(,A -~' ' ' . , - 1 ,_ ABO?".' )' '. 'Kl t ;J. l,, r - r -' - I - , - - - - - - - - - : - - - - - -' --- - - : - - - - . ' -- - : - - : - - - - , - - : ' - ' - - - - - - - - , , - - ' - - - , - ' 1n ' ~001-;;,: .( ' ' J , ' I'_' r ' sTAT,E-OF GEOR~IA DEPARTMENT OF;AUDITS AND:ACCOUNTS- ., ,' .~ , I ,.- - (. , ,- ,. ' ) '' '' , ', ' . ' > ,. ., r ,_ DOUGHERTY COUNTY BOARD O'F EDUCA-TIO- 'N Al.B~NY. 'GEORGIA, ' ' ', .. ! , ,. ' : ~/ r > , , I I R~PPRT.,ON AUDIT.: . , -- . _,, . ~ OF THE FINANCIAL STATEM.ENTS FOR THE.flSCAL ,YEAR. ENDED JUNE 30; 2002' < 1 \ , I ' .\ .' ' ,,.,., " , 'l . ' ' . Russell W. Hinton .. State A~dltor ' V ,. .., I '' '. 7 --- DOUGHERTY COUNTY BOARD OF EDUCATION - TAB! E OF CONTENTS - SECTION I FINANCIAL IND[Pl'NDl'NT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAi STATEMENTS AND SUPPLEMENTARY INJ,.es and issue bonds Its budget 1s not subject to approval by any other enllty Accordmgly, the School D1stnct 1s a pnmary government and consists of all the orgamzallons that compose !Is legal enllty Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION The School D1stnct's basic financial statements arc collecl!vely compnsed of the D1stnct-w1de financial statements, fund financial statements and notes to the basic financial statements of the Dougherty County Board of Education Di~trict-wide Statements: The Statement ofNet Assets and the Statement of Act1v111es display mformal!on about the financial ac11v11Ics ofthe overall School D1stnct, ei..ccpt for fiduciary acllv111es Ehmmallons have been made to mmm11ze the double countmg of mternal ac11v1t1es Governmental act1v11Ies generally are financed through tai..es, mtergovemmental revenues, and other noncxchangc transacuons The Statement of Acllv1t1cs presents a companson between direct expenses and progran1 revenues for each funchon of the School D1stnct's governmental ac1Iv111es Direct expenses are those that arc specifically associated with a program or funchon and, therefore, are clearly 1denllfiablc lo a particular funct10n lnd1rect expenses (expenses of the School D1stnct related to the admm1strat1on and support of the School D1stnct's programs, such as office and mamtenance personnel and accountmg) arc not allocated to programs Program revenues mclude (a) charges paid by the rec1p1ents of goods or services offered by the programs and (b) grants and contnbut10ns that arc restnctcd to mectmg the operallonal or capital reqmrements of a particular program Revenues that arc not classified as pro!,'Tam revenues, mcludmg all taxes, arc presented as general revenues Fund Financial Statements: The fund financial statements provide mfonnallon about the School D1stnct's funds, mcludmg fiduciary funds Separate statements for each category (governmental and fiduciary) are presented The emphasis of fund financial statements 1s on maior governmental funds, each displayed m a separate column - 13 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC' FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "II" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The School D1slnc1 reports the following major governmental funds General Fund 1s the School D1slncl's pnmary operating fund It accounts for all financial resources of the School D1stnct, except those resources reqmred lo be accounted for in another fund D1slncl-w1de Capital Projects fund accounts for financial resources including Bond Proceeds, grants from Georgia State Financing and Investment Comm1ss1on and Special Purpose Local Option Sales Tax proceeds to be used for the acqu1S1l1on, construction or renovation of major capital fac1ht1es Debt Service Fund accounts for taxes (sales) legally reslncted for the payment of general longterm pnnc1pal, mterest and paying agent's fees The School D1stnct reports the followmg fiduciary fund type Agency funds account for assets held by the School D1stnct as an agent for vanous funds or ind1v1duals BASIS OF ACCOUNTING The basis of accounting determines when transact10ns are reported on the financial statements The D1stncl-w1dc governmental financial statements are reported using the economic resources measurement focus and the accrual basis of accounting Revenues are recorded when earned and expenses arc recorded at the time hab1ht1es are incurred, regardless of when the related cash flows take place Nonexchange transactions, in which the School D1stnct gives (orrece1ves) value without directly rcce1vmg (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations On an accrual basis, revenue from property taxes 1s recogmzed in the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed in the fiscal year m which the underlymg transact10n (sale) takes place Revenue from grants and donations 1s recogmzed in the fiscal year in which all ehg1b1hty requirements have been satisfied The Board uses funds to report on its financial pos1t10n and the results of 1\s operations Fund accountmg 1s designed to demonstrate legal compliance and lo aid financial management by segregating transactions related to certain governmental functions or ac!Iv1!Ies A fund 1s a separate accountmg entity with a self-balancing set of accounts - 14 - DOUGHERTI COUN fY BOARD OF EDUCATTON NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30. 2002 EXIIIBIT "H" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Governmental funds are reported usmg the current financial resources measurement focus and the modified accrual basis of accountmg Under this method, revenues arc recogmzed when measurable and available The School D1stnct considers all revenues reported m the governmental funds to be available 1f they are collected w1thm sixty days after year-end Property taxes, sales taxes and mterest are considered to he susceptible to accrual Expenditures are recorded when the related fund hab1hty 1s mcurrcd, except for pnnc1pal and mterest on general long-term debt and claims and Judgments, which are recogm1:ed as expenditures to the extent they have matured Capital asset acqms1t1ons are reported as expenditures m governmental funds Proceeds of general long-term hab1ht1es and acqms1t10ns under capital leases are reported as other financmg sources The School D1stnct funds certam programs by a combmat10n ofspecific cost-reimbursement grants, catcgoncal grants, and general revenues Thus, when program costs are mcurred, there are hath restncted and unrestncted net assets available to finance the program It 1s the School D1stnct's policy to first apply grant resources to such programs, followed by cost-reimbursement b'Tllnts, then general revenues For fiscal year 2002, the School D1stncl changed its method of accountmg for the final two payments on one hundred and nmety day contracts and for the related revenue due from the State to fund these contracts Adjustments have been made m the fiscal year 2002 financial statements to record costs for salancs and fnnge benefits earned hy employees through June 30, 2002, (even though paid m July and August 2002) and the related revenue due from the State to fund these contr.icts This change 1s m accordance with generally accepted accountmg pnnc1plcs No adJustment was made for the s1m1lar salanes and benefits earned m fiscal year 2001 but recorded m fiscal year 2002 as this mformat1on was not readily avq1lable The net effect of the above accountmg treatment resulted m the accompanying financial statements renectmg fourteen months of costs for a maJonty of General Fund salanes and fnnge benefits and the related revenue due from the State to fund these contracts Generaliy accepted accountmg prmc1ples require that revenues be recorded when earned or ava1!able and measurable as appropnate and that expenditures or expenses as appropnatc be recorded when mcurred, rather than when funds are received or disbursed RESTATEMENT OF PRIOR YEAR FUND BALANCE- GENERAL FUND In prior years, the financial acuv1Ues of the School D1stnct's School Food Services Fund, Lottery Programs and Federal Programs were reported as Special Revenue Funds These funds had a combmed fund balance of$608,328 86 at July 1. 2001 For fiscal year 2002, these funds have heen reported as part of the General Fund Also m pnor years, the financial act1v1t1es of the School D1stnct's Workers Compcnsat10n Fund was reported as an Internal Service Fund This fund had retamed cammgs of$ I,324,761 04 at July I, 2001 For fiscal year 2002, this fund has been reported as part of the General Fund In add1t10n, governmental fund act1v1ty from the vanous school act1v1ty accounts, which were reported as Agency Funds m the pnor year's financial ~tatements, have been - I5 - DOUGHERTY COUNTY BOARD or EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 l:XHIBIT "H" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES reported w1thm the General Fund for fiscal year ended June 30, 2002 The governmental fund ac1Iv1ty of the vanous school ac11v1ty accounts had a fund balance of$306,940 04 at July I. 2001 This change 1s m accordance with generally accepted accountmg pnnc1ples General Fund Balance July I, 2001 $ 4,683,437 05 Add Funds Consolidated with General Fund School Food Services Fund Federal Programs Internal Service Fund School Acllv1ty Account - Governmental Activity 586,723.09 21,605 77 1,324,761 04 306 940 04 General Fund Balance July I, 2001 (Restated) $ ,22.3,46!'2,22 CHANGES IN ACCOUNTING PRINCIPLES The Dougherty County Board of Education has implemented a new financial rcportmg model as required by prov1s1ons of Governmental Accounting Standards Board Statement No 34, Basic Financial Statements - and Management's D1scusswn and Analvs1s - for State and Local Governments, as of June 30, 2002 The prov1s10ns ofGASB Statement No 34 require the mclus1on ofa Statement of Net Assets lbe elements compnsmg Net Assets - Begmnmg mclude the followmg General Fund (Restated) July I, 2001 Capital ProJccts Fund Debt Service Fund $ 6,923,466 99 35,266,098 98 3,966,668 75 Governmental Funds (Restated) July I, 2001 Capital Assets Accumulated Deprec1allon Property Tax Revenue T1mmg Differences Bonds Payable $ 46.156,234 72 205,304,574 06 -83,726,954 52 751,825 91 -15,100,000 00 Net Assets Begmmng (See Exh1b1t "8") $ill,385.680. I7 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvestments With ongmal maturities of three months or less from the date of acqu1s1t1on m authonzed financial mshtul!ons Georgia Laws OCGA 45-8-14 authonze the Board to deposit its funds m one or more solvent banks or msured Federal savings and loan associat10ns - 16 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC HNANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "II" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School D1stncl in nonpart1c1pating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1patmg interest-earning contracts and money market investments with a matunty at purchase ofone year or less arc reported at amortized cost Both part1c1pating interest-earning contracts and money market investments with a matunty at purchase greater than one year are reported at fair value The Official Code of Georgia Annotated Section 36-83-4 authonzes the School D1stnct to invest its funds In selecting among oplions for investment or among inshtuhonal bids for deposits, the highest rate ofreturn shall be the obJectJve, given eqmvalent cond1t10ns of safety and hqmd1ty Funds may be invested in the following ( 1) Obhgat1ons issued hy the State of Georgia or by other states, (2) Obhgat10ns issued by the Umted States government, (3) Obhgat1ons fully insured or guaranteed by the Umted States government or a Umted States government agency, (4) Ohhgat10ns of any corporat10n of the Umted States government, (5) Pnme hanker'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) Obhgat1ons of other pohtJcal subd1v1s10ns of the State of Georgia RECEIVABLES Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivable~ d1~closed from mformat10n available Receivables are recorded when either the asset or revenue recognIIIon cntcna has been met Receivables recorded on the basic financial statements do not include any amounts whKh would necessitate the need for an allowance for uncollectJble receivables - 17 - DOUGHER I Y COUNTY BOARD OF EDUCATION ro NOTES THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "H" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Dougherty County Board of Comm1ss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 11, 2001 (levy date) Taxes were due on December 20, 2001 (hen date) Taxes collected w1thm the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m the governmental funds for fiscal year 2002 The Dougherty County Tax Comm1ss10ner bills and collects the property taxes for the School D1stnct. withholds 2 1% of taxes collected as a fee for tax collechon and remits the balance oftaxes collected to the School D1stnct Property tax revenues, at the fund rcportmg level, dunng the fiscal year ended June 30, 2002, for mamtenance and operat10ns amounted to $31,444,119 76 The tax millage rate levied for the 2001 tax year (calendar year) for the Dougherty Board of Educat10n was as follows (a mill equals $1 per thousand dollars of assessed value) School Operations Wm1lls SALES TAXES Special Purpose Local Opllon Sales Tax revenue, at the fund reportmg level, dunng the year amounted to $15,475,121 50 and 1s to be used for capllal outlay for educauonal purposes or debt service The sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIES On the d1stnct-w1de financial statements, mventones of donated food commod1t1es used m the preparation of meals are reported at thc1r Federally assigned value and purchased foods invcntones are reported at cost (weighted average) The School D1stnct uses the consumpt10n method to account for mventones whereby donated food commod1t1es are recorded as an asset and as revenue when received, and expenses are recorded as the mventory items are used Purchased foods are recorded as an asset when purchased and expenses are recorded as the inventory items are used On the fund statements, inventones of governmental funds are reported at cost (weighted average) The School D1stnct uses the consumption method to account for invcntones whereby expenditures arc recorded when inventory Ilems arc used PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30, 2002, are recorded as prepaid items - 18 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO TIIE BASIC FINANCIAL STATEMENTS JUNF 30, 2002 EXIIIBI I' "H" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL ASSETS Capital assets purchased, mcludmg capital outlay costs, are recorded as expenditures m the fund financial statements at the lime ofpurchase On the D1stnct-w1de financial statements, all purchased capital assets arc valued at cost where h1stoncal records are available and at estimated h1stoncal cost based on appraisals where no h1stoncal records exist Donated capital assets arc recorded at fa1r market value on the date donated Disposals are deleted at depreciated recorded cost The cost of normal mamtcnance and repairs that do not add to the value of assets or matenally extend the useful hves of the assets 1s not cap1tahzed Deprecial!on 1s computed usmg the stra1ght-hne method The School D1stnct does not cap1tahze book collecl!ons or works of art Capllahzat10n thresholds and estimated useful hves of capital assets reported m the D1stnct-w1de statements are as follows Cap1tahza11on Pohcy Estimated Useful Life Land and Land Improvements Bmldmgs and Improvements Eqmpment Any Amount $ 5,000 00 $ 5,000 00 NIA 20 to 80 year, 4 to 12 year; Depreciallon 1s used to allocate the actual or estimated h1stoncal cost of all capital as,cts over esl!mated useful hvcs GENERAL OBLIGATION BONDS The School District issues general obhgat1on bonds to provide funds for the acqms111on and construcuon of maJor capital fac1ht1es Bond issuance costs are recogmzed m the financial statements dunng the fiscal year bonds arc issued General obhgat10n bonds are d1rect obhgat1ons .md pledge the full faith and credit of the government The outstdndmg Jmount of these bond; 1; recorded m the Statement of Net Assets DEFICIT FUND BALANCES The fund reporting a deficit fund balance at June 30, 2002, 1s as follows fund Type/fund Name Deficit Balance Governmental Fund Type Capital ProJects Fund S I .278.742 07 The School D1stnet approved a plan to transfer $203,000 00 from the General Fund each year for the next five years to the Capital ProJccts Fund startmg m fiscal year 2002 - 19 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMFNTS JUNE 30. 2002 EXHIBIT "H" Note 3 DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sect10n 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of sec unties pledged shall be equal to not less than 110 percent of the pubhe funds being secured after the deduction ofthe amount ofdeposit msurance If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value ofthe secunt1es pledged to secure a pool ofpubhc funds shall be not less than 110 percent of the daily pool balance OCGA Section 45-8-11 (b) provides an officer holding pubhe funds may, m his d1scret10n, waive the requirement for secunty in the case ofoperatmg funds placed in demand deposit checking accounts Acceptable secunty for deposits consists of any one of or any combination of the following (I) Surety bond signed by a surety company duly qualified and authonzed to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporat10n, (3) Bonds, bills, notes, ceruficates of indebtedness or other direct obhgahons of the Umted States or of the State of Georgia, (4) Bonds, bills, notes. cerll ficates of indebtedness or other obhgat1ons of the counties or mumc1paht1es of the State of Georgia. (5) Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose, (6) Industnal revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and (7) Bonds, bills. notes, certificates of indebtedness, or other obhgat1ons of a subs1d1ary corporation of the Umtcd States government. which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgat1ons 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 Assoc1allon, and the Federal National Mortgage Assoc1allon CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $8,730,353 43 The amounts ofthe total bank balances are classified into three eategones of credit nsk - 20- DOUGHERTY COUNTY BOARD OF EDUCA"ITON NOTES TO !HE BASIC FINANCIAL STAT[MEl\'TS JUNb 30. 2002 EXHIBIT"H" Note 3 DEPOSITS AND INVESTMENTS Category 1 - Cash that 1s msured (e g, Federal depository insurance) or collaterahzcd with sccunties held by the School D1stnct or by the School D1stnct's agent m the School Dtstnct's name Category 2 - Cash collaterahzed with secun!Ies held by the pledgmg financial msutut1on's trust department or agent m the School D1stnct's name Category 3 - Uncollaterahzcd deposits (This mcludcs any bank balance that 1s collatemhzcd with secunties held by the pledgmg financial msutut10n, or by It~ trust department or agent but not m the School D1stnct's name ) The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows Risk Category Bank Balance I $ 809,385 85 2 000 3 7.920.967 58 Total S...73Q,353,41 CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School D1stncl's total mvestmenls was S32,479,796 05 which 1s matenally the same as fau value This mvestment consisted entuely of funds mvestcd m the Local Government Investment Pool adm1mstcred by the State ofGeorgia, Office ofTrcasury and Fiscal Services which are not reqmred to be categorized smcc the School D1stnct did not own any specific 1dent1fiable secuntJes m the pool The mvestment pohcy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1d11y Portfoho) does not provide for mvestmcnt m denvat1ves or similar mvcstments A descnpt1on ofthe Pnmary L1qu1d1ty Portfolio 1s as follows The Primary L1qu1d1ty Portfoho consists of Georgia Fund I, which 1s a combmat1on local and slate government mveslment pool, and Fund 6 Georgia Fund I 1s a stable net asset value mveslmcnt pool which follows Standard and Poor's cntena for MAm rated money market funds The pool is not registered with the SEC as an mvestment company but does operate Georgia Fund 1 m a manner consistent with Ruic 2a-7 of the Investment Company Act of 1940 and 1s considered lo be a Rule 2a7 hke pool The pool's pnmary obJectives arc safety of cap1lal, mvcstment mcome, hqmd1ty and d1vers1ficat10n while mamtammg pnnc1pal ($1 00 per share value) Net asset value 1s calculated weekly to ensure ~tab,hty The pool d1stnbutes cammgs (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed based on $1 00 per share Pooled cash and cash cqmvalents and mvestments are reported at cost which approximates fau value The pool docs not issue any legally bmdmg guarantees to support the value of the shares Part1c1pat1on m the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies. colleges and umvers1Ues, and current operatmg funds of the Slate of Georgia's General Fund - 21 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "H" Note 3 DEPOSITS AND INVESTMENTS Investments in Georgia Fund 1 and Fund 6 arc dJrected toward short-term instruments such as U S Treasury obhgauons, secunties issued or guaranteed as to pnnc1pal and interest by the U S Government or any of Its agencies or instrumentahlles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was 0 12 years The average investment duration for Fund 6 on June 30, 2002, was O75 years Note 4 NON-MONETARY TRANSACTIONS The School D1stnct receives food commod11Ies from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commod11Ies are recorded at their Federally assigned value See Note I - Inventories Note 5 CAPITAL ASSETS The following 1s a summary of changes in the Capital Assets dunng the fiscal year Governmental Act1vn1es Capital Assets, Not Bemg Deprcc1Jtcd Land Construction m Progress Total Capital Assets Not Bemg Depreciated Capital Assets Bemg Depreciated Buildmgs ,md Improvements Equipment Less Accumulated Deprec1at1on for Bu1ldmgs ,md Improvements Equipment Total CJp1tal Assets, Bemg Dcprcc1atcd, l\ct Governmental Act1V1ty Capital A!:.Sets - Net Balances July I 2001 Increases Decreases Balances June 30. 2002 s 9.141.703 44 s 90.702 04 s -207,0{1 I 3 I s 9,025.404 17 16 685 819 61 11 677 601 30 -3.525.883 23 24 817 517 70 S 25 827 523 07 SI I 768 30114 S-3 732.884 54 S 33.862.94 I 87 S167,209,050 02 S 5.391,875 45 $-5,976,101 04 SI 66,/24,824 43 12,268,000 97 I.I 13,181 98 -786,076 59 12,595,10(1 36 75,716,959 95 8.009.994 57 2.230,839 56 770 908 45 -5.361.882 41 -777 'JI 5 90 72.585,917 10 8 002 987 12 S 95 750 096 47 S 1 503 309 42 s -622 179 12 S 98,631.026 57 Sl~I ~7.1Jil9,54 s I22:Z,l.6J 2,]jj S-:1 J~~ ~~J S1 S132,19J~(i_8Acj Current year depreciation expense by function 1s as follows - 22 - DOUGHERTY COUNTY BOARD OF EDUCATION NO-I ES TO THE BASIC FINANCIAL STATEMfNTS nJNr: 30. 2002 EXHIBIT "1-1" Note 5 CAPITAL ASSETS lnstruct10n Support Services PupII Services Improvements of Instruct1onal Services Educational Media Services General Adm1mstrat1on School Admm1strat1on Busmess Admm1strat1on Mamtenance and Operation of Plant Student Transportation Sernces Central Support Services Enterpnse Operations Food Services $ 1,822,989 56 $ 5,327 74 37,970 64 98,919 05 1,992 94 105,397 69 18,526 14 23,641 38 556,317 79 32,732 05 2 149 25 882.974 67 295,783 78 $ 3,00L748.0l Note 6 RESTRICTED ASSETS Special Purpose Local Option Sales Tax (SPLOST) levied specifically for retirement ofoutstandmg bond pnnc1pal, interest and paying agent's fees (Debt Service Funds) arc reported as restnctcd assets m the Statement of Net Assets because thc!T use 1s hm1ted by applicable bond covenants or statutory prov1s1ons Restnctcd assets at June 30, 2002, were as follows Restncted Cash and Cash Equivalents Debt Serviles Capital Au1u1s1t10m, Restncted Investments Capital Acquisitions Capital ProJccts Bond Proceeds Capital ProJCCIS SPI OSI Proceeds Debt Service Funds $ S 1.501,78877 S 2,032,910 51 $ 7,019,743 86 S21,801.695 99 2,529 31 Note 7 JNTERFUND TRANSFERS lnterfund transfers for the year ended June 30. 2002, consisted of the following Tran~fcr to Transfers From General Fund Capital ProJ ects Agency Funds $ 299,505 82 2.16275 - 23 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "H" Note 7 INTERFUND TRANSFERS Transfers are used to move property tax revenues collected by the General Fund to the Capital Projects Fund to correct deficit m the Capital Projects Fund Note 8 RISK MANAGEMENT The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and dcstruct10n of assets, errors or om1ss10ns, jOb related illness or mjuncs to employees, acts of God and unemployment compensation The School D1stnct part1c1pates m the Georgia School Boards Assoc1at10n Risk and Insurance Management System, a pubhc entity nsk pool orgamzed on July I, 1994, to develop and adm1mster a plan to reduce nsk of loss on account of general hab1hty, motor vehicle hab1hty, or property damage, mcludmg safety engmeenng and other loss prevenhon and control techmqucs, and to admm1ster one or more groups of self-insurance funds, mcludmg the processing and defense of claims brought agamst members ofthe system The School D1stnct pays an annual premrnm to the system for its general msurance coverage Add1t10nal coverage 1s provided through agreements by the system with other companies accordmg to theu specialty for property, boiler and machmery (mcludmg coverage for flood and earthquake), general hab1hty (mcludmg coverage for sexual harassment, molcstat10n and abuse) and automobile nsks Payment of excess insurance for the system vanes by !me of coverage For the current fiscal year. due to the costs of available coverage, the School D1stnct s1gmficantly reduced coverage for acts of God The School D1stnct has estabhshed a hm1ted nsk management program for workers' compensation claims A premrnm 1s charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll m order to cover esllmatcd claims budgeted by management based on known claims and pnor experience The School D1stnct accounts for claims with expenses/expenditures and hab1hty bemg reported when It 1s probable that a loss has occurred, and the an10unt of that loss can be reasonably eshmated An excess coverage insurance policy covers md1v1dual claims m excess of $250,000 00 loss per occurrence, up to the statutory hm1t Changes m the workers' compcnsat10n claims hab1hty dunng the last two fiscal years arc as follows Dcgmnmg of Year Liah1hty Claims and Changes m Estimates Claims Paid End of Year Liab1hty 2001 2002 s $ 274 883 59 274313 10 $ 456 602 04 $ 92 594 65 $ s 92 594 65 708 476 46 $ 450 331 54 $ 350 739 57 - 24 - DOUGHERTY COUNTY BOARD OF EDUCATION NOTES TO l HE BASIC FINANCIAL STATI:,MEN IS JUNE 30, 2002 EXHIBIT "H" Nole 8 RISK MANAGEMENT The School D1stnct 1s self-insured with regard to unemployment compensation chums The School D1stnct accounts for claims within the General Fund with expenses/expenditures and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estin1atcd Changes in the unemployment compensat10n claims hab1hty dunng the last two fiscal years arc as follows Bcgmnmg of Year Liab1h1y Claims and Changes m Estimates Claims Paid End of Year Liab1hty 2001 2002 $ 5 690 00 $ 35 098 00 $ 26 339 00 $ 14 449 00 $ 14 449 00 $ s 13,78200 28,231 00 $ 000 The School D1stnct has purchased surety bonds to provide add1t1onal insurance coverage as follows Pos11Ion Covered Supenntendent All Other Employees Amount S 50,000 00 $ 250,000 00 Note 9 SHORT-TERM DEBT The School D1stnct issues tax ant1c1pat1on notes in advance of property tax collect10ns, depositing the proceed~ m its General Fund This short-term debt 1s to provide cash for operations until property tax collections are received by the School D1stnct Article IX, Section V. Paragraph V of the Constitution of the State of Georgia hmlls the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected m the preceding year and rcqmres all short-term debt to be repaid no later than December 31 of the calendar year m which the debt was mcurred Short-term debt activity for the fiscal year 1s as follows Tax Ant1c1pat1on Notes Begmmng Balance Additions Payments Endmg Balanc~ $ _ _o_oo. $J2.ooo QOO.llil $12 ooo oQQ.QO $~_ __,o.QQ Note 10 LONG-TERM DEBT COMPENSATED ABSENCES Compensated absences represent obhgat10ns of the School D1stnct relating to employees' nghts to receive compensat10n for future absences based upon service already rendered This obhgat1on relates only to vesting accumulatmg leave in which payment 1s probable and can be reasonably estimated The School D1stnct uses the vesting method to compute compensated absences - 25 - DOUGHERlY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMEN IS JUNE 30, 2002 EXHIBIT "H" Note JO LONG-TERM DEBT Add1t1onally. the accumulated compensated absences hab1hty at June 30, has not been recorded m the D1stnct-w1de financial statements as this hab1hty 1s also deemed to be 1mmatenal to the fair presentation of these financial statements. GENERAL OBLIGATION DEBT OUTSTANDING General Obhgatlon Bonds currently outstandmg are as follows Purpose Interest Rates Amount General Government - Senes 1998 3 55%- 4 10% S 7,750.000.UO The changes m Long-Term Debt during the fiscal year ended June 30, 2002. were as follows Governmental Funds General Claims Obhgat10n Payable Bonds Total Balance July I, 2001 $ 92,594 65 S15. I00,000 00 SI 5.192.594 65 Additions Claims and Changes m Eslimates 708,476 46 708,476 46 Deduct10ns Claims Paid Debt Retired 450,331 54 7,350,000 00 450,331 54 7,350,000 00 Balance June 30, 2002 $ 350,739 5.1 $_7,750,000,00 S 8 100,719,57 Portion of Long-Term Debt Due w1thm One Year $--f?,2_2 L77 $ 7,750,000.00 $ 7,797.921 77 At June 30, 2002. payments due by fiscal year which mcludes pnnc1pal and mterest for these ttems are as follows Ft~cal Year Ended June 30 General Obhgat1on Debt Pnnc1pal Interest 2003 $ 7.750,000,00 $ 238,181 25 - 26- DOUGHFRTY COUNTY BOARD OF EDI JCATJON NOTES TO THE BASIC HNANCIAL STATEMFNTS JUNE 30, 2002 D,'1:IIBIT "II" Note 11 ON-BEHALF PAYMENTS The Board has rccogm,ed revenues and costs in the amount of $1,594,501 53 for health insurance and retirement contnbuttons paid on the Board's behalf by the following State Agencies Georgia Department ofEducat10n Paid to the Georgia Department of Commuruty Health For Health Insurance of Non-Certified Personnel In the amount of SI ,370,337 53 Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of S224. 164 00 Note 12 SIGNIFICANT COMMITMENTS The following 1s an analysis ofs1gmficant outstanding construction or renovation contracts executed by the School D1stnct as of June 30, 2002 Pro1cct Unearned Executed Contracts 97 /96S-647-015 Bond ProJects SPLOST ProJects $ 2,624 48 924,527 00 2,227,702 64 S), 1~4.854.J 2 The amounts descnbed in this note are not reflected m the basic financial statements Note 13 CONTINGENT LIABILITIES ARBITRAGE REBATE TA..X 1 he federal Tax Refom1 Act of 1986 requires issuers of tax-exempt debt to make payments to the Umtcd States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates The U S Treasury reqmres payment every five years The esumated liab1hty of $1,426.479 79 at June 30, 2002, 1s based on tax exempt debt subJect to the Ta, Reform Act The estimated hab1hty will be updated annually for any tax-exempt issuances or changes in yields through fehruary 24, 2003, at which l!me payment of the final calculated liah1hty for the five-year penod 1s rcqmrcd to be remitted - 27 - DOUGHERTY COUNTY flOARD OF l:,DUCATION NOTI:,S TO THE BASIC FINANCIAL STATEMFNTS JUNE 30. 2002 EXHIBIT"H" Note 13 CONTINGENT LIABILITIES Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms An audit by the Federal Emergency Management Agency lFEMA) conducted on the School D1stnct"s Disaster Assistance cl.urns resulted m questioned costs totalhng $1,032.756 00 The School D1stnct 1s m the process of appealing the questioned costs with the mtent1on ofreducmg the amount to be refunded Other than the questioned costs pertammg to Disaster Assistance claims identified by FEMA, the School D1stnct beheves that d1sallowances pertammg to other grantors, 1f any. will be 1mmatenal to its overall financial position T11e School D1stnct 1s a defendant m vanous legal proceedings pcrtammg to matters mc1dcntal to the performance of routme School D1stnct operat10ns The ulhmate d1spos1t1on ofthese proceedmgs 1s not presently determmable, but 1s not beheved to be matenal to the basic financ1aJ statements Note 14 ACCUMULATED EMPLOYEES" LEAVE The Board"s admm1stratlve staff and certam other full-time employees earn up to one and one-half days per month of vacation leave Vacat10n leave may be accumulated to a maximum of30 days Employees are paid, at their current rate of pay, for unused accumulated vacalion leave up to the maximum upon retirement or termmal!on of employment Note 15 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, adm1rustrative and clencal personnel employed by local school systems arc covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-shanng multiple employer defined benefit pension plan TRS provides service retirement, d1sab1hty retirement and survivors benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issue~ a separate stand alone financial audit report and a copy can be obtained from the Gcor!,'la Department of Audits and Accounts TRS CONTRIBUTIONS REQUIRED AND MADE :mployecs of the School D1stnct who are covered by TRS arc rcqmred by State statute to contnbute 5% ofthe1r gross eammgs to TRS The School D1stnct makes monthly employer contnbut10ns to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as adVJsed hy their mdependcnt actuary The requITed employer contnbuhon rate 1s 9 24% and employer contnbul!ons for the current fiscal year and the prccedmg two fiscal years are as follows - 28 - DOUGHERTY COUNTY BOARD OF EDUCA1 ION NOTES TO IHI:- BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXIIIBIT "H" Note 15 RETIREMENT PLANS Fiscal Year 2002 2001 2000 Percentage Contnbuted 100% 100% 100% Reqmred Contnbut1on $ 6,536,754 61 $7,915,384 94 $ 7,855,641 03 - 29- DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30 2002 SCHEDULE "1" REVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for SeMces Investment Eammgs M1Scellaneous Total Revenues EXPEND!TURES Current lnstrucbon Support Services Pupil Services Improvement of Instructional Services Educational Media SeMces General Admm1strat10n Sd"lool Adm1mstrabon Business Admm1strat1on Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterpnse Operations Community Services Food Services Operabon Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES {USES! Other Sources Other Uses Total Other F1nancmg Sources (Uses) SPECIAL ITEMS Proceeds from Sale of Bulldmgs Proceeds from Sale of Land Total Special Items Net Change 1n Fund Balances Fund Balances - Begmmng Fund Balances Ending See notes to the basic financial statements NONAPPROPRIATED BUDGETS ORIGINAL FINAL ACTUAL AMOUNTS $ 31,506 173 00 $ 3150617300 $ 31,484 335 84 435,000 00 435 000 00 557 764 71 73,695,625 60 74 314,741 20 83,748 361 11 16,978,986 90 20,566,028 45 16,599,182 48 2 034,288 96 2,184,982 01 2 24122982 165,806 00 165,806 00 245,672 02 2,061,090 00 2,329,347 61 2 412 709 74 s $ 126 876 970 46 $ 131,502,078 27 137,289,255 72 $ 78,294 104 43 $ 80,868,752 05 $ 88,651 442 20 4,123,817 35 4 207,650 31 3,026,179 43 2 053,231 80 7,834,609 62 1,818,333 62 9,397 443 17 4,148,746 67 1,741,057 82 56,948 28 318,672 51 838,053 96 8 674 895 49 1950000 5,004,213 70 4,862,277 87 3,053,533 85 1,959,908 74 7,858,542 41 1,840 526 65 9,270,377 86 4,207 002 85 1,874,087 33 100,395 79 616,457 73 946,899 08 8 947,609 86 90 265 79 4 979,791 34 4 758,170 94 3 533,085 77 1522,15322 8,601,012 46 1,758,41061 9,628 890 31 4,698 743 79 2,205 380 23 71 027 85 475 005 77 860,940 47 8,055,464 38 102 004 72 $ 126 553 244 46 $ 131,500,851 56 $ 139,901,524 06 $ 323 726 00 $ 1 226 71 $ -2,612,268 34 $ 280,128 00 $ 291,516 72 $ 30 654 71 -935 340 50 -491 876 72 -301 668 57 $ -655 212 50 $ -200 36000 $ -27101386 $ 0 00 $ 000 $ 943,352 66 595 662 34 $ 0 00 $ 0 00 $ 1539015 00 $ -331 486 50 $ -199,133 29 $ -1,344,267 20 7 861 631 51 7,861 631 51 6 923 466 99 $ 7 530 145 01 $ 7 662 498 22 $ 5 579199 79 - 30- DOUGHERTY s,Q!,ltfIY 6QARD OF EDUCATIQN ~!;;H!;D!,!LE OF !;llPENDITURE~ QF EEQ~BAs AWAADS YEAR ENDED JUNE 30 2002 SCHEDULE "2" FUNDING AGENCY PRQ!,RAM'GRANT Agr1cutture u S Department of Child Nutrrtion Cluster Pass-Through From Georgl.a Department of Educabon Food and Nutnllon Program Food ServtC8S Sdlool Breakfast Program Nabonal Sdiool Lundi Program Total Child NutntJon Cluster Olher Programs Pass-Through From Georgl.a Department of Education Focxt and Nutnllon Program Food Services Food Di.strlbut.10n Program (1) Total U S Department o! Agnculture Educabon U S Department of Speoal Education Cluster Pass-Through From Georgia Department of Educ:al.Jon Individuals wrth OlsablhtJes Educabon Ad Part B - Speaal Education Flow Through Georgia Leaming Resources System Preschool Severely Emotionally D1stwbod Speaal Pro,ad - H,gh Sdlool/H,gh Tedi Capaoty Budding Improvement Capacity 8U1ld1ng - GLRS Total Speoal Education Cluster Other Programs Direct lmpadAid Pass-TIYough From Chattahoochee-Flint Regional Educa11onal Sorvic:e Agency d/bla Two Rivers Mtgranl Educal1on Agency Elementary and Secondary Education Act Title I Mtgrant Education Pass-TIYough From Georgia Department of Education Comprehensive School Reform Demonstration PrOJed Elementary and Secondary Education Act Title I Grants to Local Educational Agenoes Title II Eisenhower Profcsslonal Development n11e111 Tedmology Literacy Challenge Fund Grants T1UeVI lnnovab'/8 Education Program Stralegres Class Stze Redud.Jon lndlVlduals with 01sab1Lllles Education Act Speaal Education Part B State Program Improvement Gf"anl!. for Children wrth DlsablUbes Goals 2000 State and Local Education Systemic Improvement Grams CFDA NUMBER 10 553 10 555 10 550 84 027 84 027 84173 84 027 84027 84 173 84 027 84 041 84 011 84 332 84 010 84 281 84 318 84 298 84 340 84 323 84 276 PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD NIA $ 190673361 NIA 3 900.724 55 s s s 5 807 458 16 (2) 7 806 735 52 (3) 7 806 735 52 NIA 358 374 28 $ 6 165 832 44 $ 358 374 28 8 165 109 80 NIA s 1512191 56 $ NIA 146 329 26 NIA 11517301 NIA 180 097 37 NIA 47 911 26 NIA 45 947 15 NIA 10 738 80 s $ 2 058,388 41 1 512 191 56 159 231 47 (3) 11517301 180 097 37 4791126 45,947 15 10 738 80 2,071 290 62 178 806 50 (5) NIA 25 062 44 25 647 02 (3) NIA 23 770 68 23 770 68 NIA 5 912 490 66 591400120 (3) NIA 62 320 29 62 320 29 NIA 96 436 47 96,436 47 NIA 169 375 89 169,375 89 NIA 933,559 00 950 133 80 (3) NIA 46,399 22 46 399 22 NIA 146 453 53 146,453 53 - 31 - DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "2" FUNDING AGENCY PROGRAM/GRANT Education, U S Department of Other Programs PassTIYough From Georgia Department of EducaUon Safe and Drug-Free Schools and Communltles Vocabonal Education Basic Grants to Slates High School Program BaSlcGrant Pass-Through From Georgia Department of Human ReSOU"ces Safe and Drug Free Sdlools Total U S Department of Educal.Jon Health and Human SeMces U S Department of Pass-Through From Georgia Department of H001an Resources Ctuld ca"' School Age Program Labor, U S Department of Pass-Ttvough From Southwest Georgia Regional Educabonal Development Center Workforce lnwstment Ad SeMc:aleam1ng Youth (YETP) Provk:hng Rewarding Youth Achievement SeMceS (RYA) Total U S Department of Labor Defense, U S Department of Dired Department of the Air Force R O T C Program Department of the Manne Corps R O T C Program Total U S Department of Defense CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84186 84 048 84186 NIA $ 72 366 00 $ 117 912 82 (3) NIA 284 211 42 284 211 42 NIA 9 500 00 9 500 00 $ 1001914051 $ _ __.9..,9c,_17=45"2"96"'- 93 525 NIA $ 23 768 74 $ ---~23=76"'8'-'7'-'-4 17 249 17 255 17 998 NIA $ NIA 62 163 80 $ 73,589 67 62163 80 79 099 84 (3) NIA 133 081 07 13308107 $ 268 834 54 $ _ __,2"-74:=344=.7!...!.1 $ 47 890 50 (4) 73 715 75 (4) $_~1~2~16:,06=2=5 Total Federal F1oaooal AssLStance s rn 159911s2 48 s___18...38=o"',6"'7"6"2..,1 NIA II Not Available Notes to the SdledYIB Of Expenditures of Federal Awards (1) The amounts shown for the Food Otstnbulton Program represents the Federally asSJgned value of nonmonetary assistance for donated commodrt1es recetved and/or consumed by the School Dlslnct dunng the current fiscal year (2) Expenditures for the School Breakfast Program were not ma1n1amed separately and are mciuded m the 2002 Nabonal School Looch Program (3) Expenditures for this program include State and/or Other Funds Expenditures are not ma1nta1ned by hmd source (4) Expenditures on ttus program were not maintained by fund source (5) Funds earned on ttus program do not require reporbng of expenditures MaJor Programs are ldenbfied by an astensk (*) In front of the CFDA number The School 01:stnd did not provide Federal Assistance to any Subreapien1 The accompanying schedule of expenclrtures of Federal awards lnducles the Federal grant activity of the Dougherty County Board of Educabon and Is presented on the modified acaual basis of accounting which Is the basis of accolnlng used ln the presentation of the basic financial statements See notes to the baslc financial statements - 32 - DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2002 SCHEDULE "3" AGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early lnterventron (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (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 wrth D1sab11it1es Category I Category II Category Ill Category IV Category V Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Twenty Days Add1t1onal Instruction Indirect Cost Central Administration School Admin1strat1on Facility Maintenance and Operatrons Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnnc1pal Supplements Vocational Supervisors Mid-term Ad1ustment Hold-Harmless Educatmn Equalization Funding Grant Food SeN1ces Vocational Education Other State Programs Apprent1cesh1p Program Georgia Leaming Resources System Health Insurance K-3 Statewide Reading Program 4-8 Statewide After School Program - 33 - GENERAL FUND $ 5,371,454 00 498,421 00 12.624,221 00 1,088 500 00 6,073.890 00 779.125 00 1,250.854 00 9,436,304 00 7,812.725 00 1.931, 178 00 336,834 00 3,360.686 00 3,320.590 00 683,533 00 116.876 00 18 328 00 1.102,973 00 479,462 00 761,641 00 21,81300 1,781,471 00 274.358 00 557,18500 1,808,877 00 3,299.827 00 4,267,495 00 1,721,175 00 478,006 00 320,019 00 67.308 00 67.498 00 167.984 00 4,580.158 00 491.460 00 21.722 61 50.000 00 87.624 00 1,370,337 53 225,424 32 98,384 41 DOUGHERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2002 AGENCY/FUNDING GRANTS Education, Georgia Department of Other State Programs K-3 Statewide Reading ~rogram - SEO Mentor Teachers Outdoor Classrooms Preschool Handicapped Program Severely Emotionally Disturbed Student Achievement Technology/Career High Schools That Work Lottery Programs Ass1st1ve Technology Computers m the Classroom Post Secondary Options Office of the Governor Georgia Challenge Program Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Educanon, Georgia Department of After School Programs Foreign Language Model Program SCHEDULE "3" GENERAL FUND $ 2,000 00 11,628 00 749 01 225,675 00 2,177,696 77 679,592 67 16,000 00 25,117 52 415,325 00 5,147 00 20,000 00 947,401 31 224,164 00 37,742 40 154 400 56 See notes to the basic finanetal statements - 34 - D:Q.UGHERTY COUND'. BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL QPTIQN SALES TAX PROJECTS YEAR ENPEP JUNE 30 2002 SCHEDULE '"4~ PROJECT The acqwsltJon constn.Jcbon and equipping of su n8'N elementary physical educabon facihbes two n8'N TTVddle sdlools supply seMces freezer completion or expans10n program at five schools roof replacemenl on 24 buudlngs technok)gy power upgrade on 30 bu11d1ngs ce1lmgs and lights m 27 bLnld1ngs, HVAC upgrades on 24 buildings four new high school field hot.Jae,, three support facillbes for new elementary schools renovabOn of Mcintosh Teadler Academy renovaoon or five SChools Highland convel'!.lon underslab pluml:Kng replaeement In 17 bt.nldmgs asbestos removal at 48 !lies laY.1"1 revrtahzatlon at 30 sites facillbes departmBllt shops tower, media 98MCe center secunty hghl.Jng al 28 Sites sports f\eld lighting at four sites and 41 new vetuc:les 1nciudlng the acqul!rtlon of au necessary property the maximum cost of such proJeCts not lo exceed $88 653 060 00 ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) (4) AMOUNT EXPENDED IN PRIOR YEARS (3) (4) PROJECT STATUS s 88 8531060 00 s 100 206 768 21 s 14 479 450 55 s 73 910 428 49 Ongomg (1J 1he Sc:hool Distnc:rs ongmal cost esl.Jmate as spoofl8d m the resohJI.Jon calling tor the Impos1uon of the Local Opbon Sales Tax (2) Toe School D1stnc:t's current estimate of total cost tor the prOjecl Includes all cost from prOject mceptLOn to c:omplebon (3) The voters of Dougherty County approved I.he 1mpo51Uon of a 1% sales tax to fund the above proJect and retire assoc:,ated debt Amo1.mt5 expended for this ptqect may andude sales tax proceeds stato, local property taxes andlOI" other funds over the life of the project (4) In addlbon to the expenditures shown above the School D1stnd has incurred Interest expense to provide advance funding IOI" the above prOjects as follows Prior Year s 3 639 030 21 Current Year 592 712 50 Total I _..;4=23a.1"'7"4a;2.7..._1 See notes to the ba5'c: financ:aal statements - 35 DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM fQBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 SCHEDULE "5" DESCRIPTION Direct tnstructlanal Programs Kindergarten Program Kmdorganen Program-Earty Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Earty lntervenhon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-EMy Intervention (4-5) Program I\Mdle Grades (6-8) Program Mlddle School (6-a) Program High School General Education (9-12) Program Vocal.Jona! Laboratory (9-12) Program Students wrth Disabllllles Category I Category 11 Ca1egory Ill Ca1egory IV Gifted Sludenl - Calegory V1 Remedlal Educatron Program AHematrve Education Program Enghsh Speakers o1 Other Languages (ESOL) TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Slaff and Professional Development ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL s s s 532212300 5 209 357 23 s 37,866 49 5 247,223 72 493 588 00 863,894 58 451 30 864,345 88 12 519 906 00 11,173,83724 553 673 57 11727,51081 1 078 379 00 1,169,037 09 1169,037 09 6 024,337 00 8,094,499 66 91,433 24 8 185 932 90 771 561 00 1,240 423 00 9 355,627 00 7,767,680 00 1937,98900 7 771,570 00 1 0934ll600 474 783 00 754 693 00 21 582 00 73,807 86 1,380,243 91 10,364 015 00 10,345 369 59 2 345 760 57 306 653 20 3,031 219 14 2,917 746 89 348 628 06 717,055 57 9,913 43 518,153 66 40 984 07 309 68640 41571967 210 484 49 15,799 20 61,323 73 41,179 73 1381169 17,22994 169,249 40 73 807 86 1 421,227 98 10 673 701 40 10,781 089 26 2 556 245 06 322,452 40 3 092,542 87 2 958,926 62 362 439 75 734 285 51 9,913 43 687,403 06 s s s s 56,627,727 00 58 869 192 68 1,978 892 92 60 848 085 60 1 812,260 00 317,232 00 2 353,456 80 134 985 18 388,252 73 225,265 37 274170953 360 250 55 TOTAL QBE FORMULA FUNDS s s s 58 757 219 00 $ 61 357 634 66 2,59241102 63 950 045 68 (1) Compnsed of Stale Fi,lds plus Local FM! MIii Share See notes to the baslc f1.r1anoal statements -36- DOUGHERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 SCHEDULE "6" SITE Lamar Reese Elementary School Allee Coachman Elementary School Martin Luther King, Jr Elementary School Albany High School Highland Middle School Monroe High School Radium Spnngs Middle School Sylvandale Elementary School Albany Middle School Dougherty Comprehensive High School Isabella Elementary School Magnolia Elementary School Morningside Elementary School Sylvester Road Elementary School Dougherty Middle School Jackson Heights Elementary School Norths1de Elementary School Turner Elemenlary School Lake Park Elementary School Merry Acres Middle School Palmyra Elementary School Sheiwood Elementary School Westover High School Lincoln Fundamental School Mock Road Elementary School Radium Spnngs Elementary School Southside Middle School Wesl 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 s 1,831,129 00 $ 1,777,808 33 1,869,707 00 1,943.346 99 1,854.437 00 1,717.251 23 2,731,086 00 3,272.428 39 1,240.423 00 1,411,59576 3,542.777 00 4,064,041 32 2,089.684 00 2,402,338 56 1,476,112 00 1,553, 139 27 1,698,940 00 1.927,944 61 3.389,390 00 3.736.864 66 252,402 17 2,461,318 00 2,339.643 79 1,956,864 00 2,027,012 70 1,961.543 00 1,833.935 71 3,164.760 00 3,050,877 94 1,499,234 00 1,437,052 81 1,936,349 00 1,747 023 34 1,744,035 00 1.574,282 91 2,085,740 00 1,935,044 17 2,808.959 00 2,766.615 96 256,398 29 1,902,847 00 1,762.910 03 3 422,051 00 3760.70513 2,420.989 00 2 450,475 77 1,406,135 00 1,520.290 84 1.498 571 00 1,394,794 37 2,129,267 00 2, 182,223 25 1,750,687 00 1,585 829 07 1 892,790 55 603,413 30 754,693 00 667 604 38 s 56.627 727 00 $ 60,848,085 60 See notes to the basic finanaal statements - 37 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS :1,s.,m,1. W. H1N Io:-. SIATE AUrmon '~C4\ , ,i;..;,174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 \V.1...,hmgton S1rcet SW Su,tc 21.\ i\llJntJ (,corgi.1 ,()1'14-8400 March 14. 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducauon and Supenntendcnt and Members of the Dougherty County Board of Educahon 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 ofEducatmn as ofand for the year ended June 30. 2002, and have ISsued our report thereon dated March 14, 2003 This report was quali lied for a departure from generally accepted accounting pnnc1plcs, as 1den1Ified in the auditor's report on the basic financial statements We conducted our audit in accordance with auditing ~tandards generally accepted in the Umted States of America and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the United States Compliance As part of obtammg reasonable assurance about whether Dougherty County Board of Education's lin,mcial statements are free of matcnal misstatement, we performed tests of its compliance with certain prov1smns oflaws. regulations. contracts and grdllts, noncompliance with which could have a direct and material effect on the detern1ina1Ion of financial statement amounts However. providing dn opmmn on compliance with those prov1s1om was not an objective of our audit. and accordingly. we do not express such an opinion The results ofour tests disclosed no instances of noncompliance that are reqmred to be reported under Government Auditing Standards Internal Control Over Financial Reporting In planning and performing our audit, we considered Dougherty County Board of Educatmn'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 2002YB-40 control over financial reportmg However. we noted certam matters mvolvmg the mtcrnal control over financial rcportmg and lls opcratwn that we consider to be reportable cond11ions Reportable cond1t1ons mvolve matters corning to our attention relatmg to s1gmficant dcfic1enc1cs m the design or opcratwn of the mtemal control over financial reportmg that, m ourJudgment, could adversely affect Dougherty County Board of Education's ab1hty to record. process, summanLe and report financial data consistent with asscrtwns of management m the financial statements Reportable condllwns are dcscnbed m the accornpanymg Schedule ofFmdmgs and Questwned Costs as items FS-6471-02-01 and FS-6471-02-02 A rnatenal weakness 1s a cond1t1on m which the design or operation of one or more of the mtemal control components does not reduce to a relalively low level the nsk that misstatements m amounts that would be rnatenal m relalion to the financial statements bemg audited may occur and not be detected wllhm a timely penod by employees in the normal course of performing their assigned funclions Our cons1deratwn of the mtemal control over financial reportmg would not necessanly disclose all matters m the mtemal control that might be reportable cond1t1ons and, accoFdmgly, would not necessanly disclose all reportable cond11ions that are also considered to be rnatenal weaknesses However, of the reportable cond1t1ons descnbed above, we consider item FS-6471-0201 to be a rnatenal weakness This report 1s mtcnded solely for the mformat1on and use of the audit cornrn1ttcc, management, members of the Dougherty County Board of Education, Federal awarding agencies and pass-through entitles and is not mtendcd to be and should not be used by anyone other than these specified parties Respectfully submitted, RWH !,'P 2002YB-40 k).~~ Hmton State Auditor IIS.Stl I W. Ill'< !Or\ $TATF AUnllOft (4.J-1 f-,~F,.. '1 /4 DEPARTMENT OF AUDITS AND ACCOUNTS 254 W,1,hmg1on 'itrcct '"> W Su1h.' 214 Atl,rnlJ, ( ,corg1.l 1()114-8400 March I4, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education and Supcnntendcnt and Members of the Dougherty County Board of Education REPORT ON COMPLIANCE WITH REQUlREMEl\'TS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OYER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen Compliance We have audited the compliance of Dougherty County Board of Educat10n with the types of compliance requirements descnbed m the US Office of.Ma11agcme11t a11d Budget (0MB) C11c11/ar A-133 Compha11cc Suppleme11t that are applicable lo each of1ts maJor Federal programs for the year ended June 30, 2002 Dougherty County Board of Education's ma.,or Federnl programs are identified m the Summary of Auditor's Results Section of the accompanying Schedule of Fmdmgs and Questioned Costs Compliance with the rcqmrements of laws. regulations, contracts and grants applicable lo each of its maJor Federal pro1,'fllms 1s the respons1b1hty of Dougherty County Board of Educat10n's management Our respons1b1hty 1s lo express an opm10n on Dougherty County Board of Education~ compliance based on our audit We conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the Umted States of Amenca, the standards applicable to financial audits contained m Government Aud1lmg Standards, issued by the Comptroller General of the Umted States, and 0MB Circular Al 33. Audits of States, local Governme11ts, a11d No11-Pro(it Orgam=atw11s Those standards and 0MB C1rcular A-133 require that we plan and perform the audit to obtam rea~onable assurance ahout whether noncompliance wnh the types ofcompliance requ1rements referred to dbovc that could have a direct and malenal effect on a maJor Federal progrnm occurred An audit includes exammmg, on a test has1s, evidence about the Dougherty County Board of Educallon's compliance with those requirements and perfonmng such other procedures as we considered necessary m the circumstances We bcheve that our audit provides a reasonable basis for our op1mon Our audll does not provide a legal detcrmmatlon on Dougherty County Board ofEducation's compliance with those requ1remcnts 2002SA-30 In our opinmn, the Dougherty County Board of Education comphe