STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS G,,A A8oo R) 2 (a 1)13 \9'1'1-.2000 D 00 00000 0 1776 I DOUGLAS COUNTY BOARD OF EDUCATION DOUGLASVILLE, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor DOUGLAS COUNlY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S C01\.1BINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS C01\.1BINED STATEMENTS-OVERVIEW A C01\.1BINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B C01\.1BINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C C01\.1BINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND E STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ADDmONAL FINANCIAL INFORMATION C01\.1BINING FUND STATEMENTS SPECIAL REVENUE FUND G C01\.1BINING BALANCE SHEET H C01\.1BINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND I C01\.1BINING BALANCE SHEET J C01\.1BINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND K C01\.1BINING BALANCE SHEET _ L C01\.1BINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Page 2 4 7 8 9 11 26 28 30 _32 34 35 DOUGLAS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- Page SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 36 2 SCHEDULE OF STATE REVENUE 38 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 40 ANALYSIS OF VJ.ll, ... ~. EXPENDITURE REQUIRE,.MENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 41 5 BYPROGRAM 42 SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS - REPORT ON COMPLIANCE WITH REQUIREMENfS APPLICABLE TO EACH MAJOR - PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 - SECTION ID AUVfl'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS r.n.Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RussELL W. HINTON STATE AUDITOR (404) 656-2174 qY... !?__ e .- : --. .,,: c;e= ,. I 7 7 b DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washingtc111 Street. S.W.. Suite 214 Atlanta. Gc(>rgia 3()334-84()() May 23, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Douglas 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 Douglas County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Douglas County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perfo11n the audit to obtain reasonable assurance about whether the financial statements are free ofmateria1 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1 n1 on. As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2000ARL-13A * The general purpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to confo11n to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conforn1 to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were .not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conforrn to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete1111ined, but are believed to be material. In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Douglas County Board of Education as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conforrnitywith accounting principles generally accepted in the United States ofAmerica. In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2001, on our consideration of the Douglas 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 perforrned 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 perforrned for the purpose of forrning an opinion on the general purpose financial statements of the Douglas County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) 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 info11nation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements .and in our opinion, except 2000ARL-13A for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, RWH:jb 2000ARL-13A Rus ell W. Hinton State Auditor DOUGLAS COUNTY BOARD OF EDUCATION DOUGLAS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Consumable Supplies Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of Bond Debt GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 1,946,523.59 $ 1,271,912.54 $ 388,863.63 7,269,926.78 7,138,406.79 1,150,672.03 515,663.90 2,810,354.10 810,592.61 134,545.20 73,585.70 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Endowment Corpus For Inventories Consumable Supplies Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Designated for Self-Insurance Designated for Equipment Purchases Deficit Undesignated Total Fund Equity $ 2,581,888.64 $ 56,684.13 9,950,000.00 268,736.87 657,948.61 13,789.71 $ 154,345.16 36,123.23 $ 12,588,572.77 $ 940,475.19 $ _ _1.!.::9~0,.;:4~68~-~39~ $ 260,369.59 $ 24,000.00 810,592.61 134,545.20 73,585.70 $ 10,147,156.13 279,926.12 152,533.28 -2,761,746.08 0.00 670,567.97 0.00 $ -1,410,857.76 $ 1,055,232.15 $ 10,147,156.13 Total Liabilities and Fund Equity $ 11,177,715.01 $ 1,995,707.34 $ 10,337,624.52 The notes to the general purpose financial statements are an integral part of this statement. -2 EXHIBIT "A" DEBT SERVICE FUND FIDUCIARY FUND TYPE NON EXPENDABLE TRUST FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onl}'.) JUNE 30, 2000 JUNE 30, 1999 $ 443,992.15 $ 1,614.98 $ 4,052,906.89 $ 8,578,642.28 59,054.08 14,467,387.65 9,978,828.72 59,036.61 4,535,726.64 4,891,841.44 $ 503,028.76 810,592.61 134,545.20 73,585.70 503,028.76 481,450.29 156,718.04 69,514.32 1,072,932.79 68,261,971.24 68,261,971.24 73,662,067.21 $ 503,028.76 $ 60 669.06 $ 68,765,000.00 $ 92,839,744.69 $ 98,891,995.09 $ 2,850,625.51 $ 714,632.74 9,950,000.00 13,789.71 154,345.16 36,123.23 $ _ __,6:.::8,_,7,..:::6.:::.5,c:::.00~0<.::O. :a.:O:... 68,765,000.00 715,125.99 669,023.19 381.84 1,476,191.64 1,183,770.05 74,735,000.00 $ 68,765,000.00 $ 82,484;516.35 $ 78,779,492.71 - $ 503,028.76 $ 47,000.00 0.00 $ 503,028.76 $ 13 669.06 60,669.06 $ 260,369.59 $ 250,915.59 2,815.26 24,000.00 503,028.76 1,072,932.79 47,000.00 47,000.00 810,592.61 481,450.29 134,545.20 73,585.70 10,147,156.13 156,718.04 69,514.32 3,454,045.16 9,459,882.12 279,926.12 152,533.28 -2,761,746.08 - 684,237.03 342,011.00 162,560.07 4,612,657.74 $ 10,355,228.34 $ 20,112,502.38 $ 503,028.76 $ 60,669.06 $ 68,765,000.00 $ 92,839,744.69 $ 98,891,995.09 - 3- DOUGLAS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2000 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal Interest Escrow Agent Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES} Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Premium on Bonds Sold Proceeds of Refunding Bonds Par Value Payments to Bond Escrow Agent 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 Food Inventory - Net Change in Period Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 62,603,652.42 $ 249,216.72 31,022,724.42 3,286,451.42 1,947,435.07 5,738,173.52 3,076,941.06 $ 97 I 162,044.98 $ 10,762,549.65 $ 66,949,794.43 $ 5,344,415.71 2,832,359.57 2,699,780.63 997,072.32 8,096,297.58 1,296,950.46 8,371,179.38 3,620,689.58 2,755,558.29 1,230,285.85 7,287.77 72,494.36 3,882,134.69 174,022.25 302,733.01 52,659.46 13,276.93 167,136.87 27,971.33 34,442.54 6,399,548.16 $ 104,274,165.93 $ 11,053,925.24 $ -7,112,120.95 $ _........;-2::.:9,..,1...::,3:.:.7::,:5,:::::;59,:_ $ 978,657.97 $ -59.60 59.60 $ 978,598.37 $ ---~5::,:9,::::;60:::_ $ -6, 133,522.58 $ 4,722,664.82 -291,315. 99 1,346,548.14 FUND BALANCE JUNE 30 $ -1,410,857.76 $ The notes to the general purpose financial statements are an integral part of this statement. -4- 1,055,232.15 EXHIBIT "B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 301 2000 JUNE 30, 1999 $ 181,486.30 $ 64,732,573.79 $ 62,144,340.20 5,987,390.24 5,476,080.03 6,945, 139.35 $ 10,587,182.78 48,555,046.55 42,649,611.40 629,487.06 70,665.66 7,063,545.20 6,704,979.68 $ 7,756,112.71 $ 10,657,848.44 $ 126,338,555.78 $ 116,975,011.31 $ 70,831,929.12 $ 63,011,074.14 $ 9,544,225.89 5,518,437.96 3,135,092.58 2,699,780.63 1,049,731.78 8,109,574.51 1,296,950.46 8,371,179.38 3,787,826.45 2,783,529.62 1,264,728.39 6,406,835.93 9,616,720.25 4,899,380.94 2,769,278.79 2,387,921.66 1,126,052.84 7,465,695.49 1,243,809.87 7,981,423.46 3,849,654.02 1,929,331.65 1,159,891.86 5,660,401.08 21,395,009.34 $ 5,970,000.00 5,249,295.93 8 456.54 5,970,000.00 5,249,295.93 8 456.54 5,800,000.00 2,170,036.88 388,852.00 18 859.44 $ 9,544,225.89 $ 11,227,752.47 $ 136,100,069.53 $ 133,256,673.46 $ -1,788,113.18 $ -569,904.03 $ -9,761,513.75 $ -16,281,662.15 - $ 192,602.45 -410,447.42 346,198.00 $ -978,657.97 25,100,000.00 -25,035,750.58 $ 978,717.57 1,918.14 -978 717.57 -1 918.14 $ -978,657.97 $ 0.00 $ 192,602.45 $ -2,766,771.15 $ 12,913,927.28 -569,904.03 $ 1,072,932.79 -9,761,513.75 $ -16,089,059.70 20,056,073.03 36,141,104.59 4 028.14 $ 10.147,156.13 $ 503,028.76 $ 10,294,559.28 $ 20,056,073.03 -5- DOUGLAS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 2000 EXHIBIT "C" REVENUES GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) State Funds Federal Funds Taxes Other Funds $ 60,499,472.26 $ 62,603,652.42 85,127.47 249,216.72 30,884,397.31 31,022,724.42 3,337,461.61 3,286,451.42 Tota I Revenues EXPENDITURES $ 94,806,458.65 $ 97,162,044.98 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 Capital OuUay Total Expenditures $ 61,157,108.10 $ 66,949,794.43 3,848,700.71 1,953,707.16 2,091,510.30 987,140.22 7,048,291.63 1,055,806.27 9,741,983.04 3,466,123.01 2,472,167.10 3,950.16 488,828.52 5,344,415.71 2,832,359.57 2,699,780.63 997,072.32 8,096,297.58 1,296,950.46 8,371,179.38 3,6-20,689.58 2,755,558.29 1,230,285.85 7,287.77 72,494.36 $ 94,315,316.22 $ 104,274,165.93 Excess of Revenues over (under) Expenditures $ 491,142.43 $ -7,112,120.95 OTHER FINANCING SOURCES (USES} Other Sources Othei Uses Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ $ 978,657.97 -59.60 $ _ __:::9..:.;78::,,::::;59::.,8:..;;.3:..:7_ 491,142.43 $ -6,133,522.58 FUND BALANCE JULY 1. 1999 3,023,618.42 4,722,664.82 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 1,477,936.08 $ 1,947,435.07 5,484,969.79 5,738,173.52 2,956,779.00 3,076,941.06 $ 9,919,684.87 $ 10,762,549.65 $ 3,227,120.00 $ 3,882,134.69 174,115.00 368,866.24 174,022.25 302,733.01 68,520.00 52,659.46 13,276.93 36,000.00 172,653.00 25,000.00 32,100.00 5,780,905.09 167,136.87 27,971.33 34,442.54 6,399,548.16 $ 9,885,279.33 $ 11,053,925.24 $ 34,405.54 $ -291,375.59 $ 59.60 $ _ _ _....;5::.,9::..;;6. ::.:0:.... $ 34,405.54 $ -291,315.99 1,350,615.64 1,346,548.14 FUND BALANCE JUNE 30. 2000 The notes to the general purpose financial statements are an integral part of this statement. -7- DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "D" STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2000 OPERATING REVENUES None Recorded OPERATING EXPENSES Current Awards Operating Income (Loss) NONOPERATING REVENUES Net Investment Income Interest Earned Net Income (Loss) FUND BALANCE JULY 1 FUND BALANCE JUNE 30 ENDOWMENT FUND PERPETUAL TRUST OF WINSTON ELEMENTARY TOTALS (Memorandum. Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ o.oo $ _ _ _ _.;;..;o.""'"oo.c- $ 0.00 $ 0.00 $ _ __;1:..:;0i.;:,0-=-00=.0=0=- $ 0.00 $ 0.00 $ -10,000.00 4,192.01 47.70 4,192.01 47.70 421.90 147.19 $ 4,239.71 $ 4,239.71 $ -9,430.91 56,429.35 56,429.35 65,860.26 $ -60,669.06 $ 60,669.06 $ ===5=6=,4=2=9.=35= The notes to the general purpose financial statements are an integral part of this statement. -8- DOUGLAS COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2000 EXHIBIT "E" Cash Flows from Operating Activities: Cash Paid for Awards Cash Flows from Investing Activities: Interest Received on Investments Proceeds From Sale of Investments Net Cash Provided by Investment Activities Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1 ENDOWMENT FUND PERPETUAL TRUST OF WINSTON ELEMENTARY TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 0.00 $ _ _ _-1.:.::0;,:.-0:,:.:::0-=.;0:.::.00-=- $ 47.70 $ 47.70 $ 147.19 10,000.00 $ 47.70 $ 47.70 $ _ _ _1.;.;:0:.z.1,:...:4..:..7:..:..1.::..9 $ 47.70 $ 47.70 $ 147.19 1,567.28 1,567.28 1,420.09 Cash and Cash Equivalents - June 30 $ 1,614.98 $ 1,614.98 $ ======1:l::,5=:67=.2=8= The notes to the general purpose financial statements are an integral part of this statement. -9- DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Douglas County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11n to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although ''school activity accounts'' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confu1n1 to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. - The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. - 11 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for :financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: NONEXPENDABLETRUSTFUND Perpetual Trust of Winston Elementary - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to fund Winston Elementary School student needs and purposes as identified by the principal and faculty. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. . 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-Tc1n1 Debt Account Group. . . All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. - 12 - . DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. The accrual b_asis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. BUDGET The Douglas County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the function level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. - 13 - DOUGLAS COUN1Y BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Sec~i.on 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and - 14 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation 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 Douglas County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 1, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Douglas County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 1.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. Tax millage rates levied for the 1999 tax year (calendar year) for the Douglas County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 17.10 mills 1.00 mills - SALES TAXES 18.10 mills 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 $15,683,400.35 and was recorded in the Capital Projects and Debt Service Funds. The State will te11ni11ate collection ofthis tax once an additional $24,005,627.39 has been collected oron June 30, 2002, whichever occurs first. INVENTORIES CONSUMABLE SUPPLIES Consumable supplies are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the consumption method to account for the cons_umable supplies inventory whereby an asset is recorded when supplies are purchased and expenditures are recorded at the time the supplies - 15 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES are consumed. The consumable supplies inventory reported on the balance sheet is equally offset by a reservation of fund balance which indicates that it is not available for discretionary expenditure even though it is a component of net current assets. FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets. GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Tt;1u1 Debt Account Group. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. - 16 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO TI-IE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DEFICIT FUND BALANCES Funds reporting a deficit fund balance position at June 30, 2000, are as follows: Fund Type/Fund Name Deficit Balances Governmental Fund Type General Fund $ 2,761,746.08 In the subsequent period, the Board implemented expenditure control and reduction procedures and approved a two mill tax increase for maintenance and operations in order to control the General Fund deficit. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 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 ofthe State of Georgia, (5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, - 17 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS AND INVESTMENTS (6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $8,247,598.26. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust departtnent or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category Bank Balance 1 2 3 Total $ 888,387.99 7,359,210.27 0.00 $8.24 7,598,26 CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. - 18 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" -. )TES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS AND INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $14,467,387.65. The investments are classified as to risk categories as follows: Type of Investment Risk Categories I 2 3 Carrying Amount Fair Value Investment Portfolio Account $ 59,054.08 $==='0""'.0""'0 $==:i,Os,,i,,O~O $ 59,054.08 $ 59,054.08 Local Government Investment Pools Total Investments 14,408,333.57 14,408,333.57 $14,467,387.65 $ I4,467,387.65 The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objeGtives are safety of capital, investment inQome, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-tc::rm instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. - 19 - DOUGLAS COUN1Y BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The Board is exposed to various risks of-loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster, unemployment compensation, a dental plan and a vision plan. The Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is pro.bable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. Changes in the workers' compensation claims liability during the last two fiscal years are as follows: Beginning ofYear Liability Claims and Changes in Estimates Claims Paid End of Year Liability 1999 2000 $ 0.00 $ 136,900.18 $ 136,900.18 $_ _ _-o~.o~o $ 0.00 $ 164.939.62 $ 164.939.62 $_ _ _~o~.o~o The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the e1nployee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: -20- DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 4: RISK MANAGEMENT 1999 2000 Beginning of Year Liability Claims and Changes in Estimates $ 0.00 $ 16,428.00 $ $ 0.00 $ 9,969.82 $ Claims Paid End of Year Liability 16,428.00 $_ _ _-=0.:.:.0:.;:.0 9,969.82 $_ _____,O=.O=O The Board is self-insured with regard to dental claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the dental claims liability during the last two fiscal years are as follows: 1999 2000 Beginning of Year Liability Claims and Changes in Estimates - $ 0.00 $ 794,919.51 $ $ 0.00 $ 885,075.09 $ Claims Paid End ofYear Liability 794,919.51 $._ _ _....,o=.o=o 885,075.09 $_ _ _-=o=.o=o The Board is self-insured with regard to vision claims. The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the vision claims liability during the last two fiscal years are as follows: Beginning Claims and - of Year Changes in Claims End of Year Liability Estimates Paid Liability . 1999 2000 $ 0.00 $ 110,884.22 $ 11 o,884.22 $_ _ _..,o""""'.o=o $ 0.00 $ 110,900.98 $ 110.900.98 $_ _ _-=O=.O=O . The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Superintendent All Other Employees Note 5: GENERAL LONG-TERM DEBT Amount $ 200,000.00 $ 500,000.00 GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: - 21 - DOUGLAS COUNTY BOARD OF EDUCATION . EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LONG-TERM DEBT Purpose General Government - Refunding - Series 1993 General Government - Series 1995 General Government - Series 1997 General Government - Refunding - Series 1999 Interest Rates 4.20% - 5.65% 4.35% - 5.85% 4.00% - 5.00% 3.10% - 5.00% Amount $28,360,000.00 5,895,000.00 10,935,000.00 23,575,000.00 $68,765,000.00 The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows: Balance July 1, 1999 Deductions Debt Retired Balance June 30, 2000 General Obligation Bonds $74,735,000.00 5,970,000.00 $68,765,000.00 At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year , Ended June 30 2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 Total Principal and Interest General Obligation Bonds $ 8,758,323.60 10,523,055.02 10,621,917.52 6,723,357.52 6,872,665.02 34,863,912.60 10,660,031.30 $89,023,262.58 Note 6: LOANS PAYABLE At June 30, 2000, short-tc11n debt (temporary loans) amount to $9,950,000.00 with interest accruing at 4.98 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe calendar year in which the loan was made. -22- DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 7: PRIOR YEAR DEFEASEMENT OF DEBT In fiscal years 1985 and 1999, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 2000, $14,785,000.00 of bonds are outstanding and are considered defeased. Note 8: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $1,290,173.96 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $871,491.67 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $184,084.29 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 $234,598.00 Note 9: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board_as of June 30, 2000: Project Chapel Hill High School Chapel Hill Elementary Reroofing Unearned Executed Contracts $ 204,983.79 41,832.75 $ 246,816.54 The amounts described in this note are not reflected in the general purpose financial statements. - 23 - DOUGLAS COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 10: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terrns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. Note 11: SUBSEQUENT EVENTS On March 20, 2001 the voters of Douglas County voted in favor of a Special Purpose Local Option Sales Tax referendum for education purposes. The tax approved by the voters, as stated on the Official Ballot of Douglas County, is as follows: ''Shall a special one percent sales and use tax be imposed in Douglas County (such tax is a continuation of the existing one percent sales and use tax and is not an additional sales and use tax) for a period of time not to exceed 20 calendar quarters for the raising of not more than $109,000,000 for the purpose of funding (i) the acquisition and installation of new technology and equipment at all educational facilities; (ii) the acquisition, construction and equipping of three new schools and the purchase of land to be used as sites for future educational facilities; (iii) the acquisition, construction and equipping ofclassroom additions, physical education facilities and renovations and modifications to existing educational facilities; (iv) the acquisition ofnew school buses and transportation equipment; and (v) the _ payment ofprincipal and interest on the School District's Series 1993 Bonds maturing July 1, 2003, through and including July 1, 2007, the School District's Series 1995 Bonds maturing July 1, 2003; through and including January 1, 2007, and the School District's Series 1999 Bonds, maturing July 1, 2003, through and including July 1, 2007? Ifimposition ofthe tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt ofDouglas County School District in the principal amount of$40,000,000 to be first paid from the sales and use tax for the above capital outlay projects.'' Note 12: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. -24- DOUGLAS COUN1Y BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 12: RETIREMENT PLANS TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year 2000 1999 1998 Percentage Required Contributed Contribution 100% 100% 100% $ 7,529,015.59 $ 7,202,776.78 $6,383,589.76 -25 - DOUGLAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 1,253,781.34 $ 150,194.82 4,586.25 13,428.82 134,545.20 73,585.70 $ 1,466,498.49 $ ===16=3=,6=2=3.=64= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Designated for Equipment Purchases Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general purpose financial statements. -26- $ 143,109.26 $ 36,465.68 292,157.08 103,157.96 $ 435,266.34 $ _ _.;.;13:;.;:9.,_;;,6=2.=.;3=64~ $ 24,000.00 $ 134,545.20 73,585.70 152,533.28 670,567.97 0.00 $ 1,031,232.1 s $ _ __;2::..;4=,o=o.=..;o=oo=- ============= $ 1,466,498.49 $ 163,623.64 EXHIBIT "G" FEDERAL PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 1,403,976.16 $ 1,577,776.43 $ 497,648.83 515,663.90 516,050.95 134,545.20 73,585.70 156,718.04 69,514.32 $ 497,648.83 $ 2,127,770.96 $ 2,320,059.74 $ 132,063.62 $ 132,063.62 $ 218,448.12 89,161.93 268,736.87 133,924.98 262,633.57 657,948.61 620,756.66 13,789.71 13,789.71 381.84 $ 497,648.83 $ 1,072,538.81 $ _ _ _97--"3_,_,5_1_1._6__0_ $ $ 24,000.00 2,800.06 $ - - - - -0.0-0 $ 0.00 $ 134,545.20 73,585.70 152,533.28 670,567.97 1,055,232.15 $ 156,718.04 69,514.32 162,560.07 954,955.65 1,346,548.14 $ 497,648.83 $ 2,127,770.96 $ 2,320,059.74 -27 - DOUGLAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 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 Food Inventory - Net Change in Period Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 438,864.00 $ 1,325,563.73 2,571,227.17 3,076,941.06 $ 6,087,032.23 $ _ _.;.i1,=32=5'-""',5c.;.6..;;;.3.;..;..73.c.... $ 1,203,192.90 94,121.56 706.38 3,542.89 $ __6;;.._,3_.;9c.;.9-"-',5_48=.-'-16;.... $ 6,399,548.16 $ $ -312,515.93 $ 1,301,563.73 24,000.00 $ -312,515.93 $ 1,343,748.08 24,000.00 0.00 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 28- $ 1,031,232.15 $ ===2=4=,0=00==00= EXHIBIT "H" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 183,007.34 $ 1,947,435.07 $ 1,619,580.12 3, 166,946.35 5,738,173.52 5,410,481.32 3,076,941.06 2,739,761.41 $ 3,349,953.69 $ 10,762,549.65 $ 9,769,822.85 $ 2,678,941.79 $ 3,882,134.69 $ 3,149,594.15 79,900.69 302,026.63 52,659.46 13,276.93 163,593.98 27,971.33 34,442.54 174,022.25 302,733.01 52,659.46 13,276.93 167,136.87 27,971.33 34,442.54 6,399,548.16 479,128.00 232,776.87 40,434.37 6,332.68 154,550.55 4,785.95 10,834.49 5,660,401.08 $ 3,352,813.35 $ 11,053,925.24 $ 9,738,838.14 $ -2,859.66 $ -291,375.59 $ 30,984.71 59.60 59.60 1 918.14 $ -2,800.06 $ -291,315.99 $ 32,902.85 2,800.06 1,346,548.14 1,309,617.15 4,028.14 $ 0.00 $ 1,055,232.15 $ 1,346,548.14 - 29 - DOUGLAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 0.00 - - - - - - $ _ _ _1;..::8...;.1.l..,;;,4.;;.86==30;;_ Total Assets $ 0.00 $ ===1=8=1='4.8.6.==30.... LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated Total Fund Equity $ 46,783.14 134,703.16 $ _ _ _1:.,:8..:...1,1..:,4.;.86:.:.3;:;.;0;_ $ o.oo $ _____o=.;;.oo;;._ $ o.oo $ _____o=.;;.oo;;._ Total Liabilities and Fund Equity $ 0.00 $ ===1=8=1'=4=86=.3=0= See notes to the general purpose financial statements. - 30 - EXHIBIT "I" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 435,646.77 $ 435,646.77 $ 6,163,261.96 7,138,406.79 2,628,867.80 7,138,406.79 2,810,354.10 6,805,548.44 2,605,078.57 $ 10,202,921.36 $ 10,384,407.66 $ 15,573,888.97 $ 46,783.14 $ 19,642.00 154,345.16 $ 1,476,191.64 36,123.23 36,123.23 1,183,770.05 $ 55,765.23 $ 237,251.53 $ 2,659,961.69 - $ $ 10,147,156.13 $ 10,147,156.13 3,454,045.16 9,459,882.12 0.00 0.00 0.00 $ 10,147,156.13 $ 10,147,156.13 $ 12,913,927.28 $ 10,202,921.36 $ 10,384,407.66 $ 15,573,888.97 - 31 - DOUGLAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES Capital Outlay Salaries Employee Benefits 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 BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 181,486.30 $ --=25:=2:.,..;,1=8=3-=04.;_ $ 252, 183.04 $ ___1,;_:;8~1...,;,4..;.86.;..;.;;;.30;;.... $ 2,083,955.46 $ 1,251,507.71 1,654,969.83 390,269.55 $ 3,335,463.17 $ ---=2:.z.:,Oc...;4=5-=,2=39"-'.=38;;.... $ -3,083,280.13 $ -----'-1c.:.,;,8:.;:6..;.3.1.7,;.;,;..53..;;..;.;;;.08;;.... $ 366,000.00 $ 1,863,753.08 -736,765.03 $ -370,765.03 $ _ ___,;1cz.;:8,:.;:6c=..3.l7.:.;,;;.53..;;..;,;;,;08:;_ $ -3,454,045.16 $ 0.00 3,454,045.16 0.00 FUND BALANCE JUNE 30 $ o.oo $ =====o==oo.... See notes to the general purpose financial statements. - 32 - EXHIBIT "J" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 181,486.30 $ 1,633,376.70 $ 6,945,139.35 6,945,139.35 8,817,122.84 377,304.02 629,487.06 1,024,978.96 $ 7,322,443.37 $ 7,756,112.71 $ 11,475,478.50 $ 227,751.94 $ 227,751.94 40,661.01 40,661.01 471,724.40 3,194,372.74 471,724.40 $ 6,933,298.03 960,679.50 20,375,546.86 229,013.25 1,870,790.51 46,843.00 $ 4, 163,523.34 $ 9,544,225.89 $ 21,383,069.36 $ 3,158,920.03 $ -1,788,113.18 $ -9,907,590.86 $ 2,229,753.08 $ 3,432,102.37 $ -2,471,646.02 -3,208,411.05 -3,432, 102.37 $ -2,471,646.02 $ -978,657.97 $ 0.00 $ 687,274.01 $ -2,766,771.15 $ -9,907,590.86 9,459,882.12 12,913,927.28 22,821,518.14 $ 10,147,156.13 $ 10,147,156.13 $ 12,913,927.28 - 33 - DOUGLAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 EXHIBIT "K" ASSETS Cash and Cash Equivalents Accounts Receivable PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 434,979.24 $ 59,036.61 9,012.91 $ 443,992.15 $ 1,021,410.74 59,036.61 51,522.05 Total Assets $ 494,015.85 $ 9,012.91 $ 503,028.76 $ 1,072,932.79 FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undesignated $ 494,015.85 $ 0.00 9,012.91 $ 0.00 503,028.76 $ 0.00 1,072,932.79 0.00 Total Fund Equity $ 494,015.85 $ 9 012.91 $ 503,028.76 $ 1,072,932.79 See notes to the general purpose financial statements. -34- DOUGLAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30, 2000 EXHIBIT "L" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 REVENUES Taxes Other Funds Total Revenues $ 1,848,921.78 $ 8,738,261.00 $ 10,587,182.78 $ 5,747,204.58 61,652.75 9,012.91 70,665.66 47 580.34 $ 1,910,574.53 $ 8,747,273.91 $ 10,657,848.44 $ 5,794,784.92 EXPENDITURES Debt Service Principal Interest Escrow Agent Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures $ 5,970,000.00 $ 5,970,000.00 $ 5,800,000.00 $ 2,481,034.93 2,768,261.00 5,249,295.93 2,170,036.88 388,852.00 8 456.54 8 456.54 18 859.44 $ 2,489,491.47 $ 8,738,261.00 $ 11,227,752.47 $ 8,377,748.32 $ -578,916.Q4 $ 9 012.91 $ -569,904.03 $ -2,582,963.40 OTHER FINANCING SOURCES (USES) Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Premium on Bonds Sold Proceeds of Refunding Bonds Par Value Payments to Bond Escrow Agent Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) $ 192,602.45 -410,447.42 346,198.00 25,100,000.00 -25,035,750.58 3,935,190.63 -3,935, 190.63 $ _ ____;1.:;;92=,,~60"-'2"'-.4-'--'5'- Exces!! of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -578,916.94 $ FUND BALANCE JULY 1 1,072,932.79 9,012.91 $ -569,904.03 $ -2,390,360.95 0.00 1,072,932.79 3,463,293.74 FUND BALANCE JUNE 30 $ 494,015.85 $ 9,012.91 $ 503,028.76 $ 1,072,932.79 See notes to the general purpose financial statements. - 35- DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 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 Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children 10.553 10.555 10.559 NIA $ 459,971.28 (2) N/A 1,640,896.24 $ 5,907,015.67 (3) N/A 83,935.53 83,935.53 Total Child Nutrition Cluster $ 2,184,803.05 $ 5,990,951.20 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Fresh Produce Program (1) 10.550 N/A 10.550 NIA 342,025.12 44,399.00 364,197.96 44,399.00 Total U. S. Department of Agriculture $ 2,571,227.17 $ 6,399,548.16 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Capacity Building Improvement Grant Preschool * 84.027 * 84.173 * 84.173 NIA $ 1,105,970.99 $ 1,105,970.99 NIA 15,293.23 15,293.23 N/A 122,737.66 122,737.66 Total Special Education Cluster $ 1,244,001.88 $ 1,244,001.88 Other Programs Direct Foreign Languages Assistance - 84.293 Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project 84.332 NIA Elementary and Secondary Education Act Title I Grants to Local Educational Agencies * 84.010 NIA Title II Eisenhower Professional Development 84.281 NIA Title Ill Technology Literacy Challenge Fund Grants 84.318 N/A Title VI Innovative Education Program Strategies 84.298 NIA Class Size Reduction 84.340 NIA Goals 2000 State and Local Education Systemic Improvement Grants 84.276 NIA Safe and Drug-Free Schools and Communities 84.186 NIA Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 N/A 171,488.00 114,657.67 1,141,TT1.19 50,920.21 115,223.06 113,935.00 187,802.00 13,558.94 84,219.40 100,857.00 171,488.00 114,673.12 (3) 1,141,771.19 52,074.22 115,581.71 113,935.00 187,802.00 14,846.34 84,219.40 100,901.15 (3) Total U. S. Department of Education $ 3,338,434.35 $ _....;3'-",34;;..;..;.,1,.;;;;29;...;4.;.::.0..:...1 Federal Emergency Management Agency Pass-Through From Office of Planning and Budget Emergency Services 83.516 NIA s _ _'""'3""-6,;.;;2'"'"4.""o"-o (4) - 36- DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Defense, U. S. Department of Direct Department of the Army Curriculum Development for 2nd and 3rd Grades Implementation of 2nd and 3rd Grade Curriculum Department of the Marine Corps R.0.T.C. Program Total U. S. Department of Defense CFDA NUMBER PASS- THROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD $ 461.34 $ 36,179.38 461.76 (3) 36,194.58 (3) 37,464.00 (4) $ 74,104.72 $ _ ____;;._36;;.:.,6;;.;5c;;6'"".34_ Total Federal Financial Assistance N/A = Not Available $ 5,987,390.24 $ ___9,...,77...,7..,,4,_9..,8._5_1 Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution and Fresh Produce Programs represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. Major Programs are identified by an asterisk (*) in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Douglas County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. ' See notes to the general purpose financial statements. 37. DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL FUND REVENUE FUND PROJECTS FUND TOTAL GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program National Teacher Certification Pay for Performance Program Preschool Handicapped Program PSAT Exam Remedial Summer School Program Special Education Support Cost Teachers' Retirement Tuition for the Multi-Handicapped Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom Distant Leaming $ 36,660,020.00 9,564,677.00 928,300.00 1,600,363.00 448,816.00 9,554,394.00 1,315,789.00 366,072.00 105,060.00 1,284,783.00 1,426,442.00 272,832.00 133,477.00 155,856.00 173,054.00 -8,775,604.00 3,993,240.00 $ 639,712.11 354,405.00 45,000.00 44,704.69 2,590.51 871,491.67 4,780.00 4,219.47 31,752.00 3,096.00 306,000.00 - 218,091.10 2,894.23 14,789.25 11,000.00 184,084.29 108,192.00 33,727.00 438,864.00 59,828.82 377,084.00 10,254.00 $ 36,660,020.00 9,564,677.00 928,300.00 1,600,363.00 448,816.00 9,554,394.00 1,315,789.00 366,072.00 105,060.00 1,284,783.00 1,426,442.00 272,832.00 133,477.00 155,856.00 173,054.00 -8,775,604.00 3,993,240.00 438,864.00 639,712.11 354,405.00 45,000.00 44,704.69 2,590.51 871,491.67 4,780.00 4,219.47 31,752.00 3,096.00 306,000.00 218,091.10 2,894.23 14,789.25 11,000.00 184,084.29 108,192.00 33,727.00 59,828.82 377,084.00 10,254.00 Children's Trust Fund of Georgia Second Step Violence Prevention 71,058.00 71,058 00 Georgia Department of Community Affairs Communities in Schools 35,000.00 . 35,000.00 Georgia State Financing and Investment Commission Reimbursement on Construction Projects $ 181,486.30 181,486.30 Metropolitan Regional Educational Service Agency Georgia Challenge for the Arts 4,001.28 4,001.28 Office of Planning and Budget Emergency Services 1,161.00 1,161.00 - 38- DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000 SCHEDULE "2" AGENCY/FUNDING GRANTS Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Communities in Schools of Georgia, Inc. Communities in Schools Education, Georgia Department of Foreign Languages Model Program Georgia Reading Challenge GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 878,396.91 $ 234,598.00 $ 878,396.91 234,598.00 76,399.01 48,430.00 44,904.81 183,007.34 76,399.01 48,430.00 227,912.15 $ 62,603,652.42 $ 1,947,435.07 $ 181,486.30 $ 64,732,573.79 See notes to the general purpose financial statements. -39- DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5) AMOUNT EXPENDED IN PRIOR YEARS Funding the repayment of principal and interest on the School District's Series 1986 Bonds completely as they mature, the principal and interest on the School Districts Series 1993 Bonds maturing January 1, 1998 through and including January 1, 2003, and the principal and interest on the School Districts Series 1995 Bonds maturing January 1, 1998 through and including January 1, 2003. $ Funding the acquisition, construction and equipping of phase II of the new high school, a new middle school and a new elementary school, the purchase of land for future schools and renovations and additions to existing schools, including the acquisition of all necessary property. , 34,000,000.00 $ 29,000,000.00 34,000,000.00 $ 29,160,387.27 3,935,448.87 $ 12,706,759.38 9,464,439.60 19,695,947.67 $ 63,000,000.00 $ 63,160,387.27 $ 13,399,888.47 $ 32,402,707.05 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Douglas County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the Board has incurred interest expense to provide advance funding for the above projects as follows: Prior Years $ 1,375,395.84 Current Year 343,243.75 Total $ ___1._,7.;,;18,.,6;.;;3;;;9_.5~9 (5) The Series 1986 Bonds and a portion of the Series 1995 Bonds were retired through the sale of Series 1999 Refunding Bond Issue. The Board will utilize the SPLOST proceeds budgeted for this project, plus any excess SPLOST proceeds to retire the Series 1999 Refunding Bond Issue. See notes to the general purpose financial statements. -40- DOUGLAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 48,886,837.00 $ ----1',-46-8',6-8-1.-00- $ 57,110,730.93 4,355,736.13 $ 3,930,452.83 ---'-'----''----- $ 61,466,467.06 -1,053,442.43 $ _ _6_0__,_4_1_3~,0_2_4._6_3 $ 0.00 $ 0.00 ======= ' See notes to the general purpose financial statements. - 41 - DOUGLAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category 11 (*) Category 111 (*) Category IV (*) Category V (*) Sub-Total - Regular Category VI (Gifted) (*) Total Special Education Programs - - REMEDIAL EDUCATION PROGRAM (*l Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 3,760,316.00 $ 3,384,284.40 $ 0.00 10,865,950.00 9,779,355.00 $ 14,626,266.00 90 $ 13,163,639.40 $ 0.00 4,650,919.00 90 4,185,827.10 133,477.00 7,748,100.00 90 6,973,290.00 5,111,105.00 90 4,599,994.50 1,811,983.00 90 1,630,784.70 2,711,647.00 90 2,440,482.30 $ 36,660,020.00 $ 32,994,018.00 $ _ _1;.;;3.:;,3,c.,;.47;..;7..;.;.0=-0 $ 7,385,534.00 $ 6,646,981.50 $ 0.00 $ 7,385,534.00 90 $ 6,646,981.50 $ 0.00 2,179,143.00 $ 9,564,677.00 $ 928,300.00 $ 47,152,997.00 90 1,961,228.70 s_ _ _ _ $ a.eoa,210.20 . ; .o;. :; .o. :. .o 90 $ s_ _ _ _ 835,470.00 . ; .o;. :; o. :. .o s 42,437,698.20 S--"'"13;..;3..:..4_7_..;..7;..:;;.b..:...o $ 1,281,392.00 90 $ 1, 153,252.80 $ 0.00 318,971.00 100 318,971.00 $ 1,600,363.00 $ 1,472,223.80 $ ----"'"""'..0;.0..0. Total Fourteen Weighted and Media Center Programs $ 48,753,360.00 =========== $ 43,909,922.00 $ 133,477.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development $ 145,608.00 $ 145,608.00 $ 0.00 303,208.00 303,208.00 0.00 Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. $ 448,816.00 100 $ 448,816.00 $ ---- - 42 - 0.00 SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPf:'f'-JDITURE FOR REQUIRED ALLOTMENT $ 3,384,284.40 $ 9,779,355.00 $ 13,163,639.40 $ 4,319,304.10 6,973,290.00 4,599,994.50 1,630,784.70 2,440,482.30 $ 33,127,495.00 $ 4,435,311.64 $ 11,488,307.04 15,923,618.68 $ 7,060,280.12 8,384,722.66 6,773,413.96 2,029,672.61 3,209,168.07 43,380,876.10 $ 198,612.57 $ 4,633,924.21 717,616.03 12,205,923.07 916,228.60 $ 16,839,847.28 $ 423,738.98 792,864.38 7,484,019.10 9,177,587.04 1,105,775.36 7,879,189.32 87,324.69 2,116,997.30 351,828.38 3,560,996.45 3,677,760.39 $ 47,058,636.49 0.00 0.00 0.00 0.00 0.00 0.00 $ 6,646,981.50 $ 387,996.61 $ 1,277,360.97 5,254,978.13 446,641.72 38,378.96 $ 6,646,981.50 $ 7,405,356.39 $ 1,961,228.70 3,171,753.31 $ 8,608,210.20 $ 10,577,109.70 $ $ 835,470.00 $ 924,223.00 $ $ 42,571,175.20 $ 54,882,208.80 $ 15,356.44 $ 12,891.37 145,322.66 12,905.90 2,491.49 403,353.05 1,290,252.34 5,400,300.79 459,547.62 40,870.45 188,967.86 $ 7,594,324.25 50,429.94 239,397.80 $ 10,816,507.50 13,294.64 $ _ _9_3_7.,5_1_7;.;;..6_4 3,930,452.83 $ 58,812,661.63 $ 1,153,252.80 $ 2,228,522.13 318,971.00 - - - - - - $ $ 1,472,223.80 $ 2,228,522.13 $ $ 425,283.30 425,283.30 $ 2,228,522.13 425,283.30 2,653,805.43 0.00 0.00 0.00 0.00 0.00 $ 44,043,399.00 $ 57,110,730.93 $ 4,355,736.13 $ 61,466,467.06 $ 0.00 $ 145,608.00 303,208.00 $ 448,816.00 $ 357,931.80 $ 357,931.80 91,439.35 91,439.35 $ - - - -4 49 ---- , - 3 71.1 --- 5-- $ -- " 4 -- 49, --- 37 - 1. -- 1-5- $ ~ ------- - - - -0-.00 - 43 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS ..oY... c w. Rt 1SSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washingto11 Street. S.W.. Suite 214 Atlanta. Gcl>rgia 3()334-84()() May 23, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Douglas County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements of Douglas County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated May 23, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. . Compliance As part of obtaining reasonable assurance about whether Douglas County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompJiance with which could have a direct and material effect on the dete11nination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and perfo11ning our audit, we considered Douglas County Board ofEducation's internal control over financial reporting in order to detc;11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2000YB-40A control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable condi tlons involve matters coming to our attention relating to significant deficiencies in the design or operac1on ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Douglas County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6481-00-02. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no1111al course of perfo1n1ing 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. The reportable condition described above is considered to be a material weakness. This report is intended solely for the info11nation and use ofmanagement, members of the Douglas 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:jb 2000YB-40A Ru sell W. Hinton State Auditor w. RUSSELi. HINTON STATE AUDITOR (404) 656-2174 f G :-.-= I71 t, DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wasl1ingl