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

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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DEKALB COUNTY BOARD OF EDUCATION

. DECATUR, GEO~GIA

REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

DEKALB COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

E

STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

F NOTES TO TIIE 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

Page
2
4
7
8
9
10

26 28
30 32 34 35

DEKALB COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS


COMBINING STATEMENTS

M

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

36

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

38

2 SCHEDULE OF STATE REVENUE

41

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

43

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

45

5

BYPROGRAM

46

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDfl'ING STANDARDS
REPORT ON COMPLIANCE WfIH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

SECTION ill. AUDfl'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS t"\..l'.y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

-



-



'

SbC'l10NI FINANCIAL


W. RussELL

H1NTON

STATE AUDITOR

(404) 656-2174

254 V,ashingto11 Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 14, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducatiQn
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, 2000, 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial 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 op1 ru on.
As described in the notes to the general purpose financial st&.teznents, 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:

2000ARL-13A

* The general purpose financial statements ofthe 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 confo1m to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
* The 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 confo11n to accounting principles generally accepted in the United States, 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 dete11nined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the DeKalb County Board of Education as of June 30, 2000, and the results ofits operations and the cash flows ofits proprietary fund for the year then ended, in confu1n1ity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 14, 2001, 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 of laws, regulations, contracts and grants. That report is an integral part of an audit perfo1n1ed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
-
Our audit was perfoxmed for the purpose of fo1n1ing 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 M) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
2000ARL-13A

Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such infu11nation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,


RWH:gp 2000ARL-13A

Russell W. Hinton State Auditor




DEKALB COUNTY BOARD OF EDUCATION

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ASSETS
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


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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 19,169,042.70 $ 8,598,911.27 $ 42,926,720.53

23,500,020.38

3,127,998.27

158,629,928.99

1,105,280.18

4,084,464.58

20,996,972.13

150,000.00



Total Assets

$ 43,774.343.26 $ 15.811.374.12 $ 222.703,621.65

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

$ 10,661,635.90 $ 2,340,586.40

995,351.51

4,375,941.93

$ 100,000,000.00

142,299.38

283,306.47

532,459.67

17,020,681.32

3,875,309.78

6,000.00

$ 12,331,746.46 $ 7,007,834.80 $ 120,896,191.10

$ 1,973,255.69
340,957.57 $

36,734.67

80,987.75

$

161,505.82

64,551,269.56

9, 173,555.40

2,000,000.00 1,067,782.63 25,979,613.16

8,766,804.65

211921 1099.n

$ 31,442,596.80 $ 8,803,539.32 $ 101,807,430.55

Total Liabilities and Fund Equity

s s s 43.n4.343.26

151s11 1314_12

22211031e21.a5

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

-2-

EXHIBIT "A"

DEBT SERVICE
FUND

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

$

48,950.62 $

129,294.28 $ 2,705,389.86

716,085.81

661.57

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Onl~)

JUNE 301 2000

JUNE 301 1999

$ 73,578,309.26 $ 112,122,224.51

185,974,033.45

77,313,420.17

26,187,378.46

17,555,862.50

150,000.00

150,000.00

91,911.90

$

49,612.19

91,911.90 49,612.19

302,252.64 6,195.11

78,100,387.81 10,907,160.91 7,298,188.79

78,100,387.81 10,907,160.91 7,298,188.79

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

$

49612.19 $

221,206.18 $ 3,421,475.67 $ 96,355,349.70 $ 382,336,982.77 $ 312,421,601.13

$

562,219.99

$

11,685.81

$ 13,013,908.11

18,980,073.51

27,469.40

5,398,762.84

5,013,993.16

100,000,000.00

65,000,000.00

425,605.85

240,849.24

532,459.67

58,000.90

17,020,881.32

4,244,802.49

3,875,309.78

1,379,903.80

8,000.00

$ 3,421,475.67

3,421,475.67

3,252,972.50

$ 10,907,160.91

10,907,160.91

15,633,640.52

-

7,298,188.79

7,298,188.79

6,889,200.79

78, 150,000.00

78,150,000.00

82,455,000.00

$

39,155.21 $ 3,421,475.67 $ 96,355,349.70 $ 240,051,752.94 $ 203,710,656.90

$

91,911.90

90,139.07

$

49,612.19

0.00

$

49 612.19 $ _ _1-8~2-,0~50_.9_7_

$

91,911.90 $

302,252.64

90,139.07

-854,091.44 228,174.82

1,973,255.69

1,246,106.37

3TT,692.24

263,081.55



49,612.19

6,195.11

80,987.75

100,210.50

161,505.82

487,060.48

64,551,269.56

34,266,587.37

9,173,555.40

10,957,655.27

2,000,000.00 1,067,782.63 62,667,517.58

2,000,000.00 927,589.53
58,780,122.03

$ 142,285,229.83 $ 108,710,944.23

$

49 612.19 $

221,206.18 $ 3,421,475.67 $ 96,355,349.70 $ 382,336,982.77 $ 312,421,601.13

-3-




DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
Capital Outlay Debt Service _ Principal
Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USfS)
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 (Restated See Note 1)

GENERAL FUND

SPECIAL REVENUE
FUND

$ 287,947,476.05 $
1, 128,270.25 298,126,635.59
13,460,237.65

15,973,376.94 42,537,964.42
12,200,615.47

$ 600,662,619.54 $ 70,711,956.83

$ 377,831,046.19 $ 31,585,721.76

31,246,779.03 27,348,449.64 14,170,452.47
3,394,904.59 35,648,609.29
3,294,124.29 54,320,078.12 27,897,925.99
9,342,604.45 183,420.90 80,219.59
3,873,909.49

1,758,496.98 508,177.10 41,616.43 59,220.51 334,967.57 1,999.16 28,859.76 77,425.84 210,425.06
34,508,701.70 873,224.88

2,543,620.51 386,795.92

2,182,859.10 205,704.68

$ 591,562,940.47 $ 72,377,400.53
$ 9,099,679.07 $ -1,665,443.70

$
$ -7,713,540.03

1,668,069.81

$ -7,713,540.03 $ __1a.1.._,6_6;...8..,_,0..;;;..69"".8.;;..1'--

$ 1,386,139.04 $
30,056,457.76

2,626.11 8,800,913.21

FUND BALANCE JUNE 30



$ 31.442,596.80 $

-

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

-4-

8,803,539.32

---

-------

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 19,357,912.13
79,737,585.64 $ 7,024,927.94
$ 106,120,425.71 $

$ 323,278,765.12 $ 296,186,874.30

43,666,234.67

38,754,068.78

8,500,795.21

386,365,016.44

358,464,106.34

41,295.29

32,727,076.35

25,868,794.04

8,542,090.50 $ 786,037,092.58 $ 719,273,843.46

$ 409,416,767.95 $ 381,514,089.89

$ 1,735,320.98 77,940,095.09

33,005,276.01 27,856,626.74 14,212,068.90
3,454,125.10 35,983,576.86
5,031,444.43 54,348,937.88 27,975,351.83
9,553,029.51 183,420.90
34,588,921.29 4,747,134.37
77,940,095.09

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 3,593,274.05
74,590,279.16



$ 4,305,000.00

9,031,479.61

7,630,801.52

4,189,643.75

4,782,144.35

5,042,488.36



4,029.67

4,029.67

3,459.13

$ 79,675,416.07 $ 8,498,673.42 $ 752,114,430.49 $ 715,941,179.66

$ 26,445,009.64 $

43,417.08 $ 33,922,662.09 $ 3,332,663.80

$ 6,045,470.22
$ 6,045,470.22
$ 32,490,479.86 $

69,316,950.69

$ 12,714,140.45

$ 7,713,540.03

6,783,649.16

-7,713,540.03

-6,783,649.16

$

0.00 $ 12,714,140.45

43,417.08 $ 33,922,662.09 $ 16,046,804.25

6,195.11

108,180,516.77

92,133,712.52

$ 101,807,430.55 $

49,612.19 $ 142,103,178.86 $ 108,180,516.77

-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. 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 273,575,857.00 $ 287,947,476.05

1 ,345,535.00

1,128,270.25

295,746,735.00

298,126,635.59

7,734,086.00

13,460,237.65

Total Revenues

$ 578,402,213.00 $ 600,662,619.54

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

-

$ 366,769,166.00 $ 377,831,046.19

30,007,531.00 29,185,219.00 14,027,004.00
3,425,796.00 34,019,479.00
6,662,220.00 53,429,464.00 26,359,547.00
9,924,649.00 160,342.00 60,340.00

31,246,779.03 27,348,449.64 14,170,452.47
3,394,904.59 35,648,609.29
3,294,124.29 54,320,078.12 27,897,925.99
9,342,604.45 183,420.90 80,219.59
3,873,909.49

2,930,416.43

Total Expenditures

$ 574,030,757.00 $ 591,562,940.47

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES /USES)

$ 4,371,456.00 $ 9,099,679.07

Other Sources Other Uses

$

113,750.00

-5,794,869.00 $

-7,713,540.03

Total Other Financing Sources (Uses)

$ -5,681,119.00 $ -7,713,540.03

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -1,309,663.00 $

1,386,139.04

FUND BALANCE JULY 1. 1999 (Restated - See Note 1)

33,789,218.00

30,056,457.76

FUND BALANCE JUNE 30, 2000

$ 32,479,555.00 $ 31,442,596.80

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 19,965,634.00 $ 15,973,376.94

42,005,409.00

42,537,964.42

14,130,931.00

12,200,615.47

$ 76,101,974.00 $ 70,711,956.83

$ 31,653,668.00 $ 31,585,721.76

3,072,979.00 2,598,823.00
34,753.00 12,486.00 286,571.00
21,099.00
318,466.00

1,758,496.98 508,177.10 41,616.43 59,220.51 334,967.57 1,999.16 28,859.76 77,425.84 210,425.06

34,483,360.00 871,434.00 38,000.00

34,508,701.70 873,224.88
2,388,563.78

$ 73,391,639.00 $ 72,377,400.53

$ 2,710,335.00 $ -1,665,443.70

$ 1,904,869.00 $ 1,668,069.81
-500,000.00
$ 1,404,869.00 $ 1,668,069.81

$ 4,115,204.00 $

2,626.11

9,082,354.00

8,800,913.21

$ 13,197,558.00 $ 8,803,539.32

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


DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT"D"

WAREHOUSE SERVICE FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

OPERATING REVENUES

Sales-Food Supplies

$ 1,396,714.83 $ 1,396,714.83 $ 1,439,574.78

OPERATING EXPENSES

Current Enterprise Operations



$ 1,534,770.74 $ 1,534,770.74 $ 1,773,273.38

Operating Income (Loss)

$

-138,055.91 $

-138,055.91 $

-333,698.60

NONOPERATING REVENUES

Interest Earned

20.16

20.16

6,250.34

Net Income (Loss)

$ -138,035.75 $ -138,035.75 $ -327,448.26

RETAINED EARNINGS JULY 1 ( Restated - See Note 1)

530,427.46

530,427.46

786,896.66

Inventory - Net Change in Period

-210,340.74

-210,340.74

70,979.06

RETAINED EARNINGS JUNE 30



$ . 182,050.97 $

182,050.97 $_...,.5_3.0.14_2_1_.4_6

-


'

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



-8-

DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPE- INTERNAL SERVICE FUND
YEAR ENDED JUNE 30. 2000

EXHIBIT "E"

Cash Flows from Operating Activities: Cash Received from Charges for Services Cash Paid for Sales - Food Supplies

WAREHOUSE SERVICE FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2000

JUNE 30, 1999

$ 1,396,714.83 $ 1,396,714.83 $ 1,439,574.78

-1,501,311.26

-1,501,311.26

-1,771,362.07

Net Cash Provided (Used) by Operating

Activities

$

Cash Flows from Investing Activities:



Interest Received on Investments

$

20.16 $

20.16 $ ___6::.i,::;25::.:0:.:.:.3::.;4'-

Net Increase (Decrease) in Cash

$ -104,576.27 $ -104,576.27 $ -325,536.95

Cash and Cash Equivalents - July 1 (Restated - See Note 1)

Cash and Cash Equivalents - June 30

$

129,294.28 $

129,294.28 $ =--23_3_,8_10_.5_5.,,,

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

$

-138,055.91 $



33,459.48

-138,055.91 $ 33,459.48

-333,698.60 1 911.31

Net Cash Provided (Used) by Operating Activities



$

-104,596.43 $

-104,596.43 $ .......,.-3;,;;:3_1,r.;.7~87;.;.::;;;29_


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. 2000

Note 1: 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 ofall 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 ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11n 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 maintain~d 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 confo1n1 to generally accepted accounting

principles, these accounts should be recorded in the general purpose financial statements.

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

control of the Board, in compliance with generally accepted accounting principles applicable to

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

presented in this report are as follows:



.

GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:

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

- 10-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT ''F"

NOTES TO 1HE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: .SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-ter1n principal, interest and paying agent fees.
PROPRIETARY FUND TYPE - the fund used to account for activities of the Board similar to those found in the private sector, where cost recovery and the dete1n1ination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary 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 FUND 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 measure1nent focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

- 11 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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-Te11n Debt Account Group.

All proprietary funds are accounted for on a flow ofeconomic 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 ofresults ofoperations.

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

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon 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 2000, a

substantial number of personnel of the Board were employed for a one hundred and ninety day

period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this

employment period specify that compensation be paid in twelve equal monthly payments beginning

in September 1999 and ending in August 2000. State grants to fund the State's share of these

contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve

months. As ofJune 30, 2000, compensation under these ernployment contracts had bee11 earned, but

two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments

for these two months were made and recorded as expenditures by the Board subsequent to June 30,

2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and

recorded as revenue in the fiscal year subsequent. to June 30, 2000. Conversely, the similar

expenditures and related revenues for contractual services completed prior to June 30, 1999, were

recorded in the year ended June 30, 2000. Generally accepted accounting principles require that

revenues be recorded when available and measurable and that expenditures be recorded when

incurred, rather than when funds are received or disbursed.



The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.

- 12 -

DEKALB COUNfY BOARD OF EDUCATION

EXHIBIT ''F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets

and liabilities.



RESTATEMENT OF PRIOR YEAR FUND BALANCE

In prior years, the dental insurance risk financing and related activities for the Board's Dental Reserve Fund were reported as an Internal Service fund. This fund had a fund balance of $-854,091.44 at June 30, 1999. For fiscal year 2000, this fund has been reported as a part of the General Fund. The fund balance at July 1, 1999 has been restated as appropriate.

BUDGET

The DeKalb County Board ofEducation'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 obj~ct. The legal level ofbudget control was established by the Board at the functional/object/project/program level. The proprietary fund budget was prepared and utilized as a management tool to assess the operations ofthe internal service fund. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Boar-cl after advertisement, the Board receives comments on the tentative budget, makes revisions ~ necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws

OCGA 45-8-14 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 INVES'I'MENTS 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 ofone year or less are reported at amortized

- 13 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code ofGeorgia 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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.


RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info1111ation 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 ofproperty 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 1999 tax year (calendar year) on June 8, 1999 (levy date). Taxes were due on November 15, 1999 and could be
- 14-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

paid in two installments on August 15, 1999 and November 15, 1999 (due dates). The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The DeKalb County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 1.9% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

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

School Operations

.48 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $88,232,229.39 and was recorded in the Capital Projects and Debt Service Funds. The State will tc1111inate collection ofthis tax once an additional $255,119,388.59 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES



Inventories reported on the Combined Balance Sheet are comprised ofpurchased bulk commodities

for resale to individual school lunchrooms within the DeKalb-County School system and are valued

at cost (first-in, first-out). whereby expenditures are

The Board recorded at

tuhseets-imthee

pu~chase method to account for these inventories 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 ofdonated 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 confo1111 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

- 15 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures/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 st~tements 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 confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to confu1n1 to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 11Opercent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,
- 16 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT ''F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS
waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and _interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan MQrtgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $111,468,519.11. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 2000, as follows:

- 17 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 896,362.16

2

104,165,414.34

3

6,406,742.61

Total

$111,468,519.11

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.

At June 30, 2000, the carrying value of the Board's total investments was $168,474,033.45. The investments are classified as to risk categories as follows:

Type of Investment

Risk Categories

1

2

U. S. Government

$ 25,800,376.05 $ 6,000,000.00 $

Banker's Acceptances

34,826,740.26

Repurchase Agreements 91,181,262.99

Total

'
$151,808,372.30 $ 6,000,000,00 $

Local Government Investment Pools

Total Investments

Carrying

Fair

3

Amount

Value

0.00 $ 31,800,376.05 $ 31,800,376.05 34,826,740.26 34,826,740.26 91,181,262.99 91,181,262.99

0.00 $157,808,379.30 $157,808,379.30

10,665,654.15 10,665,654.15 $ l 68,474,033,45 $168,474,033,45

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

- 18 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT ''F"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
The Primary Liquidity Portfolio consists ofGeorgia Fund l, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash. and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-te11n instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation and dental claims.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets and enors 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 EDUCATION

EXHIBIT ''F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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:

1999 2000

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$_ _ _o""'"'.o'"""o $ 2.038.543.86 $ 2.038.543.86 $,_ ____,o=.o=o

$

o.oo $ 2.219.497.23 $ 2.219.497.23 $_ _----'o=.o=o

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:

1999 2000

Beginning ofYear Liability

Claims and Changes in Estimates

$

0.00 $ 22,857.00 $

$

0.00 $ 76,490.43 $

Claims Paid

EndofYear Liability

22.ss1.oo $_ _ _"""'o"'"'.o=o 76,490.43 $_ _----'0"""-.0=0

The Board is self-insured with regard to dental claims. The Board accounts for claims within the General 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:

1999 2000

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$ 130,346.21 $ 2,462,975.61 $ 2.535.320.92 $ 58,000.90 $ 58,000.90 $ 4,348,368.26 $ 3,873,909.49 $ 532,459.67

-20-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT ''F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 ofEducation 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, 2000, amounted to $1,106,057.23. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2001

$ 1,106,057.23

2002

1,106,057.23

2003

-150,397 .91

Total

.37

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 of the date of their inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1993A

2.80% - 6.25% $43,700,000.00

General Government - Refunding - Series 1993 2.80% - 5.60% 34,450,000.00

$78,150,000.00
The changes in General Long-Tc1n1 Debt during the fiscal year ended June 30, 2000, were as follows:

- 21 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: GENERAL LONG-TERM DEBT

Balance July I , 1999
Additions Annual Leave Earned and Utilized (Net)
Deductions Debt Retired Payments
Balance June 30, 2000

General

Capital

Compensated Obligation

Leases

Absences

Bonds

Total

$15,633,640.52 $ 6,889,200.79 $ 82,455,000.00 $ I04,977,841.31

408,988.00

408,988.00

4,726,479.61

4,305,000.00

4,305,000.00 4,726,479.61

$10,907,160.91 $ 7,298,188.79 $ 78,150.000.00 $ 96.355.349.70

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

Fiscal Year Ended June 30
2001 2002 2003 2004 2005 2006 - 2010 2011-2012
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments
Note 7: LOANS PAYABLE

Capital Leases

General Obligation
Bonds

Total Debt

$ 5,632,495.73 $ 8,875,330.63 $ 14,507,826.36

3,243,931.94 8,930,611.26 12,174,543.20

I,773,394.36 9,050,016.26 10,823,410.62

940,541.10


9,102,687.51 I 0,043,228.61 9,202,546.26 9,202,546.26

47,934,883.14 47,934,883.14

12,168,228.75 12,168,228.75

$11,590,363.13 $105,264.303.81 $116.854.666.94

683,202.22

$10.907.160.91

At June 30, 2000, a short-tt;1111 debt (teinporary loan) amounted to $100,000,000.00 with interest accruing at 4.25 percent. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 of the calendar year in which the loan was made.

Note 8: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $9,681,617.77 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

-22-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 8: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $7,351,453.93

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $1,225,688.84

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 $1,104,475.00

Note 9: SIGNIFICANT COMMITMENTS

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

Proiect C
GSFIC 99-644-076 GSFIC 99-644-077 GSFIC 99-644-078 GSFIC 00/99S-644-077 GSFIC 00/99S-644-078 Lottery 99G/98S-644-041 Lottery OOG/99S-644-018 707-Cedar Grove High 711-Woodward Elementary 717-Southwest DeKalb High 719-Allgood Elementary 720-Jolly Elementary 721-Idlewood Elementary 723-Columbia Elementary 726-Evansdale Elementary 728-Austin Elementary 737-DeKalb County Stadiums 738-Memorial Stadium 740-Adams Stadium

Unearned Executed Contracts

Funding Available From State

$ 4,978,298.76 3,273,689.72 6,547,993.86 15,844,559.21 16,611,839.45 13,004,511.50 10,856,703.00 6,260.15 45,235.00 667,488.00 254,838.00 1,624,941.00 669,371.08 1,868,440.00 180,583.34 199,701.00 129,894.97 19,258.73 212,381.94

$ 1,034,198.09 2,091,957.78 6,951,771.00 8,459,572.00 8,459,572.04 6,912,951.00 4,225,770.00

-23 -

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: SIGNIFICANT COMMITMENTS

741-Avondale Stadium 747-0akcliff Elementary 748-Huntley Hills Elementary 750-Ashford Park Elementary 742-Meadowview Parking Lot 773-Tank and Pipe Replacement Projects

$ 137,481.10 209,465.20 391,225.57 347,023.54 600.00
1,346,641.00

$79,428,425.12 $38.135.791.91

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

Note 10: 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 te1ms. 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 perfo1111ance of routine Board operations. The ultimate disposition of these proceedings is not presently dete11ninable, but is not believed to be material to the general purpose financial statements.

Note 11: ACCUMULATED EMPLOYEES' LEAVE

Full-time twelve month employees earn annual le~ve ranging from ten to twenty days per year depending on the en1ployees' length of continuous service with a maximum accumulation of sixty days. Employees are paid up to the maximum accumulation for unused accumulated annual l~ave at their current rate of pay upon retirement or te11nination of employment.

Full-time employees earn one and one-quarter days of sick leave each month with a maximum accumulation ofone 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 te11nination of employment. See Note 1 - Compensated Absences

Note 12: 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 ofGeorgia (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 Retiretnent

-24-

DEKALB COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 12: RETIREMENT PLANS

System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$47,159,731.74

$46,881,118.70

$43,398,955.32





-25 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

$ 6,758,365.45 $ 1,251,614.10 $

495,140.80

3,127,998.27

926,142.19

12,718.92

2,944,674.72

Total Assets

$

$ 10,812,505.91

1,264,333.02 $ 3,439,815.52 -- -

- ------- ----- --

- - -------------

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



$

589, 166.97 $

1,607,845.76

409,647.75 $ 846,685.27
8,000.00

1,225,709.77 1,894,064.61
283,306.47

$ 2,197,012.73 $ 1,264,333.02 $ 3,403,080.85



$

36,734.67

$ 8,615,493.18 $ _ _ _ _0::.:.:,:00~

0.00

$ 8,615,493.18 $

0.00 $ _ _ _3_6_,7_34_._67_

Total Liabilities and Fund Equity

$ 10,812,505.91 $ 1,264,333.02 $ 3,439,815.52

See notes to the general purpose financial statements. -26-

EXHIBIT "G"

OTHER PROGRAMS

ATHLETIC
FUND

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

211,550.17 $ 8,716,670.52 $ 10,374,144.22

3,127,998.27

1,641,945.55

$ _ ___,;2=0=0.i.;9;,=28=.;..;75;....

4,084,464.58

3,120,711.09

$

200,928.75 $

211,550.17 $ 15,929,133.37 $ 15,136,800.86

$

117,759.25

55,823.21 $

27,346.29

$

200,928.75 $

$
60,238.70
60,238.70 $

117,759.25 2,340,586.40 $ 4,375,941.93
283,306.47 8,000.00

7,125,594.05 $

2,132,145.83 4,115,418.12
88,323.70
6,335,887.65



$

36,734.67 $ .

74,450.35

$

0.00 $

151,311.47

8,766,804.65

8,726,462.86

$

0.00 $

151,311.47 $ 8,803,539.32 $ 8,800,913.21

$

200,928.75 $

211,550.17 $ 15,929,133.37 $ 15,136,800.86



-27-

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

REVENUES

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

State Funds Federal Funds Other Funds

$ 2,172,930.00 $
20,748,722.90 11,183,108.20

8,746,073.19 $ 3,314,342.00 21,789,241.52

Total Revenues

$ 34,104,761.10 $ 8,746,073.19 $ 25,103,583.52

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

$
$ 34,508,701.70

7,187,976.24 $ 22,932,432.84

424,038.11 41,687.36

1,169,302.87 466,489.74 24,219.36 59,220.51 278,007.57

2,002.51 69,875.00

1,201.25 210,425.06

2,182,859.10 205,704.68
$ 34,508,701.70 $ 10,114,143.00 $ 25,141,299.20

Excess of Revenues over (under) Expenditures

$ -403,940.60 $ -1,368,069.81 $

-37,715.68

OTHER FINANCING SOURCES

Operating Transfers In

300,000.00

1,368,069.81

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-103,940.60 $

FUND BALANCE JULY 1

8,719,433.78

0.00 $ 0.00

-37,715.68 74,450.35

FUND BALANCE JUNE 30

$ 8,615,493.18 $

0.00 $ _ _ _3_6_,7_34_.6_7_

See notes to the general purpose financial statements. -28-

EXHIBIT "H"


OTHER PROGRAMS

ATHLETIC FUND

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 1,740,031.75
______ $
$ 1,740,031.75 $

$
1,017,507.27

15,973,376.94 $
42,537,964.42 12,200,615.47

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

1,017,507.27 $ 70,711,956.83 $ 64,026,438.75

$ 1,465,312.68

$ 31,585,721.76 $ 23,359,728.73



165,156.00
17,397.07
56,960.00 1,999.16
25,656.00 7,550.84
$

873,224.88

1,758,496.98 508,177.10 41,616.43 59,220.51 334,967.57 1,999.16 28,859.76 77,425.84 210,425.06
34,508,701.70 873,224.88

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


$ 1,740,031.75 $

2,182,859.10 -205,704.68

2,065,024.78 323,539.02

873,224.88 $ 72,377,400.53 $ 64,345,777.01

$

0.00 $

144,282.39 $ -1,665,443.70 $ -319,338.26

1,668,069.81

2,056,882.96

$

0.00 $

144,282.39 $

2,626.11 $ 1,737,544.70

0.00

7,029.08

8,800,913.21

7,063,368.51

$ -- ----

0.00 $

151,311.47 $

-------

-.

-- - -

--- ---- - - - -

8,803,539.32 $

8,800,913.21

-29-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Notes Receivable

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

$

159,380.06 $ 14,127,362.98

$ 16,551,108.84

2,125.76


150,000.00

6,256,593.90

Total Assets

16,701,108.84 161,505.82 $

- - - - - .

-- - -- -- -

$ -------

$
- -- - ------ -

20,383,956.88

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

$ 11,749,613.74 189,276.61
$ 11,938,890.35
$
$ 4,762,218.49
$ 4,762,218.49 $

$ 8,349,807.50 2,860,593.98
$ 11,210,401.48

161,505.82 $
0.00 161,505.82 $

9,173,555.40 0.00
9,173,555.40

Total Liabilities and Fund Equity

$ 16.701,108.84 $

161,505.82 20,383,956.88 $ -- - --- ------------

See notes to the general purpose financial statements. - 30-

EXHIBIT "I"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECTS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 15,514,435.72 $ 24,875,155.51 $ 54,676,334.27 $ 68,589,931.22

142,076,694.39

158,629,928.99

61,990,541.29

14,740,378.23

20,996,972.13

13,491,842.16

150,000.00

150,000.00

$ 172,331,508.34 $ 24,875,155.51 $ 234,453,235.39 $ 144,222,314.67


$ 100,000,000.00 7,262,309.98 $ 517,928.80
$ 107,780,238.78 $


$ 11,749,613.74 $

100,000,000.00

1,219,487.23

17,020,881.32

496,787.00

3,875,309.78

4,280,657.69 65,000,000.00
4,244,802.49 1,379,903.80

1,716,274.23 $ 132,645,804.84 $ 74,905,363.98

$ 64,551,269.56

$

161,505.82 $

487,060.48

64,551,269.56

34,266,587.37

9,173,555.40

10,957,655.27

----"o=.o=o'- s 23,15s,ss1.2s

27,921,099.77

23,605,647.57

$ 64,551,269.56 $ 23,158,881.28 $ 101,807,430.55 $ 69,316,950.69

$ 172,331,508.34 $ 24,875,155.51 $ 234,453,235.39 $ 144,222,314.67




- 31 -

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

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 16,997,057.03

$ 1,010,193.39 $ ____3=5.i.;;,0..;..15=.2=6'-

$ 1,010, 193.39 $

35,015.26 $ 16,997,057.03

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

$ 4,42~.960.13 $ 180,097.21
$ 4,604,057.34 $
$ -3,593,863.95 $

281,858.02 $

38,438,209.77 37,896.00

281,858.02 $ 38,476,105.77

-246,842.76 $ -21,479,048.74

OTHER FINANCING SOURCES (USES)
Operating Transfers In
-Operating Transfers Out
Total Other Financing Sources (Uses)

$ . 6,528,919.31

$

-274,775.09 $ _ __,2=1~1,.,,,0c,:a64..:.:.:::;66"-

$ 6,254,144.22 $

-211,064.66 $

19,953,751.05

19,953,751.05

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $
FUND BALANCE JULY 1
Residual Equity Transfer

2,660,280.27 $ 1,975,488.80
126,449.42

-457,907.42 $ 487,060.48 132,352.76

-1,525,297. 69 10,957,655.27
-258,802.18

FUND BALANCE JUNE 30

$ "4,762,218.49 $

161,505.82 $ _..,..9_,1..,7..,3,_,5,_55_,.4,_0.,.,

See notes to the general purpose financial statements.

- 32-


EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECTS

.-,__-_-_-Y_E-TAOR_-TEAN_-LDSE_-D -_-_-_-_

JUNE 30, 2000

JUNE 30, 1999

$
$ 79,737,585.64 5,979,719.29
$ 85,717,304.93 $

2,360,855.10 $

19,357,912.13 $
79,737,585.64 7,024,927.94

10,126,475.90 34,200.25
72,842,979.70 2,860,134.04

2,360,855.10 $ 106,120,425.71 $ 85,863,789.89

$ 1,735,320.98

$ 1,735,320.98 $

153,988.41

$
19,701,915.71 5,537,113.92

686,190.00 6,710,685.49 1,942, 168.84

686,190.00 69,556,629.12
7,697,275.97

6,734,078.70 .57,785,226.56 10,065, 113.09

$ 26,974,350.61 $ 9,339,044.33 $ 79,675,416.07 $ 74,738,406.76

$ 58,742,954.32 $ -6,978,189.23 $ 26,445,009.64 $ 11,125,383.13

$ 9,465,141.74 $ 35,947,812.10 $ 52,364,677.64

$ -28,458,272.13

-958,230.00

-29,902,341.88

-47,637,911.44



'



$ -28,458,272.13 $ 8,506,911.74 $ 6,045,470.22 $ 4,726,766.20

$ 30,284,682.19 $ 1,528,722.51 $ 32,490,479.86 $ 15,852,149.33

34,266,587.37

21,630,158.77

69,316,950.69

53,464,801.36

0.00

0.00


$ 64,551,269.56 $ 23,158,881.28 $ 101,807,430.55 $ 69,316,950.69

- 33-

DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 46,173.37 $

2,777.25 $

48,950.62 $

5,595.46

661.57

661.57

599.65

Total Assets

$ 46,834.94 $

2,777.25 $

49,612.19 $ ====6=,19=5.=11=

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 46,834.94 $
0.00


2,777.25 $
0.00

49,612.19 $
0.00

6,195.11 0.00

Total Fund Equity

$ 46,834.94 $

2 777.25 $ '

49,612.19 $

6,195.11

See notes to the general purpose financial statements. - 34-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30. 2000

EXHIBIT "L

REVENUES

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

Taxes Other Funds

$ 6,151.46 $ 8,494,643.75 $ 8,500,795.21 $ 8,372,183.13

41,295.29

41,295.29

Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures

$ 47,446.75 $ 8,494,643.75 $ 8,542,090.50 $ 8,372,183.13



$ 4,305,000.00 $ 4,305,000.00 $ 3,995,000.00

4,189,643.75

4,189,643.75

4,368,598.75

$ 4,029.67

4,029.67

3,459.13

$ 4,029.67 $ 8,494,643.75 $ 8,498,673.42 $ 8,367,057.88

Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

$ 43,417.08 $
3,417.86

0.00 $
2,777.25

43,417.08 $
6,195.11

5,125.25 1,069.86

FUND BALANCE JUNE 30

$ 46.834.94 $

2.777.25 $

49.612.19 $,,__ _6...,,1,_95_.1_1=

See notes to the general purpose financial statements.

-35-

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2000

EXHIBIT "M"

ARMORED CAR SERVICE
ASSETS
Cash and Cash Equivalents

BALANCE JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 301 2000

$

0.00 $ 110,215.00 $ 110,215.oo $======o=.o==o

LIABILITIES
Funds Held for Others

$

0.00 $ 110,215.00 $ 110,215.00 $======0.=00=

EMPLOYEE"S ALTERNATIVE BENEFIT FUND
ASSETS
Cash and Cash Equivalents


$ 234,051.87 $ 33,161,328.90 $ 33,339,453.33 $==5=5=,9=2=7.=44=

LIABILITIES
Funds Held for Others

$ 234,051.87 $ 33,161,328.90 $ 33,339,453.33 $===-=5==5=,9=2==7=.4=4

HEALTH SELF-INSURANCE TRUST FUND ASSETS
Cash and Cash Equivalents Investments
Total Assets
LIABILITIES
Funds Held for Others

$ 2,337,518.54 $ 1,944,136.72 $ 1,633,747.80 $ 2,647,907.46

676,344.11

39,741.70

716,085.81


$ 3,013,862.65 $ 1,983,878.42 $ 1,633,747.80 $ 3,363,993.27

-
$ 3,013,862.65 $ 1,983,878.42 $

1,633,747.80 $

3,363,993.27

RETIRED EMPLOYEE'S MEDICAL INSURANCE

ASSETS

Cash and Cash Equivalents

$

3,793.38 $

10,022.04 $

s___ 13 731.44

=_8..,3._9=8

LIABILITIES
Funds Held for Others

$

3,793.38 $

10,022.04 $

131731.44 $ _ _._....8...,3._,9.8

SALES TAX
ASSETS
Cash and Cash Equivalents

$

308.00 $

1,535.38 $

1,242.00 $ _ _......,6.,;;0.;,;1._38;;;.

LIABILITIES
Funds Held for Others

$

308.00 $

- 36-

1,535.38 $

11242.00 $ ,.,...__,....6_0_1..,.3_,8

DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000

EXHIBIT "M"

STUDENT INSURANCE ASSETS
Cash and Cash Equivalents

LIABILITIES Funds Held for Others
TOTALS-AGENCY FUNDS ASSETS
Cash and Cash Equivalents Investments
Total Assets

BALANCE JULY 11 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

$

956.60 $

4,330.50 $

4 417.50 $======8=6=9.=6=0

$

956.60 $

4,330.50 $

4 417.50 $======8=6=9.=60=



$ 2,576,628.39 $ 35,231,568.54 $ 35,102,807.07 $ 2,705,389.86

676,344.11

39 741.70

716,085.81

$ 3,252,972.50 $ 35,271,310.24 $ 35,102,807.07 $ 3,421,475.67

LIABILITIES Funds Held for Others

$ 3,252,972.50 $ 35,271,310.24 $ 35,102,807.07 $ 3,421,475.67







See notes to the general purpose financial statements.

- 37 -

DEKALB COUNlY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.555

N/A

$ 3,868,887.97

(2)

NIA

15,268,682.02 $ 32,897,548.79 (3)

$ 19,137,569.99 $ 32,897,548.79

Other Program Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program {1)
Total U. S. Department of Agriculture

10.550

NIA

1;611,152.91

1,611,152.91

$ 20,748,722.90 $ 34,508,701.70

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

94.004

N/A

$

9 017.47 $ ----'9"",0:...:1..:..;7-~47:...

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 Georgia Leaming Resources System Preschool Severely Emotionally Disturbed
-
Total Special Education Cluster


84.027
84.027
84.173 84.027

Other Programs Direct Twenty-First Century Community Leaming Centers Pass-Through From Board of Regents, University System of Georgia Title II Teacher Quality Enhancement Grants for States and Partnerships Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Comprehensive School Reform Demonstration Grants to Local Educational Agencies Title II Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants
Title VI Innovative Education Program Strategies Class Size Reduction

84.287
84.336
84.332
84.010
84.281 84.318 84.298 84.340

NIA

$ 4,423,792.70 $ 4,423,792.70

NN-IIAA

162,495.17 591,048.80

162,495.17 591,048.80

N/A

364,987.30

364,987.30

$ 5,542,323.97 $

5,542,323.97


690,861.87

690,861.87

N/A

20,000.00

N/A

58,259.00

58,259.00

NIA

10,914,986.06

10,914,986.06

NIA

314,004.63

314,004.63

NIA

223,632.70

219,356.51

NIA

517,090.78

517,090.78

NIA

1,304,419.62

1,304,419.62

-38-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title VII Immigrant Education TitleX Charter Schools Georgia Leaming Resources System Individuals with Disabilities Education Act Special Education Part D Personnel Development and Parent Training Higher Education Act Title VIII Advanced Placement Incentive Program Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Georgia State University Schoolwide Discipline Grant

84.162
84.282
84.029 84.330
84.186
84.196
84.048 84.323

NIA $ 507,908.04 $

NIA

313,740.57

517,282.71 365,284.67

NIA

2,670.00

2,670.00

NIA

10,000.00

9,178.69

NIA

706,601.98

706,601.98

NIA

34,396.80

34,396.80

NIA

563,144.19

563,144.19

NIA

10,000.00

Total U. S. Department of Education

$ 21,734,040.21 $ 21,759,861.48

Health and Human Services, U. S. Department of Pass-Through from Georgia Department of Education Refugee and Entrant Assistance - Discretionary Grants Pass-Through from Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse

93.576 93.959

NIA

$

55,036.72 $

55,036.72

NIA

112,654.33

112,654.33

Total U.S. Department of Health and Human Services

$ 167,691.05 $ _ _..a1;:;.;67;.,.,6;;.;9;.;1.:.:.0c.:.5

Justice, U. S. Department of Pass-Through From Children and Youth Coordinating Council Community Enrichment Through Family Empowerment Pass-Through From Office of Justice Programs Bulletproof Vest Partnership Grant

OFA
16.607

NIA $ NIA

1,147.12 $ 3,865.60

3,041.53 3,865.60

Total U.S. Department of Justice

$

5,012.72 $ ____6'-",90='-'7._1_3_

Labor, U. S. Department of Pass-Through From DeKalb County Private Industry Council Job Training Partnership Act

17.250

NIA $ _ _25_0~1,_32_._08_

(4)

-39-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
National Aeronautics and Space Administration Pass-Through from Cuyahoga Community College The Science, Engineering, Mathematics and Aerospace Academy
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program 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

43

NIA

$

509,562.72 $ _ _.:3.::.;67:..,:,2:::3:.:::6:.:::.3.:.5

$

38,418.04 $

627,744.75 (3)

42,795.32

58,053.56 (3)

160,842.16

512,655.00 (3)

$

242,055.52 $ _ __:.1i..1;..:,::;98:c,.,4.:.:5::.:3.:.:.3:..:.1

Total Federal Financial Assistance
N/A = Not Available

$ 43,666,234.67 $ 58,017,868.49

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained
separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures 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 modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.



See notes to the general purpose financial statements.

-40-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) 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 Instructional Assistance In-School Suspension Mid-term Adjustment
Counselors Grades 4 and 5
Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Georgia Leaming Resources System Health Insurance Innovative Programs Mentoring Program Mentor Teacher. Program Next Generation Schools Pay for Perfc,r r, ...nee Program Preschool Handicapped Program PSAT Exam Re, aed;a1 Summer School Program Severely Er, IOlionally Distu, btld Special Education Support Cost Teachers' Retirement Lottery Programs Applied Technology Labs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay
Georgia State Financing and lnvesllae,,t Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

64,500.00

78,250.00

$

64,500.00

78,250.00

204,860,464.00 37,479,378.00 7,817,791.00 8,828,065.00 2,376,396.00 50,726,507.00

4,379,048.00 1,292,761.00 4,810,541.00 4,849,225.00 1,672,357.00 1,028, 175.00 4,845,915.00
907,032.00 836,429.00 -68,899,670.00 6,483,393.00
$ 34,678.02

2, 172,930.00

57,994.10 392,975.6'7
3,750.00

7,351,453.93

5,000.00

-

13,839.49

37,746.00

70,932.33

1,382,916.54

10,000.00 113,041.54

83,000.00
1,225,688.84

598,928.75 92,762.00
1,141,103.00 3,221,580.00

191,929.94

202,018.92



2,074,034.00

$ 2,360,855.10

204,860,464.00 37,479,378.00 7,817,791.00 8,828,065.00 2,376,396.00 50,726,507.00
4,379,048.00 1,292,761.00 4,810,541.00 4,849,225.00 1,672,357.00 1,028,175.00 4,845,915.00
907,032.00 836,429.00 -68,899,670.00 6,483,393.00 2,172,930.00
34,678.02
598,928.75 57,994.10 392,975.67
3,750.00 92,762.00 7,351,453.93 5,000.00 13,839.49 37,746.00 70,932.33 1,382,916.54 1,141,103.00 10,000.00 113,041.54 3,221,580.00 83,000.00 1,225,688.84
191,929.94 202,018.92 2,074,034.00 2,360,855.10

1, 104,475.00

16,997,057.03 6,278,090.33

16,997,057.03 6,278,090.33 1,104,475.00

-41

DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2000

SCHEDULE 2

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge To continue the implementation of the Foreign Languages Model Program
Office of the Governor Georgia Challenge Program Direct Pass Through From Metropolitan Regional Educational Service Agency

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,464,309.78 145,290.00

$ 1,464,309.78 145,290.00

2,937.81
10,890.00


2,937.81 10,890.00

$ 287,947,476.05 $ 15,973,376.94 $ 19,357,912.13 $ 323,278,765.12

(1) Assist in expansion of media center at Sagamore Hills School; Assist with the development of enrichment projects and academic programs for students of Meadowview Elementary School; Assist with the development of a Saturday academy for students in grades one through five of Sky Haven Elementary School; Provide reading materials, batteries of tests and staff development for students at Southwest DeKalb High School; and Provide funds for a new stage curtain for Briar Vista Elementary School.



-



See notes to the general purpose financial statements.

-42-

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

Capital outlay projects for educational purposes $ 381,733,800.00 $ 306,367,442.00 $ 77,582,049.30 $ 91,532,994.94

Retirement of previously incurred general obligation debt

114,435,000.00 105,000,000.00

8,494,643.75

13,540,786.69

$ 496,168,800.00 $ 411,367,442.00 $ 86,076,693.05 $ 105,073,781.63

(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 projects. lndudes 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 indude 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.

-43-

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$ 263,815,295.00 $ _ _7;..,,,9.;;..0;..;;2"'1-,....;,4.;..7-~00.;;..

$ 317,633,308.24 13,706,616.55 $ 11,720,706.04
$ 331,339,924.79

-5,014,083.39
-
$ 326,325,841.40

Amount of Underexpenditure for Total Allotment

$

0.00 $

0.00



-

-




See notes to the general purpose financial statements.
- 45 -

DEKAI B COUNTY BOARD OF EDUCATION
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 2000

GENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten (*)
Grades 1 - 3 (*)
Sub-Total K-3
Grades 4 - 5 (*)
Grades 6 - 8 (*)

Grades 9 - 12 (*)
High School Laboratories (*)
Vocational Education Laboratories(*)
Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS
Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*)
Sub-Total Regular
Category VI (Gifted) (*)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C*) Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 21,548,396.00

$ 19,393,556.40 $

59,071,366.00

53,164,229.40

$ 80,619,762.00 90 $ 72,557,785.80 $

27,063,419.00 90

24,357,077.10

43,417,691.00 90

39,075,921.90

35,956,962.00 90

32,361,265.80

11,687,344.00 90

10,518,609.60

6,115,286.00 90

5,503,757.40

$ 204,860,464.00

$ 184,374,417.60 $

0.00 0.00 4,829,597.00
4,829,597.00

$. 31,744,177.00

$ 28,569,759.30 $

0.00

$ 31,744,177.00 90 $ 28,569,759.30 $

0.00

5,735,201.00
$ 37,479,378.00
s 7,817,791.00

90
$
90 $

5,161,680.90
33,731,440.20 s______o_.o_o_
7,036,011.90 $ _ _-----o-.o_o_

$ 250,157,633.00

$ 225,141,869.70 $ 4,829,597.00

$ 7,073,666.00 90 $ 6,366,299.40 $

0.00

1,754,399.00 100

1,754,399.00

0.00

$ 8,828,065.00

$ 8,120,698.40 $ _ _ _ _ _0_.0_0_

Total Fourteen Weighted and Media Center Programs $ 258,985,698.00

$ 233,262,568.10 $ 4,829,597.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Devel0p1:1unt Programs (*) Identifies Fourteen Weighted Programs.
See notes to the general purl)OSd financial statt.::10,&ts.

$

771,721.00

1,604,675.00

$

771,721.00 $

1,604,675.00

16,318.00 0.00

- - - - - $ 2,376,396.00 100 $ 2,376,396.00 $

16,318.00

- 46 -

SCHEDULE"5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 19,393,556.40 $ 22,931,307.30 $

528,208.17 $ 23,459,515.47

53,164,229.40

56,012,896.92

778,527.05

56,791,423.97

$ 72,557,785.80 $ 78,944,204.22 $ 1,306,735.22 $ 80,250,939.44 $

0.00

24,357,0TT.10

31,196,748.88

945,476.67

32, 142,225.55

0.00

43,905,518.90

61,421,317.99

4,380,971.25

65,802,289.24

0.00

32,361,265.80

48,883,169.78

3,243,366.98

52,126,536.76

0.00

10,518,609.60

13,431,585.59

138,600.82

13,570,186.41

0.00

5,503,757.40

9,294,429.35

846,404.47

10,140,833.82

0.00

$ 189,204,014.60 $ 243,171,455.81 $ 10,861,555.41 $ 254,033,011.22

$ 28,569,759.30 $

18,282,752.41 $ 4,438,837.79 17,285,959.82 5,551,796.65
686,078.93

165,517.14 $ 137,509.09 153,193.93 135,971.13
2,349.65

18,448,269.55 4,576,346.88 17,439,153.75 5,687,767.78
688,428.58

$ 28,569,759.30 $ 46,245,425.60 $

594,540.94 $ 46,839,966.54

0.00

5,161,680.90

6,952,155.76

106,286.10

7,058,441.86

0.00

$ 33,731,440.20 $ 53,197,581.36 $

700,827.04 $ 53,898,408.40

$ 7,036,011.90 $

9,408,033.19 $

158,323.59 $ 9,566,356.78

0.00

$ 229,971,466.70 $ 305,777,070.36 $ 11,720,706.04 $ 317,497,TTS.40

$ 6,366,299.40 $ 11,856,237.88

$ 11,856,237.88

0.00

1,754,399.00 - - - - - - $ 1,985,910.51

1,985,910.51

0.00

$ 8,120,698.40 $ 11,856,237.88 $ 1,985,910.51 $ 13,842,148.39

s s s s_______ 23s,os2,1s5.10

317,633,3os.24

13,100,s1s.ss $ 331,339,924.79

o_.oo_

$

788,039.00

1,604,675.00

$ 2,392,714.00

$ 1,807,297.92 $ 1,807,297.92

715,134.80

715,134.80

s s s_______ 2,522,432.12

2,522,432.12

o_.oo_

- 47 -


SEC'IlONII COMPLIANCE AND INTERNAL CONTROL REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 14, 2001

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, 2000, and have issued our report thereon dated May 14, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether DeKalb County Board of Education's financial statements are free of material misstateinent, we perfo11ncd tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete11nination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Rqporting
In planning and perfo11ning our audit, we considered DeKalb County Board ofEducation's inte1nal control over financial reporting in order to detc1n1ine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect DeKalb County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6441-00-01.

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning 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 info11nation and use ofmanagement, members of the DeKalb County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

RWH:gp
2000YB-40A

Respectfully submitted,

w. Ot_ ~. C.
Russell W. Hinton State Auditor


w. RUSSELL HtNTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF A t.TDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 14, 2001

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 AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofDeKalb County Board ofEducation with the types ofcompliance
requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. DeKalb County Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings and.Questioned Costs. Compliance with the requirements of laws, regulations; contracts and grants applicable to each of its major Federal programs is the responsibility ofDeKalb County Board ofEducation'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 ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfu1111 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance require:rnents refei1ed 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 dete11nination on DeKalb County Board of Education's compliance with those requirements.
2000SA-10A

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 ofits major Federal programs for the year ended June 30, 2000.
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 perfo1ming our audit, we considered DeKalb County Board ofEducation's inte111al control over compliance with requirernents that could have a direct and material effect on a major Federal program in order to dete1111ine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the no1mal course ofperforming their assigned functions. We noted no matters involving the inte111al control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the info11nation and use ofmanagement, meinbers ofthe DeKalb County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp
2000SA-10A

Ru sell W. Hinton



State Auditor




SECTION ill
AUDl'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS




DEKALB COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6441-97-01 FS-6441-98-01 FS-6441-99-01 FS-6441-99-02 FS-6441-99-03

Previously Reported Corrective Action hnplemented Further Action Not Warranted Previously Reported Corrective Action hnpletnented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $80,987.75 Finding Control Number: FS-6441-99-02

The Georgia Department of Education will increase the DeKalb County Board of Education's Local Five Mill Share to return the underexpenditure in the StaffDevelopment Program of$80,987.75 in a subsequent fiscal year.

GENERAL FIXED ASSETS Failure to Main.tain General Fixed Assets Account Group Finding Control Number: FS-6441-99-03

The DeKalb County Board of Education does not rnaintain records of land purchases as part of the financial accounting records. Equipment is maintained on the property inventory ledgers ofthe DeKalb County Board ofEducation but is not included within the fo1n1al accounting records. As funding becomes available, the Board of Education has plans to incorporate these into the fu11nal accounting records of the system.


SECTIONN FINDINGS AND QUESTIONED COSTS

. .


DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the DeKalb County Board ofEducation'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 ofEducation 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 of the DeKalb County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in lntet11al 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. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the DeKalb County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-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 Progiams Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.027 Individuals with Disabilities Education Act - Part B - Special Education Georgia Learning Resources System 84.027 Individuals with Disabilities Education Act - Part B - Special Education Severely Emotionally Disturbed 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool
- 1-

DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
8. Type ''A" Program Dollar Threshold The dollar threshold for type ''A'' programs was $1,646,701.22.
9. Low Risk Auditee The DeKalb County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6441-00-01

The DeKalb County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the financial statements ofthe 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 Fecords should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date required, 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.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

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