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DEKALB COUNfY 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 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FlJND TYPE - INTERNAL SERVICE FUND 8 E STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND 9 F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 11 ADDffiONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET 28 H COMBINING STATEMENT OF REVENUES, EXPENDTIURES AND CHANGES IN FUND BALANCES 30 CAPITAL PROJECTS FUND I COMBINING BALANCE SHEET 32 J COMBINING STATEMENT OF REVENUES, EXPENDTIURES AND CHANGES IN FUND BALANCES 34 DEBT SERVICE FUND K COMBINING BALANCE SHEET 36 L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 37 DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION EXHIBITS COMBINING STATEMENTS M FIDUCIARY FUND TYPE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS 38 SCHEDULES 1 SCHEDULE OF EXPENDITTJRES OF FEDERAL AWARDS 40 2 SCHEDULE OF STATE REVENUE 43 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 45 ALLOTMENTS AND EXPENDITTJRES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 46 5 BY SITE 47 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COY\.1PLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS DEKALB COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RUSSELL"' HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wa~hmgton Street, SW., Suite 214 Atlanta, Georgia 30334-8~00 April 10,2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the DeKalb County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general-purpose financial statements of the DeKalb County Board of Education, as of and for the year ended June 30, 2001, 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 opinion. As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2001ARL-13 * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education 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, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. * The Board of Education did not record inventories of purchased foods and Federal donated commodities housed at the various school sites in its general-purpose financial statements. To conform to 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 determined, but are believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the DeKalb County Board of Education as of June 30, 2001, and the results ofits operations and the cash flows of its proprietary fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated April 10, 2002, 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 performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 2001ARL-13 Our audit was perfonned for the purpose of fonning 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 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 infonnation 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 information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy ofthis report has been filed as a pennanent 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 2001ARL-13 DEKALB COUNTY BOARD OF EDUCATION ----------------------------- DEKALB COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND IYPES AND ACCOUNT GROUP JUNE 30, 2001 AS.Sfil cash and Cash Equivalents Investments Accounts Receivable Notes Receivable lnventones Food Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of Bond Debt capital Lease Agreements Compensated Absences GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 23,322,177 42 $ 3,619,348 84 $ 49,770,042 28 25,385,977 75 1,230,234 48 51,739,258 23 2,942,530 79 11,069,693.93 14,666,397 09 150,000 00 Total Assets $ 51 16501685 98 $ 15,9191277 25 $ 11613251697 60 LIABlb!IIES AND FUND EQUITY LIABILITIES Accounts Payable Salanes Payable Notes Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Pa~ble Deferred Revenue Funds Held for Others Capital Lease Agreements Compensated Absences General Obhgat1on Bonds Payable Total L1ab1hlles FUND EQUITY Retained Earnings Reserved for lnventones Unreserved Undes1gnated Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Quesboned Costs For Purpose of Bond Issue For SPLOST Projects For State CSprtal Outlay Pro1ects Unreserved Designated for Self-Insurance Designated for Insurance Reserve Fund Undestgnated Total Fund Equity $ 14,642,163 50 $ 3,315,267 49 1,055,978 04 4,866,315 07 87,13334 243,943 53 46,44532 $ 175,833.27 10,674,389 05 5,827,165 41 $ 16,029,218 41 $ 8,403,861 15 $ 16,501,554 48 $ 1,264,795 91 4,298.95 $ 100 00 80,987 75 1,088 74 $ 42,288,238 98 54,034,893 20 2,000,000 00 1,413,01111 30,858,373 83 7,514,227.36 3,501,010 96 $ 35,621,467 55 $ 7,515,416 10 $ 99,824,14314 Total L1ab1hlles and Fund Equity s 51 16501685 96 $ 1519191277.25 $ 11613251697 60 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 $ 7,174,392 04 $ 240,66077 $ 5,292,479 41 1,533 02 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum On!}'.! JUNE 30, 2001 JUNE 301 2000 $ 89,419,100 76 $ 73,578,309 26 78,355,470 46 185,974,033 45 28,680,154 83 26,187,378 48 150,000 00 150,000.00 361,288.07 $ 7,175,92506 361,288 07 7,175,925 06 91,911 90 49,612 19 66,084,07494 15,162,530 15 7,870,459 44 66,084,074 94 15,162,530 15 7,870,459 44 78,100,387 81 10,907,160 91 7,296,188 79 $ 711751925 06 $ n 6011946 84 $ 512921479 41 $ 9612921989 59 $ 293.2591003 71 $ 38213361982 $ 3,93074 $ 17,961,361 73 $ 13,013,908 11 3,219 52 5,925,512.63 5,398,762 84 100,000,000 00 133,578 66 425,60585 243,94353 532,459.67 10,674,389 05 17,020,881 32 5,827,165 41 3,875,309 78 175,833.27 8,00000 $ 5,292,479 41 5,292,479 41 3,421,475 67 $ 15,162,530 15 15,162,530 15 10,907,160 91 7,870,459 44 7,870,459 44 7,298,188 79 73,260,000 00 73,260,000 00 78,150,000 00 $ 7150 26 $ 5,292,479 41 $ 96,292,989 59 $ 142,527,253 28 $ 240,051,752 94 $ 361,288 07 233,510 51 $ 7,175,925 06 000 $ 7,175,925 06 $ 000 594,79858 $ 361.288 07 $ 233,510 51 91,911 90 90,13907 1,264,795 91 4,398.95 7,175,925.06 82,07649 42,288.238.98 54,034,893 20 1,973,255 69 3n,60224 49,61219 80,98775 161,505 82 64,551,269 56 9,173,555 40 2,000,000.00 1,413,01111 41,873,612 15 2,000,000.00 1,067,762.63 62,667,517 58 $ 150,731,750 43 $ 142,285,229 83 $ 711751925 06 $ n 60194884 $ 51202i410 41 $ 96,292,989 59 $ 29312591003 71 $ 38213361982 -3- DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Serv1ces Improvement of lnstructronal 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 Paymg Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES !!,!SES} Proceeds from Demutuahzatlon of Sunlife Financial Services of Canada, Incorporated (Insurance Carner) 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 FUND BALANCE JUNE 30 GENERAL FUND SPECIAL REVENUE FUND $ 318,367,495.19 $ 1, 127,495.22 320,641,291.62 14,699,043.30 16,019,507.67 50,224,408.47 12,849,531.00 $ 654,835,325.33 $ 79,093,447.14 $ 437,660,119.73 $ 34,651,942.17 14,623,473.54 18,187,394.03 15,762,292.52 3,532,769.90 38,467,146.06 4,870,722.46 73,750,301.14 29,726,235.58 9,832,314.63 192,916.87 28,205.63 3,250,165.02 2,937,954.57 3,055,491.59 42,447.14 13,568.80 403,742.23 120.86 444,672.71 2,485.00 185,997.86 36,812,824.86 1,002,492.36 3,946,165.90 708,437.46 2,307,417.71 81,141.29 $ 654,538,660.47 $ 81,942,299.15 $ 296,664.86 $ -2,848,852.01 $ 10,508,952.85 $ -6,626,746.96 $ 3,882,205.89 $ 1,745,743.79 -185,015.00 1,560,728.79 $ 4,178,870.75 $ -1,288, 123.22 31,442,596.80 8,803,539.32 $ 35,621,467.55 $ 7,515,416.10 The notes to the general-purpose financial statements are an integral part of this statement. -4- EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 14,637,999.29 $ 349,025,002.15 $ 323,278,765.12 51,351,903.69 43,666,234.67 73,309,603.67 $ 15,998,842.20 409,949,737.49 386,365,016.44 12,000,902.97 5,304.42 39,554,781.69 32,727,076.35 $ 99,948,505.93 $ 16,004,146.62 $ 849,881,425.02 $ 786,037,092.58 $ 112,947,590.40 $ $ 112,947,590.40 $ $ -12,999,084.47 $ $ 472,312,061.90 $ 409,416,767.95 17,561,428.11 21,242,885.62 15,804,739.66 3,546,338.70 38,870,888.29 4,870,843.32 74,194,973.85 29,728,720.58 10,018,312.49 192,916.87 36,841,030.49 4,252,657.38 112,947,590.40 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 4,890,000.00 3,985,330.63 2,503.12 11, 143,583.61 4,774,909.38 2,503.12 9,031,479.61 4,782,144.35 4,029.67 8,877,833.75 $ 858,306,383.77 $ 752,114,430.49 7,126,312.87 $ -8,424,958.75 $ 33,922,662.09 $ 6,434,793.89 4,581,003.17 $ 11,015,797.06 $ 6,434,793.89 10,508,952.85 6,326,746.96 $ 7,713,540.03 -6,811,761.96 -7 ,713,540.03 $ 16,458,731.74 $ 0.00 $ -1,983,287.41 $ 101,807,430.55 7,126,312.87 $ 8,033,772.99 $ 33,922,662.09 49612.19 142,103,178.86 108,180,516.77 $ 99,824,143.14 $ 7,175,925.06 $ 150,136,951.85 $ 142,103,178.86 -5- DEKALB COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET ANO ACTUAL - INON-GAAP BASJSl GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 2001 EXHIBIT c GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes 01her Funds Total Revenues s 307,119,538.00 $ 318,367,495 19 1,268,895 00 1,127,495.22 313,925,298 00 320,641,291.62 7,882,497 00 14,699,043.30 $ 630.196.228 00 $ 654,835.325 33 EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educat10nal Media Services General Administration School Administration Business Adm1nrstrat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterpnse Operations Debt ServlC8 Total Expenditures Excess of Revenues over (under) Expenditures ' $ 419,293,024 00 437,660,119.73 17,395,118 00 14,623,473.54 24,232,647.00 18, 187,394.03 15,221,812.00 15,762,292.52 3,755,814 00 3,532,769 90 39,449,841.00 38,467,146.06 8,240,947.00 4,870,722.46 59,952, 115.00 73,750,301.14 27,367,558.00 29,726,235.58 9,862,257 00 9,832,314.63 170,262 00 192,916 87 61,441.00 28,205.63 3,250,165.02 4,654,603 36 $ 625,002,836.00 $ 654,538,660 47 $ 5,193,392.00 $ 296,664 86 OTHER FJNANCING SOURCES /USES) Other Sources 01her Uses ' $ 90,000.00 $ -5.051.208.00 s Total 01her Financing Sources (Uses) -4.961.208 00 $ 10,508,952 85 -6.626.746 96 3,882,205 89 Excess of Revenues and 01her Financing Sources over (under) Expenditures and Other Financing Uses $ 232,184 00 $ 4,178,870.75 FUND BALANCE JULY 1 2000 30.069.040 00 31,442.596.80 FUND BALtiNCE JUt:IE 3Q. i!l.Ql $ 3013011224 00 $ 35162\467 55 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 21,209,994.00 $ 16,019,507.67 42,545,605.00 50,224,408 47 13,944,378.00 12,849,531 00 $ TT.699,9TT 00 $ 79,093,447 14 $ 36,922,401.00 $ 34,651,942 17 2,944,292 00 2,231,599.00 12,087 00 13,886.00 389,548.00 17,099.00 50.00 289,892.00 2,937,954.57 3,055,491.59 42,447.14 13,568.80 403,74223 120.86 444,672.71 2,485.00 185,997.86 36,766,169.00 1,145,824.00 36,812,824.86 1,002,492.36 2,388,559 00 $ 80,732.847 00 $ 81,942,299.15 $ -3,032,870 00 $ -2.848,852.01 $ 1,461,208 00 $ -500,000.00 1,745,743 79 -185.015.00 $ 961.208 00 $ 1,560.728 79 $ -2,071,662.00 $ -1,288, 123.22 9.748.278 00 8,803.539 32 $ 716761616.00 $ 715151416 10 The notes to the general-purpose f1nanaal 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, 2001 EXHIBIT "D" OPERATING REVENUES Sales-Food Supplies OPERATING EXPENSES Current Enterpnse Operations Operating Income (Loss) NONOPERATING REVENUES Interest Earned Income Before Transfers TRANSFERS FROM OTHER FUNDS Net Income (Loss) RETAINED EARNINGS JULY 1 Inventory - Net Change in Period RETAINED EARNINGS JUNE 30 WAREHOUSE SERVICE FUND TOTALS (Memorandum Onl:ll YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 1.177,527.87 $ 1,177,527.87 $ 1,396,714.83 $ 1,520,128.96 $ 1,520,128.96 $ 1,534,770.74 $ -342,601.09 $ -342,601 09 $ -138,055.91 957.53 957.53 20.16 $ -341,643.56 $ -341,643.56 $ -138,035.75 485,015.00 485,015.00 $ 143,371.44 $ 143,371.44 $ -138,035.75 182,050.97 182,050.97 530,427.46 269,376.17 269,376.17 -210,340.74 $ 594,798.58 $ 594,798.58 $=-==1=8=2'=0=-=50=.9=7= 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, 2001 EXHIBIT RE" Cash Flows from Operating Activities: Cash Received from Charges for Services Cash Paid for Sales - Food Supplies Net Cash Provided (Used) by Operating Activities .Cash Flows from Noncapital Financing Activities: Transfers from Other Funds Cash Flows from Investing Activities: Interest Received on Investments Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1 WAREHOUSE SERVICE FUND TOTALS {Memorandum Onl:i} YEAR ENDED . JUNE 301 2001 JUNE 301 2000 $ 1,177,527.87 $ 1,177,527.87 $ 1,396,714.83 -1,552, 133.91 -1,552,133.91 -1,501,311.26 $ -374,606.04 $ -374,606.04 $ -104,596.43 $ 485,015.00 $ 485,015.00 $ 957.53 $ 957.53 $ 20.16 $ 111,366.49 $ 111,366.49 $ -104,576.27 129.294.28 129,294.28 233,870.55 Cash and Cash Equivalents - June 30 $ 240,660.77 $ 240,660.77 $ _,...,.12ii::9=-,2-=94,_,..2..8. ..., Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating Income (Loss) Decrease in Accounts Payable $ -342,601.09 $ -342,601.09 $ -138,055.91 -32.004.95 -32,004 95 33,459.48 Net Cash Provided (Used) by Operating Activ1t1es $ -374,606.04 $ -374,606.04 $ -104,596.43 The notes to the general-purpose financial statements are an integral part of this statement -9- DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" ~OTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The DeKalb County Board ofEducation (School District) was established under the laws ofthe. State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District uses funds and an account group to report on its financial position and the results 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 School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. - 11 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL~PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of majo_r capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. PROPRIETARY FUND TYPE - the fund used to account for activities of the School District similar to those found in the private sector, where cost recovery and the determination 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 School District. INTERNAL SERVICE FUND Warehouse Service Fund - the fund used to account for food inventories purchased by the School District for the School Food and Nutrition Program and Athletic Fund. FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, accrued compensated absences and capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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. - 12 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200 I Note 1: SillvfMARY 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-Term Debt Account Group. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 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 Furid teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School Di_strict were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to - 13 - -------- DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. The accrual basis of accounting, 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. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. BUDGET The DeKalb County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the functional/object/project/program level. The proprietary fund budget was prepared and utilized as a management tool to assess the operations of the 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 School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in 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 ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. - 14 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School District 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 cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District 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 ofthe State'of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. - 15 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NOTES RECEIVABLE The notes receivable consists ofa promissory note from Yeshiva High School, Incorporated for the. purchase of property from the School District. The maturity date for the note is October 30, 2002, 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 2000 tax year (calendar year) on June 13, 2000 (levy date). Taxes were due on November 15, 2000 (lien date) and could be paid in two installments on August 15, 2000 and November 15, 2000 (due dates). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The DeKalb County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $313,500,214.66 and for school bonds amounted to $10,949.69. The tax millage rate levied for the 2000 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 22.llmills 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 $89,297,496.18 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $165,821,892.41 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 DeKalb County School System and are valued at cost (first-in, first-out). The School District uses the purchase method to account for these inventories whereby expenditures are recorded at the time of purchase. Such inventories are maintained as a part of an Internal Service Fund and are equally offset with a corresponding reservation of fund balance as this amount is not available for discretionary expenditures. - 16 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Other purchased foods inventories housed at the various school lunchrooms are recorded as revenue and expenditures at the time they are received at cost. Inventories of donated food commodities and other purchased foods housed at the various school lunchrooms used in the preparation of meals are not reported on the Combined Balance Sheet. To conform to generally accepted accounting principles, these amounts should be recorded in the general-purpose financial statements. COMPENSATED ABSENCES Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. GENERAL OBLIGATION BONDS The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and disc0119ts, 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 of these bonds is recorded in the General Long-Tenn Debt Account Group. INTERFUND TRANSACTIONS The School District has the following types of interfund transactions: Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. - 17 - ---~----------- ------ DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 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 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 1l0percent ofthe daily pool balance. OCGA Section 45-8-11(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5). Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State ofGeorgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $128,442,756.05. The amounts ofthe total bank balances are classified into three categories of credit risk: - 18 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS AND INVESTMENTS Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or b'y the School District's agent in the School District's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) The School District's deposits are classified by risk category at June 30, 2001, as follows: Risk Category Bank Balance 1 $ 7,916,505.12 2 120,526,250.93 3 0.00 Total $128,442,756.05 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 School District or the School District's agent in the School District's name. Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name: At June 30, 2001, the carrying value of the School District's total investments was $60,855,470.46 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: - 19 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government inve~tment 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 SEC 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 Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and 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 ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation and dental claims. The School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. - 20- DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 4: RISK MANAGEMENT The School District has established a limited risk management program for workers' compensation cbims. The School District 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: 2000 2001 Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability $ 0.00 $ 2.219.497.23 $ 2.219.497.23 $ 0.00 $ 0.00 $ 2,208.082.03 $ 2.208.082.03 $ 0.00 The School District is self-insured with regard to unemployment compensation claims. The School District 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: 2000 2001 Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability $ 0.00 $ 76.490.43 $ 76.490.43 $ 0.00 $ 0.00 $ 72.366.40 $ 72.366.40 $ 0.00 The School District is self-insured with regard to dental claims. The School District 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. 2000 2001 Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability $ 58.000.90 $ 4.348.368.26 $ 3.873.909.49 $ 532.459.67 $ 532.459.67 $ 2.961.648.88 $ 3.250.165.02 $ 243.943.53 The School District has purchased surety bonds to provide additional insurance coverage as follows: - 21 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT 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, 2001, amounted to $1,115,837.23. Future minimum lease payments for these leases are as follows: Year Ending Amount 2002 2003 $ 1,115,837.23 160.177.91 Total $ 1,276,015.14 Note 6: GENERAL LONG-TERM DEBT CAPITAL LEASES The DeKalb County Board of Education has entered into various lease agreements as lessee for vehicles, buses and solid waste system. 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% General Government - Refunding - Series 1993 2.80% - 5.60% $41,145,000.00 32,115.000.00 $73.260.000,00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: - 22 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 6: GENERAL LONG-TERM DEBT Balance July I, 2000 Additions Capital Leases Annual Leave Earned and Ut1hzed (Net) Deductions Debt Retired Balance June 30, 2001 Capital Leases Compensated Absences General Obhgatton Bonds Total $10,907,160.91 $ 7,298,188.79 $ 78,150,000.00 $ 96,355,349 70 I 0,508,952.85 572,270.65 I 0,508,952.85 572,270.65 6,253,583.61 4,890,000.00 11,143,583.61 $15 162 530 15 $ 1870~52 44 $ 73 260 000,Q,9 $ 26 222 282.52 At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 2002 2003 2004 2005 2006 2007 - 2011 2012 Total Pnnc1pal and Interest Deduct Imputed Interest Net Present Value of Future Mmimum Lease Payments Capital Leases General Obhgatton Bonds Total D5:bt $ 5,587,893.72 $ 8,930,611.26 $ 14,518,504.98 4,208,902.74 9,050,016.26 13,258,919.00 3,376,049.49 9,102,687.51 12,478,737.00 1,747,994.82 9,202,546.26 I0,950,541.08 1,003,513.50 9,330,405.01 10,333,918.51 788,800.22 47,828,488.13 48,617,288.35 i,244,218.15 2,244,21P5 $16,713,154.49 $ 26 388 213 18 SI 13 102 12167 1,550,624.34 $15 162 530 IS Note 7: SHORT-TERM DEBT The School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to. provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. - 23 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 200 I Note 7: SHORT-TERM DEBT Beginning Balance Additions Payments Ending Balance Tax Anticipation Notes $100.000.000.00 $=====!0~.0=!!.0 $100.000.000,00 $====="0,.,..0...,,0 Note 8: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of$10,304,015.43 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $7,995,903.84 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $1,211,988.59 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 $1,096,123.00 Note 9: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: Project Unearned Executed Contracts Funding Available From State 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 00G/99S/644-018 Lottery 0lG/00S/644-017 285-Softball Field Conversion 630-Toney Elementary $ 82,855.73 458,669.00 5,158.22 11,617,833.81 4,544,965.08 6,272.00 6,331,956.18 16,040,408.00 904,321.00 130,492.40 $ 667,481.80 2,091,957.78 695,178.00 8,459,572.00 551,259.90 719,180.10 4,056,570.00 7,817,175.00 -24- DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 9: SIGNIFICANT COMMITMENTS 635-Bob Mathis Elementary 639-Peachtree Elementary 640-Hightower Elementary 71 7-Southwest DeKalb High 721-Idlewood Elementary 723-Columbia Elementary 724-Canby Lane Elementary 725-Knollwood Elementary 726-Evansdale Elementary 728-Austin Elementary 730-Lithonia Middle 732-Dunwoody High 733-Clarkston High 734-Chamblee High 736-Columbia High 742-Meadowview Parking Lot 744-Indian Creek Elementary 745-Wadsworth Elementary 746-Pleasantdale Elementary 747-Oakcliff Elementary 748-Huntley Hills Elementary 750-Ashford Park Elementary 751-Chestnut Elementary 752-Hooper Alexander Elementary 753-Dunaire Elementary 761-McLendon Elementary 762-Smoke Rise Elementary 763-Redan Elementary 764-Oakgrove Elementary 766-Gresham Park Elementary 768-Blair Lake Elementary 769-Henderson Mill Elementary 772-Shamrock Middle 773-Henderson Middle 776-Montclair Elementary 773-Tank and Pipe Replacement Projects 781-High Tower Elementary $ 115,430.00 275,597.64 7,968.00 1,314.00 47,708.67 1,060,095.62 23,271.65 6,594.34 3,809.69 6,290.01 109,410.66 9,587.00 77,271.41 8,600.00 10,186.34 2,950.30 21,491.26 10,381.74 31,935.52 6,245.05 3,647.25 1,525.45 19,510.83 7,803.70 9,782.69 265,455.00 260,990.00 242,190.18 263,453.50 270,652.56 259,000.00 267,765.00 609,613.00 10,403.26 9,044.00 455,779.44 357,296.99 $45.272.783.17 $25.058.374.58 The amounts described in this note are not reflected in the general-purpose financial statements. - 25 - DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 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 terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. Note 11: SUBSEQUENT EVENTS On March 19, 2002, the voters ofDeKalb County voted in favor of a Special Purpose Local Option Sales Tax Referendum (commencing upon expiration of the current 1 percent sales and use tax). The imposition ofthe tax approved by the voters, as stated on the Official Ballot DeKalb County, is as follows: "Shall a special one percent sales and use tax for educational purposes be imposed in DeKalb County for not longer than 20 quarters, beginning July 1, 2002, to raise not more than $560,000,000.00 (total) for new schools, land, additions, renovations, equipment, school buses, and technology systems, not to exceed: $524,404,330.00 'for DeKalb School District ... as described in the notice of election?" Note 12: ACCUMULATED EMPLOYEES' LEAVE Full-time twelve month employees earn annual leave ranging from ten to twenty days per year depending on the employees' length of continuous service with a maximum accumulation of sixty days. Employees are paid up to the maximum accumulation for unused accumulated annual leave at their current rate of pay upon retirement or termination of employment. Full-time employees earn one and one-quarter days of sick leave each month with a maximum accumulation 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 termination of employment. See Note 1 - Compensated Absences Note 13: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple -26- DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE30,2001 Note 13: RETIREMENT PLANS employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees 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 2001 2000 1999 100% 100% 100% $49,416,364.05 $47,159,731.74 $46,881,118.70 - 27 - DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS FEDERAL PROGRAMS $ 8,321,478.72 $ 1,008,242.32 1,230,234.48 370,327.44 285,648.94 $ 10,260,189.05 Total Assets $ 9,922,040.64 $ 1,293,891.26 $ 10,260,189.05 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 For Expired Grant Balances/Questioned Costs Unreserved Undes19nated Total Fund Equity $ 703,087.39 $ 1,714,084.26 $ 388,908.56 904,982.70 5,677,313.38 2,112,160.23 2,247,248.11 46,445.32 175,833.27 $ 2,417,171.65 $ 1,293,891.26 $ 10,259,000.31 $ 7,504,868.99 $ $ 7,504,868.99 $ $ 0.00 0.00 $ 100.00 1,088.74 0.00 1 188.74 Total Liabilities and Fund Equrty $ 9,922,040.64 $ 1,293,891.26 $ 10,260,189.05 See notes to the general-purpose financial statements. - 28 - EXHIBIT"G" OTHER PROGRAMS ATHLETIC FUND TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 102,000.87 $ 9,431,721.91 $ 8,716,670.52 1,230,234.48 3,127,998.27 $ 153,528.50 11,069,693.93 4,084,464.58 $ 153,528.50 $ 102,000.87 $ 21,731,650.32 $ 15,929,133.37 $ 135,059.69 18,468.81 $ $ 153,528.50 $ $ 92,642.50 5,812,373.07 $ 3,315,267.49 4,866,315.07 46,445.32 175,833.27 92,642.50 $ 14,216,234.22 $ 117,759.25 2,340,586.40 4,375,941.93 283,306.47 8,000.00 7,125,594.05 $ 100.00 $ 36,734.67 1,088.74 $ 0.00 $ _ _......9;;.r,.,3;;.;5;; 8.37 7,514,227.36 8,766,804.65 $ 0.00 $ _ ___,9;;;,.,3_58.37 $ 7,515,416.10 $ 8,803,539.32 $ 153,528.50 $ 102,000.87 $ 21,731,650.32 $ 15,929,133.37 - 29 - --------- -- -- ---- DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Adm1rnstrabon Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services Operation Enterpnse Operations Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS FEDERAL PROGRAMS $ 2,260,780.00 $ 21,638,632.67 11,987,803.00 $ 35,887,215.67 $ 8,696,239.83 $ 3,824,430.84 28,585,775.80 1188.74 8,696,239.83 $ 32.411,395.38 $ $ 36,812,824.86 7,567,001.51 $ 26,508,084.38 432,798.39 42,330.44 790.86 2,364,788 19 2,492,328.42 42,447.14 13,568.80 403,742.23 120.86 443,881.85 2,485.00 185,997.86 2,307,417.71 81,141.29 $ 36,812,824.86 $ 10.431.480.20 $ 32.457.444.73 $ -925.609.19 $ -1,735,240.37 $ -46,049.35 $ 1,735,240.37 $ $ -185.015.00 $ -185.015.00 $ 1,735,240.37 $ $ -1,110,624.19 $ 8.615,493.18 0.00 $ 0.00 10,503.42 10,503.42 -35,545.93 36.734.67 FUND BALANCE JUNE 30 $ 7,504,868.99 $ 0.00 $ -==-===-m=ii1.!a.1;,,;8~8.;.74.;,.. See notes to the general-purpose financial statements. - 30 - EXHIBIT"W OTHER PROGRAMS ATHLETIC FUND TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 1,238,057.00 $ $ 1,238,057.00 $ $ 860,539.26 16,019,507.67 $ 50,224,408.47 12,849,531.00 15,973,376.94 42,537,964.42 12,200,615.47 860,539.26 $ 79,093,447.14 $ 70,711,956.83 $ 576,856.28 $ 34,651,942.17 $ 31,585,721.76 140,367.99 520,832.73 $ 1,002,492.36 2,937,954.57 3,055,491.59 42,447.14 13,568.80 403,742.23 120.86 444,672.71 2,485.00 185,997.86 36,812,824.86 1,002,492.36 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 2,307,417.71 81,141.29 2,182,859.10 205,704.68 $ 1,238,057.00 $ 1,002,492.36 $ 81,942,299.15 $ 72,377,400.53 $ 0.00 $ -141,953.10 $ -2,848,852.01 $ -1,665,443.70 $ 1,745,743.79 $ 1,668,069.81 -185,015.00 $ 1,560,728.79 $ 1,668,069.81 $ 0.00 $ -141,953.10 $ -1,288,123.22 $ 2,626.11 0.00 151,311.47 8,803,539.32 8,800,913.21 $ 0.00 $ 9,358.37 $ 7,515,416.10 $ 81803,539.32 - 31 - ------ ---- ------ - - - - - - - - - - - - - - - - - - - - - DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Notes Receivable REGULAR BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 4,340,041.07 $ 0.00 $ 39,245,354.00 570,996.56 150,000.00 Total Assets $ 51061,037.63 s======-=o=.o=o= s 39,245,354.oo 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 $ 1,308,567.58 251,459.09 $ 1,560,026.67 $ $ 3,501,010.96 $ 3,501,010.96 $ $ 2,242,490.96 3,836,848.78 $ 6,079,339.74 0.00 $ 33,166,014.26 0.00 0.00 0.00 $ 33,166,014.26 Total Liabilities and Fund Equity $ 5,061,031.63 s =-====-==io.-==oo= $ 39,245,354.oo See notes to the general-purpose financial statements. - 32- EXHIBIT "I" SPECIAL PURPOSE LOCAL OPTION SALES TAX LOTTERY PROJECT TOTALS JUNE 30, 2001 JUNE 301 2000 $ 24,011,736.51 $ 67,597,131.58 $ 54,676,334.27 $ 51,168,261.67 51,739,258.23 158,629,928.99 14,666,397.09 14,666,397.09 20,996,972.13 150,000.00 150,000 00 $ 65,834,658.76 $ 24,011,736.51 $ 134,152,786.90 $ 234.453,235.39 $ 17,827,089.30 4,682,696.94 $ 1,036,633.54 $ 23,546,419.78 $ $ 2,440,633.57 702,224.00 17,827,089.30 $ 11,749,613.74 100,000,000.00 10,674,389.05 17,020,881.32 5,827,165.41 3,875,309.78 3,142,857.57 $ 34,328,643.76 $ 132,645,804.84 $ 161,505.82 $ 42,288,238.98 $ 42,288,238.98 64,551,269.56 $ 20,868,878.94 54,034,893.20 9, 173,555.40 0.00 0.00 3,501,010.96 27,921,099.77 $ 42,288,238.98 $ 20,868,878.94 $ 99,824,143.14 $ 101,807,430.55 $ 65,834,658.76 $ 24.011,736.51 $ 134,152,786.90 $ 234,453,235.39 - 33- DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES Current Support Services Business Administration Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Debt Service Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES} Proceeds from Demutuahzallon of Sunlife Financial Services of Canada, Incorporated (Insurance Carrier) 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 REGULAR BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 415,165.43 $ $ 415,165.43 $ $ 1 I 162.63 1,162.63 $ 5,328,055.39 1,416,123.95 6,744,179.34 $ 2,717,000.00 8,554,894.29 $ 607,396.14 75,062.10 $ 36,289,657.73 2,035,735.65 $ 11,879,290.43 $ $ -11 ,464, 125.00 $ 75,062.10 $ 38,325,393.38 -73,899.47 $ -31 ,581,214.04 $ 6,434,793.89 5,104,638.62 $ -1,336,515.04 $ 10,202,917.47 $ 44,009.04 $ -131,615.39 -87,606.35 $ 55,573,672.90 55,573,672.90 $ -1,261,207.53 $ 4,762,218.49 -161,505.82 $ 161,505.82 23,992,458.86 9,173,555.40 FUND BALANCE JUNE 30 $ 3,501,010.96 s==-=-==-=o=oo... s 3311661014.26 See notes to the general-purpose financial statements. - 34 - EXHIBIT" J" SPECIAL PURPOSE LOCAL OPTION SALES TAX LOTTERY PROJECT TOTALS YEAR ENDED JUNE 301 2001 JUNE 301 2000 $ $ 73,309,603.67 9,346,680.43 9,309,943.90 $ 821,no.53 14,637,999.29 $ 73,309,603.67 12,000,902.97 19,357,912.13 79,737,585.64 7,024,927.94 $ 82,656,284.10 $ 10,131,714.43 $ 99,948,505.93 $ 106,120,425.71 $ 1,735,320.98 $ 215,914.05 $ 2,932,914.05 $ 27,228,953.13 19.407 ,235.12 91,555,802.37 11,823,932.24 13,337.73 14,480,401.76. 686,190.00 69,556,629.12 7,697,275.97 3,978,472.22 3,978,472.22 $ 43,031,357.59 $ 19,636,486.90 $ 112,947,590.40 $ 79,675,416.07 $ 39,624,926.51 $ -9,504,n2.47 $ -12,999,084.47 $ 26,445,009.64 $ $ -61,887,957.09 $ 6,434,793.89 10,161,743.13 70,884,063.69 $ 35,947,812.10 -2,946,973.00 -66,303,060.52 -29,902,341.88 $ -61,887,957.09 $ 11214,no.13 $ 11,015,797.06 $ 6,045,470.22 $ -22,263,030.58 $ -2.290,002.34 $ -1,983.287.41 $ 32,490,479.86 64,551,269.56 23,158,881.28 101,807,430.55 69,316,950.69 $ 42,288,238.98 $ 20,868,878.94 $ 99,824,143.14 $ 101,807,430.55 - 35- ------------------------- - - ---------- - -- DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 EXHIBIT K" ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undes1gnated Total Fund Equity PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 59,052.91 $ 7,115,339.13 $ 7,174,392.04 $ 48,950.62 1,533.02 1,533.02 661.57 $ 60,585.93 $ 7,115,339.13 $ 7,175,925.06 $ ==--4=9=-,6_,.1=2.=19,_ $ 60,585.93 $ 7,115,339.13 $ 7,175,925.06 $ 0.00 0.00 0.00 49,612.19 0.00 $ 60,585.93 $ 1,115,339.13 $ 7,175,925.06 $=-====--4=9=,6=12==19,.. See notes to the general-purpose financial statements. -36- DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001 EXHIBIT "L" REVENUES Taxes Other Funds Total Revenues EXPENDITURES Debt Service Principal Interest Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANC!;; JULY 1 PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 10,949.69 $ 15,987,892.51 $ 15,998,842.20 $ 8,500,795.21 5,304.42 5,304.42 41,295.29 $ 16,254.11 $ 15,987,892.51 $ 16,004,146.62 $ 8,542,090.50 $ 4,890,000.00 $ 4,890,000.00 $ 4,305,000.00 3,985,330.63 3,985,330.63 4,189,643.75 $ 2,503.12 2,503.12 4,029.67 $ 2,503.12 $ 8,875,330.63 $ s,sn,B33.75 $ 8,498,673.42 $ 13,750.99 $ 7,112,561.88 $ 7,126,312.87 $ 43,417.08 46,834.94 2,777.25 49,612.19 6,195.11 FUND BALANCE JUNE 30 $ 60,585.93 $ 7,115,339.13 $ 7,175,925.06 $-==4=9=,6=12==19== See notes to the general-purpose financial statements. - 37 - DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT"M" ARMORED CAR SERVICE ASSETS Cash and Cash Equivalents LIABILITIES Funds Held for Others EMPbOYEE'S ALTERNATIVE BENEFIT FUND ASSETS Cash and Cash Equivalents BALANCE JULY 1, 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2001 s _ _ _ _o..,o=o s 109,634.oo $ 109,634.oo $~=----0..0...0... $ 0.00 $ 109,634.00 $ 109,634.00 $ 0.00 $ 55,927.44 $ 35,042,830.90 $ 33,722,551.32 $ 1,376,207.02 LIABILITIES Funds Held for Others HEALTH SELF-INSURANCE IBUST F!,.!ND ASSETS Cash and Cash Equivalents Investments Total Assets LIABILITIES Funds Held for Others RETIRED EMPLOYEE'S MEDICAL INSURANCE ASSETS Cash and Cash Equivalents LIABILITIES Funds Held for Others SALES TAX ASSETS Cash and Cash Equivalents LIABILITIES Funds Held for Others $ 55,927.44 $ 35,042,830.90 $ 33,722,551.32 $ 1,376,207.02 $ 2,647,907.46 $ 2,069,535.21 $ 716,085.81 802,840.16 $ 3,914,602.51 716,085.81 $ 3,363,993.27 $ 2,069,535.21 $ 1,518,925.97 $ 3,914,602.51 $ 3,363,993.27 $ 2,069,535.21 $ 1,518,925.97 $ 3,914,602.51 $ 83.98 $ 15,975.86 $ 16,059.84 $ 000 $ 83.98 $ 15,975.86 $ 16,059.84 $ 0.00 $ 601.38 $ 2,343.54 $ 2,347.14 $ 597.78 s s=,_..,,s..,o..,1._a8_ 2,343.54 $ 2.347.14 s-==--5=-9..,7.,.7,.,.8 - 38- DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT"M" STUDENT INSURANCE ASSETS Cash and Cash Equivalents BALANCE JULY 11 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2001 $ 869.60 $ 3,317.15 $ 3.114.65 $ 1 072.10 LIABILITIES Funds Held for Others $ 869.60 $ 3,317.15 $ 3114.65 $ 1,072.10 TOT~S - AGE~CY FUt!!DS ASSETS Cash and Cash Equivalents Investments Total Assets $ 2,705,389.86 $ 37,243,636.66 $ 34,656,547.11 $ 5,292,479.41 716,085.81 716,085.81 $ 3.421 .475.67 $ 37.243,636.66 $ 35,372,632.92 $ 5,292,479.41 LIABILITIES Funds Held for Others $ 3.421,475.67 $ 37,243,636.66 $ 35,372,632.92 $ 5,292,479.41 See notes to the general-purpose financial statements. - 39- DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U S Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program . 10553 . 10 555 NIA $ 4,132,888.13 (2) NIA 16,094,733 47 $ 35,401,813.79 (3) Total Child Nutrition Cluster $ 20,227,621.60 $ 35,401,813 79 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 10.550 NIA 1,411,011.07 1,411,011 07 Total U S. Department of Agriculture $ 21,638,632 67 $ 36,812,824.86 Corporabon for Nabonal and Community Service Pass-Through From Georgia Department of Education Learn and Serve Amenca School and Community Based Programs 94.004 NIA $ 9,021.82 $ 9,02182 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 Capacity Building Improvement Georgia Leaming Resources System Preschool Severely Emotionally Disturbed 84027 84.173 84.027 84.173 84.027 NIA $ 5,796,187.61 $ 5,796,187.61 NIA 178,263.81 178,263 81 NIA 166,484.72 262,966.72 (3) NIA 655,75975 655,75975 NIA 407,680.52 4,131,236 52 (3) Total Special Education Cluster $ 7,204,376 41 $ 11,024,414 41 Other Programs Direct Drug and Violence Prevention Coordinators 84184 67,68948 67,689.48 Community Technology Centers School Counseling Program Twenty-First Century Community Leaming Centers 84.341 . 84.215 84.287 124,758.78 256,247.08 3,250,117 62 124,758.78 256,247.08 3,250,117.62 Pass-Through From Board of Regents, University System of Georgia Tltle II Teacher Quality Enhancement Grant 84.336 NIA 9,869.25 29,869.25 Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Comprehensive School Reform Demonstration 84.332 NIA 55,768 39 55,768.39 Grants to Local Educational Agencies 84.010 NIA 11,096,623.34 11,096,623.34 Accountab1hty Grants 84.348 NIA 585,746 07 585,746.07 Tltlell ElsenhovJer Professional Development 84.281 NIA 339,129.12 339,129.62 (3) Tltle Ill Technology Literacy Challenge Fund Grants 84 318 NIA 243,497.19 247,nJ.38 -40- DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE 1 FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Educabon, U S. Department of Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Educabon Act Title VI Innovative Education Program Strategies 84.298 NIA $ 533,205.07 $ 536.285 86 (3) i Class Size Reduction Title VII 84.340 NIA 1,708,104.99 1,708,104:99 Immigrant Educabon 84.162 NIA 533,830.26 533,830.26 TiUeX Charter Schools 84.282 NIA 85,213 19 101,243.20 (3) Goals2000 State and Local Education Systemic Improvement Grants 84.276 NIA 74,550.n 74,550.n Higher Education Act Title VIII Advanced Placement Incentive Program 84.330 NIA 69,800 00 78,043.44 (3) Safe and Drug-Free Schools and Communities 84.186 NIA 760,261.39 760,261.39 Stewart B McKinney Homeless Assistance Act Education for Homeless Children and Youth 84.196 NIA 23,505.50 23,505.50 Vocabonal Education - Basic Grants to States High School Program Basic Grant 84048 NIA 797,909.76 797,90976 Pass-Through From Georgia State University Schoolwlde Discipline Grant 84.323 NIA 5,701.05 Total U S Department of Education $ 27,820~03.66 $ 31,697,573 64 Health and Human Services, U. S. Department of Pass-Through from Georgia Department of Education Refugee School Impact Grant Pass-Through from Georgia Department of Human Resources Block Grants for Prevention and Treabnent of Substance Abuse 93.576 93.959 NIA $ 313,386.88 $ 313,386.88 NIA 154,45900 212,533.21 (3) Total U. S. Department of Health and Human Services $ 467,845 88 $ 525,920.09 Justice, U. S. Department of Pass-Through From Office of Community Oriented Policing Services Public Safety Partnership and Community Policing Grant Pass-Through Office of Jusbce Programs Bulletproof Vest Partnership Grant 16.710 16607 NIA $ 443,163.44 $ NIA 5,598.83 443,163.44 70,506 16 (3) Total U. S. Department of Jusbce $ 448,762.27 $ 513,66960 Labor, U.S. Department of Pass-Through From DeKalb County Private Industry Council Job Training Partnership Act 17.250 NIA $ 75,00000 (4) Nabonal Aeronal.lbcs and Space Administration Pass-Through from Cuyahoga Community College The Science, Engineenng, Mathematics and Aerospace Academy 43 NIA $ 91,658.21 $ 422,615 78 - 41 - DEKALB G0l:JNTY BOARD OF EDUCATION SCHEDULE OE EXPENDITURES OF.FEDERAL AWARDS . "' YEAR EN0ED.JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Defense, U.S. Department of Direct Department of the Alr Force R.0 T.C. Program Department of the Army R OT C. Program Department of the Navy ROT.C. Program Total U. S Department of Defense CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD $ 425,161.83 $ 616,068 62 (3) 23,427.05 64,123.23 (3) 352,190 30 572,984.30 (3) $ 800,TT918 $ 1~53, 176.15 Total Federal Financial Assistance $ 51,351,903.69 $ 71.234.801.94 NIA = Not Available Notes to the Schedule of Expendrtures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the SChool Breakfast Program were not maintained separately and are included In the 2001 National SChool Lunch Program (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source (4) Expenditures on this program were not maintained by fund source. Ma)OI' Programs are Identified by an asterisk (*) in front of the CFDA number The School District did not provide Federal Assistance to any Subredpient 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 -42- DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 SCHEDULE"'Z' AGENCY{FUNDING GRANTS Community Affairs, Georgia Department of Governor's Emergency Funcls (1) Local Assistance Grant GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 47,398 00 51,997 74 $ 47,39800 51,997 74 Education, Georgia Department of Qualrty Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early lntervenbon Program Pnmary Grades (1-3) Program Pnmary Grades - Early lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades(~) Program Middle School (~) Program High School General Educabon (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1lrtres Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Educabon Program Alternative ~ducabon Program English Speakers of Other Languages (ESOL) Special Educabon lbnerant Speaal Education Supplemental Speech Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportabon Regular Bus Replacement Nursing SeMces Pnnapal Supplements Vocational Supervisors Educabon Equalization Funding Grant Food SeMces Other State Programs Apprenticeship Program At-Risk Summer School Program Charter Schools ComprehenSIVe School Refonn Demo Project Consortia Environmental Science Program Georgia Leaming Resources System Health Insurance Indirect Costs/Governor's Emergency funds Innovative Programs Mentoring Program Mentor Teachers Nabonal Teacher Certification Next Generation Schools Pay for Perfonnance Preschool Handicapped Program Remedial Summer School Severely Emobonally Disturbed Special Education Support Cost Teachers' Retirement Vocational Education Industry Cerbficabon 17,446,644 00 979,032.00 50,463,849 00 5,057,865 00 25,641,881.00 8,715,036.00 32,740,925 00 41,243,240 00 5,821,788 00 3,395,649 00 5,590,n1 oo 18,621,294 00 4,767,456 00 261,097 00 6,107,215 00 2,843,920 00 3,267,648 00 4,783,089 00 1,473 00 106,810 00 7,625,785 00 2,100,51200 45,100,831.00 4,720,114 00 1,313,548 00 1,n6,652.oo 389,283 00 253,89600 3,144,203 00 $ 2,260,780 00 79,656.05 78,049 57 4,39284 39,634 64 4,50000 7,995,903 84 6,00000 4,30804 10,109 04 52,160 00 9,69400 73,36367 1,167,224 76 113,366 20 80,000 00 1,211,988 59 41,738 05 96,48200 1,238,057.00 3,723,556 00 17,446,644.00 979,032.00 50,463,849.00 5,057,865.00 25,641,881.00 8,715,036 00 32,740,925.00 41,243,240 00 5,821,788 00 3,395,649 00 5,590,n1 oo 18,621,294 00 4,767,456 00 261,09700 6,107,215 00 2,843,920 00 3,267,648 00 4,783,089 00 1,473 00 106,810 00 7,625,785.00 2,100,51200 45,100,831 00 4,720,114 00 1,313,548 00 1,ne,652.00 389,28300 253,896 00 3,144,203 00 2,260,780 00 79,656 05 78,04957 4,39284 39,63464 4,50000 96,48200 7,995,903 84 6,00000 4,308 04 10,109 04 52,160 00 9,69400 73,383.67 1,167,224 76 1,238,057 00 113,366 20 3,723,556 00 80,00000 1,211,988 59 41,738 05 -43- ----------------------- -- ------- DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 SCHEDULE "Z' AGENCY/FUNDING GRANTS Educabon, Georgia Department of Lottery Programs Applied Technology Labs Computers In the Classroom Exceptional Growth-Caprtal Outlay Georgia State Financing and Investment Comm1ss1on Reimbursement on Construction Projects Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Educabon, Georgia Department of Georgia's Reading Challenge Reading First Program Foreign Languages Model Program Student Achievement - NCEE Contrad Human Resources, Georgia Department of Governor's Discretionary Fund After-School Programs Children's Trus1 Fund of Georgia To ensure proper reportage of suspected child abuse and neglect Office of the Governor Georgia Challenge Program Pass Through From Metropolrtan Regional Educational Service Agency GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 410,120 79 $ 1,973,946 20 $ 9,309,943 90 410,120.79 1,973,946 20 9,309,943 90 5,328,055 39 6,312,172 84 $ 1,096,123 00 5,328,055 39 6,312,172.84 1,096,123 00 644,59300 1,070,212 73 154,406 00 37,366.85 644,59300 1,070,212 73 154,406 00 37,36685 80000 80000 17,157 42 17,157 42 -1,76200 -1,76200 $ 318,367,495 19 $ 18,019,507.67 $ 14,637,999 29 $ 349,025,002 15 (1) To provide funds for a new stage curtain for Briar Vista Elementary School, To proV1de funds to replace band equipment for Towers High School Band, To provide funds to Cedar Grove Elementary School for the purchase of playground equipment and ITBS Testing Materials, To provide funds to refurbish the GymnaS1um Floors at Southwest DeKalb High School, To provide funds to purchase supplies and matenals for a Summer Makeup Program at Ronald E McNalr High School, To proVlde funds for the Valed1dorlan and Salutatorian Program for the 21 DeKalb County High Schools, and PfOVlde funds to purchase site hcense to Sequoyah Lrteracy Systems for Southwest DeKalb Htgh School See notes to the general-purpose financial s1atements -44- DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2001 SCHEDULE 3 PROJECT Capital outlay proJects for educational purposes Retirement of previously Incurred general oblrgatron debt ORIGINAL ESTIMATED COST(1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS $ 381,733,80000 $357,310,047.00 $104,337,891.04 $169,115,044.24 Ongoing 114.435,000.00 111,685,178.00 8,875,330.63 22,035,430.44 Ongoing (1) The School Drstnct's ongrnal cost esbrnate as specified rn the resolutron calling for the 1mposlt1on of the Local Optron Sales Tax. (2} The School D1s!nct's current estimate of total cost for the proJ8clS Includes all cost from proj8ct Inception to completion. (3) The voters of DeKalb County approved the ImposI1lon of a 1% sales tax to fund the above projects Amounts expended for these proj8cts may Include sales tax proceeds, state, local property taxes and/or other funds over the life of the proJects See notes to the general-purpose financial statements -45- DEKALB COUNTY BOARD OF EDUCATION GENERAL FUND -QUALITY BASIC EDUCATION PROGRAM /QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2001 SCHEDULE "4" DESCRIPTION ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1} ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL Direct Instructional Programs Kindergarten Program $ Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program Hrgh School General Education (9-12) Program Vocabonal Laboratory (9-12) Program Students with Dlsabllrties Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) 21,316,846.00 $ 1,189,474.00 61,430,500.00 6,231,690.00 31,186,224.00 10,632,099 00 40,789,851.00 51,345,352.00 7,253,000.00 40,522,582 00 7,554,697.00 3,479,239.00 4,070,956.00 5,951,777 00 23,426,484.80 $ 57,987,200.60 1,502,281.39 29,890,713 00 38,464,789.50 30,796,551.10 55,206,440 90 8,157,961.38 21,955,808.90 4,197,734.21 16,531,320 00 5,497,701.36 844,250.90 6,758,283.25 7,795,027.97 3,281,997.75 5,510,770 70 270,767.70 $ 5,712,941.80 444,01410 2,728,305.10 2,780,404 60 5,171,516.60 2,291,444.42 322,902.60 128,743.04 124,297.40 95,198.50 7,925.91 28,46319 27,463.97 92,752.40 886.50 23,697,252.50 63,700,142 40 1,502,281.39 30,334,727.10 41, 193,094.60 33,576,955.70 60,377,957.50 10,449,405.80 22,278,711 50 4,326,477.25 16,655,617.40 5,592,899.86 852,176 81 6,786,746.44 7,822,491.94 3,374,750.15 5,511,657 20 TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 292,954,287.00 $ 317,805,317.71 $ 20,228,027.83 $ 338,033,345.54 Media Center Program Staff and Professional Development 9,370,832.00 2,586,417 00 13,023,328 40 1,800,568 91 2,320,454.30 1,254,263.97 15,343,782.70 3,054,832.88 TOTAL QBE FORMULA FUNDS $ 304,911,536 00 $ 3321629,215.02 $ 23,802,746.10 $ 356,431,961.12 (1) Comprised of State Funds plus Local Five Mill Share See notes to the general-purpose financial statements -46- DEKALB COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM {QBE} ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" Narvie Harris Elementary School Avondale Middle School Cedar Grove High School Vanderlyn Elementary School Austin Elementary School Redan High Sch.ool Margaret Harris High School Eldridge L. Miller Elementary School Panola Way Elementary School Peachtree Middle School Pine Ridge Elementary School Browns Mill Elementary School ~hapel Hill Middle School Marbut Elementary School DeKalb Alternative Night School Cedar Grove Middle School Freedom Middle School Rockbridge Elementary School Cedar Grove Elementary School Stone Mountain High School Kittredge Magnet School Sequoyah Middle School Salem Middle School Shadow Rock Elementary School Edward L. Bouie, Sr. Elementary School Chamblee Middle School Columbia Middle School Fairington Elementary School Stephenson Middle School Robert Shaw Theme School DeKalb School of the Arts Mary McLeod Bethune Middle School Bob Mathis Elementary School Stephenson High School DeKalb Alternative School DeKalb Truancy School Stone Mill Elementary School Miller Grove Middle School Woodridge Elementary School Stone Mountain Middle School Open Campus High School Henderson Middle School Shamrock Middle School Hooper Alexander Elementary School Avondale High School Brockett Elementary School Chapel Hill Elementary School Columbia Elementary School -47 - ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 2,821,104.00 $ 3, 176,076.26 2,679,046.00 2,540,489.54 3,987,365.00 3,680,571.71 2,035,479.00 2,116,224.30 1,625,184.00 2,040,954.18 5,065,907.00 4,955,915.04 1,148,831.00 1,315,319.88 2,394,996.00 2,684,762.20 2,773,045.00 3,036,390.33 3,641,855.00 3,747,839.68 3,214,016.00 3,127,181.67 2,513,134.00 2,823,751.19 3,554,346.00 3,713,822.10 2,851,578.00 3,282, 176.46 93,924.00 281,439.31 3,772,419.00 3,514,558.81 3,716,420.00 3,258,323.60 2,193,372.00 2,471,871.09 2,848,659.00 2,985,603.02 3,670,531.00 3,535,071.74 1,524,349.00 1,708,347.09 3,530,780.00 3,722,354.00 4,950,275.00 4,697,077.00 2,665,098.00 2,984,022.14 2,620,337.00 2,847,097.64 2,118,998.00 2,175,801.52 3,726.59 2,529,632.00 2,834,973.56 4,457,367.00 4,369,151.27 1,699,197.00 1,896,226.44 508,542.00 1,095,801.58 1,925,739.34 1,201,643.00 1,538,336.88 4,923,194.00 4,935,000.11 1,101,312.00 2,388,606.91 116,154.00 217,429.04 2,080,802.00 2,140,657.87 4,002,065.00 4,103,058.61 2,041,872.00 2,055,973.15 2,977,933.00 3,058,223.00 2,823, 199.00 3,601,214.50 4,563,800.00 4,798,211.63 4,479,879.00 4,673,722.54 1,315,176.00 2,003,497.05 2,751,374.00 3,110,130.67 1,491,328.00 1,743,887.43 2,091,473.00 2,289,236.61 1,777,892.00 2,020,223.01 DEKALB COUNlY BOARD OF EDUCATION GENERAL FUND - QUALllY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" SITE Dresden Elementary School Evansdale Elementary School McNair Middle School ldlewood Elementary School Livsey Elementary School Medlock Elementary School Nancy Creek Elementary School Peachcrest Elementary School Sky Haven Elementary School Leslie J. Steele Elementary School Tucker High School Woodward Elementary School Allgood Elementary School Columbia High School Druid Hills High School Fembank Elementary School Gresham Park Elementary School Henderson Mill Elementary School Indian Creek Elementary School Knollwood Elementary School Mclendon Elementary School Midvale Elementary School Cary Reynolds Elementary School Stone Mountain Elementary School Tilson Elementary School Wadsworth Elementary School Ashford Park Elementary School Briarlake Elementary School Canby Lane Elementary School Chesnut Elementary School Dunaire Elementary School Flat Shoals Elementary School Hambrick Elementary School Hentage Educational Center Jolly Elementary School Lakeside High School Meadowview Elementary School Midway Elementary School Oak Grove Elementary School Pleasantdale Elementary School Rock Chapel Elementary School Smoke Rise Elementary School Toney Elementary School McNair High School Atherton Elementary School Briar Vista Elementary School Murphy Candler Elementary School Clarkston High School -48- ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 2,611,485.00 $ 2,670,739.10 1,832,579.00 2,161,174.36 3,789,308.00 3,770,779.03 2,515,661.00 2,594,675.99 1,083,544.00 1,330,052.18 1,182,268.00 1,492,716.11 1,389,367.00 1,572,263.94 1,734,273.00 1,686,754.21 2,178,001.00 2,712,740.13 1,175,417.00 1,486,389.36 4,126,096.00 4,125,660.36 2,318,879.00 2,401,476.95 1,980,453.00 2,277,278.54 4,064,070.00 4,423,704.23 3,507,769.00 3,450,554.56 1,709,320.00 1,986,989.95 1,614,335.00 2,056,230.82 1,953,455.00 2,139,049.06 2,425,045.00 2,861,549.39 1,539,836.00 2,000,010.35 2,037,249.00 2,097,064.05 1,478,940.00 1,757,268.98 2,970,597.00 3,057,246.96 2,352,402.00 2,372,486.48 1,609,910.00 1,956,576.72 1,553,271.00 2,015,599.38 1,294,230.00 1,620,586.02 1,323,220.00 1,981,679.37 2,501,577.00 2,390,395.54 1,591,754.00 1,754,843.28 2,005,585.00 2,229,359.62 1,629,549.00 2,185,755.07 2,196,142.00 2,345,534.05 945,765.00 1,217,460.66 1,885,984.00 2,322,314.13 4,362,964.00 4,410,915.30 1,565,653.00 2,350,305.56 1,388,620.00 1,727,012.24 1,606,297.00 1,942,756.57 1,987,541.00 2,171,496.84 3,157,553.00 3,249,996.62 1,939,133.00 2,251,036.98 1,628,051.00 2,005,495.81 4,039,415.00 4,015,252.85 2,405,668.00 2,622,474.04 1,075,634.00 1,606,870.56 2,288,313.00 2,573,029.84 3,923,707.00 4,554,085.28 DEKALB COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" SITE Cross Keys High School Forrest Hills Elementary School Hightower Elementary School Kelley Lake Elementary School Laurel Ridge Elementary School Montclair Elementary School Oakcliff Elementary School Rainbow Elementary School Rowland Elementary School Snapfinger Elementary School Stoneview Elementary School Towers High School Coralwood Education Center Avondale Elementary School Chamblee High School Clifton Elementary School Dunwoody High School Glen Haven Elementary School Hawthorne Elementary School Huntley Hills Elementary School Kingsley Elementary School Lithonia High School Montgomery Elementary School Redan Elementary School Sagamore Hills Elementary School East DeKalb Campus Southwest DeKalb High School Terry Mill Elementary School Fembank Science Center DeKalb International Student Center DeKalb High School of Technology, North Campus DeKalb High School of Technology, South Campus Warren Technical School Central Office (Alternative Education Program) Other Auxiliary Facility TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 3,932,301.00 $ 3,858,288.90 1,199,171.00 1,653,021.69 1,624,531.00 1,868,224.73 1,648,243.00 2,038,448.93 1,563,981.00 2,351,645.22 1,648,140.00 1,767,891.87 1,865,114.00 2,318,724.69 2,249,641.77 2,005,172.00 1,822,567.31 2,807,847.00 3,465,858.97 2,362,203.00 2.410, 136.96 4,014,917.00 4,352,459.65 248,331.00 851,273.47 2,098,968.00 2,643,284.88 3,463,043.00 3,725,596.26 1,928,017.00 2,310,567.29 3,723,049.00 4,042,964.00 2,318,615.00 2,279,634.13 1,189,045.00 1,542,084.95 1, 188,906.00 1,712,686.06 1,434,316.68 4,924,470.00 4,666,706.60 1,487,170.00 1,913,962.45 2,700,206.00 2,942,441.42 1,235,078.00 1,540,948.37 4,340,024.00 6,608,604.33 4,955,582.00 5,251,268.35 1,990,440.00 2,167,029.02 1,647,470.85 190,584.39 789,553.63 977,626.02 1,579,102.39 4,070,956.00 7,8461972.60 $ 292,954,287.00 $ 338,033,345.54 See notes to the general-purpose financial statements. -49- SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washinglon Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 April 10, 2002 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, 2001, and have issued our report thereon dated April 10, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether DeKalb County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination 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 Reporting In planning and performing our audit, we considered DeKalb County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2001YB-40 control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6441-01-01 and FS-6441-01-02. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6441-0102 to be a material weakness. This report is intended solely for the information and use of the management, 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. Respectfully submitted, RWH:gp 2001YB-40 State Auditor Russi,:u. W. H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S W., Su11e 214 Atlanta, Georgia 30334-8400 April 10, 2002 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, 2001. DeKalb County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section ofthe 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 of DeKalb County Board of Education's management. Our responsibility is to express an opinion on DeKalb County Board of Education's compliance based on our audit. We conducted our audit 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 of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the DeKalb County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on DeKalb County Board of Education's compliance with those requirements. 2001SA-10 In our opinion, the DeKalb County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001. Internal Control Over Compliance The management of DeKalb County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered DeKalb County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the management, 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. Respectfully submitted, ~~~ RWH:gp 2001SA-10 State Auditor SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS DEKALB COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-6441-99-02 FS-6441-99-03 FS-6441-00-01 Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES EXPENDITURES/LIABil.,ITIES/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 Maintain General Fixed Assets Account Group Finding Control Number: FS-6441-00-01 The DeKalb County Board of Education does not maintain 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 formal accounting records. The purchase ofland is recorded in the formal financial records ofDeKalb County Board of Education but not the inventory value of these purchases. As funding becomes available, the fixed assets will be incorporated into the formal financial accounting records. SECTION IV FINDINGS AND QUESTIONED COSTS DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 I SUMMARY OF AUDITOR'S RESULTS 1. Type of Report Issued on the Financial Statements The auditor's opinion on the 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 of Education disclosed financial statement reportable conditions related to the following control categories. Cash and Cash Equivalents General Fixed Assets Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the DeKalb County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the 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) of 0MB Circular A-133. 7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.287 Twenty-First Century Community Learning Centers 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $1,948,258.57. 9. Low Risk Auditee The DeKalb County Board of Education qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education. - 1- ---- ------ DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUNALENTS Inadequate Accounting Procedures Reportable Condition Finding Control Number: FS-6441-01-01 A review of the School District's internal control policies and procedures noted deficiencies in providing adequate internal control over Cash and Cash Equivalents as noted below: (1) Several bank accounts were not properly reconciled to the general ledger throughout the year. (2) Bank reconciliations contained numerous reconciling items. Many reconciling items appeared to be between bank accounts and were not adjusted by the School District in a . timely manner. (3) The overall net unreconciled items totaled $29,929.92 for all bank accounts. No adjustments were made to the financial statements for these unreconciled items. These deficiencies occurred because of management's failure to follow established procedures to analyze and reconcile cash balances on the general ledger with supporting documentation. The School District should strengthen internal controls to ensure that cash is recorded, balanced and reviewed on a monthly basis and that detailed records supporting the general ledger are complete, accurate and reliable. Management's Response: We concur with this finding. We identified the procedural weaknesses and began to take corrective action prior to the beginning of the audit fieldwork. These actions included replacing the person responsible for the bank reconciliation process with one more qualified, reducing the number of accounts and the account structure to a more manageable level and instituting specific controls to insure timely and proper reconciling adjustments are made. Cash is currently recorded, balanced and reviewed on a timely basis. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6441-01-02 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 -2 - DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001 Il 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-6441-01-02 principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this finding. Formal accounting procedures have been developed subsequent to June 30, 2001, in order to properly maintain a system-wide General Fixed Assets Account Group. These will be reflected within the formal accounting records of the School District for the Fiscal Year ending June 30, 2002. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -3-