Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statement for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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DOUGHERTY COUNTY BOARD OF EDUCATION
ALBANY, GEORGIA



REPORT ON AUDIT

OF THE FINANCIAL STATEMENTS





FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

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

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

-E

STATEMENT OF CASH FLOWS


PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHA. NGES IN FUND BALA. NCES DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

Page

2
6

9

10





11

- 13

28
30 32 34 36 37

DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

Page

FINANCIAL

EXHIBITS

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

M

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILfllES

AGENCY FUNDS

38

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

39

2 SCHEDULE OF STATE REVENUE

-

41

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

42

ANALYSIS OF ivJ.J.J

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

43

5

BYPROGRAM

44



SECTION II



COMPLIANCE AND INTERNAL CONTROL REPORTS

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION ill
AUDI'I'E.E'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
v~Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

DOUGHERTY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS




SECTION I
FINANCIAL



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RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 4, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dougherty County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Dougherty County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Dougherty County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo1111 the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose fmancial stateinents, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2000ARL-13

* The Board did not provide the final approved budget for use in preparing the combined statement ofrevenues, expenditures and changes in fund balances - actual and budget, as a part of its general purpose financial statements. The budget reported in the general purpose financial statements Exhibit ''C'' for Special Revenue Fund is not the final approved budget and does not reflect materially accurate revenues, expenditures and changes in fund balances for the Special Revenue Fund. To confo11n to generally accepted accounting principals, the final approved budget reflecting materially correct amounts should be reflected in the general purpose financial statements.
* The school activity accounts reported in the general purpose financial statements do not
accurately reflect the revenues, expenditures and changes in fund balances for all school activity accounts. To confo11n to generally accepted accounting principles, all accounts should be recorded in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo1111 to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete1n1ined, 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 fmancial position of the Dougherty County Board of Education as ofJune 30, 2000, and the results ofits operations and the cash flows of its proprietary fund for the year then ended, in confo1111ity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated April 4, 2001, on our consideration of the Dougherty 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 perfo11ned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
-
Our audit was perfo1n1t:d for the purpose of fo1mi11g an opinion on the general purpose financial statements of the Dougherty County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through M) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
2000ARL-13

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 info11nation 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 infu11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.

~ -Respectfully submitted, ....... ' ell W. Hinton Sta e Auditor
RWH:gp
2000ARL-13






DOUGHERTY COUNTY BOARD OF EDUCATION

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DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Consumable Supplies
Food
Donated Commodities Purchased Food
General Fixed Assets Land Buildings Equipment
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Compensated Absences
Total Assets


GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

$ 4,320,866.73 $ 963,845.59

$ 29,207.73

3,708,998.01

$ 38,397,194.37 4,659,471.53

829,503.12 2,121,173.05

9,023,135.22

57.51

100,224.24

443,112.04

27,909.51
150,551.70 238,114.20

$ 9",402,704.14 $ 3,501,594.05 $ 47,420,329.59 $ 4,688,736.77

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

EXHIBIT "A"



PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

$

7,779.79 $

344,180.93

1,851,027.20

36,692.81

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$ 5,665,880.77 $ 5,287,026.87

48,616,691.11

54,688,240.92

,

12,010,561.71

13,601,089.94

100,224.24

66,685.08

471,021.55
150,551.70 238,114.20

235,157.10
221,042.79 136,645.35

$ 9,124,549.00 167,383,251.26 25,691,517.75
$


4,688,736.77

9,124,549.00 167,383,251.26 25,691,517.75
4,688,736.77

8,151,535.13 150,375,446.80 25,374,540.52
4,606,371.85

17,841,263.23 873,608.09

17,841,263.23 873,608.09

24,973,628.15 852,577.89

$ 1,858,806.99 $


380,873.74 $ 202,199.318.01 $ 23.403.608.09 $ 292.855.971.38 $ 288.569,988.39


-3-

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALLFUNDTYPESANDACCOUNTGROUPS
JUNE 30, 2000

LIABILITIES AND FUND EQUITY

GENERAL FUND

GOVERNMENTALFUNDTYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY

$
$ 10,747.62 $ 341,854.86 55,812.56 1,338,589.63
5,000,000.00 3,698.03 1,051,290.16

4,067,635.45 861,399.43

4,385.00

835,927.43 217,783.06

$ 5,074,643.21 $ 2,731,734.65 $ 5,982,745.37


Investment in General Fixed Assets

Retained Earnings

Fund Balances

Reserved

For Arbitrage Rebate Tax

For Continuation of Federal Programs

$

For Debt Service For Expired Grant Balances/Questioned Costs $

37,207.46

For Flood Recovery

For Inventories Consumable Supplies

443,112.04

Food Donated Commodities

Purchased Food

For Purpose of Bond Issue

For SPLOST Projects

For State Capital Outlay Projects

Unreserved Designated for Self-Insurance Undesignated

1,857,868.49 1,989,872.94

Deficit

Total Fund Equity

$ 4,328,060.93 $

$
10,915.93

832,879.55 $ 4,688,736.77

27,909.51
150,551.70 238,114.20

25,009,937.19 15,670,212.22
1,779,344.07

342,368.06

0.00

0.00

-1,854,788.81

769,859.40 $ 41,437,584.22 $ 4,688,736.77

Total Liabilities and Fund Equity

$ 9,402,704.14 $ 3,501.594.05 $ 47,420,329.59 $ 4,688,736.77

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

EXHIBIT "A"



PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum Only)

JUNE 301 2000

JUNE 30, 1999

$

274,883.59

$

380,873.74

$

274,883.59 $ _ _.::;;38:.::0...a,8a.:.7.:a:3."-74~

$
$ 873,608.09 22,530,000.00

4,067,635.45 $ 1,214,001.91 1,394,402.19 5,000,000.00 1,054,988.19
274,883.59 835,927.43 217,783.06
4,385.00 380,873.74 873,608.09 22,530,000.00

2,169,322.51 1,144,389.19 1,394,335.60 5,000,000.00
156,052.77 284,435.37 2,161,689.30 2,376,666.51
9,385.00 495,372.22 852,577.89 29,580,000.00

$ 23,403,608.09 $ 37,848,488.65 $ 45,624,226.36

$ 1,583,923.40

-
$ 202,199,318.01

$ 202,199,318.01 $ 183,901,522.45

1,583,923.40

1,536,698.75

-
0.00 $ 1,583,923.40

0.00 $ 202,199,318.01

832,879.55 10,915.93
4,688,736.77 37,207.46

6,976.75 4,606,371.85
66,516.69 1,573,337.06

471,021.55
150,551.70 238,114.20 25,009,937.19 15,670,212.22 1,779,344.07

235,157.10

221,042.79 136,645.35 29,239,307.76 11,661,921.38 195,626.04

1,857,868.49 2,332,241.00 -1,854,788.81

1,772,442.30 7,792,195.76

$ 255,007,482.73 $ 242,945,762.03

$ 1,858,806.99 $

380,873.74 $ 202,199,318.01 $ 23,403,608.09 $ 292,855,971.38 $ 288,569,988.39

-5-

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

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues

EXPENDITURES



Current

Instruction

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Food Services Operation

Enterprise Operations

Community Services Operations



Capital Outlay

Debt Service

Principal

Interest

Paying Agent Fees

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

Adjustments Prior Year Expenditures

GENERAL FUND

SPECIAL REVENUE
FUND

$ 63,517,748.28 $ 3,614,950.30

205,679.49

13,654,533.55

30,437,163.20

2,156,246.29

1,983,993.79

$ 96,316,837.26 $ 19,253,477.64

$ 64,508,348.72 $
5,426,725.82 2,908,620.34 2,827,640.92 1,493,047.79 7,272,842.82 1,696,955.89 9,030,680.37 4,216,142.79 1,676,774.79
265,671.43 931.60
326,063.58 114,862.83 313,820.60

7,530,981.44
1,798,547.41 1,323,948.58
64,126.34 305,637.10
85,038.47
146,769.85 81,674.89
39,234.12 7,881,289.35
252,124.56 613,136.66
12,328.79

$ 102,079,130.29 $ 20,134,837.56 $ -5,762,293.03 $ _ _-8__8...,1.,;a,3.a;..59"'-.=9_2 _

$ 1,252,551.39 $
-209,815.03

209,815.03

$ 1,042,736.36 $ _ _2___0_...9....._,8_1__5___.=03~

$ -4,719,556.67 $
8,789,572.45

-671,544.89 1,441,404.29

258,045.15

FUND BALANCE JUNE 30

$ 4,328,060.93 $ _ _7_6_9.,,8..,59_.4_0_

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

-6-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 2,343, 193.14 5,212,534.20 8,618,849.75 $ 2,296,257.11
$ 18,470,834.20 $

$
8,312,501.51 41,784.40

69,475,891.72 $ 19,072,747.24 47,368,514.46 6,478,281.59

69,065,617.07 39,183,028.10 43,813,144.81 6,489,103.48

8,354,285.91 $ 142,395,435.01 $ 158,550,893.46



$

855,761.99

595,392.21 18,209.26
143,448.47 76,922.25 263,885.56

2,712.68 16,236,513.26
$

$ 18, 192,845.68 $

$

277,988.52 $

$ 72,895,092.15 $ 66,582,920.77

7,050,000.00 1,218,210.00
3,710.99

7,225,273.23 4,232,568.92 3,487,159.47 1,816,894.15 7,501,329.76 1,773,878.14 9,441,335.78 4,297,817.68 1,676,774.79
304,905.55 7,882,220.95
578,188.14 730,712.17 16,562,662.65
7,050,000.00 1,218,210.00
3,710.99

6,430,029.75 4,090,554.63 2,763,334.38 1,874,339.36 6,680,931.53 1,764,019.85 8,581,747.06 4,329,948.45 1,595,475.79
449,483.20 7,510,525.42
578,447.34 728,548.57 34,703,473.70
6,700,000.00 1,607,652.71
1,681.31

8,271,920.99 $ 148,678,734.52 $ 156,973,113.82

82,364.92 $ -6,283,299.51 $ 1,577,779.64

$ -1,252,551.39 $ -1,252,551.39

$ 1,462,366.42 $ -1,462,366.42

863,549.32 -868,929. 79

$

0.00 $ _ __.,:-5:.i,:,3~8~0:....:.4.:,_7

$

-974,562.87 $

42,670,192.24

82,364.92 $ 4,606,371.85

-6,283,299.51 $ 57,507,540.83

1,572,399.17 55,935, 141.66

-258,045.15

0.00

$ 41,437,584.22 $ 4,688,736.77 $ 51,224,241.32 $ 57,507,540.83

-7-

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERALANDSPECIALREVENUEFUNDS
YEAR ENDED JUNE 30. 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 61,493, 133.00 $
337,000.00 30,185,471.00
816,500.00

63,517,748.28 205,679.49
30,437,163.20 2,156,246.29

Total Revenues

$ 92,832,104.00 $ 96,316,837.26

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay



$ 59,490,609.00 $ 64,508,348.72

4,678,417.00 2,714,902.00 2,756,874.00 1,458,646.00 6,822,783.00 1,707,634.00 8,542,670.00 4,092,600.00 1,476,630.00
293,004.00 12,000.00
189,874.00 313,600.00

5,426,725.82 2,908,620.34 2,827,640.92 1,493,047.79 7,272,842.82 1,696,955.89 9,030,680.37 4,216,142.79 1,676,774.79
265,671.43 931.60
326,063.58 114,862.83 313,820.60

Total Expenditures

$ 94,550,243.00 $ 102,079,130.29

Excess of Revenues over (under) Expenditures

$ -1,718,139.00 $ -5,762,293.03

OTHER FINANCING SOURCES /USES)

Other Sources Other Uses

$ 1,323,756.79

$ -593,300.00

-281,020.43

Total Other Financing Sources (Uses) $ -593,300.00 $ 1,042,736.36

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ -2,311,439.00 $

-4,719,556.67

FUND BALANCE JULY 1. 1999

5,761,774.00

8,789,572.45

Adjustments

258,045.15

FUND BALANCE JUNE 30. 2000

$ 3,450,335.00 $ 4,328,060.93

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 3,209,064.00 $ 3,614,950.30

8,811,725.00

13,654,533.55

9,000.00

516,100.00

1,983,993.79

$ 12,545,889.00 $ 19,253,477.64

$ 7,626,075.00 $ 7,530,981.44

1,721,941.00 1,486,471.00
114,205.00 453,899.00
5,150.00

1,798,547.41 1,323,948.58
64,126.34 305,637.10
85,038.47

281,948.00 26,100.00

146,769.85 81,674.89

1,223,400.00

39,234.12 7,881,289.35
252,124.56 613,136.66
12,328.79

$ 12,939,189.00 $ 20,134,837.56

$ -393,300.00 $ -881,359.92

$

393,300.00 $ 209,815.03

$

393,300.00 $ --'2:.:0:.::9.i.::,8c.:.1:::.:5.""03:...

$

0.00 $ -671,544.69

0.00

1,441,404.29

$

0.00 $ =-7~6~9~,8:,::59~-;;:;:40:;;..

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

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

YEAR ENDED JUNE 30, 2000

OPERATING REVENUES

PROPRIETARY FUND TYPE SELFINSURANCE FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 301 1999

Charges for Services

$

304,375.42 $ _ _2_7_0_,5_50_.4_7_

OPERATING EXPENSES

Current

Support Services

Central Support Services

$

Operating Income (Loss)

$

NONOPERATING REVENUES

-581095.64 $ ______o;..;.._o_o'"""

Interest Earned

$

105,320.29 $ _ _..;;;9.,;;;.8,=6=95;;.;,.7 ;,.;;2;_

Net Income (Loss) Before Operating

Transfers from Other Funds

$

47,224.65 $

47,224.65 $

98,695.72

Operating Transfers from Other Funds

5 380.47

Total Income (Loss)

$

47,224.65 $

47,224.65 $

104,076.19

RETAINED EARNINGS JULY 1

"



RETAINED EARNINGS JUNE 30

$ 1,583,923.40 $ 1,583,923.40 $

The notes to the general purpose financial statements are an integral part of this statement.
- 10 -

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

EXHIBIT "E"

Cash Flows from Operating Activities:

Cash Received from Charges

for Services

Cash Paid for Administration of Fund

.

Cash Paid for Worker's Compensation Claims

Net Cash Provided (Used) by Operating Activities

Cash Flows from Nonoperating Revenue: Operating Transfers from Other Funds

Cash Flows from Investing Activities: Interest Received on Investments Purchases/Redemptions of Investments

Net Cash Provided by Investment Activities

Net Increase (Decrease) in Cash

Cash and Cash Equivalents - July 1

PROPRIETARY FUND TYPE SELFINSURANCE FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

304,375.42 $

304,375.42 $

270,550.47

-72,572.08

-72,572.08

-123,044.47

-299,450. 76

-299,450.76

-143,252.30

$

-67,647.42 $

-67,647.42 $ _ ___;4ci.::;,2=5=3."-70~

$ _ ____,;5;.:.,3;;.;8;.,;:0.;.4..;.;.7_

$

105,320.29" $

105,320.29 $

-104,789.48

-104,789.48

98,695.72 -62,592.55

$

530.81 $

$

-67,116.61 $

$

74,896.40 $

530.81 $ _ _....;3""'6-"-1',.;;;.0.;;;.;3...;..17;._ -67, 116.61 $ _ _ _4.:.;:5;.:.,7;.,;:3:;.;.7.;.;3.;..;4_ 74,896.40 $ _ _--a;,.29;;...,..;..15""-9'"'-.0'-'6"-

Cash and Cash Equivalents - June 30

$

7 779.79 $

7 779.79 $====7==4..,.,8=9=6..4...0=

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

$

-58,095.64 $

-58,095.64 $

-9,551.78

-9,551.78

0.00 4,253.70

Net Cash Provided (Used) by Operating Activities

$

-67,647.42 $

-67 647.42 $====4=,2=53==70....



The notes to the general purpose financial statements are an integral part of this statement. - 11 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Dougherty County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and account groups 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.
The school activity accounts reported in the general purpose financial statements do not accurately reflect the revenues, expenditures and changes in fund balances for all school activity accounts. To confo1n1 to generally accepted accounting principles,.all accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes a:nd Other funds under control of the Board, in compliance with- generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account groups presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
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 expenditure-s for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
- 13 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-te11n principal, interest and paying agent fees.
PROPRIETARY FUND TYPE - the fund used to account for activities of the Board similar to
those found in the private sector, where cost recovery and the 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 Board.

SELF-INSURANCE FUND - the internal service fund used to account for the Board's Worker's Compensation risk financing and insurance related activities.
FIDUCIARY FUND TYPE - the funds 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. These funds include:
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUPS
GENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the Board.
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and accrued compensated absences.

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.
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-Te1n1 Debt Account Group.

- 14 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All proprietary funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are pureIy custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were em' ployed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Depart~ent ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been eamed;but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments
for these two months were made and recorded as expenditures by the Board subsequent to iune 30,
2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the ti~e liabilities are incurre~.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.

- 15 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PlJRPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Dougherty County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal le,,el of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations ofthe internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Board was unable to provide a final approved budget ofrevenues, expenditures and changes in fund balances for all Special Revenue Funds, which results in a material understatement of the Combined Statement ofRevenues, Expenditures and Changes in Fund Balance - Budget and Actual as reflected on Exhibit ''C'' of this report.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-} 4 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase 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 of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidiJy. Funds may be invested in the following:

- 16 -


DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 infotmation 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
nece-ssitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES

The Dougherty County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 13, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Dougherty Cou.TJ.ty
Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.1 %
of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

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

School Operations

17.7 mills


- 17 -

DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEME1\1TS
JUNE 30, 2000

EXHIBIT "F"



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to
$16,924,992.89 and was recorded in the Capital Projects and Debt Service Funds. The State will ter1ninate collection of this tax once an additional $48,694,902.06 has been collected or on September 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (weighted average). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component ofnet current assets.

SUPPLIES INVENTORIES Inventories ofconsumable supplies are reported on the Combined Balance Sheet at cost (weighted average). The Board uses the consumption method to account for the inventory whereby purchases are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventory reported on the balance sheet is equally offset by a reservation offund balance which indicates that it is not available for discretionary expenditures even though it is a component of net current assets.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 2000, are
recorded as prepaid items.

GENERAL FIXED ASSETS

General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of

- 18 -

DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

EXHIBIT "F"



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Infrastructure assets are not capitalized by the Board.
COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.

Operating ttansfers are recorded for all interfund transactions other than reimbursements.
FUND BALANCE ADJUSTMENT

The Board transferred $258,045.15 from the Capital Projects Fund - Federal Projects to the General
Fund for prior year administrative expenditures reflected in the General Fund. Administrative charges made to Federal capital outlay projects will be reviewed by the Federal Emergency Management Agency to deter1nine allowability of these expenditures for Federal reimbursement.
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 confo11nity with generally accepted

- 19 -

DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCli\L ST,A.TEMENTS
JUNE 30, 2000

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

DEFICIT FUND BALANCE

The fund reporting a deficit fund balance position at June 30, 2000, is as follows:

Fund Type/Fund Name

Deficit Balance

Governmental Fund Type Capital Projects Fund Federal Projects

$ 1,854,788.81

Subsequent to June 30, 2000, the Board began reviewing capital project expenditures with the Federal Emergency Management Agency to determine whether additional funding is available.

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. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than l lOpercent 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,

-20-

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000



Note 2: DEPOSITS AND INVESTMENTS

(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 ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to ptincipal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS
At June 30, 2000, the bank balances were $7,190,310.66. The amounts ofthe total bank balances are
classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 2000, as follows:

Risk Category

Bank Balance

1

$ 553,392.94

2

6,603,953.80

3

32,963.92

Total

$7,190,310.66

CATEGORIZATION OF INVESTMENTS
At June 30, 2000, the carrying value ofthe Board's total investments was $48,616,691.11 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 of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does

- 21 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the 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-t(:;1111 instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on J_une 30,_2000, was .80 year.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned
value. See Note 1 - Inventories
Note 4: GENERAL FIXED ASSETS
The following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year:

- 22 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: GENERAL FIXED ASSETS

Land

Buildings

Equipment

Total

Balance July 1, 1999

$ 8,151,535.13 $150,375,446.80 $25,374,540.52 $183,901,522.45

Additions Deletions Unidentified Variance Balance June 30, 2000

973,013.87 17,062,934.44 2,455,446.97 20,491,395.28

-55,129.98 -2,101,377.90 -2,156,507.88

-37,091.84

-37,091.84

$9,124,549.00 $167,383.251.26 $25,691,517.75 $202,199,318.01

Note 5: RISK MANAGEMENT

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

The Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their speci~lty for_ property, boiler and machinery, general liability . (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.

The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expense 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:

- 23 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FIN.A.NCii\L STATEMENTS

JUNE 30, 2000

Note 5: RISK MANAGEMENT

Beginning
of Year
Liability

Claims and Changes in Estimates

Claims Paid

End ofYear
Liability

1999 2000

$ 280,181.67 $ 147,506.00 . $ 143,252.30 $ 284,435.37 $ 284,435.37 $ 289,898.98 $ 299,450.76 $ 274,883.59

.
The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims 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:



Beginning
of Year
Liability

Claims and Changes in Estimates

Claims Paid

End ofYear
Liability

1999 2000

$

0.00 $ 18,658.00 $ 3,335.00 $ 15,323.00

$ 15,323.00 $ 18,131.00 $ 27,764.00 $_ __,5=,6=9=0.,,,,.0=0

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


Position Covered


Amount

Superintendent



All Other Employees

$ 50,000.00 $ 250,000.00

Note 6: GENERAL LONG-TERM DEBT

ARBITRAGE REBATE TAX
The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the
United States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated liability of
$832,879.55 at June 30, 2000, is based on tax exempt debt subject to the Tax Refo11n Act. The
estimated liability will be updated annually for any tax-exempt issuances or changes in yields
through February 24, 2003, at which time payment ofthe final calculated liability for the five-year
period is required to be remitted.

-24-

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: GENERAL LONG-TERM DEBT

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

Purpose
General Government - Refunding - Series 1992 General Government - Series 1998

Interest Rates
3,25% - 5.20% 3.55% - 4.10%

Amount
$ 455,000.00 22,075,000.00

$22,530.000.00

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

Compensated Absences

General Obligation
Bonds

Total

Balance July 1, 1999

$

0.00 $29,580,000.00 $29,580,000.00

Retroactive Restatement of Prior Year Balances

852,577.89

852,577.89

Balance July 1, 1999 Restated

$ 852,577.89 $29,580,000.00 $30,432,577.89

Additions

Annual Leave Earned and
Utilized (Net)

21,030.20

21,030.20

Deductions Debt Retired

7,050,000.00 7,050,000.00

Balance June 30, 2000

$ 873,608.09 ~27.,530.000.00 $23,403,608.09

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

Fiscal Year Ended June 30
2001 2002 2003
Total Principal and Interest

General Obligation
Bonds



$ 8,343,792.50

7,942,712.50

7,988,381.25

$24.274.886.25

- 25 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: LOANS PAYABLE
At June 30, 2000, short-term debt (temporary loans) amount to $5,000,000.00 with interest accruing at 4. 74 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe calendar year in which the loan was made.

Note 8: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $1,610,817.32 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education



Paid to the Georgia Department of Community Health

For Health Insurance ofNon-Certified Personnel

In the amount of $1,308,799.32

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 $302,018.00

Note 9: SIGNIFICANT COMMITMENTS



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

Project
97 /96S-647-015 99-647-079 Bond Projects SPLOST Projects

Unearned Executed Contracts

Funding Available From State

$ 2,654,701.54 2,540,354.87 8,021,939.37 603,117.84

$ 519,560.82 585,409.38

$13,820,113.62 $1,104,970 ?O

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

Note 10: CONTINGENT LIABILITIES



Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency

- 26 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 10: CONTINGENT LIABILITIES

for any expenditures which are disallowed under grant te1111s. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfo1n1ance of routine Board operations. The ultimate disposition of these proceedings is not presently detenninable, but is not believed to be material to the general purpose financial statements.

Note 11: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staff and certain other full-time employees earn up to one and one-half days per month of vacation leave. Vacation leave may be accumulated to a maximum of 30 days. Employees are paid, at their current rate of pay, for unused accumulated vacation leave up to the maximum upon retirement or te1n1ination of employment. See Note 1 - Compensated Absences

Note 12: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers 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 Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%


$7,855,641.03 $ 7,702,068.42 $ 7,136,105.17

- 27 -

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


ASSETS

Cash and Cash Equivalents

Investments

Accounts Receivable

Inventories



Consumable Supplies

Food

Donated Commodities

Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

778,097.62 $

110,047.96

78,118.44
27,909.51 150,551.70 238,114.20

26,417.24

Total Assets

$ --- -

1,272,791.47 -- --- ----- - - - - --

$-=-===13==6,.,.,4...,6_5.=20=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Consumable Supplies Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

85,458.10 $

445,110.14

24,166.47 74,824.78 37,473.95

$

530,568.24 $ _ _.;..;13;.;;6....,,4.;a.65==20;;...

$

27,909.51

150,551.70 238,114.20

325,647.82 $----------0-.0-0-

$

742,223.23 $ _ _ _ _ _o_.0'-0_

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
-28-

$ 1,272,791.47 $ ==-==1,..3..6...,.4....6.5.=.2=0=

EXHIBIT "G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

84,450.01

$

972,595.59 $

673,601.13

698,056.26

2,007,887.37 $

8,750.00 2,121,173.05

2,923,747.18

27,909.51
150,551.70 238,114.20

21,569.91
221,042.79 136,645.35

$ 2,092,337.38 $

8,750.00 $

3,510,344.05 $ 4,674,662.62 --- - - -- - - - - - - -

$

$

232,230.29

818,654.71

1,013,816.21

$ 2,064,701.21 $

8,750.00 $ 8,750.00 $

8,750.00 $ 341,854.86 1,338,589.63 . 1,051,290.16
-
2,740,484.65 $

1,402,747.75 352,934.29
1.~28,243.65 149,332.64
3,233,258.33



$

10,915.93

$

10,915.93 $

6,976.75

27,909.51

21,569.91

150,551.70 238,114.20

221,042.79 136,645.35

161120.24 $ _ _ _ _0__.0-'o'-

342,368.06

1,055,169.49

$

27,636.17 $

0.00 $

769,859.40 $ 1,441,404.29

$ 2,092,337.38 $

8,750.00 $ 3,510,344.05 $ 4,674,662.62

- 29 -

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

REVENUES

State Funds Federal Funds Other Funds

Total Revenues

EXPENDITURES

Current

Instruction

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services



Food Services Operation

Enterprise Operations

Community Services Operations

Capital Outlay

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES

Operating Transfers In

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

FUND BALANCE JULY 1

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

484,816.00 $ 1,284,111.60

5,549,814.33

1,465,875.16

$ 7,500,505.49 $ 1,284,111.60

$ 1,094,578.79
117,697.59 87,376.98


20,418.92 66,390.58

$ 7,880,783.62 252,124.56

12,328.79



$ 8,145,236.97 $ __1.;.,.,3;:;.;8;.;:6;L.,4:.;:;6=2:.=.8.;:;..6

$ -644,731.48 $ -102,351.26

102,351.26

$ -644,731.48 $

0.00

1,386,954.71

0.00



FUND BALANCE JUNE 30

$

742,223.23 $

0.00

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

EXHIBIT "H"



FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 1,811,022.70 $ 8,104,719.22 518,118.63
$ 10,433,860.55 $

35,000.00 $

3,614,950.30 $
13,654,533.55 1,983,993.79

35,000.00 $ 19,253,477.64 $

3,500,877.06 14,589,083.81 2,074,617.08
20,164,577.95

$ 6,390,410.62 $

45,992.03 $ 7,530,981.44 $

8,118,105.52

1,680,849.82 1,236,571.60
64,126.34 305,637.10
85,038.47 126,350.93
15,284.31
39,234.12 505.73
613,136.66

1,798,547.41

1,743,385.64

1,323,948.58 64,126.34

1,315,231.74 73,511.43

305,637.10

322,332.90

85,038.47

60,045.77

146,769.85

171,049.99

81,674.89

125,103.74

1,831.52

39,234.12

162,159.13

7,881,289.35

7,509,672.22

252,124.56

213,089.43

613,136.66

594,360.65

12,328.79



$ 10,557,145.70 $

45,992.03 $ 20,134,837.56 $ 20,409,879.68

$

-123,285.15 $

-10,992.03 $ -881,359.92 $

-245,301. 73

96471.74

$

-26,813.41 $

54,449.58

10,992.03

209,815.03

169,557.10

0.00 $ 0.00

-671,544.89 $ 1,441,404.29

-75,744.63 1,517,148.92

$

27,636.17 $

0.00 $

769,859.40 $

1,441,404.29

- 31 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items
Total Assets

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

241,573.61

26,065,397.76
$

2,787,843.11

$ 26,306,971.37 $

2,787,843.11

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Flood Recovery For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Deficit
Total Fund Equity
Total Liabilities and Fund Equity

$

$

387,771.23

76,383.40

509,516.15 406,156.75
5,193.98 87,632.16

$

464 154.63 $ _ ___,;1..,;,0;.;;.0=8,...,_49.;;.;9;.;..0;;...4;_

$

832,879.55

25,009,937.19

$

0.00

1,779,344.07 0.00

$ 25I842I81674 $ _ ___,;1.:7,..:..7.::,;9~34..:,.4.:.:.0:::.:7_


$ 26,306,971.37 $

2,787,843.11

See notes to the general purpose financial statements. - 32 -

EXHIBIT "I"



SPECIAL PURPOSE LOCAL OPTION SALES TAX

FEDERAL PROJECTS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 1,598,373.80

$ 1,839,947.41 $

788,385.33

12,331,796.61

38,397,194.37

38,688,153.16

2,677,167.98 $ 3,558,124.13

9,023,135.22

9,956,779.40

3 791.38

$ 16,607,338.39 $ 3,558,124.13 $ 49,260,277.00 $ 49,437,109.27



$ 5,398,066.71 $ 5,907,582.86 $ 2,228,561.22

$

450,000.00

5,242.68

861,399.43

440,195.41

2,766.81

835,927.43

2,161,689.30

46,930.76

6,836.74

217,783.06

2,376,666.51

$

937,126.17 $ 5,412,912.94 $ 7,822,692.78 $ 6,766,917.03




$ 15,670,212.22

$

832,879.55

$ 1,573,337.06

25,009,937.19

29,239,307.76

15,670,212.22

_11,661,921.38

1,779,344.07

195,626.04

0.00 $

0.00

0.00

0.00

-1,854,788.81

-1,854,788.81

$ 15,670,212.22 $ -1,854,788.81 $ 41,437,584.22 $ 42,670,192.24

$ 16,607,338.39 $ 3,558,124.13 $ 49,260,277.00 $ 49,437,109.27

- 33 -

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

REVENUES

State Funds

Federal Funds

Taxes



Other Funds


Total Revenues

EXPENDITURES

Current

Instruction

Support Services

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Community Services

Capital Outlay

Land and Land Improvements

Building and Building Improvements



Equipment

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

Adjustments Prior Year Expenditures

FUND BALANCE JUNE 30 See notes to the general purpose financial statements.
- 34 -

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

1,947,861.39

1,653,207.51

$ 1,545,760.29

$ 1,545I760.29 $ _ ___,;3;;.i.,6;;;.;;0;..;.1.i.0;;.,.;.6.;;.;8."'-90=-



$

282,156.50

1,034,683.23 $

7,149,300.52 14 170.00

$ 1,316,839.73 $ _ __:.7.1,.;1,c.,::6.:.,3IC..:.47:..,0:.:.:.5:.:2:..

$

228,920.56 $ _ __:-3:.i,:5,::.::6;::.2IL.:.4.:..01.:..:;.6:::2:_

$ $ -3,625,411.58

5,359,621.65 -213,502.00

$ -3I625,411 .58 $ _ __:5::.L.1I:..:4.::;6,L.:.1..:.:19::.:;6:::.::5:...

$ -3,396,491.02 $
29,239,307.76

1,583,718.03 195,626.04


$ 25,842,816.74 $ _.....1._,7=7='9,=34,..4=.0=7=

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

FEDERAL PROJECTS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

395,331.75 $ 2,343,193.14 $ 3,500,458.49

3,559,326.69

5,212,534.20

24,337,108.26

$ 8,618,849.75

8,618,849.75

6,520,629.82

750,496.82

2,296,257.11

2,063,552.31


$ 9,369,346.57 $ 3,954,658.44 $ 18,470,834.20 $ 36,421,748.88

$

855,761.99 $

855,761.99 $

4,955.06

$

38,620.00

185,219.25

595,392.21 18,209.26
104,828.47 76,922.25 78,666.31
2,712.68

595,392.21 18,209.26
143,448.47 76,922.25
263,885.56 2,712.68

14,960.35 118,995.34 20,644.30 60,946.94 11,611.17 20,387.50

101,664.00 2,051,689.96

113,107.00 5,473,710.96
16,031.09

496,927.50 15,709,384.67
30,201.09

2,179,862.53 32,478,971.41

$

2,377, 193.21 $

7,335,342.22 -$

-
18,192,845.68

$

34,911,334.60

$ 6,992,153.36 $ -3,380,683.78 $

277,988.52 $ 1,510,414.28

$ 1,225,603.06 $ 6,585,224.71 $ 6,396,109.41

$ -2,983,862.52

-1,015,000.00

-7,837,776.10

-7,040,479.19

$ -2,983,862.52 $

210,603.06 $ -1,252,551.39 $ _ _-64:...:..:4.z.:,3:.:6.::.;9."'-78:...

$ 4,008,290.84 $ -3,170,080.72 $

-974,562.87 $

866,044.50

11,661,921.38

1,573,337.06

42,670,192.24

41,804,147.74

-258,045.15

-258,045.15

$ 15,670,212.22 $ -1,854,788.81 $ _41,437,584.22 $ 42,670,192.24

- 35-

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

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS
JUNE 30, 2000 JUNE 30, 1999

$ 17,377.73 $

11,830.00 $

29,207.73 $

10,793.51

731,507.78

3,927,963.75

4,659,471.53

4,593,789.60


57.51

57.51

1 788.74

Total Assets

$ 748,943.02 $ 3,939,793.75 $ 4,688,736.77 $ 4,606,371.85

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 748,943.02 $ 0.00

3,939,793.75 $ 4,688,736.77 $ 4,606,371.85

0.00

0.00

0.00

Total Fund Equity


$ 748,943.02 $ 3,939,793.75 $ 4,688,736.77 $ 4,606,371.85





See notes to the general purpose financial statements.
- 36 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "L"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30, 2000

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$ 6,358.37 $ 8,306,143.14 $ 8,312,501.51 $ 8,285,729.23

41,706.20 _ _ ___;_;78:c;..2::.;0;;;..

41 784.40

38,532.80

Total Revenues

$ 48,064.57 $ 8,306,221.34 $ 8,354,285.91 $ 8,324,262.03

EXPENDITURES
Debt Service Principal Interest Paying Agent Fees


$

0.00 $

7,050,000.00 $ 7,050,000.00 $ 6,700,000.00

1,218,210.00

1,218,210.00

1,607,652.71

3,710.99

3,710.99

1 681.31

Total Expenditures

$ _ _--=0.-'-'00C.-- $ 8,271,920.99 $ 8,271,920.99 $ 8,309,334.02

Excess of Revenues over (under) Expenditures

$ 48,064.57 $

34,300.35 $

82,364.92 $

14,928.01

FUND BALANCE JULY 1

700,878.45

3,905,493.40

4,606,371.85

4,591,443.84

FUND BALANCE JUNE 30

$ 748,943.02 $ 3,939,793.75 $ 4,688,736.77 $ 4,606,371.85


See notes to the general purpose financial statements.

- 37 -

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

EXHIBIT "M"

MILLS MEMORIAL STADIUM FUND

ASSETS



Cash and Cash Equivalents

Accounts Receivable

BALANCE
JULY1,1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

-3,652.93 $ 3,652.93

45,339.43 $ 36,652.81

78,379.31 $ 3,612.93

-36,692.81 36,692.81

LIABILITIES
Funds Held for Others
SCHOOL ACTIVITY FUNDS ASSETS
Cash and Cash Equivalents
LIABILITIES
Funds Held for Others
-
TOTALS-AGENCY FUNDS ASSETS
Cash and Cash Equivalents Accounts Receivable

$

0.00 $

81,992.24 $

81,992.24 $

---------

0.00

$

0.00 $ 81,992.24 $ 81,992.24 $ 0.00 --- ----------- --

----------

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



$ 495,372.22 $ 1,248,692.97 $ 1,363,191.45 $ 380,873.74

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

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

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

$ -

-

-4-

9--5-,

3
--

7
--

2.22 ----

$ 1,248,692.97 ------ ---------

$ --1--,3-6-3-,-1-9-1-.4--5

$

380,873.74

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



$ 491,719.29 $ 1,294,032.40 $ 1,441,570.76 $

3,652.93

36,652.81

3,612.93

344,180.93 36,692.81

$ 495,372.22 $ 1,330,685.21 $ 1,445,183.69 $ _ _3_8...,0.,.8...,73_._74_

LIABILITIES
Funds Held for Others

$ 495,372.22 $ 1,330,685.21 $ 1,445,183.69 $ __3_a..,o..a..1..3,_..1..4_

See notes to the general purpose financial statements.
- 38 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

* 10.553 * 10.555

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Food Distribution Program ( 1)

10.550

Total U. S. Department of Agriculture

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

94.004

Education, U. S. Department of

Special Education Cluster

Pass-Through From Georgia Department of Education

Individuals with Disabilities Education Act

Part B - Special Education

Flow Through

*

Georgia Leaming Resources System

*

Preschool

*

Severely Emotionally Disn.., bcJ

*

Part C - Special Education

Special Education Capacity Building Improvement

84.027 84.027 84.173 84.027

84.173

Total Special Education Cluster

Other Programs

Direct

Impact Aid

84.041

Pass-Through From Chattahoochee-Flint Regional

Educational Service Agency

d/b/a Two Rivers Migrant Education Agency

Elementary and Secondary Education Act

Title I

Migrant Education

84.011

Pass-Through From Georgia Department of Education

Comprehensive School Reform Demonstration Project

84.332

Elementary and Secondary Education Act

Title I Grants to Local Educational Agencies

84.010

Title II Eisenhower Professional Development

84.281

Title 111 Technology Literacy Challenge Fund Grants

84.318

Title VI

Innovative Education Program Strategies Class Size Reduction

84.298
84.340

Individuals with Disabilities Education Act

Special Education

Part B

State Program Improvement Grants for

Children with Disabilities

84.323

Goals 2000 State and Local Education Systemic Improvement

Grants

84.276

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$ 1,527,095.31

(2)

NIA

3,710,334.06 $ 7,832,852.01 (3)

$ 5,237,429.37 $ 7,832,852.01

NIA

312,384.96

312,384.96

$ 5,549,814.33 $ 8,145,236.97

NIA $

18144.23 $

18144.23

NIA

$ 1,144,937.65 $ 1,144,937.65

N/A

142,396.06

142,396.06

NIA

134,572.00

134,572.00

NIA

257,842.47

258,241.59 (3)

NIA

15,609.62

15,609.62

$ 1,695,357.80 $ 1,695,756.92

94,007.01

(4)

N/A
NIA
NIA
NIA
NIA N/A
NIA

NIA
N/A

14,386.12 57,441.33
4,700,891.66 149,174.29 -1,976.75 172,342.13 678,087.00

18,111.53 (3) 61,915.90 (3)
4,700,891.66 143,038.39 5,000.00 173,733.03 (3) 683,875.12 (3)

10,379.00 49,535.54

5,598.97 49,535.54

-39-

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

SCHEDULE "1"


FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education
Federal Emergency Management Agency Pass-Through From Office of the Governor Disaster Assistance
Health and Human Services, U.S. Department of Pass-Through From Georgia Department of Human Resources Child Care School Age Program Extended Day Program
Total U.S. Department of Health and Human Services
Labor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Job Training Partnership Act
OTHER FEDERAL ASSISTANCE
Defense, U.S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Marine Corps
- R.O.T.C. Program
Troops to Teachers
Total U.S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.186 84.196
84.048
83.516

N/A $ 182,049.54 $

N/A

22,992.00

182,049.54 22,992.00

N/A

199,216.00

211,635.57 (3)

$ 8,023,882.67 $ 7,954,134.17

NIA $ 5,212,534.20 $ 13,348,771.75 (3)

93.525 93.037

N/A $ N/A
$

20,000.00 $ 39,422.00
59,422.00 $

22,713.06 (3) 41,840.28 (3)
64,553.34

17.250

NIA $

97,277.33 $

97,277.33

$

39,440.04 $

39,440.04

67,232.44 5,000.00

67,232.44 s,000.00

$ 111,672.48 $ _ _1"-'1'-'1=,6"'-'72=.4.;..;8;...

Total Federal Financial Assistance

$ 19,072,747.24 $ 29,739,790.27

NIA= Not Available
Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the
2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Funds earned on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dougherty County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.
See notes to the general purpose financial statements.

-40-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs

Special Education Programs

Remedial Education Program

Media Center Programs

Staff Development Programs

Indirect Cost

Pupil Transportation



Regular

Bus Replacement

Middle School Incentive Program

Special Instructional Assistance

In-School Suspension

Migrant Education

Counselors Grades 4 and 5

Technology Specialist

Local Five Mill Share

Educational Equalization Formula

Food Services

Vocational Education

Other State Programs

Alternative Program

Apprenticeship Program

At-Risk Summer School Program

Environmental Science Program

Georgia Leaming Resources System

Health Insurance

Mentor Teacher Program

Preschool Handicapped Program

Remedial Summer School Program

Severely Emotionally Disturbed

Lottery Programs

Assistive Technology

Computers in the Classroom

.
Georgia State Financing and Investment Commission
Reimbursement on Construction Projects

$ 40,484,789.00 6,889,173.00 1,454,231.00 1,726,655.00 446,627.00 9,935,680.00

1,510,511.00 480,419.00
1,244,890.00 752,047.00 356,383.00 6,154.00 177,495.00 201,897.00
-8,959,931.00 4,214,404.00
$
92,344.39

484,816.00

259,307.00 50,000.00 97,093.89 1,432.92
1,308,799.32 5,670.00
274,418.00 28,759.54


81,920.00 1,729,102.70

53,085.24 351,484.05

$ 40,484,789.00 6,889,173.00 1,454,231.00 1,726,655.00 446,627.00 9,935,680.00
1,510,511.00 480,419.00
1,244,890.00 752,047.00 356,383.00 6,154.00 177,495.00 201,897.00
-8,959,931.00 4,214,404.00
484,816.00 92,344.39
259,307.00 50,000.00 97,093.89 1,432.92 81,920.00
1,308,799.32 5,670.00
274,418.00 28,759.54
1,729,102.70
53,085.24 351,484.05

$ 1,812,154.67


1,812,154.67

Office of the Governor Governor's Emergency Fund (1) Georgia Challenge Program

35,000.00

531,038.47

531,038.47 35,000.00

Office of School Readiness Pre-Kindergarten Program

879,542.31

879,542.31

Office of Treasury and Fiscal Services Public School Employees Retirement

302,018.00

302,018.00

CONTRACTS Education, Georgia Department of Enrichment Program for Middle School-age Children Implementation of Department's Elementary School Foreign Language Model Program

31,191.22 145,290.00

31,191.22 145,290.00


$ 63,517,748.28 $ 3,614,950.30 $ 2,343,193.14 $ 69,475,891.72
(1) The purpose of the funds is Capital Outlay - disaster relief.

See notes to the general purpose financial statements.

-41 -

DOUGHERTY COUNTY BOARD OF EDUCATION

SCHEDULE "3"

SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

YEAR ENDED JUNE 30, 2000
'

PROJECTS

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

The repayment of principal and interest on

the School District"s Series 1993 Bonds,

coming due January 1, 1998, and thereafter

through their final maturity on January 1, 2001,

the maximum amount of debt to be retired

not to exceed $1,823,245,00

$ 1,823,245,00 $

1,823,245,00 $

459,285,00 $

897, 130,00

The acquisition, construction and equipping of six new elementary physical education facilities, two new middle schools, supply services freezer, completion of expansion program at five schools, roof replacement
on 24 buildings, technology power upgrade on 30 buildings, ceilings and lights in 27 buildings, HVAC upgrades on 24 buildings,
four new high school field houses, three support facilities for new elementary schools, renovation of McIntosh Teacher Academy, renovation of five schools, Highland conversion, underslab plumbing replacement
in 17 buildings, asbestos removal at 48 sites,
lawn revitalization at 30 sites, facilities department shops, tower, media service
center, security lighting at 28 sites, sports field lighting at four sites and 41 new vehicles,
including the acquisition of all necessary property, the maximum cost of such projects
not to exceed $88,653,060,00


88,653,060.00

135,494,230.30

16,010,762.78

40,616,073.21

$ 90,476,305.00 $ 137,317,475.30 $ 16,470,047.78 $ 41,513,203.21


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

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

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

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

Prior Year

$ 1,553,142.71

Current Year Total

1,183,925.00 $ 2,737,067.71

See notes to the general purpose financial statements.

-42-

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

SCHEDULE "4"


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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

50,554,848.00 $ _ _1""",3.;;..;7_;;;9=,2=8..;;.;6.c.;;..00.;;_

$

55,998,856.56

2I418I26070 $ _ ___;2;;,:_I0,;.;7_.;.7.:..14_.;.1.;_;7c.;.30.;_

$

58,417,117.26

-563,921.48
-
$ _ _5_7__,_8_5_3.._1,_9_5._78_

Amount of Underexpenditure for Total Allotment
-

$

0.00 $ = = = = = =0.0=0

-


-

See notes to the general purpose financial statements.
- 43 -

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

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

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 4,413,944.00

$ 3,972,549.60 $

0.00

12,357,011.00

11,121,309.90

$ 16,TT0,955.00 90 $ 15,093,859.50 $

0.00

5,290,810.00 90

4,761,729.00

8,470,968.00 90

7,623,871.20

5,628,825.00 90

5,065,942.50

2,609,348.00 90

2,348,413.20

1,713,883.00 90

1,542,494.70

$ 40,484,789.00

$ 36,436,310.10 $ -------"0.-00-

$ 6,168,637.00

$ 5,551,773.30 $

0.00

$ 6,168,637.00 90 $ 5,551,773.30 $

0.00

720,536.00 90

648,482.40

$ 6,889,173.00

- - - - - - $ 6,200,255.70 $

0.00

$ 1,454,231.00 90 $ 1,308,807.90 $ -------"0.-00-

$ 48,828, 193.00

------~ $ 43,945,373.70 $

0.00

$ 1,397,640.00 90 $ 1,257,876.00 $

0.00

329,015.00 100

329,015.00

$ 1,726,655.00

$ 1,586,891.00 $ - - - - - "0-.0-0

Total Fourteen Weighted and Media Center Programs

$ -

50,554,848.00

--

- - - - - -

$ 45,532,264.70 $

0.00

-- -

-- - - - - - -

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

145,046.00

$

145,046.00 $

0.00

301,581.00

301,581.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

$

446,627.00 100 $

446,627.00

$
-----~

0.00

- 44 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 3,972,549.60 $

5,337,285.52 $

65,700.89 $ 5,402,986.41

11,121,309.90

12,582,850.97

329,180.94

12,912,031.91

$ 15,093,859.50 $ 17,920,136.49 $

394,881.83 $ 18,315,018.32 $

0.00

4,761,729.00

6,038,990.68

211,851.63

6,250,842.31

0.00

7,623,871.20

9,340,144.53

389,793.98

9,729,938.51

0.00

5,065,942.50

7,004,908.33

563,359.28

7,568,267.61

0.00

2,348,413.20

2,220,924.29

181,254.47

2,402,178.76

0.00

1,542,494.70

2,630,833.80

140,916.48

2,771,750.28

0.00

$ 36,436,310.10 $ 45,155,938.12 $ 1,882,057.67 $ 47,037,995.79

$ 5,551,773.30 $

178,855.16 $ 2,238,501.51 3,173,148.73
335,763.38 27,083.42

5,576.96 $ 38,628.13 100,097.41 12,968.40


184,432.12 2,277,129.64 3,273,246.14
348,731.78 27,083.42

$ 5,551,773.30 $

5,953,352.20 $

157,270.90 $ 6,110,623.10

0.00

648,482.40

661,074.86

17,856.29

678,931.15

0.00

$ 6,200,255.70 $ 6,614,427.06 $

175,127.19 $ 6,789,554.25


$ 1,308,807.90 $

2,278,758.30 $

20,232.44 $ 2,298,990.74

0.00

$ 43,945,373.70 $ 54,049,123.48 $ 2,077,417.30 $ 56,126,540.78

$ 1,257,876.00 $

1,949,733.08

$ 1,949,733.08

0.00

329,015.00 - - - - - - $

340,843.40

340,843.40

0.00

$ 1,586,891.00 $

1,949,733.08 $

340,843.40 $ 2,290,576.48

$

45,532,264.70 $

-

5--5

,998,8
~- ---

5

6.
---

56
--

$

- - - - - - - = 2,418,260.70 $ 58,417,117.26 $

0.00

$

145,046.00

301,581.00

$ ==44=6=,6=2=7=.0=0

$

423,043.38 $

423,043.38

32,166.92

32,166.92

$

455,210.30 $

------

455,210.30 $

0.00




45




SECTION II C01\.1PLIANCE AND INTERNAL CONTROL REPORTS

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 4, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education

and Superintendent and Members of the Dougherty 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 ofDougherty County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated April 4, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1mination offinancial s_tatement 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 perfo11ning our audit, we considered Dougherty County Board of Education's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control
2000YB-40

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 Dougherty County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6471-00-02 and FS-6471-00-04.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6471-0002 to be a material weakness.
This report is intended solely for the info11nation and use ofmanagement, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2000YB-40

sell W. Hinton State Auditor

W. RussELL

HINTON

STATE AUDITOR

(404) 656-2174

f



.-.::.-
,l ... :

.-~c

. :

<

(./':

i> :

....... I 11 b

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

April 4, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dougherty County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Dougherty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Dougherty County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Dougherty County Board of Education's management. Our responsibility is to express an opinion on Dougherty County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfu11n 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 Dougherty County Board of'Education's compliance with those requirements and perfo1111ing 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 dete1n1ination on Dougherty County Board of Education's compliance with those requirements.
2000SA-30


In our opinion, the Dougherty County Board ofEducation complied, in all material respects, with the
requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.

Internal Control Over Compliance

The management of Dougherty 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 perfo11ning our audit, we considered Dougherty County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to

dete11nine 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.

We noted certain matters involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect Dougherty County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-6471-00-01 and FA-6471-00-02.

A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, 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 no11nal course of perfo1111ing their assigned functions. Our consideration of the internal control over compliance 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 materiat weaknesses. However, we believe none of the reportable conditions described above is a material weakness.

This report is intended solely for the info11nation and use ofmanagement, members ofthe Dougherty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

RWH:gp
2000SA-30

Respectfully submitted,

~ ... , QQ t.v
R ssell W. Hinton State Auditor


SECTION ill AUDfl'EB'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS




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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6471-96-02 FS-6471-97-01 FS-6471-98-01 FS-6471-98-03 FS-6471-99-01 FS-6471-99-02 FS-6471-99-03 FS-64 71-99-04 FS-6471-99-05 FS-6471-99-06 FS-64 71-99-07

Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

EMPLOYEE COMPENSATION Salary Overpayment Amount: $34,114.60 Finding Control Number: 6471-96-02

The overpayment has been turned over to the School system's lawyer and a note for the

overpayment was received. $3,000.00 has been repaid on this account.

.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $11,251.07 Finding Control Number: FS-6471-98-01
.
To be resolved by future increase in QBE Local Five Mill Share.

CASH AND CASH EQUNALENTS Inadequate Cash Procedures Finding Control Number: FS-6471-99-01

During fiscal year 2001, the Dougherty County School System is in the process of completing the reconciliation of all bank accounts and implementing new procedures to ensure that reconciliations are completed on a timely basis.

- 1-

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CORRECTIVE ACTION/RESPONSES
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $25,956.39 Finding Control Number: FS-6471-99-02
To be resolved by future increase in QBE Local Five Mill Share.

GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Finding Control Number: FS-6471-99-05
The Dougherty County School System will implement procedures to ensure that salary and travel reports are accurate and properly reconciled to the general ledger prior to submission of the reports to the State.
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6471-97-01 FA-6471-98-01

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

-2-



SECTIONN FINDINGS AND QUESTIONED COSTS



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

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dougherty County Board ofEducation disclosed financial statement reportable conditions related to the following control categories.


Cash and Cash Equivalents General Ledger

Employee Compensation

Of the reportable conditions described above, Cash and Cash Equivalents and General Ledger are considered to be material weaknesses.

3. Noncompliance Material to the Financial Statements The audit of the Dougherty 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 Maior Programs C The audit report for the Dougherty County Board of Education disclosed reportable conditions in internal control over major programs for the following compliance requirements.

Eligibility

Reporting

None ofthe reportable conditions described above is considered to be a material weakness.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dougherty 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) of 0MB Circular A-133 The Dougherty County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report.

- 1-

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

I SUMMARY OF AUDITOR'S RESULTS

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 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through . 84.027 Individuals with Disabilities Education Act - Part B - Special Education Georgia Learning Resources System 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.027 Individuals with Disabilities Education Act - Part B - Special Education Severely Emotionally Disturbed 84.173 Individuals with Disabilities Education Act - Part C - Special Education Special Education Capacity Building Improvement 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction 83.516 Disaster Assistance

8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs-was $635,382.44.

9. Low Risk Auditee



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The Dougherty County Board of EducatiQn was audited as a low risk auditee based on a

waivergranted by the U.S. Department of Education.


II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

BUDGET PREPARATION/EXECUTION

Deficit Fund Balance

Nonmaterial Noncompliance

Finding Control Number: FS-6471-00-01



At June 30, 2000, the liabilities exceeded assets available for the Capital Projects - Federal Projects Fund by $1,854,788.81. 0.C.G.A. 20-2-67 (b) requires that the Superintendent submit to the Georgia Department of Education both a response to this condition and a corrective action plan designed to correct the budget deficit. The Board should establish budgetary procedures to ensure that funding is available prior to the Board committing to expenditures.

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DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6471-00-02
Accounting procedures of the Doughe.rty County Board of Education were insufficient to provide adequate internal controls over Cash and Cash Equivalents and General Ledger control categories as noted below:
Cash and Cash Equivalents
Bank statements for the operating, payroll and child nutrition accounts were not reconciled to the general ledger for any month of the fiscal year. Extensive procedures were perfo1med by the auditors to reconcile these accounts. Four hundred-fifty audit adjustments totaling $192,234.73 (net) were necessary to reconcile the accounting records with all bank statements.
Procedures perfo11ned by the auditors to reconcile the bank statements to the general ledger at June 30, 2000, noted the following deficiencies:
(1) Book errors were carried as reconciling items for extended periods of time.
(2) An analysis of cash transfers between bank accounts disclosed transfers to incorrect bank accounts and transfers for incorrect amounts.
(3) Numerous amount errors were made in recording deposits to the general ledger and some bank deposits were not recorded at all.
(4) Numerous manual checks were issued which were not recorded in the general ledger.
General Ledger
(1) Numerous posting errors in balance sheet, revenue and expenditure accounts were identified and corrected during the course of our work.
(2) Journal entries were made without proper supporting documentation or explanation and without adequate supervisory review.
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DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6471-00-02

These deficiencies occurred because ofmanagement's failure to establish procedures to analyze and reconcile balances on the general ledger with supporting records and management's failure to ensure journal entries made to the general ledger contained adequate supporting documentation and proper explanations.

Deficiencies in the accounting procedures were discussed with the Superintendent. In addition, the accounting personnel ofthe Board were given instructions in proper accounting procedures which include the necessity ofpromptly reconciling bank statements, recording adjustments and deposits to

the accounting records, determining the status of issued checks and perforrning an administrative review ofall bank reconciliations. The Board should establish appropriate procedures to ensure that cash is posted, balanced and reviewed on a monthly basis and that detailed records supporting the general ledger are complete, accurate and reliable. In addition, procedures should be established to ensure journal entries are properly documented and adequately reviewed prior to posting to the general ledger.

EXPENDITURES/LIABILI'J'I ES/DISBURSEMENTS

DEForrn 0420 Not Supported by Accounting Records



Nonmaterial Noncompliance

Finding Control Number: FS-6471-00-03

Comparison of the Board's DE Forrn 0420 report (''General Fund QBE Program Expenditure Summary and Detail Reports'') to the accounting records revealed that twenty-six expenditure accounts reported on the DE Forrn 0420 w'ere not supported by the accounti.ng records. Procedures

performed by auditors reconciled five of these accounts to the accounting records, resulting in twenty-one accounts not supported by accounting records. Section II, Chapter 24, ofthe Financial Management for Georgia Local Units ofAdministration as published by the Georgia Department of Education requires that program expenditure controls in the accounting records agree with the DE Furm 0420 report.
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This condition occurred because management failed to reconcile amounts reported on DE Forni 0420 with the accounting records. Procedures should be established by the Board to ensure that expenditures reported on DE Furtn 0420 are reconciled to the accounting records prior to submission to the Georgia Department of Education.

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

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Reportable Condition Amount: $5,156.11 Finding Control Number: FS-6471-00-04

A sample of forty employees' payroll records was selected and examined to test the accuracy of payroll records of the Dougherty County Board of Education. The following deficiencies were noted:

Salary Overpayments/Underpayment

(1) The Board overpaid employees in six instances amounting to $3,994.53. Overpayments occurred because the Board failed to deduct amounts for excess leave taken, made payments to employees subsequent to te11nination, made duplicate payments for work perfo1n1ed, failed to change pay rates as necessary and made general errors in calculation.

(2) One employee was underpaid in the amount of$1,161.58. The underpayment was the result of a calculation error.




Inadequate Leave Records

(1) Sick leave was accrued at an incorrect rate for eight employees. In addition, one employee, not eligible for leave based on the Board's sick and personal leave policies, accrued sick leave.

(2) A review ofsupporting documentation for sick, personal and vacation leave identified the following deficiencies:

(a) One employee was allowed to update their own leave history for leave taken. No evidence of supervisory review was available.

(b) Timesheets and sick leave documentation provided for one employee did not support amounts posted to the leave records history. Twenty oftwenty-two days ofleave were posted to records nine to seventeen months after the leave was taken. (This employee was under the direct supervision of a parent.)

(c) Personal leave taken by one employee exceeded the maximum amount allowed by the Board's sick and personal leave policies.

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DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Reportable Condition Amount: $5,156.11 Finding Control Number: FS-6471-00-04
Inadequate Leave Records
(d) In two instances, the Leave Summary Reports that were used by payroll personnel to document excessive leave taken did not agree to the individual employee subsidiary detail.
These deficiencies occurred due to Board's failure to adequately monitor administrative procedures regarding sick, personal and vacation leave records.

The Board should implement procedures to ensure that all payroll disbursements are based on approved contracts, salary scales and time worked. In addition, leave records should be accurate and maintained in accordance with the Board's sick, personal and vacation leave policies. The Board should seek reimbursement for the overpayments for deposit to the Board's General Fund and should issue a check to the underpaid employee.
GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled

Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-00-05
The detailed listings of salary and travel payments made to employees as submitted by the Board to the Georgia Department ofAudits was not reconciled with the general ledger as presented for audit. Unidentified variances totaling $63,545.72 and $34,616.53 for salaries and travel respectively could not be identified.
This condition occurred because management did not reconcile amounts submitted to Georgia Department ofAudits to the Board's general ledger. Procedures should be established by the Board to ensure that the detailed listing ofsalary and travel is reconciled to the accounting records prior to submission to the Georgia Department of Audits.
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DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-00-01

For the 2000 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) Program, the Board could not provide accurate documentation to support section IV of the Title I application pertaining to the dete11nination of eligible and participating attendance areas and school allocations. As provided for in the grant application and required by 34 CFR 76.730, the Board assured the Georgia Department ofEducation that it will keep records and provide inforrnation as may be required for audit purposes.

This condition was a result ofthe Board's failure to maintain appropriate documentation ofthe grant application. The Board should establish procedures to ensure that applications are complete, accurate and that proper documentation is maintained in compliance with the requirements of the grant application and 34 CFR 76.730. Also, the Georgia Department of Education should review this matter to dete11nine if a reclaim of funds is appropriate.

REPORTING



Failure to File Accurate Completion Reports

Reportable Condition

U.S. Department of Education

Through Georgia Department of Education

Finding Control Number: FA-6471-00-02

A review ofthe Board's accounting records revealed that completion reports were not supported by expenditure records for the following programs:

Actual Program Expenditures per Expenditures Completion Report

Special Education Cluster Individuals with Disabilities Education Act Part B - Special Education Flow Through (CFDA 84.027)
Elementary and Secondary Education Act Title I Grants to Local Educational Agencies (CFDA 84.010)

$ 1,144,937.65

$ 4,700,891.66

$1,291,189.00 $ 5,438,955.52

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DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS REPORTING Failure to File Accurate Completion Reports Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-00-02 These variances occurred because management reported expenditures outside of the grant period. Upon completion ofaudit procedures, the Board submitted accurate completion reports and returned funds as appropriate to the Georgia Department ofEducation. Procedures should be established by the Board to ensure that completion reports are supported by the expenditure records, as required.

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