 30, 2000, and the note is earning interest at 7.75% per annum.

PROPERTY TAXES

The DeKalb County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on June 9, 1998 (levy date). Taxes were due on November 15, 1998 and could be paid in two installments on August 15, 1998 and November 15, 1998 (due dates). The lien date for property taxes was January I, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The DeKalb County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 1.9% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1998 tax year (calendar year) for the DeKalb County Board of Education was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

- 14-

22.48 mills

DEKALB COUNTY BOARD OF EDl !CATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 $81,209,355.70 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $343,351.617.98 has been collected or on June 30, 2002, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories reported on the Combined Balance Sheet are comprised of purchased bulk commodities for resale to individual school lunchrooms within the DeKalb County School system and are valued at cost (first-in, first-out). The Board uses the purchase method to account for these inventories whereby expenditures are recorded at the time of purchase. Such inventories are maintained as a part of an Internal Service Fund and are equally offset with a corresponding reservation of fund balance as this amount is not available for discretionary expenditures.
Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Other purchased foods inventories housed at the various school lunchrooms are recorded as revenue and expenditures at the time they are received at cost. Inventories of donated food commodities and other purchased foods housed at the various school lunchrooms used in the preparation of meals are not reported on the Combined Balance Sheet. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
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.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

- 15 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows 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.

DEFICIT FUND BALANCE

The fund reporting a deficit fund balance position at June 30, 1999, is as follows:

Fund TyPe/Fund Name

Deficit Balance

Proprietary Fund Type Internal Service Fund Dental Reserve Fund

$ 854 091.44

In the subsequent period, the Board has budgeted an additional $700,000.00 oflocal funds for the purpose ofreducing the Dental Reserve fund deficit.
Note 2 DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 (b) provii:les an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.

- 16 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note 2: DEPOSITS AND INVESTMENTS
Acceptable security for deposits consists of any one of or any combination of the following:
(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $145,787,691.94. The amounts of the total bank balances are classified into three categories of credit risk:
Category I - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the 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, 1999, as follows:

- 17 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 1,008,251.39

2

137,636,222.66

3

7,143,217.89

Total

$145 787 691.94

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1999, the carrying value of the Board's total investments was $59,813,420.17. The investments are classified as to risk categories as follows:

Type of Investment
U. S. Government Banker's Acceptance's
Total
Local Government Investment Pool
Total Investments

Risk Categories

Carrying
Amount

Fair Value

$20,000,000.00 20 748 554.82

6,000,000.00

0.00 $26,000,000.00 $ 26,000,000.00 20 748 554.82 20 748 554.82

$ 40 748 554.82 $ 6000 000.00 $.=-==0.00 $46,748,554.82 $46,748,554.82

IJ 0~4 8~5 J5 IJ 04 8~5 J5
$ ~2 81J 4jQ.IZ s 52 sp 4,0.11

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

- 18 -

DEKALB COUNTY BOARD OF EDUCATJON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS
The Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund I is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund I may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund I on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation; and dental claims.
The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

- 19 -

DEKALB COUNTY BOARD OF EDUCATJON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for workers' compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

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

1998 1999

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.Q0 $ 1 452,544.02, $ I 452 544.02 $

0.00

$

ms 0.00 $ 2 Q38 543.86 $ 2 54H6 $

Q.00

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

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

1998 1999

Beginning of Year Liability

Claims and Changes in Estimates

$

0.QQ $

33 595.48 $

$

0.QQ $ 22 857.QQ $

Claims Pajd

End of Year Liability

33 525.48 $

Q.Q0

22 852.00 $

0.Q0

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

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

1998 1999

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Ljabi]jty

$ 312 BSQ.88 $ 2 522 ;\66.!!8 $ 221187135 $ 130 346.21 $ 130 34(i 21 $ 2462 972-6! $ 2 535 32Q.22 $ 58 Q00.90

-20-

DEKALB cm :NTY BOARD OF EDl )CATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note 4: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent All Other Employees

$ 100,000.00 $ 500,000.00

Note 5: OPERATING LEASES

The DeKalb County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1999, amounted to $1,106,057.23. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2000 2001 2002 2003

$ 1,106,057.23 1,106,057.23 1,106,057.23 150 397.91

Total

$ 3.468 569.60

Note 6: GENERAL LONG-TERM DEBT

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

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

Purpose

Interest Rates

Amount

General Government - Series 1993A General Government - Refunding - Series 1993

2.80% - 6.25% 2.80% - 5.60%

$45,905,000.00 36,550 000.00

$82 455 000,00

- 21 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL Pl JRPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note 6: GENERAL LONG-TERM DEBT

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 1999, were as follows:

Balance July 1, 1998
Additions Capital Leases Annual Leave Earned and Utilized (Net)
Deductions Debt Retired Payments
Balance June 30, 1999

Capital Leases

Compensated Absences

General Obligation
Bonds

Total

$ 6,555,301.59 $ 6,498,929.24 $ 86,450,000.00 $ 99,504,230.83

12,714,140.45

390,271.55

12,714,140.45 390,271.55

3 635 801.52

3,995,000.00

3,995,000.00 3 635 801.52

S15 ~33 640.52 $ 6 889 200.79 $ 82 455 000.00 $104 977 841 31

At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2000 2001 2002 2003 2004 2005 - 2009 2010 - 2012
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Futute Minimum Lease Payments

Capital
Leases

General Obligation
Bonds

Total Debt

$ 5,318,982.04 5,632,495.73 3,243,931.94 1,773,394.36 940,541.10

$ 8,494,643.75 8,875,330.63 8,930,611.26 9,050,016.26 9,102,687.51
47,291,786.90
22 013 871 25

$ 13,813,625.79 14,507,826.36 12,174,543.20 10,823,410.62 10,043,228.61 47,291,786.90 22 013 871 25

$16,909,345.17 $113758947.56 $130668292.73

1 275 704.65

$15 633 640.52

Note 7: LOAN PAYABLE

At June 30, 1999, a short-term debt (temporary loan) amounted to $65,000,000.00 with interest accruing at 2.875 percent. The aggregate amount of temporary loans is limited to 75 percent of the total gross income from taxes collected in the preceding year and all temporary loans must be repaid no later than December 31 of the calender year in which the loan was made.

- 22 -

DEKALB COUNTY BOARD OF EDl JCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 10 1999

Note 8: PRIOR YEAR DEFEASEMENT OF DEBT
In fiscal years 1992 and 1993, 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, I999, $270,000.00 of bonds are outstanding and are considered defeased.
Note 9: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $9,827,250.53 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.
Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$7,377,085.47
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$1,319,021.06
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$1,131,144.00
Note I 0: SIGNIFICANT COMMITMENTS
The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999, together with funding available:

- 23 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GEl\'ERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note I0: SJGN!FJCANT COMMJTMENTS

Project

Unearned Executed CQntra!;ts

Funding Available FrQrn State

GSFIC 99-644-076 GSFIC 99-644-077 GSFIC 99-644-078 GSFIC 00/99S-644-077 GSFIC 00G/99S-644-039 Lottery O0G/99S-644-018 Lottery 99G/98S-644-039 Lottery 99G/98S-644-04 l Lottery 99G/99S-644-040 343-Rock Chapel Elementary 640-Hightower Elementary 703-Forest Hill Elementary 705-Cary Reynolds Elementary 707-Cedar Grove High 708-Salem Middle 709-Stone View Elementary 711-Woodward Elementary 718-Druid Hills High

$ 840,544.45 13,329,977.19
483,379.33 15,282,128.75
198,516.24 97,799.12 319,223.00
410.40 3,702.00 62,288.15 5,011.00 1,259.24 250,429.00
85 242 00

$ 6,674,818.00 7,191,801.00 7,191,801.00 8,818,672.00 8,818,672.00 4,225,770.00 404,595.00 7,191,801.00 719,180.10

$30.959.909 87 $~I 232 110.rn

The amounts described in this note are not reflected in the general purpose financial statements.

Note 11: CONTINGENT LIABILITIES

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

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

NQte 12: SUBSEQUENT EVENTS
In the subsequent fiscal year, the DeKalb County School District Tax Anticipation Notes, Series 2000, was issued with a par value of $100,000,000.00. The Notes were issued for the purpose of paying expenses of

-24-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL Pl JRPOSE FINANCIAL STATEMENTS

JUNE 30 1999

Note 12: SUBSEQUENT EVENTS

the School District related to the acquisition, construction, renovation and equipping of schools and school related facilities and must be repaid no later than December 31, 2000.

Note 13: ACCUMULATED EMPLOYEES' LEAVE

Full-time twelve month employees earn annual leave ranging from ten to twenty days per year depending on the employees' length of continuous service with a maximum accumulation ofsixty days. Employees are paid up to the maximum accumulation, for unused accumulated annual leave at their current rate of pay upon retirement or termination of employment.

Full-time employees earn one and one-quarter days of sick leave each month with a maximum accumulation of one hundred ninety days. Employees are paid between $3.00 and $9.00 per day for unused sick leave which may range from twenty-six days to one hundred ninety days upon retirement or termination of employment. See Note 1 - Compensated Absences

Note 14 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
1999 1998 1997

Percentage
Contributed
100% 100% 100%

Required
Contribution
$46,881,118.70 $43,398,955.32 $40,623,465.62

- 25 -

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

$ 8,251,639.14 $ 1,208,818.25 $

702,826.88

1,641,945.55

1,058,926.37

2,059,843.97

Total Assets

$ 10,952,511.06 $ 1,208,818.25 $ 2,762,670.85

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs Unreserved Undesignated
Total Fund Equity

$ 749,313.03 $ 1,483,764.25

370,583.05 $ 834,790.17
3,445.03

858,823.31 1,744,518.52
84,878.67

$ 2,233,077.28 $ 1,208,818.25 $ 2,688,220.50

$

74,450.35

$ 8,719,433.78 $ _ _ _-'-0.~00~

0.00

$ 8,719,433.78 $

0.00 $ _ _ _74~,4_5_0_.3_5_

Total Liabilities and Fund Equity

$ 10,952,511.06 $ 1,208,818.25 $ 2,762,670.85

See notes to the general purpose financial statements.

-26-

EXHIBIT"G"

OTHER PROGRAMS

ATHLETIC FUND

TOTALS JUNE 30, 1999 JUNE 30, 1998

$

89,098.40 $ 121,761.55 $ 10,374,144.22 $ 4,235,212.50

1,641,945.55

5,867,517.28

1,940.75

3,120,711.09

3,375,688.72

$

89,098.40 $ 123,702.30 $ 15,136,800.86 $ 13,478,418.50

$ 600,466.78

$

36,753.22 $ 116,67322 $ 2,132,145.83

1,718,002.15

52,345.18

4,115,418.12

4,009,574.47

88,323.70

87,006.59

$

89,098.40 $ 116,673.22 $ 6,335,887.65 $ 6,415,049.99

$

74,450.35 $

5,814.64

$

0.00 $

7,029.08

8,726,462.86

7,057,553.87

$

0.00 $

7,029.08 $ 8,800,913.21 $ 7,063,368.51

$

89,098.40 $ 123,702.30 $ 15,136,800.86 $ 13,478,418.50

-27-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1999

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services Operation Enterprise Operations
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

$ 2,095,052.00 $ 20,321,841.02 11,284,924.40

7,917,112.11 $ 3,235,726.00 16,945,430.81

$ 33,701,817.42 $ 7,917,112.11 $ 20,181,156.81

$ 6,757,180.40 $ 16,035,165.10

372,939.10 40,248.98

2,281,058.24 1,337,971.75
19,893.62 27,386.46 257,938.03

$

655.82

32,233,178.99

2,437.05 76,326.00

2,623.05 1,000.00 185,784.59

2,065,024.78 323,539.02

$ 32,233,834.81 $ 9,637,695.33 $ 20,148,820.84

$ 1,467,982.61 $ -1,720,583.22 $

32,335.97

$ 300,000.00 $ 1,720,583.22 $ $ 300,000.00 $ 1,720,583.22 $

36,299.74 36,299.74

$ 1,767,982.61 $ 6,951,451.17

0.00 $ 0.00

68,635.71 5,814.64

$ 8,719,433.78 $

0.00 $

74,450.35

See notes to the general purpose financial statements.

-28-

EXHIBIT "H"

OTHER PROGRAMS

ATHLETIC FUND

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 1,491,669,00 $
$ 1,491,669.00 $

$ 14,739,559.11 $ 14,943,587.27 37,267,271.83 34,461,224.53
734,683.41 12,019,607.81 11,011,181.96
734,683.41 $ 64,026,438.75 $ 60,415,993.76

$ 567,383.23
352,735.01 458,419.87
15,597.66
64,146.00 1,947.23
23,940.00 7,500.00
$

$ 1,491,669.00 $

$

0.00 $

$ 23,359,728.73 $ 29,651,674.02

833,757.03

3,006,732.35 1,836,640.60
35,491.28 27,386.46 322,084.03
1,947.23 29,655.92 84,826.00 185,784.59 32,233,178.99 833,757.03

2,803,359.80 2,023,485.55
67,737.32 11,175.72 246,683.78 1,104.25 22,919.60 12,440.42 135,971.41 29,967,780.43 746,696.57

2,065,024.78 323,539.02

1,953,551.71 435,012.09

833,757.03 $ 64,345,777.01 $ 68,079,592.67

-99,073.62 $ -319,338.26 $ -7,663,598.91

$ 8,508,853.30

$ 2,056,882.96

770,234.57

$ 2,056,882.96 $ 9,279,087.87

$

0.00 $ -99,073.62 $ 1,737,544.70 $ 1,615,488.96

0.00

106,102.70

7,063,368.51

5,447,879.55

$

0.00 $

7,029.08 $ 8,800,913.21 $ 7,063,368.51

-29-

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Notes Receivable
Total Assets

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

3,998.76 $ 11,891,105.97

$ 6,236,427.17

511,664.80

150 000.00

$ 6 386 427.17 $

515 663.56 $ 11 891 105.97

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Notes Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Federal Capital Outlay Projects For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Un designated
Total Fund Equity
Total Liabilities and Fund Equity

$ 4,280,657.69 130,280.68 $
$ 4,410,938.37 $

28,603.08 $

933,450.70

28 603.08 $

933 450.70

$
$ 1,975,488.80 $ 1 975488.80 $

487,060.48

$ 10,957,655.27

0.00

0.00

487 060.48 $ 10,957,655.27

$ 6,386,427.17 $

515 663.56 $ 11 891 105.97

See notes to the general purpose financial statements.

-30-

EXHIBIT"!"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

FEDERAL PROJECTS

LOTTERY PROJECTS

TOTALS

JUNE 30 1999

JUNE 30 1998

$ 32,815,242.57 $

0.00 $ 23,879,583.92 $ 68,589,931.22 $ 24,503,603.65

55,242,449.32

61,990,541.29

21,266,167.92

13,491,842.16

13,491,842.16

12,700,739.28

150 000.00

150 000.00

$ 101 549 534.05 $

0.00 $ 23,879,583.92 $ 144,222,314.67 $ 58 620 510,85

$ 65,000,000.00 2,046,049.68 236 897.00
$ 67,282,946.68

$ 4,280,657.69

65,000,000.00

$ 1,106,418.35

4,244,802.49 $ 3,962,322.11

1,143,006.80

1,379,903.80

1 193 387.38

$ 2,249,425.15 $ 74,905,363.98 $ 5 155 709.49

$ 34,266,587.37 0.00 $
$ 34,266,587.37 $
$ 101,549,534.05 $

$

122,793.54

$

487,060.48

1,871,662.33

34,266,587.37

36,345,360.14

10,957,655.27

2,605,243.80

0.00 $ 21,630,158.77

23,605,647.57

12 519 741,55

0.00 $ 21,630, 158.'77 $ 69,316,950.69 $ 53,464,801.36

0.00 $ 23,879,583.92 $ 144,222,314.67 $ 58,620,510.85

-31 -

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1999

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURQES (USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

12,500.00

34,200.25

391 003.36 $

$

437 703.61 $

$
37411.78 37411.78 $

0.00 0.00

$ 1,000,000.00 $ 10,303,569.40 1,243,855.18
$ 12,547,424.58 $
$ -12,109,720.97 $

1,000,000.00 $ 284,370.65 16 518.29
1,300,888.94 $
-1,263,477.16 $

1,337,413.18 4,378,901.07
5 716 314.25 -5,716,314.25

$ 5,513,637.95 $ -3 060.10
$ 5,510,577.85 $

603.19 $ -161 414.00
-160 810.81 $

14,584,812.50 -169 741.14
14415071.36

$ -6,599,143.12 $ 8,145,178.86 429453.06

-1,424,287.97 $ 1,871,662.33
39 686.12

8,698,757.11 2,605,243.80
-346 345.64

FUND BALANCE JUNE 30

$ 1,975,488.80 $

487 060.48 $

10,957,655.27

See notes to the general purpose financial statements.

-32-

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

FEDERAL PROJECTS

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30 1999

JUNE 30 1998

s
72,842,979.70 2 431 718.90
$ 75 274 698.60 $

10,113,975.90 $ 10,126,475.90

350,049.74

0.00

34,200.25

72,842,979.70

66,430,538.38

2 860 134.04

1086319.17

0.00 $ 10 113 975.90 $ 85 863 789.89 $ 67 867 007.29

$

153,988.41

2,005,328.50 $ 20,143,724.51
8 690 035.75

$ 30 993 077.17 $

$ 44 281 621.43 $

$

153,988.41

0.00 $

1,391,337.02 22,674,660.93
114 703.87

6,734,078.70 $ 57,785,226.56 10 065113.09

6,004,431.73 21,856,299.55
2 468 251.30

0.00 $ 24 180 701.82 $ 74 738 406.76 $ 30 328 982.58

0.00 $ -14 066 725.92 $ 11125 383.13 $ 37 538 024.71

-46 360 394.20 $ -46 360 394.20

32,265,624.00 $ 52,364,677.64 $ 24,104,961.83

.943 302.00

-47 637 911.44

-15 089 616.47

$ 31 322 322.00 $ 4 726 766.20 $ 9 015 345.36

$ -2,078,772.77 $ 36,345,360.14

0.00 $ 17,255,596.08 $ 15,852,149.33 $ 46,553,370.07

122,793.54

4,374,562.69

53,464,801.36

6,911,431.29

-122 793.54

0.00

0.00

$ 34 266 587.37 $

0.00 $ 21 630 158.77 $ 69 316 950.69 $ 53 464 801.36

-33

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

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 1999

EXHIBIT"K"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30 1999

JUNE 30 1998

2,818.21 $

2,777.25 $

5,595.46 $

1,065.95

599.65

599.65

3.91

3.417.86 $

2 777.25 $

6195.11 $=====1.,.0.6.9==86""'

3,417.86 $ 0.00

2,777.25 $ 0.00

6,195.11 $ 0.00

1,069.86 0.00

3 417.86 $

2 777.25 $

6195.11 $-=~1=0=69=.8_6__

See notes to the general purpose financial statements.

- 34-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30 1999

EXHIBIT "L"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30 1999

JUNE 30 1998

$

5,807.13 $ 8,366,376.00 $ 8,372,183.13 $ 5,345,864.79

258 723.34

s

5807.13 $ 8 366 376.00 $ 8 372183.13 $ 5 604 588.13

$ 3459.13

3,995,000.00 $ 4,368,598.75

3,995,000.00 $ 4,368,598.75
3 459.13

8,685,000.00 4,791,093.13
14 452.53

$

3 459.13 $ 8,363,598.75 $ 8,367,057.88 $ 13,490,545.66

$

2,348.00 $

2,777.25 $

5,125.25 $ -7,885,957.53

1 069.86

0.00

1 069.86

7,887,027.39

FUND BALANCE JUNE 30

3 417.86 $

2 777.25 $

6195.11 $

1 069.86

See notes to the general purpose financial statements.

-35-

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUNDS JUNE 30 1999

EXHIBIT "M"

ASSETS Cash and Cash Equivalents Inventories
Total Assets

DENTAL RESERVE
FUND

WAREHOUSE SERVICE FUND

0.00 $

233,870.55

302 252.64

TOTALS

JUNE 30 1999

JUNE 30 1998

s 233,870.55

559,407.50

302 252.64

231 273.58

0.00 $

s 536123.19

536123.19 $

790 681.08

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Claims Payable
Total Liabilities
FUND EQUITY
Retained Earnings Reserved For Inventories Unreserved Deficit Undesignated
Total Fund Equity

$

796,090.54

$

58 000.90

$

854 091.44 $

2,678.60 3,017.13
5 695.73 $

796,090.54 $ 2,678.60 3,017.13 58 000.90
859 787.17 $

825,274.83 1,763.12 2,021.30
130 346.21
959 405.46

$

$

-854,091.44

0.00

$

-854 091.44 $

302,252.64 $
228 174.82 530 427.46 $

302,252.64 $
-854,091.44 228,174.82
-323,663.98 $

231,273.58
-955,621.04 555,623.08
-168 724.38

Total Liabilities and Fund Equity

$

0.00 $

536123.19 $

536123.19 $

790 681.08

See notes to the general purpose financial statements.

-36-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30 1999

EXHIBIT"N"

ARMORED CAR SERVICE ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others
EMPLOYEE'S ALTERNATIVE BENEFIT FUND ASSETS
Cash and Cash Equivalents Investments
Total Assets

BALANCE JULY 1, 1998

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1999

0.00 $

110215.00 $

110,215.00 $===="0.a;Oa;.D

0.00 S

110215.00 $

110,215.00 s===-"o".o~o

562,427.53

31,330,625.50 $ 31,659,001.16 $

1 458.32 - - - - - -

1 458.32

234,051.87 0.00

563885.85 $ 31,330,625.50 $ 31660459.48 $ ___2..34"""0"'51._.8=7=

LIABILITIES Funds Held for Others

563 885.85 $ 31,330,625.50 $ 31660459.48 $===23._4.;0;.;5;,;,1;;;.8-=7

HEALTH SELF-INSURANCE TRUST FUND ASSETS
Cash and Cash Equivalents Investments
Total Assets

352, 159,73 2,621,854.95

1,985,358.81

$ 1 945 510.84

2,337,518.54 676 344.11

2 974 014.68 $ 1 985 358.81 $ 1 945 510.84 $ 3,013,862.65

LIABILITIES Funds Held for Others

2 974 014.68 $ 1,985,358.81 $ 1 945 510.84 $ 310131862.65

RETIRED EMPLOYEE'S MEDICAL INSURANCE
ASSETS Cash and Cash Equivalents

-1 044.86 $

15 828.58 $

10 990.34 $===='3_.7.9..3."'38._

LIABILITIES Funds Held for Others

-1 044.86 $

15 828.58 $

10 990.34 $===='3"'7"'9"3.,,38,..

-37

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE -AGENCY FUNDS YEAR ENDED JUNE 30 1999

EXHIBIT"N"

SALES TAX ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY1,1998

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 1999

1,185.67 $

2 381,22 $

3 258.89 $

308.00

1 185,67 $

2 381,22 $

3 258,89 $

308,00

ATHLETIC FUND SALES TAX ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

-1 765.59 $

1 765.59 $

-1 765.59 $

1 765,59 $

0.00 $ 0,00 $

0,00 0.00

STUDENT INSURANCE ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

$

211.25 $

4 705,35 $

3 960,00 $

956.60

$

211,25 $

4 705,35 $

3 960.00 $

956.60

TOTALS-AGENCYF~NDS ASSETS
Cash and Cash Equivalents Investments
Total Assels

$

913,173.73 $ 33,450,880.05 $ 31,787,425.39 $ 2,576,628.39

2,623,313.27

1,946,969.16

676 344.11

$ 3,536,487.00 $ 33,450,880.05 $ 33,734,394.55 $ 3,252,972.50

LIABILITIES Funds Held for Others

$ 3,536,487.00 $ 33,450,880.05 $ 33,734,394.55 $ 3,252,972.50

See notes to the general purpose financial statements.

-38-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1999

SCHEDULE "1 ~

FUNDING AGENCY PROGRAM/GRANT
Agncu!ture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant
Total Child Nutrition Cluster
Other Program Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1 )
Total U.S. Department of Agriculture
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 1999 Grant Georgia Leaming Resources System 1999 Grant Preschool 1999 Grant Severely Emotionally Disturbed 1999 Grant
Total Special Education Cluster
Other Programs Direct After School Leaming Centers 1999 Grant Impact Aid 1999 Grant Pass-Through From Georgia Department of Education Elementary and Seoondary Education Act Title I Grants to Local Educational Agencies 1998 Grant 1999 Grant Title II Eisenhower Professional Development 1998 Grant 1999 Grant Title Ill Technology Literacy Challenge Fund Grants 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant Title VII Immigrant Education 1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

NIA

$

3,707,085.88

NIA

14,696,879.38

18,403,965.26

(2) 30,315,959.05 (3) 30,315,959.05

10.550

NIA

1,917,875.76

1,917,875.76

$ 20,321,841.02 $ 32,233,834.81

84.027 84.027 84.173 84.027

NIA

$

3,462,895.47 $

3,462,895.47

NIA

168,534.27

168,534.27

NIA

513,471.02

513,471.02

NIA

496,288.32

496,288.32

$. 4,641,189.08 $ 4,641,189.08

84.287 84.041

208.494.32 21,562.99

208,494.32 (4)

84.010

NIA

84.010

NIA

84.281

NIA

84.281

NIA

84.318

NA

84.298

NIA

84.162

NIA

-39-

9,136,025.56
320,009.22 137,538.69 470,630.46 265,116.12

0.45 9,136,025.56
5,814.19 320,009.72 (3)
137,538.69
470,630.46
255,741.45

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAMIGRANT
Education, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act TitleX Publi'c Charter Schools 1999 Grant Georgia Learning Resources System Individuals with Disabilities Education Act Special Education PartD Personnel Development and Parent Training 1999 Grant Safe and Drug-Free Schools and Communities 1999 Grant Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant
Total U. S. Department of Education
Federal Emergency Management Agency Pass-Through From Office of the Governor Disaster Assistance
Health and Human Services, U. s. Department of Pass-Through From Georgia Department of Human Resources Block Grant for Prevention and Treatment of Substance Abuse 1999 Grant
Justice, U.S. Department of Pass-Through From Children and Youth Coordinating Council Community Enrichment Through Family Empowennent 1999 Grant
Labor, U. S. Department of Pass-Through From DeKalb County Private Industry Council Job Training Partnership Act Contract No. 98-7190
National Aeronautics and Space Administration Direct A Student Space Institute and Professional Development Opportunities For Fembank Science Instructors 1999 Grant Pass-Through From Cuyahoga Community College The Science, Engineering, Mathematics and Aerospace Academy 1999 Grant
Total National Aeronautics and Space Administration

CFDA
~

PASSTHROUGH
ENTITY ID
~

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.282

NIA

s 191,086.31

127,905.04

84.029

NIA

84.186

NIA

84.196

NIA

4,429.07 907,553.10
49,734_09

4,429_07 907,553.10
49,734.09

84.048

NIA

84.243

NIA

571,333.46 19,800.58
16,944,503.05 $

571,333.46 19,800.58
16,856 .199.26

83.516

NIA

$

34,200.25

(4)

93_959

NIA

$

71,093.00 $

71,093.00

OFA

NIA

$

22,490.75 $

20,596.34

17.250

NIA

192,567_14

(4)

43

61,207.96 $

61,207.96

43

NIA

254,628.00

65,996.80

$

315,835.96 $

127,204.76

-40-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1999

SCHEDULE "1 ~

FUNDING AGENCY PROGRAM/GRANT
Defense, U.S. Department of Direct Department of the Air Force R.0.T.C. Program Department of the Army R.O.T.C. Program 1998 Contract 1999 Contract Department of the Navy R.O.T .C. Program
Total U.S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

432,002.86 $

754,199.45 (3)

33,696.81 385,837.94 851,537.61 $

29,488.82 33,696.81
385,837.94
1,203,223.02

Total Federal Financial Assistance

$ 38,754,068.78 $ 50,512,151.19

NIA= Not Available

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 1999 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

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

The Board did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the DeKalb County Board of Education and is presented on the modffied 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.

-41

C>EKALB COUNTY BOARD OF EDUCATION SCHEDULE QF STATE REVENUE YEAR ENDED JUNE 30 1999

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (2) Local Assistance Grant
Education. Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Jnstruct1onal Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and s Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Advanced Placement Exams Altemative Program Apprenticeship Program Al-Risk Summer School Program Charter Schools Environmental Science Program Georgia Leaming Resources System Governor's Emergency Funds {1) Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program National Teacher Certification Next Generation Schools Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Special Education Support Cost Teachers' Retirement
Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTAL

10,895.73 2,523.95

12,500.00

10,895.73 15,023.95

192,136,206.00 36,662,532.00 7,898,339.00 8,379,213.00 2,300,443.00 48,940,957.00
4,352,220.00 1,292,761.00 4,344,133.00 3,920,589.00 1,442,779.00 1,317,985.00 3,880,781.00
831,131.00 836,429.00 -64,455,800.00 3,553,888.00
311,835.98
825.00
87,518.03 325,004.04
4,427.67 4,438.56
4,000.00 7,377,085.47
4,916.78 13,261.62 29,808.00 4,164.00 53,276.63 1,382,566.46
127,339.17
108,000.00 1,319,021.06

2,095,052.00 447,000.00 BB,959,oo
1,044,669.00 3,146,767.00
74,197.61 1,770,830.00

10,113,975.90

6,072,084.50

1,131,144.00

192,136,206.00 36,662,532.00
7,898,339.00 8,379,213.00 2,300,443.00 48,940,957.00
4,352,220.00 1,292,761.00 4,344,133.00 3,920,589.00 1,442,779.00 1,317,985.00 3,680,781.00
831,131.00 836,429.00 -64,455,800.00 3,553,888.00 2,095,052.00 311,835.98
825.00 447,000.00 87,518.03 325,004.04
4,427.67 4,438.56 88,959.00 4,000.00 7,377,085.47 4,916.78 13,261.62 29,808.00 4,164.00 53,276.63 1,382,566.46 1,044,669.00 127,339.17 3,146,767.00 108,000.QO 1,319,021.06
74,197.61 1,770,830.00 10,113,975.90
6,072,084.50
1,131,144.00

-42-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1999

SCHEDULE H2"

AGENCY/FUND!NG
CONTRACTS Administrative Services, Georgia Department of GSAMS Network
Education, Georgia Department of To provide funds to local schools for developing and implemenlmg the Reading Ftrst Program designed to improve reading achievement for all students in grades K 3 To provide fundmg for the implementation and operation of one or more quality after school programs for students in grades 4 8 with opportunities to improve reading skills and enhance their interest in reading in accordance with Georgia's Reading Challenge To continue the implementation of the Department's elementary school Foreign Languages Model Program by providmg foreign language instruction to all K - 5th graders in Austin Elementary School and Rowland Elementary School of the DeKalb County Schools Readmg Challenge After-School Program
Office of the Governor Georgia Challenge Program 1998 Contract 1999 Contract

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

4,922.47

964,344.84

376,051.52

145,290.00 41,321.80
31,348.94 20,921.57

TOTAL 4,922.47
964,344.84
376,051.52
145,290.00 41,321.80 31,348.94 20,921.57

$ 271,320,839.29 $ 14,739,559.11 $ 10,126,475.90 $ 296,186,874.30

(1) School of Excellence at Oak Grove Elementary School and Henderson Mill Elementary School
(2) Purchase supplies for the Reading Program at Flat ShOals Elementary School Assist Kelley Lake Elementary with expenses m connection with their Mentoring, Mediation and Tutorial Program Purchase a Set of Risers for the Canby Lane Elementary School

See notes to the general purpose financial statements.

-43-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 1999

SCHEDULE "3"

PROJECT
Capital outlay projects for educational purposes
Retirement of previously incurred general obligation debt

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

$ 381,733,800.00 $ 284,491,498.00

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

66,653,953.41 $ 24,879,041.53

114,435,000.00 105,000,000.00

8,363,598.75

5,177,187.94

$ 496,168,800.00 $ 389,491,498.00 $ 75,017,552.16 $ 30,056,229.47

(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 cost for the project. Includes all cost from project inception to completion.
(3) The voters of DeKalb County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

See notes to the general purpose financial statements.

-44-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30 1999

SCHEDULE "4"

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Maintenance and Operation of Plant Student Transportation Services
Debt Service Principal Interest

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

TOTAL

74,197.61
$ 2,065,024.78 323,539.02

6,682,982.79 $ 6,757,180.40

372,939.10 40,248.98 2,437.05 76,326.00

372,939.10 40,248.98 2,437.05 76,326.00

2,065,024.78 323,539.02

Total Expenditures

74,197.61 $ 2,388,563.80 $

7, 174,933,92 $ 9,637,695.33

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program

$ 6,951,662.36
74,197.61 2,388,563.80
223,271.56

$ 9,637,695.33

See notes to the general purpose financial statements.

-45-

DEKALB COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1999

SCHEDULE "5"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$ 248,745,167.00 $

7,768,344.00

$ 233,986,951.30

80,891,386.90 $

76,662,456.18

$ 314,878,338.20

-4,548,682.69 $ 310,329,655.51

$

0.00 $

0.00

See notes to the general purpose financial statements. - 47 -

DEKALB COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1999

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub.Total - K3 Grades 4 5 (*) Grades 6 - 8 (*) Grades 9 12 r) High School Laboratories (*) Vocational Education Laboratories(") Totaf General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I I") Category II(") Category 111 () Category IV (") CategoryV(") Sub-Total - Regular Category VI (Gifted) () Total Special Education Programs
REMEDIAL EDUCATION PROGRAM 11 Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

20,662,744,00 55,652,911,00 76,315,655,00 90 24,792,608,00 90 40,834,340,00 90 34,467,708,00 90 10,386,170,00 90
5,339,725,00 90 192,136,206,00

18,596,469,60 50,087,619,90 68,684,089,50 22,313,347,20 36,750,906,00 31,020,937.20 9,347,553,00 4,805,752,50 172,922,585,40

0,00 0,00 3,668,877.00
3,668,877.00

30,219,153,00

27,197,237,70 $

0,00

30,219,153,00 90 6,443,379,00 90 36,662,532,00 7,898,339,00 90 236,697,077.00

27,197,237,70 5,799,041, 10
32,996,278,80 7,108,505,10 213,027,369,30

0,00
0,00 0,00 3,668,877.00

6,660,138,00 90

5,994, 124,20

0,00

1,719,075,00 100

1,719,075,00

8,379,213,00

7,713,199,20

0,00

$ 245,076,290,00

$ 220,740,568,50 $ 3,668,877.00

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

725,926,00

725,926,00

0,00

1,574,517,00

1,574,517,00

0,00

2,300,443,00 100 $ 2,300,443,00 $-=-=0=,00=

48

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

18,596,469.60

16,525,372.74

5,237,977.24

21,763,349.98

50,087,619.90

40,813,084 84

14,340.641.07

55,153,725.91

68,684,089.50

57,338,457.58

19,578,618.31

76,917,07589

0.00

22,313,347.20

22,290,948.20

6,945,743.60

29,236,691.80

0.00

40,419,783.00

45,523,924.02

16,627,931.24

62,151,855.26

0.00

31,020,937.20

36,744,908.75

13,767,385.04

50,512,293.79

0.00

9,347,553.00

10,154,357.58

3,040,671.36

13,195,028.94

0.00

4,805,752.50

7, 185,383.52

2,659,802.66

9,845,186.18

0.00

176,591,462.40

179.237,979.65

62,620,152.21 241,858,131.86

27,197,237.70 $

12,643,248.99 3,487,826.51 12,849,868.23 4,208,214.53
519,371.91

3,755,834.59 1,121,133.04 4,020,484.14 1,387,284.37
152,982.10

16,399,083.58 4,608,959.55 16,870,352.37 5,595,498.90
672,354.01

27,197,237.70 $ 33,708,530.17 $ 10,437,718.24

44,146,248.41

0.00

5,799,041.10

4,952,166.77

1,440,304.39

6,392,471.16

0.00

32,996,278.80

38,660,696.94

11,878,022.63

50,538,719.57

7,108,505.10

7,389,309.74 $ 2,164,281.34 $ 9,553,591.08

0.00

216,696,246.30 $ 225,287,986.33 $ 76,662,456.18 $ 301,950,442.51

5,994,124.20 $ 8,698,964.97

8,698,964.97

0.00

1,719,075.00

4,228,930.72

4,228,930.72

0.00

$ 7,713,199.20

8,698,964.97

4,228,930.72

12,927,895.69

$ 224,409,445.50 $ 233,986,951.30 $ 80,891,386.90 $ 314.878,338.20 $

0.00

725,928.00 1,574,517.00
2,300,443.00

$ 1,370,527.35 848,927.90

1,370,527.35 848,927.90

2,219,455.25 $ 2,219,455.25 $, _ _ _ _..,;;8;::;0,,;;98~7_;.7,;;,5

- 49

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RtlSSELI. \\'. H1r...TO'\ STATE AUDITOR
(404)656-21?.:.

DEPARTMENT OF AUDITS AND ACCOUNTS
:?..'.'--l Wa:-.h1nton Strc1..'l. S \\ .. Suite 21--1AtLlllL.l, (il'()rg1a JOJ34-S400
May 12, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the DeKalb 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 DeKalb County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated May 12, 2000. 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 Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether DeKalb County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed an instance ofnoncompliance that is required to be reported under Government Auditing Standards which is described in the accompanying Schedule of Findings and Questioned Costs as item FS6441-99-01.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered DeKalb 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
99YB-60

reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that wc consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect DeKalb County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6441-99-03.
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 described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the DeKalb County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
s ectfully submitted,
~-~~

RWH:gp 99YB-60

State Auditor

RussEu, \Y. H1NTO!\
STATE AUDITOR 14'.K, 656217~

DEPARTMENT OF AUDITS AND ACCOUNTS
25---1- Wa~hinglon SlrL'L.'L SW.. Suitl' 214 A1l~1nt1. Ci1.:lirgia .l(l~3"t-X4()()
May 12, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the DeKalb County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM A."! INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCl IT AR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of DeKalb County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. DeKalb County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of Jaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of DeKalb County Board of Education's management. Our responsibility is to express an opinion on DeKalb County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, 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 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 DeKalb 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 DeKalb County Board of Education's compliance with those requirements.

99SA-10

In our opinion, the DeKalb 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. 1999.
Internal Control Over Compliance
The management of DeKalb County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered DeKalb 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 of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the DeKalb County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 99SA-10

~.'-0-~
State Auditor

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

DEKALB COUNTY BOARD OF ED1 JCATJON AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING COl'iTROL NUMBER AND STATUS

FS-6441-97-01 FS-6441-97-02 FS-6441-98-0 I

Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditures Requirements Amount: $19,222.75 Finding Control Number: FS-6441-97-01

The Georgia Department of Education will increase the DeKalb County Board of Education's local five mill share to return the underexpenditure in the Media Center Program of $19,222.75 in a subsequent fiscal period.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6441-98-01

The DeKalb County Board of Education does not maintain records ofland purchases as part of the formal accounting records. Equipment is maintained on the property inventory ledgers of the DeKalb County Board of Education but is not included within the formal accounting records. As funding becomes available, the Board has plans to incorporate these records into the formal accounting records of the system.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6441-98-01

Previously Reported Corrective Action hnplemented

SECTION IV FINDINGS AND QUESTIONED COSTS

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FIJ\1DINGS AND QUESTIONED COSTS
YEAR ENDED JlJNE 30 1999
SUMMARY OF AUDITOR'S RESULTS
I. T)lle of Report Issued on the Financial Statements The auditor's opinion on the DeKalb 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 DeKalb 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 DeKalb County Board ofEducation disclosed one instance ofnoncompliance deemed material to the financial statements. This noncompliance involved the Board's underpayment of health insurance premiums.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the DeKalb County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. T)lle of Report Issued on Compliance for Major Programs
The auditor's opinion on the DeKalb County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section 51 O<a) of 0MB Circular A-133
The DeKalb County Board ofEducation'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: 10.550 Food and Nutrition Program - Food Distribution Program 10.553 Food and Nutrition Program - Food Services - School Breakfast Program I 0.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. T)lle "A" Program Dollar Threshold The dollar threshold for type "A" programs was $1,153,824.00.
9. Low Risk Auditee The DeKalb County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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DEKALB COUNTY BOARD OF EDlJCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDITURES/LIABILITIES/DISBURSEMENTS Health Insurance Premium Underpayment Material Noncompliance Amount: $4,281,872.52 Finding Control Number: FS-6441-99-01
The DeKalb County Board of Education failed to accurately calculate the employer cost component for the State Health Benefit Plan (SHBP) which provides health insurance benefits for qualified employees of the Board. As a result, the Board paid $4,281,872.52 less to the plan than was actually due. This underpayment resulted because the Board's cost calculation was based upon an estimate of the State salary scale component of certain employees salaries instead of the actual State salary scale component as required. An audit adjustment has been made to reflect this liability and related expenditure within the Board's June 30, 1999, financial statements.
Subsequent to June 30, 1999, the Board met with officials from the Georgia Department of Community Health, the State agency which administers the SHBP, in order to resolve this matter. On May 12, 2000, the Board made a payment in the amount of $4,281,872.52 to the Department of Community Health. The Board has established procedures to ensure that a similar underpayment does not occur in future years.
Management's Response:
We concur with this finding. This situation arose as a result of our effort to best estimate health benefit premiums for certified employees. We did not realize that over a period of time, this method of estimation had become inaccurate. Upon our discovery of this situation, we have now completed the automation of this calculation, which will be updated annually based on the most current State salary scale. We have now satisfied all reporting and payment requirements ofthe Department ofCommunity Health for the years ending June 30, 1999 and June 30, 2000.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $80,987.75 Finding Control Number: FS-6441-99-02
The DeKalb County Board of Education had an underexpenditure of Quality Basic Education (QBE) funds in the amount of$80,987.75 for the operations of the StaffDevelopment Programs. This underexpenditure occurred because the Board expended less than the required minimum expenditure for this QBE Program. The underexpenditure of$80,987.75 should be returned to the Georgia Office ofTreasury and Fiscal Services.
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DEKALB COUNTY BOARD OF EDlJCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $80,987.75 Finding Control Number: FS-6441-99-02
Management's Response:
We concur with this finding. This under expenditure occurred as a result of a timing difference in which Staff Development funds were not fully expended in the year in which they were earned. We now have procedl!fes in place to monitor the timing of such expenditures and ensure compliance.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6441-99-03
The DeKalb County Board ofEducation did not maintain a system-wide General Fixed Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
We concur with this finding. Due to budget constraints, we are unable to incorporate these records into the formal accounting system at this time. As funding becomes available we plan to acquire sufficient staff and automated systems to handle this task.
ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
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