Dougherty County Board of Education, Albany, Georgia, report on audit of the financial statement for the fiscal year ended June 30, 2001

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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

"6

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

9

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

11

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

13

ADDITIONAL FINANCIAL INFORMATION

COMBINING .STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

28

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

32

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

34

DOUGHERTY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING STATEMENTS

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

36

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

3 7

M

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

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

43

EARNINGS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

44

5

BY SITE

45

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

DOUGHERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION III . AUDITEE'S.RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I . FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanw. Georgi:.i 30334-8400
December 18, 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 of the Dougherty County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe 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 a~cordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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 op1mon ..
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponqing employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for .the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
* The school activity accounts reported as Agency Funds in the general-purpose financial
statements include financial activities which should be reported as General or Special Revenue Funds. School Activity accounts whose activities primarily support the school system's educational activities should be included in the School District's General Fund, and other program activities such as school athletic fund accounts whose activities support the school's athletic programs should be included in the School District's Special Revenue Fund. To conform to generally accepted accounting principles, Agency Funds reflected in the general-purpose financial statements should only reflect funds which are purely custodial in nature.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion,. except for the effect on the general-purpose financial statements of the matter referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Dougherty County Board of Education as of June 30, 2001, and t~e results of its operations and the cash flows of its proprietary fund for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 18, 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 performed 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 performed for the purpose of forming 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 Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing
2001ARL-13

procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effect ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-:purpose. financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office .of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 2001ARL-l,3

State Auditor

DOUGHERTY COUNTY BOARD OF EDUCATION

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

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

$ 3,386,493.10

$ 2,170,916.70. $

1,112.57

598,031.83 $ 962,322.88

31,262,773.15

3,965,556.18

911,941.78 2,671,370.05

3,260,791.66

96,345.95

211,955.42

25,858.78
142,953.66 124,722.87

$ 5,204,768.08 $ 3,927,228.24 $ 36,694,481.51 $ 3,966,668.75

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

$

60,665.29 $

377,435.64

1,356,690..40

23,339.07

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

{Memorandum Only}

JUNE 30, 2001

JUNE 30, 2000

$ 5,996,623.30 . $ 5,665,880.77

38,145,374.44

48,616,691.11

6,867,442.56

12,010,561.71

96,345.95

100,224.24

237,814.20
142,953.66 124,722.87

471,021.55
150,551.70 238,114.20

$ 9,141,703.44 183,894,869.65 25,598,155.19
$ 3,966,668.75

9,141,703.44 183,894,869.65
25,598,155.19
3,966,668.75

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

11,133,331.25 824,294.58

11,133,331.25 824,294.58

17,841,263.23 873,608.09

$ 1,417,355.69 $

400 774.71 $ 218,634,728.28 $ 15,924,294.58 $ 286,170,299.84 $ 292,855,971.38

-3-

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001

LIABILITIES AND FUND EQUITY

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

DEBT SERVICE
FUND

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Claims Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Compensated Absences General Obligation Bonds Payable

$ 1,363,200.36

$ 489,538.07

297,680.31

11,514.50 1,459,061.12

20,278.46

123,846.40

$ 75,111.19

392,944.10 1,035,438.43

Total Liabilities

$ 521,331.03 $ 3,318,899.38 $ 1,428,382.53

FUNDEOUITY

Investment in General Fixed Assets

Retained Earnings

Fund Balances

Reserved

For Arbitrage Rebate Tax

For Bus Replacement Funds

$ 38,561.00

For Continuation of Federal Programs

For Debt Service

For Expired Grant Balances/Questioned Costs

25,956.39

For Inventories

Consumable Supplies

211,955.42 $

Food

Donated Commodities

Purchased Food

For Purpose of Bond Issue

For SPLOST Projects

For State Capital Outlay Projects

Unreserved

Designated for Self-Insurance

Undesignated

4,406,964.24

Deficit

$ 1,543,025.60

$ 3,966,668.75

25,858.78
142,953.66 124,722.87

15,036,225.94 19,447,785.04
513,107.81

314,793.55

0.00 -1,274,045.41

0.00

Total Fund Equity

$ 4,683,437.05 $ 608,328.86 $ 35,266,098.98 $ 3,966,668.75

Total Liabilities and Fund Equity

$ 5,204,768.08 $ 3,927,228.24 $ 36,694,481.51 $ 3,966,668.75

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 30, 2001

JUNE 30, 2000

$

92,594.65

$

400,774.71

$

92,594.65 $

400 774.71

$
$ 824,294.58 15,100,000.00

1,363,200.36 $ 787,218.38
1,470,575.62
144,124.86 92,594.65
392,944.10 1,035,438.43
75,111.19 400,774.71 824,294.58 15,100,000.00

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

$ 15,924,294.58 $ 21,686,276.88 $ 37,848,488.65

$ 1,324,761.04
0.00 $ 1,324,761.04

$ 218,634,728.28
0.00 $ 218,634,728.28

$ 218,634,728.28 $ 202,199,318.01

1,324,761.04

1,583,923.40

1,543,025.60 38,561.00
3,966,668.75 25,956.39

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

237,814.20

471,021.55

142,953.66 124,722.87 15,036,225.94 19,447,785.04 513,107.81

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

4,721,757.79 -1,274,045.41

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

$ 264,484,022.96 $ 255,007,482.73

$ 1,417,355.69 $

400774.71 $218,634,728.28 $15,924,294.58 $286,170,299.84 $292,855,971.38

-5-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current. Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services 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
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

$ 68,589,629.23 $ 4,114,826.10

218,852.19

13,958,332.43

32,001,147.49

1,727,659.85

2,086,689.57

$ 102,537,288.76 $ 20,159,848.10

$ 68,718,741.72 $
2,754,875.15 2;743,935.54 3,067,028.99 1,416,029.32 7,524,222.81 2,367,672.95 8,812,653.39 4,313,688.19 1,105,350.86
60,948.13 33,323.23 278,173.57 150,617.59 25,695.90

7,869,621.15
1,792,429.02 1,347,841.15
124,133.41 347,075.33 65,642.13
132,079.58 118,893.23
18,815.10 7,970,050.03
88,114.70 504,730.75
99,2.81.12

$ 103,372,957.34 $ 20,478,706.70 $ -835,668.58 $ -318,858.60

$

98,408.25 $

-137,961.47

$

-39.553.22 $

157,328.06 157,328.06

$ -875,221.80 $ 4,328,060.93 1.230,597.92

-161,530.54 769,859.40

FUND BALANCE JUNE 30

$ 4,683,437.05 $ ==6==0=8e!.i,3=2==8.=86,..,.

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, 2001

JUNE 301 2000

$ 1,152,918.21 429,400.12
7,683,242.78 $ 2,387, 179.29
$ 11,652,740.40 $

$
8,374,990.08 69,513.28

73,857,373.54 $ 14,606,584.74 48,059,380.35 6,271,041.99

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

8,444,503.36 $ 142,794,380.62 $ 142,395,435.01

$

1,291.56

1,392.52 26,156.89
1,299.45 109,002.90 385,118.27

16,900,912.66 $
$ 17,425,174.25 $ $ -5,772,433.85 $

$ 76,589,654.43 $ 72,895,092.15

4,547,304.17 4,091,776.69 3,192,554.92 1,789,261.54 7,591,164.39 2,476,675.85 9,329,851.24 4,432,581.42 1,105,350.86
79,763.23 8,003,373.26
366,288.27 655,348.34 17,025,889.68

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

7,430,000.00 913,792.50 2,745.96

7,430,000.00 913,792.50 2,745.96

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

8,346,538.46 $ 149,623,376.75 $ 148,678,734.52

97,964.90 $ -6,828,996.13 $ -6,283,299.51

$

11,513.61

$

11 513.61

$

267,249.92 $ 1,462,366.42

-137 961.47

-1,462,366.42

$

129,288.45 $

0.00

$ -5,760,920.24 $

97,964.90 $ -6,699,707.68 $ -6,283,299.51

41,027,019.22

5,099,301.77

51,224,241.32

57,507,540.83

-1,230,597.92

0.00

$ 35,266,098.98 $ 3,966,668.75 $ 44,524,533.64 $ 51,224,241.32

-7-

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS\ GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2001

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 66,712,067.00 $ 1,337,517.00
30,800,081.00 926,326.00

68,589,629.23 218,852.19
32,001,147.49 1,727,659.85

Total Revenues

$ 99,775,991.00 $ 102,537,288.76

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

$ 62,973,388.38 $ 68,718,741.72

5,467,466.26 2,659,193.61 3,049.671.36 1.446,592.01 7,337,930.69 1,789,094.93 8,868.411.04 3,636,358.64 1.688,855.07
267,953.01 65,068.00 232.258.00 172.000.00
1,250.00

2,754,875.15 2,743.935.54 3,067.028.99 1,416,029.32 7,524,222.81 2.367,672.95 8,812,653.39 4,313,688.19 1.105,350.86
60,948.13 33,323.23 278,173.57 150,617.59 25,695.90

Total Expenditures

$ 99,655,491.00 $ 103,372,957.34

Excess of Revenues over (under) Expenditures $ 120,500.00 $ -835,668.58

OTHER FINANCING SQ!,!RCES (!.!SES!
Other Sources Other Uses

$ 200,000.00 $ -320,500.00

98,408.25 -137 961.47

Total Other Financing Sources (Uses) $ -120,500.00 $

-39,553.22

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

0.00 $

FUND BALANCE JULY 1. 2000

2.105, 136.54

Residual Equity Transfer

-875.221.80 4.328,0~0.93 1,230,597.92

FUND BALANCE,!!.!~!; JQ, iQQl

$ 211051136.54 $ 4,683,437.05

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 4,401,013.70 $ 4,114,826.10 16,309,315.71 13,958,332.43

2,874,792.09

2,086,689.57

$ 23,585, 121.50 $ 20,159,848.10

$ 7,965,822.45 $ 7,869,621.15

1,779,825.00 1,536,057.51
163,251.00 551,939.00
48,405.00

1,792,429.02 1,347,841.15
124,133.41 347.075.33 65,642.13

251,411.54 1.500.00

132,079.58 118,893.23

31,990.00 10,713,324.00
50.750.00 562,346.00
49,000.00

18,815.10 7,970.050.03
88,114.70 504,730.75 99,281.12

$ 23,705,621.50 $ 20,478,706.70

$ -120,500.00 $ -318,858.60

$ 120.500.00 $ 157.328.06 $ 120,500.00 $ 157,328.06

$

0.00 $ -161.530.54

686,723.50

769,859.40

$ 686,723.50 $ 608,328.86

.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, 2001

OPERATING REVENUES Charges for Services
OPERATING EXPENSES Current Support Services Central Support Services Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income (Loss) Before Operating Transfers
OPERATING TRANSFERS OUT Transfers To Other Funds Total Income (Loss)
RETAINED EARNINGS JULY 1
RETAINED EARNINGS JUNE 30

PROPRIETARY FUND TYPE SELFINSURANCE FUND

TOTALS (Memorandum Onl~)
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 102,149.19 $ 102,149.19 $ 304,375.42

$ 374,461.36 $ 374,461.36 $ 362,471.06 $ -272,312.17 $ -272,312.17 $ -58,095.64

$ 142,629.45 $ 142,629.45 $ 105,320.29 $ -129,682.72 $ -129,682.72 $ 47,224.65

-129,479.64

-129,479.64

$ -259, 162.36 $ -259;162.36 $ 47,224.65

1,583,923.40 1,583,923.40 1,536,698.75

$ 1,324.761.04 $ 1,324,761.04 $ 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. 2001

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 Noncapital Financing Activities: Operating Transfers to. 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 Onl~l
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 102,149.19 $ 102,149.19 $ 304,375.42

-100,148.26

-100, 148.26

-72,572.08

-456,602.04

-456,602.04

-299,450.76

$ -454,601.11 $ -454,601.11 $ -67 647.42

$ -129,479.64 $ -129,479.64

$ 142,629.45 $ 142,629.45 $ 105,320.29

494,336.80

494,336.80

-104,789.48

$ 636,966.25 $ 636,966.25 $

530.81

$

52,885.50 $

52,885.50 $ -67 116.61

$

7 779.79 $

7 779.79 $ 74,896.40

Cash and Cash Equivalents : June 30

$

60,665.29 $

60,665.29 $ ===7i,;,7,;.;79;,;,,;,,;79=

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

$ -272,312.17 $ -272,312.17 $

-182,288.94

-182,288.94

-58,095.64 -9,551.78

Net Cash Provided (Used) by Operating Activities

$ -454,601.11 $ -454,601.11 $ ===-6=7=,6=47=.4=2=

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, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Dougherty County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school hoard elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and account groups to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing ,set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
The school activity accounts reported in the general-purpose financial statements do not accurately reflect the revenues, expenditures and changes in fund balances in the appropriate fund but rather includes all activity in Agency Funds. To conform to generally accepted accounting principles, all accounts should be recorded in the proper fund within the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account groups presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
- 13 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

' 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-term principal, interest and paying agent fees.
PROPRIETARY FUND TYPE - the funds used to account for activities of the School District similar to those found in the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the School District.
SELF-INSURANCE FUND - the 1.ntemal service fund used to account for the School District's Worker's Compensation 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 School District.
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-Term Debt Account Group.
All proprietary funds are accounted for on a flow ofeconomic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
- 14 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales tax'es, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers'. and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30; 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
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-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Dougherty County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the i:iext 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.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS

Cash and cash equivalents consist ofcash on hand, demand deposits and short-term.investments with

original maturities of three months or less from the date of acquisition in authorized financial

institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one

or more solvent banks or in&ured Federal savings and loan associations.



INVESTMENTS

COMPOSITION OF. INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest ratepfreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

- 16 -

DOUGHERTY COUNTY BOARD OF EDUCATION

. EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(2) Obligations issued by the United States government,

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

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

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The Dougherty County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 11, 2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Dougherty County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.1 % of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $31,890,939.45 and for school bonds amounted to $952.94.

The tax millage rate levied for the 2000 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

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 $16,056,559.02 and was recorded in the Capital Projects and Debt Service Funds. The State will
terminate collection of this tax once an additional $32,638,343.04 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 v~lue. Purchased foods inventories are reported on th.e Combined Balance Sheet at cost (weighted average). The School District uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, an!l 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 of net current assets.
SUPPLIES INVENTORY Inventories of consumable supplies are reported on the Combined Balance Sheet at cost (weighted average). The School District 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 bene.fit periods subsequent to June 30, 2001, 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 of purchase. 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 normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized.
- 18 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F" .

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the ~d that is reimbursed.
Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
DEFICIT FUND BALANCE
The fund reporting a deficit fund balance position at June 30, 2001, is as follows:

- 19 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fund Type/Fund Name

Deficit Balance

Governmental Fund Type Capital Projects Fund Federal Projects

$ 1,274,045.51

The School District approved a plan to transfer $203,000.00 from the General Fund each year for the next five years to the Capital Projects - Federal Projects Fund starting in fiscal year 2002. The School District is 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;Jonger than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance: If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking . accounts.

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

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

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

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

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

-20-

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

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

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $8,864,549.06. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

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

Risk Category

Bank Balance

1

$ 617,750.38

2

8,246,798.68

3

0.00

Total

$ 8,864,549.06

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value ofthe School District's total investments was $38,145,374.44 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Governme~t Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

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

- 21 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

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 of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued _or guaranteed as to principal and interest. by the U. S. Government or any of its agencies or instrumentalities, b_anker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: GENERAL FIXED ASSETS

The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year:

Land

Buildings

Equipment

Total

Balance July 1, 2000 $9,124,549.00 $167,383,251.26 $25,691,517.75 $202,199,318.01

Additions

99,578.29 17,049,102.29 1,994,021.59 19,142,702.17

Deletions

-82,423.85

-537,483.90 -2,087 ,384.15 -2,707,291.90

Balance June 30, 2001 $2,141,103.44 $183,824,862.65 $25,528,155.12 $218,634,128.28

- 22 -

DOUGHERTY COUNTY BOARD.OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: RISK MANAGEMENT

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

The School District 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 School District 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 specialty 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 o.f coverage.

The School District 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 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 School District accounts for claims with expense and liability being reported when it is probable that a loss has occurred, arid 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:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2000 2001

$ 284,435.37 $ 289,898.98 $ 299,450.76 $ 274,883.59 $ 274,883.59 $ 274,313.10 $ 456,602.04 $ 92,594.65

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

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

- 23 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: RISK MANAGEMENT

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2000 2001

$

15,323.00 $ 18,131.00 $ 27,764.00 $

5 690.00

$

5,690.00 $ 35,098.00 $ 26,339.00 $ 14 449.00

The School District 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

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

Purpose

Interest Rates

Amount

General Government - Series 1998

3.55% - 4.10% $15.100.000.00

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

Compensated Absences

General Obligation
Bonds

Total

Balance July 1, 2000

$ 873,608.09 _$22,530,000.00 $23,403,608.09

Deductions Annual Leave Earned and Utilized (Net) Debt Retired

49,313.51

49,313.51

7,430,000.00 7,430,000.00

Balance June 30, 2001

$ 824,294.58 $15.100.000.00 $15.924.294.58

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

- 24-

/ I 1'

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003

$ 7,942,712.50 7,988,381.25

Total Principal and Interest

$15.931.093.75

Note 7: SHORT-TERM DEBT

The School District issues tax anticipation notes in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District each December. Article IX, Section V, Paragraph V of the Constitution of the State of Georgi~ limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred.

Beginning Balance

Additions

Payments

Ending Balance

Tax Anticipation Notes $5,000,000.00 $16,000,000.00 $21,000,000.00 $=====""0,,,,.0,,,.0

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of$1,774,586.08 for

health insurance and retirement contributions paid on the School District'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 $1,473,742.08

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 $300,844.00

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

- 25 -

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 9: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

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

$ 220,365.15 195.64
7,673,745.45 2,251,589.32

$10.145.895.56

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

Note 10: CONTINGENT LIABILITIES

ARBITRAGE REBATE TAX The Feder;,11 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 $1,543,025.60 at June 30, 2001, is based on tax exempt debt subject to the Tax Reform 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 of the final calculated liability for the five-year period is required to be remitted.

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursements to the grantor agency for any expenditures which are disallowed under grant terms. An audit by the Federal Emergency Management Agency (FEMA) conducted on the School District's Disaster Assistance claims resulted in questioned costs totalling $11,023,309.00. The School District is in the process of responding to the questioned costs and does not believe that the final questioned costs can be reasonably estimated at this time. Other than the questioned costs pertaining to Disaster Assistance claims identified by FEMA, the School District believes that disallowances pertaining to other grantors, if any, will be immaterial to its overall financial position.

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

-26-

DOUGHERTY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 termination 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 districts are covered by the Teachers Retirement System of Georgi~ (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 School District who are covered by TRS are required by State _statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board 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

2001 2000 1999

100% 100% 100%

$ 7,915,384.94 $ 7,855,641.03 $ 7,702,068.42

- 27""

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

ASSETS
Cash. and Cash Equivalents
l_nvestments
Accounts Receivable
Inventories Consumable Supplies Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Consumable Supplies Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements. - 28-

SCHOOL FOOD
SERVIC_ES FUND

LOTTERY PROGRAMS

$

36,802.28

$

962,322.88

219,006.90

104,944.39

25,858.78
142,953.66 124?22.87

$ 1,474,865.09 $ ====1=4=1=74=6=.6=7=

$

280,147.13

50,623.62 $

30,335.91

557,371.25

111,410.76

$

888,142.00 $

141 746.67

$

25,858.78

142,953.66 124,722.87

293,187.78 $

0.00

$

586?23.09 $

0.00

$ 1,474,865.09 $ ===14=1,7=46=.6=7

EXHIBIT "G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

36,802.28 $ 972,595.59

962,322.88

$ 2,332,018.76 $

15,400.00

2,671,370.05

2,121,173.05

25,858.78
142,953.66 124,722.87

27,909.51
150,551.70 238,114.20

$ 2,332,018.76 $

15,400.00 $ 3,964,030.52 $ 3,510,344.05

$ 1,104,455.51 $ 216,720.78 790,279.11 123,846.40 75111.19
$ 2,310,412.99 $

15,400.00 $ 15,400.00 $

1,400,002.64 $ 297,680.31
1,459,061.12 123,846.40 75111.19
3,355,701.66 $

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

$

21,605.77 $

$

21,605.77 $

$
0.00 0.00 $

$ 25,858.78 142,953.66 124,722.87 314,793.55 608,328.86 $

10,915.93 27,909.51 150,551.70 238,114.20 342,368.06 769,859.40

$ 2,332,018.76 $

15,400.00 $ 3,964,030.52 $ 3,510,344.05

- 29 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Entetprise 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
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

490,264.00 $ 1,484,450.17

5,800,344.18

1,577,811.34

$ 7,868,419.52 $ 1,484,450.17

$ . 1,264,807.02
192,083.26 8,460.07

20,436.84 528.31

$ 7,950,018.18 88,114.70 3,703.68 6,728.81

92,552.31

$ 8,048,565.37 $ 1,578,867.81

$

-180,145.85 $

-94,417.64

24,645.71

$

-155,500.14 $

742,223.23

94 417.64
0.00 0.00

$

586,723.09 $=====0.=00===

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

EXHIBIT "H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 3012001

JUNE 30, 2000

$ 2,112,111.93 $ 8,157,988.25 5081878.23
$ 1Oz7781978.41 $

28,000.00 $

4,114,826.10 $ 13,958,332.43 210861689.57

281000.00 $ 201159,848.10 $

3,614,950.30 13,654,533.55
1,9831993.79
19,253,477.64

$ 6,576,814.13 $
1,600,345.76 1,339,381.08
124,133.41 347,075.33
65,642.13 111,642.74 118,364.92
18,815.10 20,031.85
501,027.07

$ 10,8231273.52 $

$

-44,295.11 $

28,000.00 $ 7,869,621.15 $ . 7,530,981.44

1,792,429.02 1,347,841.15
124,133.41 347,075.33
65,642.13 132,079.58 118,893.23
18,815.10 7,970,050.03
88,114.70 504,730.75
991281.12

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

28,000.00 $ 20.478,706.70 $ 20,134,837.56

0.00 $ -318,858.60 $

-881,359.92

38,264.71

$

-6,030.40 $

27,636.17

157,328.06

209,815.03

0.00 $ 0.00

-161,530.54 $ 769,859.40

-671,544.89 1.441.404 .29

$

21,605.77 $

0.00 $

6081328.86 $ ===76=9=,8=59==40..,.

- 31 -

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$ 1,364,510.20 $

665,834.93

15,874,414.40

1441072.80

Total Assets

$ 1712381924.60 $==8=0=9=19=07==73==

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 Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Deficit
Total Fund Equity.
Total Liabilities and Fund Equity

$

23,179.52 $

636A93.54

$

6591673.06 $

8,126.15 2881673.77
296,799.92

$ 1,543,025.60 15,036,225.94
$
0.00

513,107.81 0.00

$ 16,579,251.54 $

513,107.81

$ 17,238,924.60 $==8=0=9=,9=07==73==

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

EXHIBIT"!"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

FEDERAL PROJECTS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ . 2,038,686.53

$ 4,069,031.66 $ 1,429,382.41

15,388,358.75

31,262,773.15

38,397,194.37

2,492,649.31 $

624,069.55

3,260,791.66

9,023,135.22

$ 19,919,694.59 $

624,069.55 $ 38,592,596.47 $ 48,849,712.00

$ 1,898,114.96 $ 1,898,114.96 $ 5,907,582.86

861,399.43

$

361,638.43

392,944.10

835,927.43

110,271.12

1,035,438.43

217,783.06

$

471,909.55 $ 1,898,114.96 $ 3,326,497.49 $ 7,822,692.78

$ 19,447,785.04

$ 1,543,025.60 $

832,879.55

15,036,225.94

25,009,937.19

19,447,785.04

15,259,647.22

513,107.81

1,779,344.07

0.00 $

0.00

-1,274,045.41

0.00 -1,274,045.41

0.00 -1,854,788.81

$ 19,447,785.04 $ -1,274,045.41 $ 35,266,098.98 $ 41,027,019.22

$ 19,919,694.59 $

624,069.55 $ 38,592,596.47 $ 48,849,712.00

- 33 -

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds 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

$

1,104,970.20

$ 1,412, 111 .43 $ 1,412,111 .43 $

1,104,970.20

$ 8,794,065.56 $
$ 8,794,065.56 $ $ -7,381,954.13 $

5,607,825.62 14,839.33
5,622,664.95
-4,517,694.75

$

459,759.68 $

-2,341,370. 75

$ -1,881,611.07 $

4,417,764.22 -1, 166,305.73 .
3,251,458.49

$ -9,263,565.20 $ 25,842,816.74

-1,266,236.26 1,779,344.07

$ 16,579,251.54 $===5=1=3=,1=07==81=

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

FEDERAL PROJECTS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$
$ 7,683,242.78 974,267.86
$ 8,657,510.64 $

47,948.01 $ 429,400.12
800.00

1,152,918.21 $ 429,400.12
7,683,242.78 2,387,179.29

2,343,193.14 5,212,534.20 8,618,849.75 2,296,257.11

478,148.13 $ 11,652,740.40 $ 18,470,834.20

$

$

384,899.84

2,405,739.23
$ 2,790,639.07 $ $ 5,866,871.57 $

1,291.56 $

1,291.56 $

855,761.99

1,392.52 26,156.89
1,299.45 109,002.90
218.43

1,392.52 26,156.89
1,299.45 109,002.90 385,118.27

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

78,442.92

16,886,073.33 14,839.33

496,927.50 15,709,384.67
30,201.09

217,804.67 $ 17,425,174.25 $ 18,192,845.68

260,343.46 $ -5,772,433.85 $

277,988.52

$

942,830.50 $

-2,621,564.25

$ -1,678,733.75 $

447,571.06 $ 6,267,925.46 $ 6,585,224.71

-127,171.12

-6,256,411.85

-7,837,776.10

320,399.94 $

11,513.61 $ -1,252,551.39

$ 4,188,137.82 $

580,743.40 $ -5,760,920.24 $ -974,562.87

15,259,647.22

-1,854,788.81

. 41,027,019.22

42,259,627.24

-258,045.15

$ 19,447,785.04 $ -1,274,045.41 $ 35,266,098.98 $ 41,027,019.22

- 35-

DOUGHERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT"K"

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

PROPERTY TAXES
FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

0.00 $

1,112.57 $

1,112.57 $ 439,772.73

3,965,556.18 3,965,556.18 4,659,471.53

57.51

$===o=.o=o= $ 3,966,668.75 $ 3,966.668.75 $ 5,099,301.77

$ 3,966,668.75 $ 3,966,668.75 $ 5,099,301.77

$ _ _ _0;;;.;.o""_'o_

0.00

0.00

0.00

$===0....0=0= $ 3,966,668.75 $ 3,966,668.75 $ 5,099,301.77

See notes to the general-purpose financial s\atements. - 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. 2001

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

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30 1 2001 JUNE 30, 2000

$

1,673.84 $ 8,373,316.24 $ 8,374,990.08 $ 8,312,501.51

69,416.06

97.22

69,513.28

41 784.40

$ 71,089.90 $ 8,373,413.46 $ 8,444,503.36 $ 8,354,285.91

$

0.00 $ 7,430,000.00 $ 7,430,000.00 $ 7,050,000.00

913,792.50

913,792.50

1,218,210.00

2,745.96

2,745.96

3 710.99

$

0.00 $ 8,346,538.46 $ 8,346,538.46 $ 8,271,920.99

$ 71,089.90 $

26,875.00 $ 97,964.90 $ 82,364.92

1,159,508.02

3,939,793.75

5,099,301.77

5,016,936.85

-1,230,597.92

-1,230,597 .92

FUND BALANCE JUNE 30

$====0..0..0.== $ 3,966,668.75 $ 3,966,668.75 $ 5,099,301.77

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, 2001

EXHIBIT"M"

MILLS MEMORIAL STADIUM FUND
ASSETS Cash and Cash Equivalents Accounts Receivable

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$ -36,692.81 $ 36,692.81

56,729.02 $ 23,339.07

42,998.88 $ 36,692.81

-22,962.67 23,339.07

$

0.00 $

80,068.09 $

79,691.69 $ =====3=76===40=

LIABILITIES Funds Held for Others

$

0.00 $ 80,068.09 $

79,691.69 . $ =====3=76===40=

SCHOOL ACTIVITY FUNDS
ASSETS Cash and Cash Equivalents

$ 380,873.74 $ 1,671,766.64 $ 1,652,242.07 $==4=0=0=,3=98=.3=1=

LIABILITIES Funds Held for Others

$ 380,873.74 $ 1,671,766.64 $ 1,652,242.07 $ ==4=0=0=,3=98=.3=1=

TOTALS -AGENCY FUNDS
ASSETS Cash and Cash Equivalents .A:ccounts Receivable

$ 344,180.93 $ 1,728,495.66 $ 1,695,240.95 $

36,692.81

23,339.07

36,692.81

377,435.64 23,339.07

$ 380,873.74 $ 1,751,834.73 $ 1,731,933.76 $==4==0=0=,7=7.4...=71=

LIABILITIES Funds Held for Others

$ 380,873.74 $ 1,751,834.73 $ 1,731,933.76 $==4=0=0=7=74==71=

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

DOUGHERTY COUNTY BOARD OF ED!,JCATION SCHEQULE QF !;XPENDITURE~ QF FEDERAL AWARQS
YEAR END!;D JUN!; 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program' National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Food Distribution Program (1) Pass-Through From U.S. Department of Defense Food and Nutrition Program Food Services Food Distribution Program
Total U.S. Department of Agriculture
Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education
Individuals with Disabilities Education Act
Part B Special Education Flow Through Georgia Leaming Resources System Preschool Severely Emotionally Disturbed
Part C - Special Education Special Education Capacity Building Improvement
Total Special Education Cluster
Other Programs Direct Impact Aid 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 Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project
Elementary and Secondary Educati~n Act
Title I Grants to Local Educational Agencies
Title II Eisenhower Professional Development
Title VI Innovative Education Program Strategies Class Size Reduction
Individuals with Disabilities Education Act
Special Education Part B State Program Improvement Grants for Children with Disabilities
Goals2000 State and Local Education Systemic Improvement Grants
Safe and Drug-Free Schools and Communities Stewart B. McKinney Homeless Assistance Act
Education for Homeless Children and Youth

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553
. 10.555

NIA $ 1,743,773.84

(2)

NIA

3,737,034.05 $ 7,729,029.08 (3)

$ 5,480,807.89 $ 7,729,029.08

10.550 10.550

N/A

319,536.29

319,536.29

NIA

111

11 l

$ 5,800,344.18 $ 8,048,565.37

84.027 84.027 84.173 84.027 84:173
84.041

NIA $ 1,240,316.46 $ 1,240,316.46

NIA

141,790.74

145,951.36 (3)

NIA

104,404.56

104,404.56

NIA

44,823.58

44,823.58

NIA

47,014.05

47 014.05

$ 1,578,349.39 $

1,582,510.01

101,430.59

(4)

84.011

NIA

84.332

NIA

. 84.010

NIA

84.281

NIA

84.298

NIA

84.340

NIA

18,623.19 4,266.25
4,805,084.38 146,231.46 178,224.30 710,294.30

18,634.29 (3) 4,300.00 (3)
4,807,334.13 (3) 152,387.26 (~) 178,224.30 710,638.16 (3)

84.323

NIA

84.276

NIA

84.186

NIA

84.196

NIA

13,768.55
16,255.36 257,935.00
25,067.07

22,048.75 (3)
16,284.70 (3) 272,006.98 (3)
25,067.07

-39-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education 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 Govemor 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 Workforce Investment Act. Service Leaming Youth (YETP) Job Training Partnership Act.
Total U. S. Department of Labor
Defense, U. S. Department of . Direct Department of the Air Force R.0.T.C. Program Department of the Marine Corps R.O.T.C. Program Troopsto Teachers
Total U. S. Department of Defe!lse

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 83.516

N/A $ ' 211,785.96 $ _ _=21....1....,7..8..-.--'5._9__6"$ 8,067,315.80 $_~8,_0__0___1..._,2=2~1._6__-'-1

NIA $ 429,400.12 $

217,804.67 (3)

93.525 93.037

N/A

$

NIA

14,546.32 $ 4 347.00

18,009.80 (3) 4 376.51 (3)

$

18,893.32 $ _ _ _2=2=,3=8.6.....3..1...a....

17.249 17.255 17.250

N/A $ NIA N/A

47,154.16. $ 84,878.27 41 177.29

47,206.50 (3) 84,878.27 41 177.29

$ 173 209.72 $ _ _....;1-'-73:::,,:.26::a:2:.:..0:a.:6._

$

42,345.63 $

42,345.63

72,575.97 2,500.00

72,575.97 2,500.00

$ 111 421.60 s___11..1..,_4""2"'""'1._s_o_:;_

Total Federal Financial Assistance
NIA = Not Available

$ 14.606.584.74 $

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. Commodities valued in the amount of $60,485.00 were received during the current fiscal year from the U. S. Department of Defense and were not recorded in the School District's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) 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 School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the 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.

16.580.661.62

See notes to the general-purpose financial statements.

-40-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

_Quality Basic Education

Direct Instructional Cost

Kindergarten Program

$

Kindergarten Program - Early Intervention Program

Primary Grades (13)Program

Primary Grades - Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

Middle S_chool (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category Ill

Category IV

CategoryV

Supplemental Speech

Gifted Student Category VI

Remedial Education Program

Alternative Education Program

Media Center Program

Staff and Professional Development

Indirect Cost

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Principal Supplements

Vocational Supervisors

Migrant Education

Mid-term Adjustment Hold-Harmless

Education Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

Apprenticeship Program

At-Risk Summer School Program

Georgia Leaming Resources System

Health Insurance

Mentoring Program

Mentor Teachers

Preschool Handicapped Program

Remedial Summer School

Severely Emotionally Disturbed

Lottery Programs

Computers in the Classroom

Vocational Technology Program

3,764,548.00 411,743.00
11,161,069.00 737,702.00
5,283,558.00 1,005,102.00 7,698,408.00 7,131,665.00 1,730,008.00
256,334.00 2,709,800.00 2,618,684.00
502,767.00 35,434.00 14,578.00
812,088.00 856,430.00 646,905.00 1,546,519.00 395,250.00 9,334,072.00
1,612,176.00. 492,377.00 327,415.00 68,136.00 68,077.00 6,154.00 490,747.00
4,283,659.00 $
85,451.95
50,000.00 37,992.99
1,473,742.08 4,200.00
15,322.00 297,545.05
15,984.27

490,264.00
83,305.70
2,028,806.23 356,042.40 209,944.39

$ 3,764,548.00 411,743.00
11,161,069.00 737,702.00
5,283,558.00 1,005, 102.00 7,698,408.00 7,131,665.00 1,730,008.00
256,334.00 2,709,800.00 2,618,684.00
502,767.00 35,434.00 14,578.00
812,088.00 856,430.00 646,905.00 1,546,519.00 395,250.00 9,334,072.00
1,612,176.00 492,377.00 327,415.00 68,136.00 68,077.00 6,154.00 490,747.00
4,283,659.00 490,264.00 85,451.95
50,000.00 37,992.99 83,305.70 1,473,742.08
4,200.00 15,322.00 297,545.05 15,984.27 2,028,806.23
356,042.40 209,944.39

Georgia State.Financing and Investment Commission Reimbursement on Construction Projects

$ 1,104,970.20

1,104,970.20

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

28,000.00

47,948.01

47,948.01 28,000.00

Office of School Readiness Pre-Kindergarten Program

918,463.38

918,463.38

41

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Continuation of Department's Elementary School Foreign Language Model Program Enrichment Program for Middle School-age Children Georgia's Reading Challenge
OTHER Education, Georgia Department of Reimbursement for Substitute Salaries
(1) The purpose of these funds - disaster relief.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 300,844.00

$ 300,844.00

154,406.00
28,589.58 124,087.00

154,406.00
28,589.58 124,087.00

59.31

59.31

$ 68,589,629.23 $ 4,114,826.10 $ 1,152,918.21 $ 73,857,373.54

See notes to the general-purpose financial statements.

-42-

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

SCHEDULE "3"

PROJECTS

ORIGINAL ESTIMATED
COST (1).

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

PROJECT STATUS

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 $

466,830.00 $ 1,356,415.00 Completed

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

88,653,060.00 106,587,982.66 17,283,592.50 56,626,835.99 Ongoing

$ 90,476,305.00 $ 108,411.227.66 $ 17,750,422.50 $ 57,983,250.99

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

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

(3) The voters of 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 School District has incurred interest expense to provide advance funding for the above projects as follows:

Prior Year

$ 2,737,067.71

Current Year

901,962.50

Total

See notes to the general-purpose financial statements.

43.

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

. SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (11

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category Ill

Category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

4,332,831.00 $ 5,124,235.58 $

473,898.00

712,013.23

12,845,911.00 11,406,724.80

849,061.00

1,309,475.85

6,081,147.00

6,397,149.87

1,156,829.00

2,202,759.20

8,860,536.00

8,470,303.82

8,208,239.00

9,603,308.64

1,991,164.00

2,789,865.49

7,064,112.00

290,319.87

2,455.422.33

3,241,527.86

317,075.50

934,679.00

699,059.56

985,714.00

1,608,411.10

744,560.00

595,909.42

. 20,637.95 $
200,616.90
145,520.95 78,643.52 63,352.06 151,414.26 154,505.06

5,144,873.53 .712,013.23
11,607,341.70 1,309,475.85 6,542,670.82 2,281 .402.72 8,533,655.88 9,754,722.90 . 2,944,370.55

130,218.84
-331.07 8,826.19
151,136.31

290,319.87 2,585,641.17 3,241,527.86
316,744.43 707,885.75 1,608,411.10 747,045.73

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

54,528,681.00 $ 57,223,562.12 $ 1,104,540.97 $ 58,328,103.09

Media Center Program Staff and Professional Development Mid-Term Hold Harmless

1,779,977.00 454,916.00 568,506.00

2,366,627.02 190,025.81 768,158.94

376,454.09 288,708.81
84,149.25

2,743,081.11 478,734.62 852,308.19

TOTAL QBE FORMULA FUNDS

$ 57,332,080.00 $ 60,548,373.89 $ 1,853,853.12 $ 62,402,227.01

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

See notes to the general-purpose financial statements.

-44-

DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
EARNINGS AND EXPENDITURES - BY SITE :VEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE
Lamar Reese Elementary School Alice Coachman Elementary School Martin Luther King, Jr. Elementary School Albany High School Highland Middle School Monroe High School Radium Springs Middle School Sylvandale Elementary School Albany Middle School Dougherty Comprehensive High School Isabella Elementary School Magnolia Elementary School Morningsiqe Elementary School Sylvester Road Elementary School Dougherty Middle School Jackson Heights Elementary School Northside Elementary School Turner Elementary School Lake Park Elementary School Merry Acres Middle School Palmyra Elementary School Sherwood Elementary School Westover High School Lincoln Fundamental School Mock Road Elementary School Radium Springs Elementary School Southside Middle School West Town Elementary School Exceptional Students Program Phoenix School And Suspension Center Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,647,296.00 $

1,761,703.00

1,646,164.00

2,894,313.00

1,156,829.00

3,726,573.00

1,851,640.00

1,599,130.00

1,700,592.00

3,465,270.00

960,115.00

2,172,520.00

1,890,667.00

1,631,887.00

2,946,089.00

1,356,151.00

1,607,915.00

1,217,088.00

1,866,444.00

2,483,218.00

844,902.00

1,658,882.00

3,194,431.00

. 2,347,592.00

1,287,555.00

1,436,268.00

1,914,600.00

1,?18,287 .00

744,560.00

1,486,165.99 1,778,568.41 1,620,058.73 3,136,752.72 1,222,186.34 3,790,989.18 2,026,852.30 1,563,710.66 1,740,500.63 3,518,654.45
927,190.51 2,573,289.51 1,780,270.91 1,677,077.85 2,982,177.84 1,379,023.06 1,554,611.12 1,143,118.14 1,746,056.13 2,455,799.82
866,540.91 1,499,550.70 3,740,863.24 2,452,571.92 1,348,316.43 1,601,125.82 2,037,730.40 1,526,642.56 2,113,316.09
442,851.84
595,538.88

$

54,528,681.00 $ 58,328,103.09

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

SECTION II . COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL \\'. HINTON
STATE AUDITOR 1404) 656-2174

DEPARTMENT.OF AUDITS AND ACCOUNTS
254 Washington Sireet. S.W.. Suite 214 Atlanta, Georgia 30334-8400
December 18, 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 asofand for the year ended June 30, 2001, and have issued our report thereon dated December 18~ 2001. This report was qualified for departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Coinpliance
As part of obtaining reasonable assurance about whether Dougherty County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Dougherty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-30

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect 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-6471-01-02 and FS-6471-01-03.
A material weakness is a condition in which the design or operation of one or m9re of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness.
This report is intended solely for the information and use of the audit committee, management, 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 2001YB-30

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
December 18, 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, 2001. Dougherty County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofDougherty 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 auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Dougherty County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dougherty County Board ofEducation's compliance with those requirements.
2001SA-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 of its major Federal programs for the year ended June 30, 2001.
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 program~. In planning and performing 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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
to We noted certain matters involving the internal control over compliance and its operation that we
consider be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or ope~ation ofthe internal control over compliance that, in our judgment, could adversely affect the Dougherty County Board of Education's ability to adininister 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-6471-01-01 and FA-6471-01-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level 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 normal course of performing 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 material weaknesses. However, we believe none of the
reportable conditions described above is amaterial weakness.
This report is intended solely for the information and use of the audit committee, management, 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 2001SA.:3o

State Auditor

SECTION ill AUDITEE'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, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6471-96-02 FS-6471-98-01
FS-6471-99-01 FS-64 71-99-02 FS-6471-99-05 FS-6471-00-01 FS-64 71-00-02 FS-6471-00-03 FS-64 71-00-04 FS-64 71-00-05

Further Action Not Warranted Previously Reported Corrective Acton Implemented Further Action Not Warranted Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved -Bee Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

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.

BUDGET PREPARATION/EXECUTION Deficit Fund Balance Finding Control Number: FS-6471-00-01

During fiscal year 2001, the School District approved the plan to transfer $203,000.00 from the General Fund each year for the next five years to correct the deficit in the Capital Projects - Federal Projects Fund. The transfer of funds for fiscal year 2002 was made January 2, 2002. The School District is currently reviewing capital project expenditures with Federal Emergency Management Agency to determine whether.additional funding is available.

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-6471-00-02

The School District completed the proper reconciliation of all bank accounts through June 30, 2001. Proper reconciliation procedures have been continued for fiscal year 2002. Nine of the twelve accounts are reconciled through the. current month ofthe current fiscal

- 1-

DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR.YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Accounting Procedures Finding Control Number: FS-6471-00-02

year. Proper reconciliations for the remaining three accounts will be brought forward to the current month by the end of January, 2002. All reconciliations from January, 2002 forward will be performed monthly in a timely manner.

EMPLOYEE COMPENSATION Salary Overpayments/Underpayment Inadequate Leave Records Amount: $5,156.11 Finding Control Number: FS-6471-00-04

The School District will seek reimbursement for all overpayments. All noted underpayments will be fully paid. A review of payroll and leave procedures by the Admini_strative staff has resulted in extensive procedral changes.

GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled .Finding Control Number: FS-6471-00-05

During Fiscal Year 2002 the School District implemented 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-6471-00-01 F A-64 71-00-02

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

-2-

DOUGHERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ELIGIBILITY Failure to Maintain Documentation for Eligible Attendance Areas Finding Control Number: FA-6471-00-01 The School District has informed responsible staff of the need to support information reported on the Title I application with adequate documentation and records. Title I staff has reviewed the 2002 application and has verified that supporting documentation has been properly maintained.
-3-
I

SECTION IV
FINDINGS AND QUESTIONED COSTS

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

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dougherty County Board of Education's financial statements was qualified for 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

Employee Compensation

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

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 Major Programs The audit report for the Dougherty County Board of Education disclosed reportable conditions in internal control over major programs for the following compliance requirements.

Cash Management

Eligibility

None ofthe reportable conditions described above are considered to be a mat~rial 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) ofOMB Circular A-133 The Dougherty County Board of Education's audit disclosed audit findings required to be reporte~ by section .510(a) of 0MB Circular A-133. These audit findings are included in section N of this report.

7. Major Programs Federal awards audited as major programs are as follows: 10."553 Food arid Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I- Grants to Local Educational Agencies

I .

DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $490,526.76.
9. Low Risk Auditee The Dougherty County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
II FINANCIAL STATEMENT FINDINGS AND OUESTIONEDCOSTS
BUDGET PREPARATION/EXECUTION . Deficit Fund Balance Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-01-01
At June 30, 2001, the liabilities and reserves exceeded assets available for the Capital Projects Federal Projects Fund by $1,274,045.41. O.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 School District should establish budgetary procedures to ensure that funding is available prior to the School District committing to expenditures.
CASH AND CASH EQUNALENTS Inadequate Accounting Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6471-01-02
Accounting procedures of the Dougherty County Board of Education were insufficient to provide adequate internal control over the bank reconciliatiotiprocess.. The bank reconciliations for each month of the fiscal year were not completed by the School District until October of 2001.
These deficiencies occurred because ofmanagement's failure to establish procedures to analyze and reconcile balances on the general ledger with supporting records in a timely manner.
The School District 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.
-2-

DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Salary Overpayment Inadequate Leave Records Reportable Condition Amount: $3,299.56 Repeated From Prior Year Finding Control Number: FS-6471-01-03
A sample of forty employee's payroll records was selected and examined to test for accuracy of payroll records of the Dougherty County Board of Education. The following deficiencies were noted:
Salary Overpayment
The Board overpaid an employee$3,299.56. The overpayment was the result ofan error in calculation:
Inadequate Leave Records
Sick leave was accrued at an incorrect rate for three employees.
Supporting documentation for sick, personal and vacation leave could not be located for three employees.
Vacation leave documentation provided for one employee did not support amounts posted to the vacation leave records history.
These deficiencies occurred due to the School District's failure to adequately monitor administrative procedures regarding sick, personal and vacation leave records.
The School District 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 School District's sick, personal and vacation leave policies. The School District should seek reimbursement for the overpayment for deposit to the School District's General Fund.
-3-

DOUGHERTY COUNTY BOARD OF EDUCATION. SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
Il FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-6471-01-04
The detailed listings of salary and travel payments made to employees as submitted by the School District to the Georgia Department ofAudits was not reconciled with the general ledger as presented for audit. Unidentified variances totaling $170,278.78 and $24,581.21 for salaries and travel respectively could not be identified.
This condition occurred because management did not reconcile amounts submitted to Georgia Department of Audits to the School District's general ledger. Procedures should be established by the School District to ensure that the detailed listing of salary and travel is reconciled to the accounting reco~ds prior to submission to the Georgia Department of Audits.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6471-01-01
A review ofcash management procedures for the Elementary and Secondary Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2001, the program had excessive ending monthly cash balances for six months. The excessive cash balances were a result ofmanagement's failure to accurately forecast the cash need ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department of Education and disbursement of such funds by the School District.
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DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
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-6471-01-~2 . The School District could not provide accurate documentation to support section IV of the Title I application pertaining to the determination ofeligible and participating attendance areas and school allocations for the 2001 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies (CFDA 84.010) Program. As provided for in the grant application and required by 34 CFR 76.730, the School District assured the Georgia Department ofEducation that it will keep records and provide information as may be required for audit purposes. This condition was a result ofthe School District's failure to maintain appropriate documentation for information required on the grant application. The School District 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. The Georgia Department ofEducation should review this matter to determine ifa reclaim offunds is appropriate.
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