Fayette County Board of Education, Fayetteville, Georgia, comprehensive annual financial report, fiscal year ended 2011 June 30

FAYETTE COUNTY BOARD OF EDUCATION
Fayetteville, Georgia
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year ended June 30,2011

FAYETTE COUNTY BOARD OF EDUCATION Fayetteville, Georgia
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year endedJune 30, 2011
Prepared by Laura Brock, Department of Finance/Comptroller
and Fayette County Board of Education Finance Department
210 Stonewall Avenue West Fayetteville, Georgia 30214

Fayette County Board of Education
TABLE OF CONTENTS
Table of Contents
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal
GFOA Certificate of Achievement
Organizational Chart
Listing of Principal Officials
FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis (Unaudited)
Basic Financial Statements:
System-wide Financial Statements Statement of Net Assets Statement of Activities
Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances With the System-Wide Statement of Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP Basis)- General Fund
Proprietary Funds Statement of Net Assets Statement of Revenues, Expenses, and Changes in Net Assets Statement of Cash Flows
Fiduciary Funds Statement of Fiduciary Net Assets Statement of Changes in Fiduciary Net Assets

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36 37 38 39 40
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Fayette County Board of Education
TABLE OF CONTENTS- continued
FINANCIAL SECTION- continued
Notes to Financial Statements
Combining Statements and Schedules
Non-Major Governmental Funds Combining Balance Sheet- Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Non-Major Governmental Funds Combining Balance Sheet- Non-Major Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Non-Major Special Revenue Funds Combining Balance Sheet Non-Major Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances- Non-Major Capital Project Funds
Schedules of Revenues and Expenditures -Budget and Actual School Nutrition Service- Special Revenue Fund Title I - Special Revenue Fund IDEA- Special Revenue Fund Vocational Grants- Special Revenue Fund Drug Free - Special Revenue Fund Title II - Special Revenue Fund Title III - Special Revenue Fund JR ROTC - Special Revenue Fund Building Connections - Special Revenue Fund Lottery- Special Revenue Fund Friends Mentoring Prog-ram- Special Revenue Fund DHR Family Connections- Special Revenue Fund Other Grants -Special Revenue Fund Community Education - Special Revenue Fund After School Program - Special Revenue Fund Donations - Special Revenue Fund Auditorium Rentals - Special Revenue Fund Principal Accounts- Special Revenue Fund Debt Service Fund
Statement of Changes in Assets and Liabilities -Agency Fund
Additional Financial Information
Schedule of Expenditures of Special Purpose Local Option Sales Tax Proceeds - 2008 lssue
Schedule of Expenditures by Object- Lottery Program Quality Basic Education Program- Earnings and Expenditures by Program
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88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106
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Fayette County Board of Education
TABLE OF CONTENTS- continued
STATISTICAL SECTION (unaudited)
Net Assets by Component Changes in Net Assets Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Assessed and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Property Tax Levies and Collections Governmental Activities Tax Revenues by Source Prine1pal Taxpayers (Top Ten) Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct and Overlapping Governmental Activities Debt Legal Debt Margin Information Operating Statistics Teacher Salaries School Building Information System Employees School Lunch and Breakfast Program Demographic and Economical Statistics Major Employers

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114 116 118 120 123 124 126 128 130 131 132 133 134 136 137 138 144 146 148 149

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INTRODUCTORY SECTION

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Dr. Jeff Bearden Superintendent

210 Stonewall Avenue West P.O.Box879
Fayetteville, Georgia 30214-0879
Phone: 770-460-3535 Fax: 770460-8191
"Where Excellence Counts"

Board Members Dr. Bob Todd, Chair Marion Key, Vice Chair
Terri Smith Janet Smola
Dr. Sam Tolbert

December 15, 2011
To the Members of the Fayette County Board of Education and the Citizens of Fayette County, Georgia:
We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the Fayette County Board of Education (the School System) for the fiscal year ended June 30, 2011. The Finance Department prepared this report. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the School System's administration.
We believe the data, as presented, is accurate in all material respects and is reported in a manner designed to fairly set forth the financial position and results of operations of the School System as measured by the financial activity of its various funds. All disclosures necessary to enable the reader to gain a reasonable understanding of the School System's financial affairs have been included.
Mauldin & Jenkins, Certified Public Accountants, LLC, has issued an unqualified ("clean") opinion on the Fayette County Board of Education's financial statements for the year ended June 30, 2011. The independent auditor's report is located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it.
Profile of the School System
The School System was established under the laws of the State of Georgia in 1927 when the existing local schools were consolidated. The School System is an independent K-12 district and is not considered to be a component unit of any other government. It serves the communities of Brooks, Fayetteville, Peachtree City, Tyrone and Woolsey. The School System provides all basic services required by State law and policies of the State Board of Education. These services include: regular and special education instructional programs at the elementary, middle and secondary levels and additional service in pre-kindergarten and adult education.
The Board of Education is made up of five members elected to serve four year terms . Its primary functions are to develop and adopt policies by which the schools are administered, to continually evaluate the effectiveness of these policies and to make certain that they are being administered as the Board intended. The administration of the educational programs and school business is the responsibility of the superintendent of schools and his staff.

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There were 21,120 students enrolled in the School System in school year 2010-2011. Projected enrollment for the 2011-2012 school year is 20,703 students. The School System has five high schools. The oldest high school facility was built in 1981 but was renovated and expanded in 2005. The School System has six middle schools. The oldest middle school facility was built in 1979 but was renovated and expanded in 2001. A new middle school opened in school year 2007-2008. The School System has seventeen (17) elementary schools. Three of these facilities were built prior to 1970, eleven were built between 1970 and 1999, and four were built after 2000, with one opening in school year 2008-2009. In the fall of 2009, construction of an elementary school was completed and it currently houses the Exceptional Children department and a regional program for some of the children it serves. Current plans are to open the facility as an elementary school as the operating budget allows. All facilities are periodically evaluated to assess the need for renovation or expansion. A schedule of building information is provided in the Statistical Section of the CAFR.
Local economy
The national economy hit a significant downturn in the fall of 2008 and it has not fully recovered. National unemployment statistics indicate that the number of jobs has continued to shrink and wages are still declining. Many businesses and governments are implementing furloughs or other forms of reducing pay. The number of home foreclosures has remained at a significant level. Much of the economic unrest has been blamed on the sub-prime lending market. Another contributing factor is years of unchecked real estate speculation that has created a domino affect hitting several industries from financial markets to automotive manufacturing. In a response to the financial markets meltdown, industq guidelines for lending qualifications have tightened, hindering many people from re-structuring loans which they no longer can afford. Even with federal fiscal policy reducing interest rates, business and individual borrowing has not increased due to these qualification restrictions and uncertainty of the economic recovery.
For Fayette County, the economic affects have been seen in real estate, residential construction and banking. Local banks and builders have had great difficulty in moving existing inventory of new homes and vacant lots. In some instances, entire subdivisions have seen a complete stoppage of building and development, with only infrastructure improvements such as roads and utilities being complete. One local bank that focused on real estate development failed in June 2009. \'Vhile the number of banks failing has declined, failures are still a concern in much of the state. According to the FDIC, the number of banking institutions in Georgia has decreased from 283 to 251 in the second quarter of 2011 compared to the same period last year. Two years ago, second quarter 2009, there were 324 banking institutions in the state. Over that two year period, bank assets dropped from $283 million to $266 million. The FDIC further reports that non-current loans held by Georgia banks have increased from 3.30% in June 2009 to 5.15% at June 2011, reflecting the number of foreclosed mortgages during that time.
The changes in the real estate market have impacted the School System's local revenue. Like much of the state and nation, Fayette County experienced growth in the real property digest in the seven years from fiscal year 2002 to fiscal year 2009 of 61%, averaging 8.7% growth per year. Between fiscal year 2009 and fiscal year 2010, that continuous growth flattened to only 0.7% growth. For fiscal year 2011, the real property digest shrank by 7.2% For fiscal year 2012, the digest dropped another 4.1 %. Much of this decline is related to the affects of the foreclosure market on residential property valuations. Fortunately, the collection rate has remained strong, with significant collections on prior year tax levies being collected during the year.
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As with most of Georgia and the nation as a whole, the job market of Fayette County has remained tight over the last year. According to the Georgia Department of Labor, Fayette County's unemployment rate of 9.3% at September 2011 is above the national average rate of 9.1% but below the State of Georgia average rate of 10.3%. The unemployment rate has worsened by one percentage point compared to September 2010.
After losing employment related to Panasonic layoffs in 2008 and local home builders and contractors halting work and closing businesses beginning in 2009 as a result of the housing market collapse, recently the county has had improved news on the jobs front. NCR announced moving its corporate headquarters and other operations to Georgia, including customer service positions in Peachtree City. SANY Group Co. Ltd., of China completed construction of phase one of its North American assembly plant located in Peachtree City in March 2011 with 108 employees. The company hopes to double the number of employees by the end of 2012.
The economic condition ofK-12 public education in Georgia remains dim. The State of Georgia has been funding a smaller percentage of the total cost of education over the last several years. School systems historically had been funded approximately 60% by the State. In 1996, the overall educational support for education in Georgia was funded 59.39% by the State. By 2010, the split between state and local is 50/50.
Most of the funding reductions have occurred due to years of "austerity reductions" (also called "amended formula adjustment) or budget cuts imposed by the State. These are reductions to the amounts earned by school systems based on a funding formula written in State law that have been allocated to all systems across the state to help the State provide for a balanced budget. From fiscal year 2003 to fiscal year 2011, the Fayette County School System received approximately $47.2 million less than it earned due to these cuts. This reduction is net of $12.4 million in Federal funds from the American Recovery and Reinvestment Act (ARRA) that flowed through the State of Georgia that was intended to offset the cuts. In addition, the funding formula has not been adjusted in recent years for inflation. As a result, the local taxpayer has had to shoulder the burden of State budget cuts and inflationary costs.
The Georgia state economy has had a negative financial impact on school systems in Georgia. For the month of October 2011, Georgia reported that net tax collections were up 5.4% compared to October 2010. Governor Deal stated, "the positive trend of year-over-year growth continued for a 16th consecutive month in October as total net revenues remained relatively strong. However, the more recent trend of softening revenues in August (2011) only reaffirms our stance of cautious optimism with respect to the overall economic outlook for the state." Even with growth, administration doubts that schools systems will see relief through increased funding. At best, administration is hopeful that the School System's state allotment will not be cut at midterm.
Long-term "f<znamia! Planning
Total fund balance of the General Fund is 15% of total operating expenditures and represents just over one and three-quarters months' expenditures. The balance is up from only 9.9% of total operating expenditures last year. In prior years, the School System recognized the need to increase fund balance with the overall weak economy and the great potential of a shrinking tax digest with a maximum millage rate in place and an ever decreasing source of State funding. As a result, the School System's finances were much stronger than in prior years for entering into fiscal year 2012. Of this fund balance, approximately 63% has been assigned to fund the anticipated shortfall in revenue for the fiscal year 2012 budget.
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The School System has traditionally used general obligation bonds to finance construction of new schools. The recent 2005 and 2007 bond issuances have provided funding for the construction of one middle school and two elementary schools. Based on recent population projections, the School System does not foresee the need to construct any schools for at least five to seven years.
InNovember 2009, the citizens of Fayette County passed a 1% Educational Special Purpose Local Option Sales Tax (SPLOST). This additional funding will be used toward technology (including infrastructure improvements, hardware and software), security, textbooks, facilities improvements and debt service on existing general obligation bonds. The SPLOST is significant to the immediate future financial needs of the School System, as it will allow the System to make much needed purchases, such as textbooks and computers, while relieving the operating budget of those costly expenditures.
Relevant Financial Policies
The Fayette County School System annually evaluates and sets its strategic directions in order to realize its mission of committing to excellence through effective instruction, high expectations and continued improvement. One of these strategies is to obtain the necessary funding to provide quality educational opportunities. This is accomplished, in part, by maximizing the use of financial resources by improving financial reporting and by enhancing internal control systems.
In developing and evaluating the School System's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe the School System's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.
As a recipient of federal and state financial assistance, the School System is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. This internal control structure is subject to periodic evaluation for weaknesses by management and staff.
As part of the School System's annual single audit required to be performed in conformity with the provisions of the Single Audit Act Amendments of 1996 and the U.S. Office of Management and Budget Circular A-133, Audits of State and Local Governments and Nonprofit Organizations, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the School System has complied with applicable laws and regulations.
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The School System maintains budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Education. Activities of the general fund, debt service fund and special revenue funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the aggregate level by fund type. The School System also maintains an encumbrance accounting system as one technique of maintaining budgetary control. Budget balances are encumbered, or set aside, when purchase orders are issued. Encumbered amounts lapse at year end but may be reappropriated as a part of the following year's budget.
Mqjor Initiatives
The mission of the Fayette County School System is to deliver effective instruction and set high expectations resulting in continued improvement in student achievement. In order to achieve this mission, the School System annually evaluates its strategic directions and the goals associated with those strategies. One of the School System's strategic directions has been to apply information technology in each school and the Central Office to improve the effectiveness and quality of instruction, as well as to increase the efficiency of administrative operations. Following this strategic direction, the School System began a "technology renewal" process in 2004. A plan was established to replace old and obsolete computers throughout the School System with a series of operating leases. The intention of the plan was to provide the ability to replace computers on a three or four year cycle. In addition, a portion of the 2005 and 2007 General Obligation Bonds proceeds was used to update the technology infrastructure of the School System, including wiring and cabling of local area networks, servers and improved internet connectivity. With the passage of SPLOST, the School System has been able to continue to replace obsolete computers throughout the System, provide 21st century class rooms and improve the overall technology infrastructure.
Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Fayette County Board of Education for its comprehensive annual financial report for the fiscal year ended June 30, 2010. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are subrnitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the Finance Department. I wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit must also be given to the Superintendent and the members of the Board of Education for their unfailing support in maintaining the highest standards of professionalism in the management of the School System's finances.
Respectfully submitted,
~ ;f;t,oc.L)
Laura Brock Comptroller
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Certificate of Achievement for Excellence in Financial
Reporting
Presented to
Fayette County Board of Education
Georgia
For its Comprehensive Annual Financial Report
for the Fiscal Year Ended June 30, 2010
A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers
Association of the United States and Canada to government units and public employee retirement
systems whose comprehensive annual fmancial reports (CAFRs) achieve the highest standards in government accounting and fmancial reporting.
President
Executive Director
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Fayette County Board of Education ORGANIZATIONAL CHART June 30, 2011
BOARD OF EDUCATION

I I
Director of After School
Program

ASSISTANT SUPERINTENDENT

I
Director of LaFayette Educational
Center

Director of Elementary School Improvement/ Professional Learning

Director of Secondary School Improvement/ Professional Learning

I I
Director of
Technology

Purchasing Agent

Co ordinator I ntemal
Au diting& F inancial Reporting

Coordinator Ath letics/ School Safety/ Tribunals I Attendance

Subject Coordinators

Assessment Coordinator

Youth Apprenticeship
Teacher

Health Services Specialist

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Director of
Transportation

Director of
Pupil Personnel Services

Director of
Human Resources

Director of
School Nutrition Program

Director of
Exceptional Children's Services

Director of
Facilities

Coordinator of
Psychological Services

Coordinators

Consultants

Welcome Center

Psychologists

Social Workers

Public Information Specialist

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Fayette County Board of Education LISTING OF PRINCIPAL OFFICALS
June 30, 2011
BOARD MEMBERS Dr. Bob Todd, Chair Post 4 Marion Key, Vice Chair, Post 3 Terri Smith, Chair, Post 2
Janet Smola, Post 1 Dr. Sam Tolbert, Post 5 SUPERINTENDENT'S CABINET Jeff Bearden, Ed.D., Superintendent Fred Oliver, Deputy Superintendent Laura Brock, CPA, Comptroller Sam Sweat, Assistant Superintendent of Education and Operations Reanee' Ellis, Ph.D., Director of Human Resources Chris Horton, Director of Exceptional Children Tracie Fleming, Director of Secondary Education and Professional Learning Sandra Watson, Director of Elementary Education, Professional Learning and Fine Arts
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FINANCIAL SECTION
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CERTIFIED PUBLIC ACCOUNTANTS, LLC
INDEPENDENT AUDITOR'S REPORT
Superintendent and Members of the Fayette County Board of Education
Fayetteville, Georgia
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Fayette County Board of Education (the "School System") as of and for the year ended June 30, 2011, which collectively comprise the School System's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the School System's management. Our responsibility is to express opinions on these financial statements based on our audit.
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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the 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 opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Fayette County Board of Education as of June 30, 2011, and the respective changes in financial position, and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note A, the School System implemented Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, effective July 1, 2010.
In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2011 on our consideration of the Fayette County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
300 MULBERRY STREET, SUITE 300 POST OFFICE BOX I877 MACON, GEORGIA 3 I202-1877 478-464-8000 FAX 478-464-8051 www.mjcpa.com MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
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Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis (on pages 17 through 31) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School System's basic financial statements. The combining and individual nonmajor fund financial statements and schedules, the Schedule of Expenditures by Object - Lottery Program, the Quality Basic Education Program - Earnings and Expenditures by Program Schedule, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of special purpose local option sales tax proceeds is presented for purposes of additional analysis as required by the Official Code of Georgia Annotated 48-8-121, and is not a required part of the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory section and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance.
Macon, Georgia December 15, 2011
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Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
Our discussion and analysis of the Fayette County Board of Education's (the School System) financial performance provides an overview of the School System's financial activities for the fiscal year ended June 30, 2011. The intent of this discussion and analysis is to look at the School System's financial performance as a whole. Readers should also review the notes to the basic financial statements to enhance their understanding of the School System's financial performance.
Financial Highlights
The assets of the School System exceeded its liabilities at the close of fiscal year 2011 by $219,597,590 (net assets).
The School System's total net assets increased by $12,903,655.
At the end of fiscal 2011, the School System's governmental funds reported combined ending fund balances of $60,984,902, an increase of $14,530,062 in comparison with the pr10r year. Of this total, $27,694,750 is available for spending at the School System's discretion (assigned and unassigned fund balance).
At the end of fiscal 2011, assigned and unassigned fund balance for the General Fund was $26,068,877 or 14.91% of total General Fund expenditures.
Total bonded debt for the School System decreased by $8,942,432, a result of the scheduled debt service payments on bonds issued in 2001, 2005, 2007 and 2009.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the School System's basic financial statements. These basic financial statements consist of three sections: system-wide financial statements, fund fmancial statements, and notes to the fmancial statements. This report also contains other information supplementary to the basic financial statements.
System-wide Financial Statements
The system-wide financial statements are designed to provide readers with a broad overview of the Fayette County School System's finances in a manner similar to a private-sector business. They include the Statement of Net Assets and the Statement of Activities found on pages 34 and 35 of this report.
The Statement of Net Assets presents information on the School System's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the fmancial position of the School System is improving or deteriorating.
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Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
The Statement of Activities presents information showing how the School System's net assets changed during the current fiscal year. All of the current year's revenues and expenses are accounted for in the Statement of Activities, regardless of when cash is received or paid. Therefore, some revenues and expenses are reported here that will only result in cash flows in future years, such as uncollected property taxes and earned but unused vacation leave. Additionally, this statement shows how much of the School System's activities are funded by program revenue (charges for services, State funding, grants and contributions) and how much of the School System's functions rely on general revenues (primarily taxes) for funding.
Fund Finamial StatementJ
Traditional users of governmental financial statements will fmd the fund fmancial statements presentation more familiar. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Fayette County School System, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of the School System can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the system-wide financial statements. However, this set of financial statements focuses on events that produce near-term inflows and outflows of spendable resources as well as on the balances of spendable resources available at the end of the fiscal year.
Because the focus of governmental funds is narrower than that of the system-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the system-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term fmancing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Fayette County School System maintains twenty-four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General Fund, the Debt Service Fund, and the Capital Projects SPLOST Fund, each of which are considered to be a major fund. Data from the other twenty-one governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements on pages 73-87 of this report.
The Fayette County School System adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate its compliance with this budget. One should note that the budget is not prepared on the same basis as accounting principles generally accepted in the United States of America ("USGAAP"). A reconciliation of general fund revenues and expenditures on a USGAAP basis and on the budgetary basis is provided in Note B to the fmancial statements.
Proprietary funds -The financial statements of the School System include one internal service fund: the Workers' Compensation Fund. Internal service funds are a type of proprietary fund used to accumulate and allocate costs internally among various functions within the School System.
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Fayette County Board of Education Management's Discussion and Analysis
June 30, 2011

Basic proprietary fund financial statements can be found on pages 41-43 of this report.

Fiduciary funds - Fiduciary funds are used to account for resources held for the benefit of parties outside of the School System. Fiduciary funds are not reflected in the system-wide fmancial statements because the resources of those funds are not available to support the School System's own programs.

The basic fiduciary fund fmancial statements can be found on pages 44-45 of this report.

Notes to the fmancial statements- The notes provide additional information that is essential to a full understanding of the data provided in the system-wide and fund financial statements. Notes to the financial statements can be found on pages 47-71 of this report.

Other information - In addition to the basic financial statements and the notes that accompany them, this report includes combining fund statements referred to earlier and schedules of the special local option sales tax (SPLOS1), lottery program and the Georgia Quality Basic Education (QBE) Program. This other information follows the notes to the financial statements.

System-wide Financial Analysis

As noted earlier, changes in net assets over time can be a useful indicator of a School System's fmancial position. At the end of the fiscal year ending June 30, 2011, the School System's assets exceeded liabilities by $219,597,590.

The following summarizes the components to the School System's net assets at June 30, 2011 and 2010:

Current assets Capital assets Other assets
Total assets
Current liabilities Long-term liabilities
Total liabilities
Net assets Invested in capital assets,
net of related debt Restricted Unrestricted
Total net assets

$

92,695,830

255,778,958

297,166

348,771,954

39,687,321 89,487,043 129,174,364

$

83,113,428

262,908,072

330,405

346,351,905

42,212,131 97,445,839 139,657,970

172,653,135 26,335,635 20,608,820
$ 219,597,590

169,508,268 8,971,932
28,213,735
$ ==2=06=,6=93=,9=3=5

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Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
The School System's current assets increased approximately $9.6 million over the prior year. The most significant component of this increase was a net increase in investments of $9.3 million related to SPLOST collections during the year. Cash on hand also increased compared to the prior year by $2.3 million, resulting from operational spending reductions. Taxes receivable decreased by $1.9 million as a result of a decrease in the digest and significant collections in prior year levies.
The School System's capital assets had a $7.1 million net decrease. During the year, the School System expended $2.8 million in capital outlay, of which $1.4 million was related to tl1e Educational Special Purpose Local Option Sales Tax (SPLOST) approved in fiscal year 2009. The SPLOST will continue to provide future funding for computers, technology upgrades, transportation, security, facility improvements, and general obligation debt reduction. During the year, $2.0 million was reclassified from construction in progress to buildings and equipment related to facility renovations.
Current liabilities of the School System decreased $2.5 million over the prior year. Changes in accounts payable (decrease of $1.7 million) are affected by the timing of payments at or near year end. The increase in accrued interest ($0.8 million) is the result of the passage of time related to the 2005 Bonds. Principal payments on the 2005 Bond started in fiscal year 2011.
Long-term liabilities (which include the current portion of those liabilities) decreased significantly, reflecting $11.0 million in annual scheduled payments on the existing bonded debt and capital leases, offset by $3.3 million of new capital lease agreements.
The School System's investment in capital assets, less any outstanding related debt used to acquire those capital assets and accumulated depreciation, equals 78.6% of total net assets. The School System uses these capital assets to provide services to students, and consequently, these assets are not available for future spending. Although the School System's investment in capital assets is reported net of related debt, it should be noted that the assets tl1emselves cannot be used to liquidate these liabilities. The investment in capital assets increased $3.1 million over prior year due to a net decrease in debt of $10.0 million spent to finance those capital additions and a decrease in capital assets, net of depreciation, of $7.1 million.
Total restricted net assets increased $17.3 million over tl1e prior year. Net assets are restricted when there are limitations imposed on their use through constitutional provisions or enabling legislation, or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. For 2011, balances related to unspent SPLOST proceeds were reclassified as restricted from the unrestricted category which accounted for $20.6 million of the increase. Additionally, amounts spent related to other construction projects under the 2005 and 2007 bond referendum caused a decrease of $1.8 million in restricted assets. Amounts previously classified as restricted for discretionary school purposes has been reclassified to the unrestricted category totaling $1.3 million.
Unrestricted net assets of $20.6 million indicates the amount of liquid assets the School System has to meet the existing obligations to its creditors. Most of the School System's obligations are for longterm debt which will be repaid based on future property taxes levied specifically for tl1e repayment of bonded indebtedness.
20

Fayette County Board of Education Management's Discussion and Analysis
June 30, 2011

Fayette County School System's Changes in Net Assets

Revenues: Program revenues Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes Sales taxes Other taxes Interest and investment earnings Other Total revenues
Expenses: Instruction Pupil services Improvement of instmctional services Educational media services General adminis tracion School administration Business administration Maintenance and operation of facilities Student transportation services Central support services Other support services CommunitY services Food services Interest expense Total expenses

2011

$

6,460,701

102,475,842

1,213,372

99,163,635 18,259,865 1,598,273
108,504 486,970 229,767,162

140,677,264 9,331,883 4,229,846 3,757,201 1,192,086 13,192,469 1,139,105 16,161,495 8,073,549 4,140,542 290,337 2,194,891 7,925,808 4,557,031
216,863,507

Increase in net assets Net assets, beginning of the year Net assets, end of year

12,903,655 206,693,935 $ 219,597,590

2010

$

6,842,715

99,837,085

398,221

115,268,389 18,802,125 1,539,292
121,947 533,005 243,342,779

138,121,383 5,132,093 4,331,092 3,620,838 1,162,135 12,788,338 1,078,060 14,884,267 7,710,847 4,434,557 282,244 2,401,650 7,709,527 5,022,769
208,679,800

34,662,979 172,030,956 $ 206,693,935

Total revenues of the School System decreased approximately $13.58 million, driven primarily by the following items:
Property taxes decreased by $16.10 million. The decrease is the result of a net taxable digest that dropped 4.1 %. This decrease is reflective of the declining housing market seen across Georgia.
Operating grants and contributions increased by a net $2.64 million. Revenues from the State allotment decreased by $2.10 million which was offset by the Federal Jobs Bill revenue of $4.33 million.
21

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
The School System saw an increase in revenue from capital grants and contributions in 2011 of $0.82 million. Funding for construction projects through the Georgia State Financing and Investing Commission (GSFIC) is based on a needs assessment performed by the State and applications made by the School System. Timing of funding is based upon stages of completion and review of documents by the State. This amount fluctuates year to year and accounts for $0.36 of the increase in this category. Additionally, in fiscal year 2011, the State funded the partial purchase of school buses through state-issued bonds. The sale of these bonds generated $0.46 million for the School System to use towards the purchase of buses.
Total expenses increased by $8.18 million over prior year. Significant changes were:
Total costs of capital project funds that were not capitalized as fixed assets in the systemwide financial statements were $6.27 million greater in 2011 than in 2010. Many of the assets purchased under the SPLOST have a cost below the School System's capitalization threshold of $5,000. These items include, but are not limited to computers, LCD projectors (i.e., technology in the classroom) and textbooks. Depreciation of capital assets increased by $214,000 over prior year.
Benefits costs increased dramatically over prior year. The required contribution rate for TRS rose from 9.74% to 10.28%, creating an increase in cost for the School System of approximately $460,000. Additionally, rates set by the Board of Community Health for health insurance matching increased. For non-certified employees, the rate increased several times, from $162.72 per month at the beginning of the year to a rate of $246.20 per month by the end of the year. The annualized increase was 22.8% which translates to an increase of approximately $432,000. During 2010 and 2011, the health insurance rate for certified employees was adjusted several times. The annualized rate paid in 2011 was 18.534% willie the annualized rate paid in 2010 was 17.524%. This increase rate cost the School System approximately $936,000 more in 2011. Costs related to workers' compensation increased approximately $382,000.
Although the School System restored pay scales during the last half of the year, total salaries decreased approximately $633,000. This decrease was the result of a small decrease in the number of employees in the system, holding vacant positions open as long as possible, and the filling of vacated positions with staff with fewer years of service.
Supplies costs increased approximately $223,000 and expendable equipment increased approximately $247,000. The increase was driven by the need to replace items that had been cut from the budget in the prior two years.
Energy costs rose during fiscal year 2011. Bus fuel cost the system approximately $222,000 more than in the prior year. Electricity bills went up by approximately $244,000.
Operating lease costs for computers decreased approximately $270,000 as lease agreements expired and computers were replaced by new capital lease agreements funded through SPLOST.
22

Fayette County Board of Education Management's Discussion and Analysis
June 30, 2011

Non-textbook books and periodicals increased by approximately $159,000. Almost $60,000 of the increase was spent for media center material and $50,000 of the increase for classroom instructional material by the General Fund. Almost $27,000 of the increase was funded through various Federal programs.

By function, variances in expenses were driven by the following items:

Instruction costs increased $2.6 million or 1.85%, a net result of a $3.7 million decrease for salaries and benefits for counselors being reclassified to pupil services and $4.7 million increase in capital project related costs, primarily textbooks and technology in the classroom. Instruction also increased for increased spending for supplies and expendable equipment.

Pupil services increased $4.2 million primarily as a result of salaries and benefits for counselors to pupil services from instruction.

Maintenance and operations of facilities increased $1.3 million as a result of capital project related costs.

Financial Analysis of the School System's Funds

As noted earlier, the School System uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds ~ Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing the School System's financing requirements. Unassigned fund balance is a useful measure of the School System's net resources available for spending at the end of the fiscal year.

As of June 30, 2011, the School System's governmental funds reported combined ending fund balances of $60,985,158, an increase of $14,530,318 in comparison with the previous year. A large part of this $14.5 million is the result of collecting $5.8 million more of local option sales tax under the SPLOST referendum than was spent during the year. Additionally, revenues exceeded expenditures in d1e General Fund by $9.0 million. Approximately 15.8% ($9,632,929) of ending fund balance is made up of unassigned fund balance of the General Fund that is available for spending at the School System's discretion. Fund balances of special revenue funds and capital project funds are classified as restricted, committed or assigned. These categories are defined based on the level of limitations imposed on their use. Note A10 on page 52 of provides a def.tnition of the various categories of fund balance. Note J on pages 61 to 63 provides additional detail. Total fund balances for the governmental funds are as follows:

Fund Balances at June 30, 2011

Nonspendable

$

298,311

Restricted

$ 30,318,985

Committed

$ 2,672,856

Assigned

$ 18,061,821

Unassigned

$ 9,632,929

23

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
The Genera/ Fund is the chief operating fund of the School System. Its fund balance increased $9.0 million over the prior year. While management operates under a balanced budget, there are times when revenues will exceed expenditures and, conversely, when revenues fall below expected levels. Further discussion of budget to actual comparisons can be found under "General Fund Budgetary Highlights." Overall, revenues for the General Fund decreased approximately $2.65 million compared to the prior year. This was a net result of an increase in State funds of $8.54 million, $5.90 million decrease in federal funds, and a decrease of $5.29 million in local funds.
All public school systems in Georgia receive state funding based on the Quality Basic Education Act (QBE) earnings formula. The formula is based on a system's enrollment multiplied by dollar values for different cost categories. As the economy worsened at the end of fiscal 2008, the State began increasing the "amended formula adjustment" (a funding reduction also known as austerity cuts). When the State began receiving ARRA funding in fiscal year 2009, the Federal money was used to prop up the State budget. In doing so, school districts received an allocation of ARRA money but their austerity cuts were increased by the same amount, netting to zero additional funding. For fiscal year 2010, the School System's austerity cut, net of ARRA funding, was $9.8 million, on a cash basis. For fiscal year 2011, d1at cut increased by $3.1 million. While enrollment dropped by 461 students (FTE), gross QBE earnings slighdy increased by $0.34 million for an increase in the training and experience factor within the earnings formula which gives credit to districts for teachers' years of experience and degrees levels.
Federal sources in the General Fund decreased $5.90 million. Funding under the American Recovery and Reinvestment Act (ARRA) came to an end. In 2009 and 2010, the State had used this money to offset increases to the QBE amended formula reductions. However, unexpectedly, the Federal government passed d1e Jobs Bill in September 2010 that provided the School System with $4.33 million. The State was not able to use this money towards its budget and therefore it had no effect on the State QBE allotment funding as in the prior two years.
Property taxes decreased by $6.0 million. The decrease is reflective of the decrease in the property tax digest as a result of d1e significant downturn in the housing market.
Auto ad valorem taxes were up $0.18 million. Intangible and transfer taxes, both related to real estate transactions, were up $0.12 million.
The School System received net vendor reimbursements related to cRate of $0.46 million in 2011. In 2010, d1e School System did not receive any reimbursements.
24

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
Expenditures for the General Fund increased only $1.07 million of 0.61% from 2010. Despite salary scale increases, salaries decrease in the General Fund by approximately $0.87 million from prior year. This decrease was due to an overall reduction in staff, primarily teachers, custodians and clerical staff. Additionally, during the year vacancies were left unfilled as long as possible in order to save money. Most notably, the position of superintendent was vacant one-half of the year after the retirement of the superintendent serving from 1998 through the end of the prior year. While salaries decreased, benefits increased approximately $1.86 million in the General Fund. Rates for employer matching for teachers' retirement (fRS) and health insurance increased as previously detailed on page 22. Total non-payroll operating costs increased only $0.08 million. Debt payments on capital bus leases and the COPS decreased $0.29 million.
2011 Total Expenditures- All Governmental Funds

Instruction 58%

All other support r----services
10%
School administration
Transportation 3%

Capital outlay

7%

6%

The Debt Seroice Fund is used to accumulate resources in order to pay current and future principal and interest amounts on bonded debt. Tax revenues decreased approximately $8.8 million over 2010, a result of a millage rate decrease from 3.42 mills to 1.65 mills. The millage reduction was possible because a portion of the SPLOST funds are to be used toward the reduction of debt. During the year, $5.0 million of SPLOST proceeds were spent on debt service.

25

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
The Capita/ Projects SPLOST Fund is used to account for various projects funded through a one-cent local option sales tax for education as approved through voter referendum. During the year sales tax and interest earned for fiscal year 2011 was $18.6 million. Approximately $16.2 million was spent during the year, including a $5.0 million transfer to debt service to pay existing bonded debt. The remaining balance has been legally set aside to continue the projects as specified in the SPLOST referendum.
Other governmental funds consist of non-major special revenue funds and non-major capital project funds. The aggregate fund balance of these funds decreased by approximately $1.2 million over the prior year. Fund balance decreased during the year $1.7 million as a result of spending available assets in the Bond 2007 and Bond 2005 funds as various projects progressed. Various special revenue funds increased fund balance by spending less than generated revenues. The After School Program had the largest increase with a $0.3 million increase.
Proprietary funds- The School System's proprietary fund provides the same type of information found in the system-wide financial statements, but in more detail. The proprietary fund consists of an internal service fund, the Workers' Compensation Fund. At June 30, 2011, the proprietary fund has net assets of approximately $29,000, the same as in prior year.
General Fund Budgetary Highlights
During the year, the Board of Education approved amendments to the general fund budget as follows:
Increased the local revenue budget and expenditure budget by $12,500 for sale of surplus items to be used for the purchase of classroom furniture.
Increased the State revenue budget and expenditure budget by $457,752 for the receipt of State grant money to be used for the purchase of school buses.
Increased the federal revenue budget by $4,337,567 for the receipt of funds pursuant to the Federal Jobs Bill.
Decreased State revenue budget by $12,946 after the finalization of initial state grant awards.
Increased the expenditure budget by $1,040,000 for estimated cost of increasing pay scales by 1.5%, effective February 2011.
The School System's original budget was set based on preliminary State QBE allotments communicated by the State in May 2010 with an estimated reduction of $300,000 for various anticipated cuts related to categorical grants and Georgia Senate Bill 10. By late June 2010, the State published formal initial QBE allotment sheets for school districts. The formalized allotment was approximately $0.5 million more than the preliminary figures due to a change in the employer health insurance rate of 10.3893% applied to the QBE formula. During the year, the State QBE allotment sheets were amended four times. Fortunately, these amendments did not have a significant negative impact to the School System's budget, but they caused a lot of confusion relative to health insurance rates. Those amendments were:
26

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
Amendment #1 (August 19, 2010) and Amendment #3 Qanuary 4, 2011) related to adjustments for students attending charter schools. These amendments had no impact on the School System.
Amendment #2 (November 16, 2010) included reductions for students who had left the School System under provisions of Georgia Senate Bill 10 (approximately $73,000) and increases for the employer health insurance rate at 21.1 %. These changes increase the allotment sheet by $1.14 million.
Amendment #4 (April 25, 2011) decreased the employer health insurance rate to 18.534%, causing a $2.27 million decrease in the allotment sheet.
In summary, the State QBE allotment was reduced $0.63 million, on a cash basis, from its preliminary figures in May 2010 to the fmal allotment. Fortunately, administration anticipated $300,000 in adjustments, so the total effect was a negative $0.33 variance from the budget. The Board did not amend the budget for any changes to the QBE allotment sheet during the year.
Within the state revenue budget, the School System included an initial $350,000 for other state grants. This number was amended, as noted above, for actual grant awards as of January 2011 and for the grant for buses. Subsequently, the School System was awarded an additional four grants, the largest being an award related to dual enrollment for approximately $33,000 and for State paid supplements for math and science teachers of approximately $123,000. The grant for the supplements was paid directly to those teachers as indicated by the award. The Board did not amend the budget for tl1ese new grants.
Within the preliminary QBE allotment sheet provided by the State, $1.86 million related to funds passed through the State of Georgia under the American Recovery and Reinvestment Act (ARRA) that was used by the State to offset State funding cuts. This number was subsequently changed on the formalized initial allotment sheet to $1.66 million. As noted above, tl1e Board did not amend the budget for any changes to the QBE allotment sheet during the year.
Fortunately, local revenues exceeded the budget. Property tax revenue exceeded the budget by approximately $3.9 million. Generally, the tax digest is not fmalized for the School System to set its digest until after the budget has been adopted. As a result, at the adopted millage rate of 20.00 mills, total estimated billings of $80.90 million with a 95% collection rate plus estimated collection of prior year levies of $1.5 million exceed the established budget by approximately $.8 million. Furthermore, actual collections approximated 95.7% of billings and the School System collected approximately $2.5 million more than expected in prior year levy amounts. Motor vehicle ad valorem taxes bettered the budget by approximately $209,000. Intangible tax collections were $371,000 better than budget. The School System did not budget $0.46 million in eRate reimbursements.
Overall, salaries and benefits cost for the General Fund were lower than budgeted. Much of the favorable variance was due to leaving vacancies open or filling them with temporary or substitute staff. Additionally, teaching positions that were vacant near the end of the budgeting processed were generally budgeted at a highly experienced salary level. The employees who filled those vacancies generally were less experienced and therefore received a lower salary than budgeted. Costs associated with substitute teachers was $0.44 million less than budgeted. Open enrollment for health insurance and other employee benefit plans are based on a calendar year. Employer rates are subject to change
27

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
in the middle of the fiscal year and employee participation may change during the year. Therefore, for budget purposes, the School System assumes that all employees will participate in a health and dental insurance plan at the rates in effect at the beginning of the fiscal year. Since not all employees participated in health and dental plans, the School System under spent budgeted amounts for employer paid benefits supplements. Furthermore, many employees do not participate in social security. Employer payroll taxes were therefore lower than assumed in budget calculations. The School System experienced favorable budget variances of $1.5 million related to health insurance, $1.3 million for social security and $.048 million for all other employee benefits (retirement, disability, life, workers' compensation and dental supplements).
The favorable budget variance related to salaries and benefits impacted instruction the most, as 74% of personnel costs are classified under instruction. For non-personnel costs within instruction, the School System underspent the budget by approximately $0.15 million.
Energy costs were $188,000 over budget and $225,000 higher than the prior year actual.
Technology services directly impacted the favorable budget status for operating expenditures by under expending its budget by $360,000 through thoughtful consideration of each expenditure. Whenever possible, the department purchased equipment and hardware from SPLOST proceeds. The department continued to consolidate the School System's server domain, eliminating the need of replacing servers. For servers that remained in place, warranties were extended or technicians repaired them using parts salvaged from servers taken off-line. The department also reduced the amount of equipment required to run core services andre-purposed tl1at equipment for other needs, eliminating the need to purchase new equipment. Through this process, technology services has moved operations from ten servers to four. Additionally, services for four schools and five departments were virtualized, eliminating hardware and service costs. Spending was limited to items critical for the functioning of the School System.
Expenditures recorded in otl1er support services are primarily related to salaries funded by a source other than the School System such as booster clubs and parent teacher organizations (PTOs). As such, the School System does not budget for tl1ese expenditures.
The School System saved $110,000 budgeted for interest on tax anticipation notes. Due to the timing of federal stimulus money under the Jobs Bill, the School System did not have to have shortterm borrowings to meet cash flow needs.
While the School System budgeted to use up to $500,000 of general fund balances to cover shortfalls in funding of special revenue funds, only $161,289 was needed. Additionally, the School System budgeted to transfer $500,000 of fund balance from Community Schools to cover shortfalls within the general fund. Since actual results were significantly better than budgeted, this transfer was not required to be made.
Capital Assets and Debt Administration
Capital assets - The School System's investment in capital assets as of June 30, 2011, amounts to $255,778,958, net of accumulated depreciation. This investment in capital assets includes land, land improvements, buildings, autos and trucks, other equipment and construction in progress. This represents a net decrease in capital assets of $7.1 million. The change in the investment in capital assets is affected by additions to capital assets and depreciation expense.
28

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
Major capital asset related events during the year included the following:
The School System purchased 24 buses totaling approximately $2.0 million, funded with State issued bond proceeds and SPLOST receipts.
During the year, the School System completed wiring upgrades for schools to accommodate its 21st century classroom initiative.
The School System completed renovation projects on tracks at four of its five high schools.
Additional information on the School System's capital assets can be found in Note G on page 58 and 59 of this report.
Long-term debt- As of June 30, 2011, the School System had total bonded debt of $79,728,368 from three separate bond issuances. This bonded debt is payable from an ad valorem tax on all taxable property within the School District, without limit as to rate or amount. Additionally, the School System had debt of $6,210,785 under two capital leases for buses, four capital leases for computer equipment and one certificate of participation (similar to a capital lease) related to construction of facilities.
The School System maintains a "AA-" rating from Standard & Poor's and a "Aa3" rating from Moody's Investor Services for general obligation debt, without credit enhancements as a result of the Georgia Intercept Program or bond insurance.
State statues limit the amount of general obligation debt a governmental entity may issue to ten percent of its total assessed valuation. The current debt limitation for the School System is $462,186,375 which is significantly in excess of the School System's outstanding general obligation debt.
Additional information on the School System's long-term debt can be found in Note I on pages 60 and 61 of tl1is report.
Economic Factors and Next Year's Budgets and Rates
Going into fiscal year 2012, the economic position of the School System appeared to be extremely strong. Beginning in 2009, the System underwent significant budget reductions tl1at allowed it to grow its fund balance from a 2008 fund balance of $1.7 million to an estimated $25 million at the end of 2011. Due to the strong financial position, in late fiscal year 2011, the Board voted to restore paycuts made in 2010. The pay restorations would continue into the 2012 budget.
In preparing the fiscal year 2012 budget, School System administration had to consider several factors that would impact the 2012 revenues as compared to the previous year:
School System enrollment has continued to decline which would negatively impact earnings of State funding.
29

Fayette County Board of Education
Management's Discussion and Analysis
June 30, 2011
The tax digest was expected to decrease at least 4%. Additionally, the maintenance and operations millage rate was already at the 20.00 mill maximum.
A continued poor economy with high foreclosure and unemployment levels may have a negative effect on property tax collections.
Federal stimulus money through the American Recovery and Reinvestment Act (ARRA) and the Jobs Bill was spent, with little likelihood that the Federal government would continue to prop up local governments.
The State may continue to reduce State aid allocations to local school districts, even after the fiscal year started.
Administration also considered that as significant reductions were made in 2010 and 2011, there were few areas left to cut widwut greatly impacting student learning and achievement. Administration's goals to the 2012 budget were to 1.) maintain educational programs, 2.) maintain employee salary
scales that were restored during the year, 3.) maintain benefit supplements paid by the School
System, and 4.) maintain the employee work year without furloughs. By working collaboratively, system leaders built a spending plan with budget reductions in almost every department and instructional area. Additionally, due to careful spending during the last two years, the School System placed itself in a position of having fund balance available to make up for shortfalls between revenues and expenditures. As a result, the Board approved a budget that included an appropriation of fund balance of$16.4 million but also met administration's goals.
During the last phases of the budget process, it became clear that the budgetary concerns for the School System are for fiscal year 2013. Administration is concerned with skyrocketing health insurance costs, increases to employer contributions to the Teachers' Retirement System (TRS), and inflationary increases in general operating costs such as bus fuel and electricity. Relief in the way of additional revenue appears remote at this time. Therefore, administration immediately began working to develop a plan for the 2013 budget after the fiscal year 2012 budget was passed.
Even with tl1e anticipated decline in tax revenue, the School System was able to maintain the debt service millage rate at 1.65 mills. The School System budgeted $4.2 million of SPLOST receipts to be used toward the principal and interest payments on 2005 General Obligation Bonds. Additionally, the debt service fund has a fund balance of approximately $4.0 million to make up for any shortfalls in tax collections.
During 2012, the School System will continue to use sales tax receipts from the 2008 SPLOST to fund capital improvements, including computer replacements, technology upgrades, bus purchases and safety and facilities improvements. Due to the timing of election cycles and the SPLOST life span, School System administration will also be working on developing a plan to present a continuation of the SPLOST in a referendum to the voters of the county in late 2013. This alternative funding source has been extremely vital to the School System over the last several years and will continue to be significant. As a result of its passage, technology replacements and upgrades can continue without impacting other budgetary decisions. Additionally, by shifting the funding for items that had been previously budgeted in the General Fund (such as annual textbook purchases) to the SPLOST fund, more General Fund money will be available for operating costs.
30

Fayette County Board of Education Management's Discussion and Analysis
June 30, 2011 Requests for Information This fmancial report is designed to provide a general overview of the School System's fmances for all those with an interest in the School System's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Laura Brock, Comptroller, P.O. Box 879, Fayetteville, Georgia, 30214.
31

(fhis page intentionally left blank.)
32

Basic Financial Statements
33

Fayette County Board of Education
STATEMENT OF NET ASSETS
June 30, 2011
ASSETS Cash Investments Due from other governments Interest receivable Taxes receivable Prepaid items Inventory Capital assets, not being depreciated: Land Constmction in progress Capital assets, net of accumulated depreciation: Buildings Tmcks and autos Other equipment Debt issuance costs, net Total assets
LIABILITIES Accounts payable "\ccmed interest Salaries and benefits payable Retainage payable Unearned revenue Claims payable Noncurrent liabilities: Due widun one year Due in more than one year Accmed compensated absences Bonds and leases Total liabilities
NET ASSETS Invested in capital assets, net of related debt Restricted for: Capital projects Grant purposes Unrestricted TOTAL NET ASSETS
The accompanying notes are an integral part of dlis statement.
34

Governmental Activities
$ 14,308,844
58,635,792 13,815,912
318 5,636,653
38,475 259,836
15,431,494 5,425
225,321,219 6,471,564 8,549,256 297,166
348,771,954
3,952,577 10,318,746 24,561,786
40,108 199,104 615,000
9,658,092
1,762,833 78,066,118 129,174,364
172,653,135
24,515,798 1,819,837
20,608,820
$ 219,597,590

Fayette County Board of Education

STATEMENT OF ACTIVITIES

Functions/Program Activities
Governmental Activities: Instruction Support services Pupil services Improvement of instructional semces Educational media services General administration Schooladmirustration Business admirustration Maintenance and operation of facilities Student transportation services Central support services Other support services Community services Food services Interest expense Total governmental activities

For the year ended June 30, 2011

Expenses

Charges for Services

Program Revenues

Operating

Capital

Grants and Contributions

Grants and Contributions

Net (Expenses) Revenues and
Changes in Net Assets Governmental Activities

$ 140,677,264 $ 335,649 $ 79,289,993

$ (61,051,622)

9,331,883

1,558,836

(7,773,047)

4,229,846 3,757,201 1,192,086 13,192,469 1,139,105

1,384,411 2,283,965 2,503,854 4,863,291
3,861

(2,845,435) (1,473,236) 1,311,768 (8,329,178) (1,135,244)

16,161,495

5,141,321

755,620

8,073,549

1,597,616

457,752

4,140,542

464,807

290,337

105,862

2,194,891

2,181,465

433,844

7,925,808

3,943,587

2,844,181

4,557,031

$ 216,863,507 $ 6,460,701 $ 102,475,842 $ 1,213,372

(1 0,264,554) (6,018,181) (3,675,735) (184,475) 420,418 (1,138,040)
~4,557,031)
(106,713,592)

General revenues

Taxes

Property taxes, levied for general purposes

Property taxes, levied for debt service

Intangible taxes, general purposes

Intangible taxes, debt service

Transfer taxes, general purposes

Transfer taxes, debt service

Sales tax, capital outlay and debt service

Interest and investment earrungs

Other

Total general revenues

Change in net assets

Net assets- beginrung of year Net assets- end of year

The accompanying notes are an integral part of this statement.

91,124,593 8,039,042 1,171,238 160,221 237,515 29,299
18,259,865 108,504 486 970
119,617,247
12,903,655
206,693,935 $ 219,597,590

35

Fayette County Board of Education
BALANCE SHEET GOVERNMENTAL FUNDS
June 30, 2011

ASSETS Cash Investments Due from other governments Interest receivable Taxes receivable Due from other funds Prepaid items Inventory
Total assets

Major Governmental Funds

Debt

Capital Projects

Other

Total

General

Service Fund

SPLOST Fund

Governmental Governmental

Funds

Funds

$ 7,260,237 $ 11,927 $ 212,958 $ 6,821,920 $ 14,307,042

28,761,759 3,814,291

21,124,032

4,935,423

58,635,505

12,294,849 193
3,530,464 951,162 38,475

429,443

$ 52,837,139 $ 4,255,661

2 1,676,746
$ 23,013,738

1,521,063 123
37,143
259,836 $ 13,575,508

13,815,912 318
5,636,653 988,305 38,475 259,836
$ 93,682,046

LIABILITIES AND FUND BALANCES

Liabilities:

Accow1ts payable

$ 682,838

Salaries and benefits payable

22,909,173

Due to other funds

668,000

Retainage payable

Deferred revenue

2,239,674

$ 272,311

Total liabilities
Ftmd Balances: N onspendable Restricted Committed Assigned Unassigned

26,499,685

272,311

38,475
230,102 16,435,948
9,632,929

3,983,350

Total fund balances

26,337,454 3,983,350

Total liabilities and fund balances

$ 52,837,139 $ 4,255,661

$ 2,383,728 $ 860,394 $ 3,926,960

1,652,613

24,561,786

18,008

970,297

1,656,305

40,108

40,108

2,511,985

2,401,736

3,523,412

32,697,144

20,612,002

259,836 5,723,633 2,442,754 1,625,873

20,612,002

10,052,096

298,311 30,318,985
2,672,856 18,061,821
9,632,929
60,984,902

$ 23,013,738 $ 13,575,508 $ 93,682,046

The accompanying notes are an integral part of this statement. 36

Fayette County Board of Education RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS
June 30, 2011

Total fund balances~ governmental funds

$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not fmancial resources and therefore are not reported as assets in governmental n.111ds.

Property taxes receivable not collected within sLxty days of year~end are not available soon enough to pay for tl1e current period's expenditures, and tl1erefore are reported as deferred revenue in the funds.

Internal service funds are used to charge ilie costs of workers' compensation claims to ilie individual funds. The assets and liabilities of the internal senrice fund are included witl1 governmental activities.

Long~term liabilities, including capital leases payable, are not due and payable in tl1e current period and tl1erefore are not reported as liabilities in ilie funds. Long~term liabililities at year end consist of:

Bonds payable Capital leases payable /1.ccrued interest on bonds and leases Compensated absences payable Unamortized discount on issuance of bonds Unamortized premium on issuance of bonds Deferred debt issuance costs, net of amortization

Total net assets governmental activities

$

60,984,902
255,778,958
2,312,881
29,472
(79 '728,368) (6,210,785)
(10,318,746) (1 ,923,981) 69,640 (1,693,549) 297,166
219,597,590

The accompanying notes are an integral part of this statement. 37

Fayette County Board of Education
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS

For the year ended June 30, 2011

Major Governmental Funds

Debt

Capital Projects

Service

SPLOST

General

Fund

Fund

Other Governmental
Funds

Revenues State funds Federal funds Local and other funds

$ 84,841,972 $ 4,350,060 94,877,870

8,533,226

$ 18,649,793

$ 1,794,369 10,165,836 8,211,592

Total revenues

184,069,902

8,533,226

18,649,793

20,171,797

Expenditures Current
Instruction Support services
Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of facilities Student transportation services Central support services Other support services Community service Food services Capital outlay Debt Service Principal retirement Interest and fees Total expenditures

119,657,575
8,072,843 3,164,069 3,448,879
966,773 12,404,590
1,112,059 13,691,705
6,990,183 3,181,093
198,764
305,490 457,752
1,080,848 129,492
174,862,115

8,942,432 3,728,354
12,670,786

9,945,370
1,039,224 184,522
11,169,116

6,879,019
1,232,381 968,701 91,865 188,881 367,459
98,948 163,611
99,068 2,177,702 6,724,755 2,511,677
21,504,067

Total Governmental
Funds
$ 86,636,341 14,515,896 130,272,481
231,424,718
126,536,594
9,305,224 4,132,770 3,540,744 1,155,654 12,772,049 1,112,059 13,790,653 7,153,794 3,18L093
297,832 2,177,702 7,030,245 12,914,799
11,062,504 4,042,368
220,206,084

Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses) Capital lease Transfers in (out)
Total other financing sources (uses)
N ct change in fund balances Fund balances, beginning of year,
as restated Fund balances, end of year

9,207,787
(161,289) (161,289) 9,046,498
17,290,956
s 26,337,454 s;

(4,137,560)

7,480,677

(1 ,332,270)

11,218,634

5 000 000 5 000 000
862,440

3,311,428 (5,000,000) (1 688,572)
5,792,105

161 289 161,289 (1, 170,981)

3,311,428
3,311,428 14,530,062

3,120,910 3,983,350

14,819,897
s 20,612,002

11,223,077 $ 10,052,096

46,454,840 $ 60,984,902

The accompanying notes are an integral part of this statement.
38

Fayette County Board of Education
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES WITH THE
SYSTEM-WIDE STATEMENT OF ACTIVITIES
For the year ended June 30, 2011

Total net change in fund balances- governmental funds
Capital oudays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation ($9 ,918,519) exceeds capital ouday ($2,804,632) and the net value of assets disposed ($15,227).
Repayment of bond principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net assets.
Repayment of capital lease principal is an expenditure in rl1e governmental funds, but the repayment reduces long-term liabilities in the statement of net assets.
Payments made to bond escrow agent to currendy refund previously issued debt is an expenditure in the governmental funds, but the payment reduces long-term liabilities in the statement of net assets.
The issuance of long-term debt provides current financial resources to governmental funds but has no effect on net assets.
Some capital assets acquired during the year were financed through a capital lease. The amount financed is reported in the governmental funds as other fmancing sources. Capital leases are not revenues in the statement of activities, but rather increase long-term liabilities in the statement of net assets.
Governmental funds report the effect of debt issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Amortization expense is netted against interest expense.
Because some property taxes will not be collected for several months after the School System's fiscal year ends, they are not considered "available" revenues and are deferred in the governmental funds. Deferred tax revenues decreased by this amount this year.
In the statement of activities, certain operating expenses- compensated absences (sick pay and vacations) are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). This year, vacation and sick leave earned exceeded the amounts used by this amount.
Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrnes, regardless of when it is due. The additional interest reported in the statement of activities is the net result of accrned interest on bonds and capital leases which increased by this amount.
Internal service funds are used to charge the costs of workers' compensation claims to the individual funds. Net income of the internal service fund are reported in the governmental activities.
Change in net assets of governmental activities

$ 14,530,062 (7,129,114) 8,942,432 2,120,072
(3,311 ,428) 250,700
(1,657,558) (76,219)
(765,363) 71
$ 12,903,655

The accompanying notes are an integral part of dus statement.
39

Fayette County Board of Education
General Fund STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES BUDGET AND ACTUAL- (NON-GAAIJ BASIS)
For the year ended June 30, 2011

Revenues
State funds Federal funds Local and other funds
Total revenues
Expenditures
Current Instruction Support services Pupil services Improvement of instructional services Educational media services General administration School adrninistration Business administration Maintenance and operation of facilities Student transportation services Central support services Other support services Food services
Debt se1-vice P1-incipal retirement Interest and fees
Total expenditures

Original Budget
$ 81,957,414 1,859,764 89,398,737
173,215,915
121,999,696
8,535,451 3,465,899 3,451,983 1,135,105 12,521,160 1,072,333 13,718,725 7,881,399 3,810,753
231,584
390,000 192,270 178,406,358

Final Budget
$ 82,402,220 6,197,331 89,811,237
178,410,788
122,826,338
8,582,194 3,481,331 3,471,949 1,139,115 12,585,758 1,077,964 13,759,683 8,361,155 3,815,981
232,872
390,000 192,270 179,916,610

Actual (Budget basis)
$ 82,427,542 6,011,409 94,877,870
183,316,821
119,216,785
8,058,661 3,151,598 3,438,041
964,330 12,360,939
1,108,198 13,660,847
8,166,301 3,176,489
197,665 304,149
390,000 82,270
174,276,273

Variance

$

25,322

(185,922)

5,066,633

4,906,033

3,609,553
523,533 329,733
33,908 174,785 224,819 (30,234) 98,836 194,854 639,492 (197,665) (71,277)
110,000 5,640,337

Excess of revenues over expendih1res
Other financing sources (uses)
Transfers in Transfers out
Total other f111.ancing sources (uses)
Net change in fund balances

(5,190,443)

(1,505,822)

9,040,548

10,546,370

500,000 (500,000)

500,000 (500,000)

(161,289)

(500,000) 338,711

(161,289)

(161,289)

$ ~5,190,443) $ ~1 ,505,822) $ 8,879,259 $ 10,385,081

The accompanying notes are an integral part of this statement.
40

ASSETS Current Assets:
Cash Investments Due from other funds
Total assets
LIABILITIES Current Liabilities: Accounts payable
Claims payable
Total liabilities
NET ASSETS Unrestricted
Total net assets

Fayette County Board of Education STATEMENT OF NET ASSETS PROPRIETARY FUNDS
June 30, 2011

Governmental Activities--
Internal Service Workers'
Compensation Fund

$

1,802

287

668,000

670,089

25,617 615 000
640,617

29,472

$

29,472

The accompanying notes are an integral part of this statement.
41

Fayette County Board of Education Proprietary Funds
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenses Administration Claims
Total expenses
Operating income
Nonoperating revenues Interest
Net income
Net assets, beginning of year
Net assets, end of year

Governmental Activities--
Internal Service Workers'
Compensation Fund

$

631,500

631,500

110,377 521,054
631,431
69

2

71

29,401

$

29,472

The accompanying notes are an integral part of this statement.
42

Fayette County Board of Education Proprietary Funds
STATEMENT OF CASH FLOWS
For the year ended June 30, 2011

Cash flows from operating activities: Cash received from interfund services Cash paid to suppliers Net cash provided by operating activities
Cash flows from investing activities: Purchase of investments Interest received Net cash provided by investing activities
Net increase in cash
Cash at beginning of year
Cash at end of year
Reconciliation of operating income to net cash provided by operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Change in assets and liabilities: Accounts payable Due from other funds
Net cash provided by operating activities

Governmental Activities--
Internal Service Workers'
Compensation Fund

$

651,500

(650,093)

1,407

(1) 2
1

1,408

394

$

1,802

$

69

(18,662) 20,000

$

1,407

The accompanying notes are an integral part of this statement. 43

Fayette County Board of Education Fiduciary Funds
STATEMENT OF FIDUCIARY NET ASSETS June 30, 2011

ASSETS Cash Investments Total assets
LIABILITIES Due to student groups
NET ASSETS Reset-ved for scholarships

David Phillips Memorial
Private-Purpose Trust Fund

Agency Fund Club and
Class Funds

$

$ 1,690,390

10,059

10,059

1,690,390

1,690,390

$

10,059

$

The accompanying notes are an integral part of tlus statement.
44

Fayette County Board of Education Fiduciary Funds
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
For the year ended June 30, 2011

ADDITIONS Donations Interest 'Total additions
DELETIONS Other support services
Change in net assets
NET ASSETS, beginning of year
NET ASSETS, end of year

David Phillips Memorial
Private-Purpose Trust Fund

$

500

18

518

500 18 10,041 $ 10,059

The accompanying notes are an integral part of this statement. 45

(This page intentionally left blank.) 46

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS
June 30, 2010
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of Fayette County Board of Education (the "School System") have been prepared in conformity with accounting principles generally accepted in the United States of America ("USGAAP") as applicable to government units. The more significant of the School System's accounting policies are summarized below.
1. Reporting Entity
The School System was established under the laws of the State of Georgia and operates under the guidance of a five member school board (the "Board") elected by the voters of Fayette County and a Superintendent appointed by the Board. The School System is organized as a separate legal entity and has the power to levy taxes, issue bonds with voter approval, and conduct all other business pursuant to the operation of the School System. Its budget is not subject to approval by any other entity. Accordingly, the School System is a primary government and consists of all the organizations that compose its legal entity. There are no component units included in the School System's reporting entity as defined by Governmental Accounting Standards Board ("GASB") Statement No. 14.
2. System-wide and Fund Financial Statements
The system-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all of the nonfiduciary activities of the School System. For the most part, the effect of interfund activity has been removed from these statements. Governmental adivitie.r, which normally are supported by taxes and intergovernmental revenues, are reported separately from bu.rinesJ-type activitieJ, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the system-wide fmancial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.
47

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued
3. Measurement Focus, Basis of Accounting, and Basis of Presentation
The system-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Agency funds,
however, report only assets and liabilities and therefore have no measurement focus. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all requirements imposed by the provider have been met.
Governmental fund fmancial statements are reported using the currentjinancial re.rounes mea.rurement.focus and the modijied accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within sixty days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, grant revenue, State QBE ("Quality Basic Education") revenue and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period.
Revenue from grants and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the School System must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the School System on a reimbursement basis.
The State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program ("QBE"). Genearlly teachers are contracted for the school year Quly 1 ~ June 30) and paid over a twelve month contract period, generally September 1 though August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of the teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability in for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition.
All other revenue items are considered to be measurable and available only when cash is received by the School System.
48

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued
3. Measurement Focus, Basis of Accounting, and Basis of Presentation- continued
The School System reports the following major governmental funds:
The General Fund is the School System's primary operating fund. It accounts for all financial resources of the School System, except those required to be accounted for in another fund.
The Debt Seroice i:'und is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. The primary revenue source is local property taxes levied specifically for debt service.
The Capital Prqjects- SPLOST Fund is used to account for various projects funded by an educational special purpose local option sales tax and approved by voter referendum.
Additionally, the School System reports the following fund types:
The Jpecial revenue funds account for revenue sources that are restricted or committed to expenditure for specific programs, primarily Federal and state grant funded programs. These grants are awarded to the School System for the purpose of accomplishing specific educational tasks as defined in the grant agreements. These funds also contain several locally funded programs whose expenditures are limited to specific purposes. School Activity Funds are also reported as special revenue funds. The School Activity Funds are used to account for funds collected primarily through the fund raising efforts of the individual school. Each school's principal is responsible, under the authority of the School System, for collecting, controlling, disbursing and accounting for his or her school's funds. All resources of the fund, including any earnings on invested resources, may be used to support the schools' activities.
The capitalprqjectfunds account for resources provided for the acquisition, construction or renovation of major capital facilities.
The internal seroice fund accounts for the self-insurance of workers' compensation of the School System's employees.
The jiduciaiJI funds are a classification of funds used to account for assets held on behalf of various funds, governments or individuals. The fiduciary funds include the following fund types:
The agenryfund accounts for student club and class accounts.
The private-purpose trust fund accounts for resources devoted to the presentation of a scholarship award to a student each year. The corpus of this trust fund is to be invested and remain intact, with the investment earnings to be used to provide the scholarships.
49

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued
3. Measurement Focus, Basis of Accounting, and Basis of Presentation - continued
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the system-wide and proprietaq fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The School System does not report business-type activities or enterprise funds.
As a general rule, the effect of interfund activity has been eliminated from the system-wide financial statements. Interfund services provided and used are not eliminated in the process of consolidation.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietaq fund's principal ongoing operations. The principal operating revenues of the School System's internal service funds are charges to customers for sales and services. Operating expenses for the internal service funds include the cost of sales and services and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
\Vhen both restricted and unrestricted resources are available for use, it is the School System's policy to use restricted resources flrst, then unrestricted resources as they are needed.
4. Deposits and Investments
The School System's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Official Code of Georgia Annotated ("O.C.G.A.") 45-8-14 authorizes the School System to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
Investments made in nonparticipating interest-earning contracts (such as certiflcates of deposit) and repurchase agreements are reported at cost. Participating interest-bearing contract and money market investments with a maturity at purchase of one 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.
50

Fayette County Board of Education NO'TES 'TO FINANCIAL S'fA'fEMEN'fS- CONTINUED
June 30, 2011

NO'TE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued

5. Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/ from other funds" (i.e., the current portion of interfund loans) or "advances to/ from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/ from other funds."

All property tax receivables arc shown net of an allowance for uncollectibles.

6. Inventories and Prepaid Items

Inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost using the first-in, first-out method (FIFO). The School System uses the consumption method to account for both donated and purchased inventories whereby donated food commodities are recorded as an asset and as revenue when received or purchased, and expenditures are recorded as inventories are used.

Payments made to vendors for services that will benefit periods beyond year end are recorded as prepaid items

7. Capital Assets

Capital assets, which include property and equipment, are reported in the system-wide fmancial statements. Capital assets are defined by the School System as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of 3 years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.

Property and equipment of the School System is depreciated using the straight line method over the following estimated useful lives:

Buildings and improvements Computers Machinery and equipment Kitchen equipment Vehicles

25 to 50 years 5 years
5 to 20 years 15 to 20 years
10 years

51

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -continued
8. Compensated Absences
It is the School System's policy to permit employees to accumulate earned but unused vacation benefits. All vacation is accrued when incurred in the system-wide financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements.
Sick and personal leave does not vest with the employee and unused accumulated sick and personal leave is forfeited upon retirement or termination of employment. Therefore, no liability is recorded for nonvesting accumulating rights to receive sick pay benefits.
9. Long-term Obligations
In the system-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other fmancing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from actual proceeds, are reported as debt service expenditures.
10. Fund Equity
Fund equity at the governmental fund financial reporting level is classified as "fund balance." Fund equity for all other reorting is classified as "net assets."
Generally, fund balance represents the difference between current assets and current liabilities. In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the School System is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balances are classified as follows:
N onspendable: Fund balances are reported as nonspendable when amounts cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted: Fund balances are reported as restricted when there are limitations imposed on their use whether through constitutional provisions or enabling legislation, or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
52

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- continued
10. Fund Equity- continued
Committed: Fund balances are reported as committed when they can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board also may modify or rescind the commitment.
Assigned: Fund balances are reported as assigned when amounts are constrained by the Board's intent to be used for specific purposes, but are neither restricted or committed.
Unassigned: Fund balances are reported as unassigned as the residual amount when the balances do not meet any of the above criterion.
It is the School System's policy that the Board impose constraints on amounts classified as committed and assigned fund balance through majority vote. Additionally, when restricted and unrestricted fund balances are both available for expenditure when the espenditure is incurred, the restricted fund balance is considered to be expended first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications (committed, assigned or unassigned) could be used, the School System considers that committed amounts are to be reduced first, followed by assigned amounts, and then by unassigned amounts.
Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Net assets are reported as restricted as described in the fund balance description above. Net assets are reported as restricted when there are limitations imposed on their use whether through constitutional provisions or enabling legislation, or through external restrictions imposed by creditors, grantors or laws or regulations of other governments.
11. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of d1e financial statements, and the reported amounts of revenues and expenditures/expenses during the period. Actual results could differ from those estimates.
53

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE B- STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Fayette County Board of Education adopts annual budgets for its general fund, debt service fund and special revenue funds with the exception of the Other Grants Fund. Appropriations not spent or encumbered lapse at year end. Any outstanding encumbrances must be reappropriated in the budget of the following year. The budget process begins when the School System's administration prepares a tentative budget for the Board's approval. After approval of this 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 budget. This final budget is then submitted to the Georgia Department of Education, in accordance with provisions of the Quality Basic Education Act.

The level of legal budgetary control (the level at which expenditures may not exceed appropriations) is at the aggregate level by fund type. Management may make transfers of appropriations within a specific fund and between funds within the same fund type.

The Statement of Revenues and Expenditures - Budget and Actual presents actual and budget data for the General Fund. To facilitate comparison with the budget, adjustments have been made to actual revenues and expenditures to reflect actual amounts on the budget basis.

The primary differences between the budget basis and accounting principles generally accepted in the United States of America ("USGAAP") are:

(a) State revenue relating to Quality Basic Education expenditures is recorded when received (budget) rather than when susceptible to accrual (USGAAP).

(b) Payments made by the State of Georgia for School System employee benefits are recognized as revenues and expenditures under USGAAP and are not recognized on the budget basis.

(c) Capital leases are recorded as expenditures and as other financing sources under USGAAP and are not recorded under the budgetary basis.

Adjustments necessary to convert the General Fund's net change in fund balance from the USGAAP basis to the budget basis are shown below:

USGAAP Basis Net Change in Fund Balances Adjustments for:
State QBE revenue State paid employee benefit revenue State paid employee benefit expenditures Budget Basis Net Change in Fund Balances

$ 9,046,498
(167,239) (585,842) 585,842 $ 8,879,259
==='===='==~

54

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE B- STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY- continued
Additionally, the School System budgets purchases of buses and capital lease payments for buses under transportation services. In reporting actual expenditures budget basis, these items have be reclassified from capital outlay and debt service, respectively, to student transportation services.

NOTE C- DEPOSTS AND INVESTMENTS
Credit Risk. O.C.G.A. 36-83-4 authorizes the School System 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. The School System may invest its funds in obligations of the State of Georgia or other states, obligations issued by the United States government, obligations fully insured or guaranteed by the United States government or a United States government agency, obligations of any corporation of the United States government, prime banker's acceptances, the Georgia Fund 1 administered and regulated by the Georgia Office of Treasury and Fiscal Services, repurchase agreements, and obligations of political subdivisions of the State of Georgia. The School System does not have a policy for credit risk beyond the types of investments authorized by Georgia State law.

At June 30, 2011, the School System had the following investments:

Investment Type Georgia Fund 1 Money market mutual funds Certificates of deposit

Maturities 59 day weighted average N/A 11.0 montl1 weighted average

Rating AAAm N/A N/A

Fair Value $ 58,576,771
9,283 59,797 $ 58,645,851

Georgia Fund 1, created by O.C.G.A. 36-83-8, is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a7 like pool. The pool is not registered with the Securities Exchange Commission as an irwestment company. The Office of Treasury and Fiscal Services is the regulatory oversight agency for Georgia Fund 1. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies; colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 are directed toward short-term instl:uments 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.

55

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE C- DEPOSTS AND INVESTMENTS- continued
Interest rate risk. 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. However, the School System does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
Custodial Credit Risk. Custodial credit risk is the risk that, in the event of failure of a depository financial institution or of counterparties to investment transactions, the School System will not be able to recover deposits, investments or collateral securities that are in the possession of an outside party. The School System follows Georgia State law which requires bank balances to be covered by federal deposit insurance or by collateral held by the School System's agent in the School System's name. As of June 30, 2011, the School System was not exposed to custodial credit risk for investments.
NOTED- DUE FROM OTHER GOVERNMENTS
Due from other governments consists of grant reimbursements due primarily from the Georgia Department of Education.
NOTE E -TAXES RECEIVABLE
Property taxes were levied on September 1, 2010, based on property values assessed as of January 1, 2010, and were considered past due if not paid on or before November 15, 2010, at which time the applicable property is subject to lien, and penalties and interest may be assessed. State law limits the School System's tax levy for operations to 20 mills (one mill equals $1 per thousand dollars of assessed value). Taxes levied in calendar year 2010 were levied at 20.00 mills for operations and 1.65 mills for school bonds.
In addition, Fayette County designates a portion of its intangible and transfer taxes for school purposes. Intangible and transfer taxes are collected by Fayette County Superior Court on behalf of the School System.
Tax revenues, at the fund reporting level, amounted to $93,533,419 for maintenance and operations and $17,361,966 for school bonds.
A one percent Special Purpose Local Option Sales Tax (SPLOST) is to be used for capital outlay for educational purposes and for debt service. The State of Georgia will terminate collection of this tax once a total of $115,000,000 has been collected or on March 31, 2014, whichever occurs first.
SPLOST revenues, at the fund reporting level, amounted to $18,649,793 as ofJune 30, 2011.
56

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE E -TAXES RECEIVABLE- continued
At June 30, 2011, taxes receivable, at the fund reporting level, consisted of the following:
$2,312,881 (net of $1,191,484 in allowances for doubtful accounts) in delinquent property taxes receivable was recognized as receivable and as deferred revenue,
$1,527,359 of property tax was recognized as receivable and as revenue because it was considered susceptible for accmal based on collections within 60 days of year end,
$1,676,746 of SPLOST receipts recognized as receivables and as revenue because it was considered susceptible for accmal based on collections within 60 days of year end,
and $119,668 of intangible and transfer taxes collected by the Superior Court of Fayette County on behalf of the School System.

NOTE F- INTERFUND RECEIVABLES AND PAYABLES

At June 30, 2011, interfund receivables and payables consisted of the following:

RECEIVABLE FUNDS

PAYABLE FUNDS General Fund SPLOST Non-Major Funds:
Nutrition Service Title I IDEA Vocational Grants Dmg Free Title II Title III Building Connections Family Connections After School

General Fund

Non-Major Funds

School

Bond

Nutrition

2007

\'\! orkers' Comrensation

Total

$

$

$

$ 668,000 $ 668,000

18,008

18,008

284,900

115,739

639

447,174

23,070

1,024

22,629

20,395

22,112

14,119

18,496

$ 951,162 $ 19,135 $

18,008 $

668,000

284,900 116,378 447,174
23,070 1,024
22,629 20,395 22,112 14,119 18,496 $ 1,656,305

Interfund balances resulted from the time lag between receiving and recognizing certain revenues and meeting temporary cash flow requirements.

57

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE G- CAPITAL ASSETS

The following is a summary of capital asset activity for the fiscal year ending June 30, 2011:

Beginning Balance

Increases

Decreases

Reclassification

Ending Balance

Capital assets, not being depreciated Land Construction in progress
Total capital assets, not being depreciated

s 15,431,494 $
1,247,012
16,678,506

$ 721,132 721,132

$

$

(1 ,962,719)

(1,962,719)

15,431,494 5,425
15,436,919

Capital asset, being depreciated Buildings and improvements Autos and trucks Other equipment
Total capital assets, being depreciated

330,901,901 19,304,751 21,253,588
371,460,240

20,230 1,965,400
97,870 2,083,500

(52,954) (52,954)

676,068
1,286,651 1,962,719

331,598,199 21,270,151 22,585,155
375,453,505

Less accumulated depreciation for: Buildings and improvements 1\utos and trucks Other equipment
Total accumulated depreciation

(99,447,186) (13,83 7,252) (11 ,946,236) (125,230,674)

(6,829,794) (961 ,335)
(2, 127 ,390) (9,918,519)

37,727 37,727

(1 06,276,980) (14,798,587) (14,035,899) (135,111,466)

Total capital assets being depreciated, net

246,229,566

(7,835,019)

(15,227)

1,962,719

240,342,039

Governmental activities capital assets, net $ 262,908,072 $ (7 ,113,887) $ (15,227) $

$ 255,778,958

Depreciation expense was charged to various functions for governmental activities as follows:

Instruction Support services
Pupil services Improvement of inst1-uctional services Educational media services General administration School administration Business administration Maintenance and operations of facilities Student transportation services Central support services Community service Food services
Total depreciation

$ 6,469,171
885 126,964 216,457 25,432 299,213 11,570 91,997 921,638 844,296 17,193 893,703 $ ~d9,~91~8~,5~19~

58

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE G- CAPITAL ASSETS- continued

Assets being acquired under capital leases and certificates of participation are as follows:

Buildings and Improvements
Autos and trucks Total

Cost
$ 1,033,630 4,960,866
$ 5,994,496

Accumulated DeEreciation
$ (234,222)
~2,586,251}
$ (2,820,473}

Net Book Value
$ 799,408 2,374,615
$ 3,174,023

NOTE H -LEASES

Operating Leases

The School System leases a portion of its computers under an operating lease agreement. Total cost for this lease was approximately $532,840 for the year ended June 30, 2011. The future minimum lease payment for this lease is $162,316 due in 2012.

Capital Leases

The School System has entered into various lease agreements for the acquisition of buses and computers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

In June 1999, the School System issued $5,080,000 in Certificates of Participation (COPS) to advance refund $3,035,000 of outstanding 1991 COPS as well as to fmance additional construction. These COPS are treated like a capital lease. A portion of the net proceeds was used to purchase U.S. government securities which were deposited into an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1991 COPS. As a result, the 1991 COPS are considered to be defeased and the liability for those COPS has been removed from the School System's fmancial statements. The defeased certificates of participation were paid in full during fiscal year ending June 30, 2002. The balance of the 1999 COPS was $1,300,000 at June 30, 2011.

The following is a schedule of the future minimum lease payments under these capital leases, and the present value of the net minimum lease payments at June 30, 2011:

2012 2013 2014 Total minimum lease payments Less: Amount representing interest Present value of future minimum lease payments

$ 2,743,760 2,608,030 1,350,304 6,702,094 ( 491,309)
$ ~~6,=21=0~,7=85=

59

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE I- LONG-TERM DEBT

General Obligation Bonds

In July 2009, the School System issued $24,800,000 in General Obligation Bonds (2009 Series) to currendy refund $24,905,000 of outstanding 1999 General Obiligation Bonds (1999 Series).

In February 2001, the School System issued $65,000,000 in 2001 General Obligation Bonds for the construction of new schools and the renovation of existing schools. These bonds were repaid during fiscal year 2011.

In February 2005, the School System issued $35,000,800 in 2005 General Obligation Bonds for the purpose of acquiring, constructing and equipping new school buildings and facilities, renovating existing facilities, and acquiring, installing and equipping system-wide technology.

In March 2007, the School System issued $29,965,000 in 2007 General Obligation Bonds for the purpose of acquiring, constructing and equipping new school buildings and facilities, renovating existing facilities, and acquiring, installing and equipping system-wide technology.

General obligation bonds consist of the following as ofJune 30, 2011:

Series
2005 2007 2009

Coueon Rate
3.65% to 4.50% 3.50% to 5.00% 2.50% to 5.00%

Maturities
2010 to 2025 2011 to 2027 2010 to 2015

Balance
$ 33,223,368 29,000,000 17,505,000
$ 79,728,368

Annual debt se1-vice requirements to maturity for general obligation bonds are as follows:

2012 2013 2014 2015 2016 2017-2021 2022-2026 2027
Total

Princieal

$

7,036,781

7,283,849

7,583,118

7,875,520

3,464,955

20,373,054

20,931,093

2,685,000

$ 79,728,368

Interest

$

4,399,931

4,176,343

3,881,024

3,596,122

3,263,380

14,059,747

7,723,832

134,250

$ 41,493,629

Total
$ 11,436,712 11,460,192 11,464,142 11,471,642 6,728,335 34,432,801 28,654,925 2,819,250
$ 121,221,997

60

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE I- LONG-TERM DEBT- continued

Changes in Long-Term Liabilities

The changes in long-term debt during the year were as follows:

Beginning Balance

General obligation bonds $ Less discount on issuance
of bonds Plus premium on issuance
of bonds Total bonds payable
Capital leases payable Claims payable Accrued compensated
absences payable

88,670,800
(74,736)
1,982,584 90,578,648
5,019,429 615,000
1,847,762

$ 98,060,039

Additions $
3,311,428 521,054
1,225,125 $ 5,057,607

Reductions $ (8,942,432)
5,096
~289,035}
(9,226,371) (2,120,072)
(521,054)
U,148,906} $ ~13,016,403}

Ending Balance $ 79,728,368
(69,640)
1,693,549 81,352,277
6,210,785 615,000
1,923,981 $ 90,102,043

Due Within One Year $ 7,036,781
7,036,781 2,460,163
615,000 161,148 $ 10,273,092

Claims payable and compensated absences are generally liquidated by the General Fund.

NOTE J - FUND BALANCES

Nonspendable- The following fund balance are nonspendable because they are allocated to:

General Fund: Prepaid items

$

38,475

Nonmajor Special Revenue Funds: School Nutrition Service Fund inventory Total Nonspendable Fund Balance

259 836 $=="'2~98~3~1'='=1

61

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE J - FUND BALANCES - continued

Restricted- The following balances are restricted for:

Debt Service Fund: used to account for debt service payments on general obligation debt

$ 3,983,350

Capital Projects-SPLOST Fund: used to account for capital projects flnanced with SPLOST

20,612,002

Nonmajor Special Revenue Funds: School Nutrition Services Fund- used to account for activity of the school lunch program Friends Mentoring Program Fund- used to account for proceeds of grant from Department of Human Resources Other Grants Fund- used to account for various grant awards

1,792,292
16,886 10,659

Nonmajor Capital Project Funds: Bond 2007 Fund- used to account for capital projects financed with proceeds of the 2007 bond referendum

3 903 796

Total Restricted Fund Balance

$ 30318985

Committed - The following fund balances are committed to:

General Fund : to account for a portion of net cRate receipts set aside by the Board to be used on technology infrastucture

$ 230,102

Nonmajor Special Revenue Funds: Community Education Fund- used to account for the activities of community school programs After School Program Fund- used to account for the activities of after school programs Donations Fund- used to account for resources provided by donations Auditorium Rentals Fund- used to account for resources generated by auditorium facility rentals Principals' Fund- used to account for resources generated by schools for various school activities and needs

476,096 529,708
81,728 47,759 1 307 463

Total Committed Fund Balance

$ 2 672 856

62

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE J - FUND BALANCES - continued
Assigned -The following fund balances are assigned to:
General Fund: to account for a portion of the year end fund balance which is appropriated in the subsequent year's budget

$ 16,435,948

Nonmajor Special ReYenue Funds: Community School Fund- to account for a portion of the year end fund balance which is appropriated in the subsequent year's budget
Nonmajor Capital Project Funds: Regular Capital Project Fund- to account for amounts intended to be spent on capital outlay
Total Assigned Fund Balance

500,000
1 125 873 $ 18 061 821

NOTE K- INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2011 consisted of the following amounts:

TRANSFERS OUT

TRANSFERS IN Debt Se1vice Fund Non-Major Funds:
Title II Title III JRROTC Lottery

Major Funds

General

Fund

SPLOST

Total

$

- $ 5,000,000 $ 5,000,000

19,369 3,801
134,133 3,986
$ 161,289 $

19,369 3,801
134,133 3,986
5,000,000 $ 5,161,289

63

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE K- INTERFUND TRANSFERS- continued As authorized by the SPLOST referendum, a portion of SPLOST receipts are to be used toward principal and interest payments on certain general obligation debt. During the year, $5,000,000 of SPLOST receipts were transferred to the Debt Service Fund in order to make these debt service payments. The General Fund provides funding for various programs accounted for in special revenue funds but which are not completely funded by state, federal or local grants.
NOTE L- RISK MANAGEMENT The School System is exposed to various risks of loss for claims associated with torts; theft of, damage to and destruction of assets; errors and omissions; job related injuries to employees; natural disasters and unemployment compensation. Risk Pool The School System has elected to be a member of the Georgia School Boards Association- Risk Management Fund (GSBA-RMF), an interlocal risk management agency created under Georgia law. Coverage for losses arising from certain liability and property risks to the School System is provided through a group self-insurance plan. For accounting purposes, this plan is considered to be a Risk Transfer Pool. Under this plan, the School System is responsible for the flrst $5,000 of each property loss, the first $500 of auto physical damage loss, the flrst $2,500 of each auto liability claim and the first $10,000 of each school leader's liability claim. The plan assumes certain risks of the School System in excess of the stated retentions up to certain customary coverage limits. The School System is required to make a financial contribution to the plan each year in an amount that is determined on the basis of actuarial projections of losses. Management of GSBA-RMF has informed the School System it had no outstanding liabilities within the loss retentions stated in the preceding paragraph. Management of GSBA-RMF has also informed the School System that there is a possibility of additional contribution liability in the event that the plan is terminated or the School System elects to withdraw prematurely. No amount has been recorded in financial statements due to the belief that plan termination is unlikely and withdrawal by the School System is not contemplated.
64

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE L- RISK MANAGEMENT -continued

Workers' Compensation Claims

The School System is self-insured for workers' compensation claims. The School System accounts for workers' compensation claims in an internal service fund. \Vorkers' compensation claims expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School System, in consultation with its claims administrator, has accrued a liability for claims that have been incurred but not reported.

Changes in the workers' compensation claims liability during the last two fiscal years were as follows:

Year Ended June 30,
2011 2010

Beginning of Year Liabili!J
$ 615,000 $ 615,000

Current Year Claims 1\cctual
$ 521,054 $ 354,002

Claims Paid
$ 521,054 $ 354,002

End of Year Liabili!J
$ 615,000 $ 615,000

Unemployment Claims

The School System is self insured for unemployment compensation claims. These claims are accounted for in the School System's General Fund. Unemployment compensation expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. Changes in the unemployment compensation liability during the last two fiscal years were as follows:

Year Ended June 30,
2011 2010

Beginning of Year Liability
$ $

Current Year Unemployment
Accrual

$

35,269

$ 105,775

Unemployment Paid

$

35,269

$ 105,775

End of Year Liabili!y
$ $

NOTE M- ON-BEHALF PAYMENTS FOR FRINGE BENEFITS

The School System has recognized revenue and expenditures in the General Fund for health insurance and retirement contributions paid on the School System's behalf as follows:

Georgia Department of Education

Paid to the Department of Community Health for

Health Insurance of Non-Certified Personnel

$

Paid to Teachers' Retirement System (TRS)

Office of Treasury and Fiscal Services

Paid to the Public School Employees' Retirement System (PSERS)

$

335,444 169,171
81,227 585,842

65

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2011
NOTE N- RETIREMENT PLANS
Teachers Retirement System of Georgia (TRS)
Plan Description
Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system.
TRS provides set-vice retirement, disability retirement and survivor's benefits for its members. A member is eligible for retirement after 30 years of service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. If an employee retires under this provision, the benefit will be permanently reduced by the lesser of one-twelfth of 7% for each montl1 you are below age 60, or 7% for each year or fraction of a year by which you have less tl1an 30 years of creditable service. Retirement benefits paid to members are equal to 2% of ilie average of ilie member's two consecutive highest paid years of service multiplied by the number of years of creditable service up to 40 years. The normal retirement pension is payable monilily for life. Options are available for distribution of the member's monilily pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The benefit is based on the member's creditable service (minimum of 10 years) and compensation up to the date of death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of set-vice, no vesting of employer contributions occurs, but the member's contributions are refunded with interest.
TRS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by calling (404) 352-6500.
Funding Policy
Employees of the School System who are covered by TRS are required to pay 5.25% of their gross earnings to TRS (5.25% in 2010 and 5.0% in 2009). The School System makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees, as advised by their independent actuary. The employer contribution rate was 10.28% for fiscal year ending June 30, 2011, 9.74% for fiscal year ending June 30, 2010 and 9.28% for fiscal year ending June 30, 2009.
The School System's actual and required contributions to TRS for the years ending June 30, 2011, 2010, and 2009 were approximately $11,539,365, $10,998,048, and $11,231,030, respectively.
66

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE N- RETIREMENT PLANS- continued
Public School Employees' Retirement System of Georgia (PSERS)
Plan Description
Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees' Retirement System of Georgia (PSERS), which is a cost-sharing multiple employer public employee retirement system. All employer contributions are made by the State of Georgia.
PSERS provides service retirement, disability retirement and survivor's benefits for its members. A member is eligible for normal service retirement after 10 years of service and attainment of age 65. A member applying for service retirement with 10 years of service and retiring between the ages of 60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable senrice. Death benefits are dependent upon the number of years of service. If there are less than ten years of service, a lump sum refund of the employee's contributions and interest are made to the beneficiary. If there are more than ten years of service, the beneficiary shall receive for life half of what the employee would have received upon retirement.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, nonvesting of employer contributions occurs, but the member's contributions are refunded with interest.
PSERS issues a publicly available fmancial report that includes financial statements and required supplementary information. That report may be obtained by calling (404) 352-6400.
Funding Policy
Covered employees are required by State statute to contribute $4.00 a month for the nine-month school year. Unlike TRS, the School System makes no contribution to PSERS. The State of Georgia is required by statute to make employer contributions as actuarially determined and approved by the PSERS's Board of Trustees. Total required and actual contributions from the State of Georgia to PSERS for the School System was approximately $81,000, $60,000, and $81,000 for the years ended June 30, 2011, 2010, and 2009, respectively.
67

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE N- RETIREMENT PLANS- continued Fayette County School System Supplemental Retirement Plan Plan Description The Fayette County School System Supplemental Retirement Plan (the "Plan") is a single employer defined contribution plan established and administered by the Fayette County Board of Education for those employees covered by PSERS who did not elect coverage under Social Security in 2002. The Plan provides retirement benefits to plan participants and beneficiaries. Plan provisions and contribution requirements are established and may be amended by the Board. At June 30, 2011, there were 3,183 plan participants. Funding Policy Under the Plan, the School System contributes 7.5% of each participant's base compensation. Participants may not make contributions to the Plan. For the fiscal year ending June 30, 2011, the School System's contribution to the Plan was approximately $192,000.
NOTE 0- POSTEMPLOYMENT BENEFITS Plan Description The Georgia School Personnel Post-employment Health Benefit Fund ("School OPEB Fund") is a costsharing multiple-employer defined benefit postemployment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficialries through the State Employees Health Insurance Plan administered by the Department of Community Health. The Official Code of Georgia Annotated ("O.C.G.A.") assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health.
68

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE 0 - POSTEMPLOYMENT BENEFITS- continued

Funding Policy

The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage.

Participating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. The contribution rates are established to fund all benefits under the halth insurance plans for both the active and retired employees based on projected pay-as-you-go financing requirements. Contributions are not based on the actuarially calculated annual required contribution ("ARC") which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years.

The combined active and retiree contribution rates established by the Board of Community Health for employers participating in the School OPEB Fund are as follows for the fiscal year ended June 30, 2011:

Certificated employees (teachers): Period July 2010 -April2011 May 2011- June 2011

Percentage of Covered Payroll (State Base Salary) 21.955 % for August- May coverage 1.429% for June- July coverage

Non-certificated employees: Period

Rate per Employee

July 2010- November 2010 December 2010- April 2011 May 2011- June 2011

$162.72 per month for August- December coverage $218.20 per month for January- May coverage $246.20 per month for June- July coverage plus $335,444 of annual on-behalf contributions

No additional contribution was required by the Board of Community Health for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board of Community Health in accordance with the State plan for other postemployment benefits are are subject to appropriation.

69

Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011
NOTE 0 - POSTEMPLOYMENT BENEFITS- continued
The School System's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for d1e fiscal years ended June 30, 2011, 2010 and 2009 was approximately $18,973,647, $16,190,927, and $13,540,917 and respectively. Additionally, the School System paid supplemental amount towards the employee portion of coverage of approximately $2,034,319,$2,090,591 and $2,221,648 for the years ended June 30,2011,2010 and 2009, respectively. See Note M for discussion of on-behalf payments.
NOTE P- NON-MONETARY TRANSACTIONS
The School System received from the United States Department of Agriculture through d1e Georgia Department of Education approximately $419,000 in donated food commodities for its lunchroom programs. The federally assigned value of these commodities is reflected as revenues when received and as expenditures when used.
NOTE Q - COMMITMENTS AND CONTINGENCIES
Contracts
The School System has entered into various construction and renovation contracts that are in progress at year end. At year end, approximately $534,000 remains to be paid on d1ese contracts.
Grant Programs
The School System participates in numerous State and Federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the School System has not complied with the rules and regulations governing the grants, refunds of any money received may be required and the collectibility of any related receivable may be impaired. In the opinion of the School System, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for such contingencies.
Litigation
The School System is engaged in other various lawsuits arising in the ordinary course of business. These lawsuits are in various stages of the litigation process, and their ultimate outcome cannot be determined currendy. Management does not believe the ultimate outcome of these lawsuits will have a material impact on the School System's financial statements.
70

Fayette County Board of Education NOTES TO FINANCIAL STATEMENTS- CONTINUED
June 30, 2011

NOTE R- ACCOUNTING CHANGE- RESTATEMENTS

The School System had determined that restatements of beginning fund balance in the General Fund and the Project T.E.A.M. Fund are required to reflect implementation of GASB Statement No. 54, l:'und Balance Reporting and Governmental Fund Type Definitiom, which establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The restatements are as follows:

Fund balance at June 30, 2010, as previously reported

General Fund
$ 17,288,019

Non-Major Special Revenue
Project T.E.A.M.

$

2,937

Change in fund type classification for Implementation of GASB Statement No. 54

2,937

(2,937)

Fund balance at July 1, 2010, as restated

$ 17,290,956

$

71

(fhis page intentionally left blank.) 72

Combining Statements and Schedules
73

Fayette County Board of Education
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for funds received from other governmental agencies that are legally restricted to be expended for specified purposes. These funds also account for receipt and expenditures of resources transferred from the General Fund when these funds are inadequate to finance the specified activities. The following funds are included in the Special Revenue Funds category:
School Nutrition Service Fund is used to account for the school breakfast and lunch programs which are funded primarily by the Federal government. Title I Fund was established to account for federal grant funds flowing through the State of Georgia Department of Education to tl1e School System for the purpose of providing remedial education in the areas of reading and math and of providing a special education program for children who are physically handicapped. Individuals With Disabilities Education Act (IDEA) Fund was established to account for federal grant funds flowing through the State of Georgia Department of Education to the School System, for the purpose of providing special education programs for children in pre-kindergarten through the twelfth grade. Vocational Grants Fund was established to account for federal grant funds flowing through the Georgia Department of Education for providing a vocational curriculum program for students. Drug Free Schools and Communities Act Fund was established to account for federal grant funds flowing through the State of Georgia Department of Education to the School System, for the purpose of providing health education in the area of drug abuse. Eisenhower Professional Development (I'itle II) Fund was established to account for federal grant funds flowing through the State of Georgia Department of Education to the School System, for the purpose of training teachers in the math, science, foreign language and computer science programs. Title III Fund was established to account for federal funds flowing through the State of Georgia Department of Education for the purpose of providing programs for training teachers in new teaching methods of ESOL and providing learning materials for students. Jr. ROTC Fund was established to account for federal funds from the Department of Defense for the purpose of training students in military protocol and serving as an incentive for students to further seek a career in the United States Air Force. Building Connections Fund was established to account for federal funds flowing directly from the U.S. Department of Education for the purpose of improving instruction related to American history. Lottery Fund was established to account for state lottery funds.
74

Fayette County Board of Education NON-MAJOR GOVERNMENTAL FUNDS- CONTINUED
SPECIAL REVENUE FUNDS - continued Friends Mentoring Program Fund was established to account for funds flowing through the Department of Human Resources to the School System for the purpose of providing services to at risk youths to prevent juvenile delinquency and substance abuse. DHR Family Connections Fund was established to account for funds flowing through the Department of Human Resources, whereby the School System serves as fiscal agent for the Family Connections Program, which will use the funds to improve the quality of family life of Fayette County citizens. Other Grants Fund was established to account for various grant awards not reported in other special revenue funds. Community Education Fund was established to account for local fees paid by students for the Community School classes. After School Program Fund was established to account for local fees paid for the after school program in place at various Fayette County Schools. Donations Fund was established to account for donations by various businesses and individuals for various specified purposes. Auditorium Rentals Fund was established to account for the proceeds and costs of renting auditorium facilities to various outside groups. Principals' Fund was established for funds raised at each school for local school programs.
CAPITAL PROJECTS FUNDS The Capital Projects Funds are used to account for resources provided for the acquisition or construction of major capital facilities (other than facilities of enterprise funds). Capital projects may be financed by the sale of bonds, State or Federal grants, special tax levies, or transfers of resources from other funds. The following capital projects funds are used by the School System: Regular- This fund accounts for locally funded construction and renovation projects. Bond 2007- This fund accounts for construction and renovation projects funded by General Obligation Bonds issued in fiscal year 2007. Bond 2005 - This fund accounts for construction and renovation projects funded by General Obligation Bonds issued in fiscal year 2005.
75

Fayette County Board of Education
COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2011

ASSETS Cash Investments Due from other governments Interest receivable Due from other funds Inventoq
Total assets
LIABILITIES AND FUND BALANCES
Liabilities Accounts payable Retainage payable Salaries payable Due to other funds
Total liabilities
Fund balances N onspendable Restricted Committed Assigned
Total fund balances
Total liabilities and fund balances

Special Revenue
Funds

Capital Project Funds

Total Non-Major
Funds

$ 5,799,520 $ 1,022,400 $ 6,821,920

66,507

4,868,916

4,935,423

1,521,063

1,521,063

123

123

19,135

18,008

37,143

259,836

259,836

$ 7,666,184 $ 5,909,324 $ 13,575,508

$

20,847 $

1,652,613 970,297
2,643,757

839,547 $ 40,108
879,655

860,394 40,108 1,652,613 970,297
3,523,412

259,836 1,819,837 2,442,754
500,000

3,903,796 1,125,873

259,836 5,723,633 2,442,754 1,625,873

5,022,427

5,029,669

10,052,096

$ 7,666,184 $ 5,909,324 $ 13,575,508

76

Fayette County Board of Education

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS

For the year ended June 30, 2011

Revenues State funds Federal funds Local and other funds

Special Revenue
Funds

Capital Project Funds

Total Non-Major
Funds

$ 1,038,749 $ 10,165,836 8,202,251

755,620 $ 9,341

1,794,369 10,165,836 8,211,592

Total revenues
Expenditures Current Instruction Support services Pupil services Improvement of instructional services Educational media services General administration School administration Maintenance and operation of facilities Student transportation services Other support services Community service Food services Capital outlay
Total expenditures

19,406,836

764,961

20,171,797

6,879,019
1,232,381 968,701 91,865 188,881 367,459 98,948 163,611 99,068
2,177,702 6,724,755
18,992,390

2,511,677 2,511,677

6,879,019
1,232,381 968,701 91,865 188,881 367,459 98,948 163,611 99,068
2,177,702 6,724,755 2,511,677
21,504,067

Excess (deficiency) of revenues over expenditures Other financing sources (uses)
Transfers in (out)
Total other financing sources (uses)

414,446
161 289 161,289

(1, 746,716)

(1 ,332,270)
161,289 161,289

Net change in fund balances Fund balances, beginning of year

575,735 4,446,692

(1,746,716) 6,776,385

(1,170,981) 11,223,077

Fund balances, end of year

$ 5,022,427 $ 5,029,669 $ 10,052,096

77

Fayette County Board of Education
COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
June 30, 2011

ASSETS
Cash Investments Due from other governments Interest receivable Due from other funds Inventory
Total assets

School Nutrition
Service

Title I

IDEA

Vocational Grants

$ 2,576,713 $

-$

25,012 $

123 19,135 259,836

134,900

1,200,893

$ 2,855,807 $ 134,900 $ 1,225,905 $

23,754 23,754

LIABILITIES AND FUND BALANCES

Liabilities

Accounts payable

$

Salaries payable

Due to other funds

To talliabilities

-$ 518,779 284,900
803,679

2,091 $ 16,431 116,378
134,900

12,839 $ 765,892 447,174
1,225,905

684
23,070 23,754

Fund balances Nonspendable Restricted Committed Assigned Total fund balances
Total liabilities and fund balances

259,836 1,792,292

2,052,128

$ 2,855,807 $ 134,900 $ 1,225,905 $

23,754

~======

78

Drug Free

Title II

Title III

JRROTC

Building Connections

Lottery

$

-$

1,024

-$

-$

88,608

30,463

8,130 $ 6,400

2,318 $ 130,968
20,902

$

1,024 $

88,608 $ 30,463 $

14,530 $

23,220 ~$==1=30"""=,9=6=8

$

-$

1,024 1,024

-$ 65,979 22,629
88,608

292 $ 9,776 20,395
30,463

$ 14,530
14,530

1,108 $
22,112 23,220

130,968 130,968

$

1,024 $

88,608 $ 30,463 $

14,530 $

23,220 =$=====13=0=,=9=6=8 continued

79

Fayette County Board of Education
COMBINING BALANCE SHEET - CONTINUED NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds
June 30, 2011

ASSETS
Cash Investments Due from other governments Interest receivable Due from other funds Inventory
Total assets

Friends Mentoring Program

DHR Family Connections

Other Grants

Community Education

$

16,886 $

-$ 14,119

10,659 $

979,929

$

16,886 $

14,119 $

10,659 $

979,929

LIABILITIES AND FUND BALANCES

Liabilities

Accounts payable

$

Salaries payable

Due to other funds

Total liabilities

-$

-$

14,119 14,119

-$

3,833

3,833

Fund balances Nonspendable Restricted Committed Assigned Total fund balances
T otalliabilities and fund balances

16,886 16,886

10,659 10,659

476,096 500,000 976,096

$

16,886 $

14,119 $

10,659 $

979,929

80

After School Program

Donation Funds

Auditorium Rentals

Principals' Fund

Total

$

678,462 $

$

678,462 $

75,018 $ 6,710

47,759 $

1,247,666 $ 59,797

5,799,520 66,507
1,521,063 123
19,135 259,836

81,728 $ 47,759 $ 1,307,463 $ 7,666,184

$

-$

130,258

18,496

148,754

-$

-$

-$

20,847

1,652,613

970,297

2,643,757

529,708 529,708

$

678,462 $

81,728 81,728

47,759 47,759

1,307,463 1,307,463

259,836 1,819,837 2,442,754
500,000
5,022,427

81,728 $

47,759 $

1,307,463 $ 7,666,184 "====='==~=

81

Fayette County Board of Education

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds
For the year ended June 30, 2011

Revenues State funds Federal funds Local and other funds
Total revenues
Expenditures Current Instruction Support services Pupil services Improvement of instructional services Educational media services General administration School administration Maintenance and operation of facilities Student transportation services Other support services Community service Food services
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses) Transfers in (out)
Total other financing sources (uses)
Net change in fund balances Fund balances, beginning of year
Fund balances, end of year

School Nutrition
Service

Title I

IDEA

Vocational Grants

$

206,462 $

-$

-$

2,636,378

918,279

5,658,823

86,575

3,944,013

6,786,853

918,279

5,658,823

86,575

528,458
200 143,635
97,408

4,379,694
1,160,757 8,582
89,192

638 85,937

6,724,755 6,724,755
62,098

49,510 99,068

20,598

918,279

5,658,823

86,575

62,098 1,990,030
$ 2,052,128 ,;,$====- ,;,$====- ~$===

82

Drug Free

Tide II

Tide III

JRROTC

Building Connections

Lottery

$

-$

-$

7,453

381,460

-$
78,594

$
74,098

-$
324,176

790,037

7,453

381,460

78,594

74,098

324,176

790,037

7,453

400,829

13,991 63,971
2,863
1,570

208,231

324,176

791,674
2,281 68

7,453

400,829
(19,369) 19,369 19,369

82,395
(3,801) 3,801 3,801

208,231
(134,133) 134,133 134,133

324,176

794,023
(3,986) 3,986 3,986

=$========- =$=======- =$==========- =$========- =$========- =$========
continued
83

Fayette County Board of Education

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS- CONTINUED Special Revenue Funds
For the year ended June 30, 2011

Revenues State funds Federal funds Local and other funds
Total revenues
Expenditures Current Instruction Support services Pupil services Improvement of instructional services Educational media services General administration Schooladllllillstration Maintenance and operation of facilities Student transportation services Other support services Community service Food services
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses) Transfers in (out)
Total other financing sources (uses)
Net change in fund balances Fund balances, beginning of year
Fund balances, end ofyear

Friends Mentoring Program

DHR Family Connections

Other Grants

$

-$

42,250 $

5,795 5,795

6,641 48,891

5,120 5,120

179 179 5,616

48,891 48,891

8,115 8,115 (2,995)

5,616

(2,995)

11,270

13,654

$

16,886 ~$= = = = - ~$==10~,6=5=9

84

Community Education

After School Program

Donation Funds

Auditorium Rentals

Principals' Fund

$

-$

$

-$

-$

-$

484,079 484,079

1,740,018 1,740,018

43,813 43,813

17,693 17,693

1,955,079 1,955,079

Total
1,038,749 10,165,836
8,202,251 19,406,836

7,083

380,555 387,638
96,441

1,417,100 1,417,100
322,918

2,679
35,376 38,055
5,758

956,333

11,891 11,891
5,802

91,865 367,459
91,865 91,865 275,595
1,874,982
80,097

96,441 879,655

322,918 206,790

5,758 75,970

5,802 41,957

80,097 1,227,366

$

976,096 $

529,708 $

81,728 $

47,759 $ 1,307,463 $

6,879,019
1,232,381 968,701 91,865 188,881 367,459 98,948 163,611 99,068
2,177,702 6 724 755 18,992,390
414,446
161,289 161,289 575,735 4,446,692 5,022,427

85

Fayette County Board of Education
COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS
Capital Project Funds
June 30, 2011

ASSETS Cash Investments Due from other funds
Total assets

Regular

Bond 2007 Bond 2005

Total

$ 1,015,037 $

7,363 $

110,836

4,758,080

18,008

- $ 1,022,400 4,868,916 18,008

$ 1,125,873 $ 4,783,451 $

- $ 5,909,324

LIABILITIES AND FUND BALANCES

Liabilities Accounts payable Retainage payable Total liabilities

$

- $ 839,547 $

40,108

879,655

- $ 839,547 40,108
879,655

Fund balances Restricted Assigned Total fund balances
Total liabilities and fund balances

1,125,873 1,125,873

3,903,796 3,903,796

$ 1,125,873 $ 4,783,451 $

3,903,796 1,125,873 5,029,669
- $ 5,909,324

86

Fayette County Board of Education
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS Capital Project Funds
For the year ended June 30, 2011

Revenues State funds Local and other funds

Regular Bond 2007 Bond 2005

Total

$

-$

- $ 755,620 $ 755,620

193

2,297

6,851

9,341

Total revenues

193

2,297

762,471

764,961

Expenditures Capital outlay

2,472,228

39,449 2,511,677

Total expenditures

2,472,228

39,449 2,511,677

Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses) Transfers in (out)
Total other financing sources (uses)

193 (2,469,931) 723,022 (1,746,716)
4 206 645 (4,206,645) 4,206,645 (4,206,645)

Net change in fund balances Fund balances, beginning of year

193 1,736,714 (3,483,623) (1,746,716) 1,125,680 2,167,082 3,483,623 6,776,385

Fund balances, end of year

$ 1,125,873 $ 3,903,796 $

- $ 5,029,669

87

Fayette County Board of Education
School Nutrition Service Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues State funds Federal funds Local and other funds
Total revenues
Expenditures Current Food set-vices Total expenditures
Net change in fund balances

Original Budget

Final Budget

Actual

Variance

$

139,800 $

2,066,800

4,800,000

7,006,600

196,884 $

206,462 $

2,179,988

2,636,378

4,259,744

3,944,013

6,636,616

6,786,853

9,578 456,390 p15,731)
150,237

6,912,500 6,912,500

$

94,100 $

6,610,592 6,610,592

6,724,755 6,724,755

26,024 $

62,098 $

~114,163)
(114,163)
36,074

88

Fayette County Board of Education
Title I Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Instruction Support services Pupil services Improvement of instructional services General administration Student transportation services Other support services Total expenditures

Original Budget

Final Budget

$

649,688 $

1,120,910

649,688

1,120,910

343,259
2,664 90,014 92,964 41,771 79,016 649,688

644,034
2,066 161,411 119,058
57,418 136,923 1,120,910

Actual

$

918,279

918,279

528,458
200 143,635
97,408 49,510 99,068 918,279

Variance

$

(202,631)

(202,631)

115,576
1,866 17,776 21,650
7,908 37,855 202,631

Net change in fund balances

$

$

$

$

89

Fayette County Board of Education
IDEA Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Instruction Support services Pupil services Improvement of instructional services General administration J\Iaintenance and operation of facilities Student transportation services Total expenditures

Original Budget
$ 6,149,625 6,149,625
4,586,163 1,272,812
49,000 220,950
20,700 6,149,625

Final Budget

$

6,412,965

6,412,965

4,972,404
1,263,000 15,182
132,829 7,000
22,550 6,412,965

Actual
$ 5,658,823 5,658,823
4,379,694 1,160,757
8,582 89,192 20,598 5,658,823

Variance

$

~754,142)

e54,142)

592,710
102,243 6,600
43,637 7,000 1,952
754,142

Net change in fund balances

$

$

$

$

90

Fayette County Board of Education
Vocational Grants Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal ftmds
Total revenues
Expenditures Current Instruction Support services Improvement of instmctional services Total expenditures

Original Budget

$

87,100

87,100

87,100 87,100

Final Budget

Actual

$

92,356 $

86,575

92,356

86,575

5,994
86,362 92,356

638
85,937 86,575

Variance

$

(5,781)

~5,781)

5,356
425 5,781

Net change in fund balances

$

$

$

$

91

Fayette County Board of Education
Drug Free Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Insttuction Support services Pupil services Improvement of instmctional services Student transportation services Total expenditures
Net change in fund balances

Original Budget

Final Budget

Actual

Variance

$

34,469 $

7,298 $

7,453 $

155

34,469

7,298

7,453

155

225
32,344 1,500 400
34,469
$

7,298
7,298 $

7,453
7,453 $

(155) (155)

92

Fayette County Board of Education
Title II Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Instmction Support services Improvement of insttuctional services Total expenditures

Original Budget

Final Budget

Actual

Variance

$

383,612 $

383,612

382,292 $ 382,292

381,460 $ 381,460

(832) (832)

383,612 383,612

382,292 382,292

400,829 400,829

~18,537)
(18,537)

Deficiency of revenues under expenditures
Other financing sources Transfers in

Total other financing sources

Net change in fund balances

$

$

(19,369)

19,369

19,369

$

$

(19,369) 19,369 19,369

93

Fayette County Board of Education
Title III Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Instruction Support services Pupil services Improvement of instructional services Student transportation services Other support services Total expenditures

Original Budget

Final Budget

Actual

Variance

$

78,597 $

78,597

84,434 $ 84,434

78,594 $ 78,594

(5,840) {5,840)

13,000 63,597 2,000 78,597

15,000
64,392 2,889 2,153
84,434

13,991
63,971 2,863 1,570
82,395

1,009
421 26
583
2,039

Deficiency of revenues under expenditures
Other financing sources Transfers in

(3,801) 3,801

(3,801) 3,801

Total other fmancing sources

3,801

3,801

Net change in fund balances

$

$

$

$

94

Fayette County Board of Education
JRROTC Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Instruction Total expenditures

Original Budget

Final Budget

Actual

Variance

$

70,000 $

70,000

70,000 $ 70,000

74,098 $ 74,098

4,098 4,098

194,000 194,000

194,000 194,000

208,231 208,231

~14,231)
(14,231)

Deficiency of revenues under expenditures
Other financing sources Transfers in

Total other financing sources

Net change in fund balances

$

(124,000)
124,000 124,000
$

(124,000)

(134,133)

124,000 124,000
$

134,133 134,133
$

(10,133) 10,133 10,133

95

Fayette County Board of Education
Building Connections Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Federal funds
Total revenues
Expenditures Current Support services Improvement of instmctional services Total expenditures

Original Budget

Final Budget

Actual

Variance

$

434,000 $

434,000

434,000 $ 434,000

324,176 $ 324,176

~109,824)
uo9,824)

434,000 434,000

434,000 434,000

324,176 324,176

109,824 109,824

Net change in fund balances

$

$

$

96

Fayette County Board of Education
Lottery Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues State funds Federal funds
Total revenues
Expenditures Current Instruction Support services General administration Student transportation services Total expenditures

Original Budget

Final Budget

Actual

Variance

$

750,000 $

750,000 $

790,037 $

40,037

750,000

750,000

790,037

40,037

800,000 800,000

800,000 800,000

791,674
2,281 68
794,023

8,326
(2,281)
~68)
5,977

Deficiency of revenues w1der expenditures Other financing sources
Transfers in
Total other fmancing sources Net change in fund balances

(50,000)
50,000 50,000
$

(50,000) 50,000 50,000

(3,986) 3,986 3,986

46,014 (46,014) (46,014)

97

Fayette County Board of Education
Friends Mentoring Program Special Revenue Fund
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Support set-vices Other support set-vices Community set-vice Total expenditures
Net change in fund balances

Original Budget

Final Budget

Actual

$

10,000 $

10,000

5,000 $ 5,000

5,795 5,795

Variance 795 795

10,000

10,000

$

$

5,000 5,000
$

179 179
5,616 $

5,000
~179)
4,821
5,616

98

Fayette County Board of Education
DHR Family Connections Special Revenue Fund
SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues State funds Local and other funds
Total revenues
Expenditures Commcmity service Total expenditures
Net change in fund balances

Original Budget $
$

Final Budget

Actual

Variance

$

42,250 $

42,250 $

6,641

42,250

48,891

6,641 6,641

42,250 42,250
$

48,891 48,891
$

~6,641)
(6,641)

99

Fayette County Board of Education
Other Grants Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Community service Total expenditures
Net change in fund balances

Original Budget
$

Final Budget

Actual

Variance

$

5,120 $

5,120 $

5,120

5,120

5,120 5,120

8,115 8,115

(2,995) (2,995)

$

$

$

(2,995) $

(2,995)

100

Fayette County Board of Education
Community Education Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Support set-vices Maintenance and operation of facilities Community set-vice Total expenditures

Original Budget

$

446,000

446,000

380,728 380,728

Final Budget

$

446,000

446,000

380,728 380,728

Actual

$

484,079

484,079

7,083 380,555 387,638

Variance

$

38,079

38,079

(7,083) 173
(6,910)

Excess of revenues over expenditures Other financing sources (uses)
Transfers out Total od-1er fmancing sources (uses)
Net change in fund balances

65,272

(500,000)

(500,000)

$

~434,728) $

65,272
(500,000) (500,000)
~434,728) $

96,441

31,169

96,441 $

500,000 500,000 531,169

101

Fayette County Board of Education
After School Program Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Community set-vice Total expenditures
Net change in fund balances

Original Budget

Final Budget

Actual

Variance

$ 1,628,649 $ 1,628,649

1,634,429 $ 1,740,018 $

1,634,429

1,740,018

105,589 105,589

1,522,013 1,522,013

$

106,636 $

1,517,850 1,517,850

1,417,100 1,417,100

116,579 $

322,918 $

100,750 100,750
206,339

102

Fayette County Board of Education
Donations Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Support set-vices Improvement of instructional set-vices Other support set-vices Community service Total expenditures

Original Budget

Final Budget

Actual

$

30,000 $

30,000

30,000 $ 30,000

43,813 43,813

30,000 30,000

30,000 30,000

2,679
35,376 38,055

Variance

$

13,813

13,813

(2,679)
~5,376)
(8,055)

Net change in fund balances

$

$

$

5,758 $

5,758

103

Fayette County Board of Education
Auditorium Rentals Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Commw1it:y service Total expenditures
Net change in fund balances

Original Budget

Final Budget

Actual

Variance

$

5,000 $

5,000

5,000 $ 5,000

17,693 $ 17,693

12,693 12,693

5,000 5,000

$

$

5,000 5,000
$

11,891 11,891
5,802 $

~6,891)
(6,891)
5,802

104

Fayette County Board of Education
Principal Accounts Special Revenue Fund SCHEDULE OF REVENUES AND EXPENDITURESBUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Current Instruction Support services Educational media services School administration Maintenance and operation of facilities Student transportation services Central support services Other support services Community senrice Total expenditures

Original Budget $ 2,600,000
2,600,000
2,600,000 2,600,000

Final Budget

$

2,600,000

2,600,000

2,600,000 2,600,000

Actual
$ 1,955,079
_ _1,955,079
956,333 91,865
367,459 91,865 91,865
275,595
--------
1,874,982

Variance

$

~644,921)

(644,921)

(956,333)
(91,865) (367,459)
(91,865) (91,865)
2,600,000
~- (275,59_~
725,018

Net change in fund balances

$

$

$

80,097 $

80,097

105

Fayette County Board of Education
Debt Service Fund SCHEDULE OF REVENUES AND EXPENDITURES -
BUDGET AND ACTUAL
For the year ended June 30, 2011

Revenues Local and other funds
Total revenues
Expenditures Debt services Principal retirement Interest and fees Total expenditures

Original Budget

Final Budget

Actual

Variance

$ 7,676,637 $
7,676,637

7,676,637 $ 8,533,226 $

7,676,637

8,533,226

856,589 856,589

8,942,432 3,734,205 12,676,637

8,942,432 3,734,205 12,676,637

8,942,432 3,728,354 12,670,786

5,851 5,851

Deficiency of revenues under expenditures
Other financing sources (uses) Transfers in

(5,000,000) 5,000,000

Total other financing sources (uses)

5,000,000

Net change in fund balances

$

$

(5,000,000)

(4,137,560)

5,000,000

5,000,000

5,000,000

5,000,000

$

862,440 $

862,440 862,440

106

Fayette County Board of Education AGENCY FUNDS
Agency funds are used to accumulate assets held by the School System in a trustee capacity. Club and Class Funds - To account for monies collected at the schools in connection with student athletic, class and club activities.
107

Fayette County Board of Education
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND
For the year ended June 30, 2011

Balance Beginning
of Year

Additions

Deductions

Balance End
ofYear

ASSETS Cash

$ 1,477,408

LIABILITIES Due to student groups $ 1,477,408

$ 5,485,974 $ 5,485,974

$ 5,272,992 $ 5,272,992

$ 1,690,390 $ 1,690,390

108

ADDITIONAL FINANCIAL INFORMATION
109

FAYETTE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF SPECIAL PURPOSE LOCAL OPTION SALES TAX PROCEEDS- 2008 ISSUE
FOR THE YEAR ENDED JUNE 30, 2011

Project

Original Estimated
Cost

Current Estimated
Cost

Prior Years' Expenditures

Current Year's Expenditures

Debt service payments on bonded debt (Series 1999, 2001 and 2005)

$ 38,000,000 $ 29,300,000 $ 3,000,000 $ 5,000,000

Additions, renovations, repairs, irnprovements and equipment for existing school buildings and school system facilities

17,000,000

14,800,000

368,714

Acquisition of miscellaneous new equipment, fixtures and furnishings the school system, including technology infrastructure, equipment and software, safety and security equipment

47,500,000

40,380,000

5,726,933

8,063,716

Acquisition of textbooks

2,500,000

2,420,000

491,338

1,229,038

Acquisition of school buses and transportation and maintenance equipment

10,000,000

8,800,000

1,325,600

1,507,648

$ 115,000,000 $ 95,700,000 $ 10,543,871 $ 16,169,116

110

FAYETTE COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAM
FOR THE YEAR ENDED JUNE 30, 2011

Expenditures
Operating costs Salaries Employee benefits Employee Travel Rental of Equipment Supplies and materials Supplies and materials related to technology Expendable equipment Expendable computer equipment Books and periodicals Dues and fees Purchase of fuel
Total expenditures

$

584,912

200,739

5,479 199
2,166 175 258 75 20

$

794,023

111

FAYETTE COUNTY BOARD OF EDUCATION
QUALITY BASIC EDUCATION PROGRAM EARNINGS AND EXPENDITURES- BY PROGRAM
YEAR ENDED JUNE 30,2011

Description

Allotments from Georgia
Department of Education (1) (2)

Actual State Funded Expenditures

Salaries

Operations

Total

Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elem Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category I\' Category V Gifted Student- Category YI Remedial Education Program "-\lternative Education Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL FUNDS
Media Center Program Staff and Professional Development
TOTALQBEFORMULAFUNDS

$ 6,383,511 89,703
16,855,300 1,231,091 9,147,583 912,662
17,383,409 19,626,986 2,796,743 13,989,266
7,193,981 910,170
1,491,482 1,085,435

$ 6,669,836
18,269,559 2,257,892
11,018,193 1,173,667
21,148,828 21,831,655
2,284,507
883,132 752,241 7,482,855 3,235,914
3,8:12,220 810,600
1,035,237 1,613,085

$ 67,608 336
221,310 4,669 71,988 2,696 98,886
247,477 163,329

$ 6,737,444 336
18,490,869 2,262,561
11,090,181 1,176,363
21,247,714 22,079,132
2,447,836

18,723 2,599 52,062 31,885 19,307 59,901 5,639 9,266
729

901,855 754,840 7,534,917 3,267,799
19,307 3,892,121
816,239 1,044,503 1,613,814

99,097,325

104,299,421

1,078,410

105,377,831

2,757,693 491,077

2,870,092

453,828

3,323,920 347,907

$ 102,346,095 $ 107,169,513 $ 1,532,238 $ 109,049,658

(1) Comprised of gross state ft.mds, before reduction of local five mill share.

(2) "-\llotments do not include the impact of the State Amended Formula Adjustment.

112

STATISTICAL SECTION

This part of the Fayette County Board of Education's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the School System's overall financial health.

Contents

Page

Financial Trends

114

These schedules contain trend information to help the reader understand how the School

System's financial performance and well-being have changed over time.

Revenue Capacity

123

These schedules contain information to help the reader assess the School System's most

significant local revenue source, the property tax.

Debt Capacity

131

These schedules present information to help the reader assess the ciffordabili!J of the School

System's current level of outstanding debt and the School System's abili!J to issue

additional debt in the future.

Operating Information

136

These schedules contain service and infrastructure data to help the reader understand how

the information in the School System's financial report relates to the services the School

System provides and the activities itperforms.

Demographic and Economic Information

148

Theses schedules offer demographic and economic indications to help the reader understand

the environment within which the School System 'sfinancial activities take place.

113

Fayette County Board of Education Net Assets by Component Last Nine Fiscal Years (A) (unaudited)

Governmental Activities Invested in capital assets, net of related debt Restricted Unrestricted
Total governmental activities net assets

Fiscal Year

2011

2010

2009

2008

$

172,653,135 $

169,508,268 $

158,499,410 $ 150,461,882

26,335,635

8,971,932

11,911,480

19,677,495

20,608,820

28,213,735

1,620,066

(13,255,093)

$

219,597,590 $

206,693,935 $

172,030,956 $ 156,884,284

Note (r\):

Ycars after implementation of G;\SB Statement No. 34.

Source: School System records.

114

2007

2006

2005

2004

2003

$ 141,200,087 $ 131,639,978 $ 123,283,904 $ 108,982,803 $ 81,613,702

34,954,814

23,254,509

40,201,991

18,274,136

32,676,468

(20,464,970)

(10,668,482)

(26,387,084)

4,905,722

6,963,207

$ 144,226,005 $ 137,098,811 $ 132,162,661 $ 121,253,377

115

Fayette County Board of Education Changes in Net Assets
Last Nine Fiscal Years (A) (unaudited)

Expenses Governmental Activities
Instruction Support Services
Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of facilities Student transportation services Central support services Other support services Community services Education Food services Other non-instructional services Interest expense
Total govcrntncntal activities expenses
Program Revenues Charges for services Instruction Support services Education rood services Other non-instructional services Operating grants and contributions Capital grants and contributions
Total governmental activities program revenues
NET(EXPENSE)REVENUE
General Revenues Governmental Activities
Taxes: Property taxes Intangiblc taxes Transfer taxes Other taxes State reimbursement of homestead exemption, general purpose Sales tax, capital outlay and debt service
Interest and invcstn1ent earnings Other rrotal govcrnnlcntal activities general revenues
Change in Net Assets

Fiscal Year

2011

2010

2009

2008

$

140,677,264 $ 138,121,383 $ 146,934,039

$ 150,943,576

9,331,883 4,229,846 3,757,201 1,192,086 13,192,469 1,139,105 16,161,495 8,073,549 4,140,542
290,337 2,194,891

5,132,093 4,331,092 3,620,838 1,162,135 12,788,338 1,078,060 14,884,267 7,710,847 4,434,557
282,244 2,401,650

5,139,847 4,495,310 4,122,924 1,180,835 13,521,964
969,569 15,880,952
8,273,658 4,517,985
326,650 2,978,945

5,273,876 4,893,730 4,413,871 1,463,251 13,856,589 1,199,535 16,159,214 8,616,819 4,446,113
227,472 3,143,072

7,925,808

7,709,527

8,568,176

8,053,566

2,311,561

4,557,031

5,022,769

5,694,228

6,433,790

s

216,863,507 $ 208,679,800 $ 222,605,082

$ 231,436,035

335,649 $ 2,181,465

392,228 $ 2,330,335

314,311

s

2,572,638

200,639 3,016,894

3,943,587

4,120,152

4,476,338

4,465,461

2,226,598

102,475,842

99,837,085

100,129,904

107,519,664

1,213,372

398,221

3,614,327

1,549,115

$

110,149,915 $ 107,078,021 $ 111,107,518

$ 118,978,371

$ (106,713,592) $ (1 01,601 ,779) $ (111,497,564) $ (112,457,664)

$

99,163,635

$ 115,268,389 $ 115,084,744

$ 104,382,015

1,331,459

1,273,783

1,623,315

2,149,764

266,814

265,509

340,522

578,761

3,768,591

3,537,233

18,259,865

18,802,125

4,488,524

108,504

121,947

470,896

2,450,562

486,970

533,005

867,644

553,682

s

119,617,247 $ 136,264,7 58 $ 126,644,236

$ 113,652,017

$

12,903,655 $

s 34,662,979

15,146,672

$

1,194,353

Note (A): Note (B):

Years after implementation of GASB Statement No. 34. In year of implementation, all instruction and support service expenses classified under education.

Source: School System records

116

2007

2006

2005

2004

2003 (B)

$ 139,532,687 $ 129,110,116 $ 120,102,348 $ 114,285,902 $

5,052,964

4,381,135

4,500,471

4,244,930

4,959,046 4,134,587

4,841,891 3,901,888

4,194,351 3,825,244

3,654,878 3,633,377

1,865,056 12,363,255

2,089,660 10,965,459

1,891,969 10,692,347

2,006,204 9,922,166

1,256,946

1,235,347

1,021,899

1,007,631

14,994,627

14,128,544

12,719,694

11,927,783

7,864,526

7,226,965

6,877,733

5,962,203

3,696,847

2,546,504

2,699,301

2,767,767

241,819 3,323,812

195,724 2,959,370

341,205 2,973,067

289,995 2,401,678

162,931,029

7,129,145

6,981,926

7,171,596

7,107,293

5,788,470

2,572,397 6,210,948

2,656,276 6,271,738

3,216,384 5,763,735

3,491,013 5,365,458

5,904,412

$ 215,198,662 $ 199,492,543 $ 187,991,344 $ 178,068,278 $ 174,623,911

s 380,875
2,953,235

s 432,037
2,692,836

241,439 $ 2,823,292

4,178,251

4,164,794

2,443,673

2,831,385

102,112,584

93,582,335

4,154,760

s s 116,223,378

103,703,387 $

4,105,404 3,249,690 85,404,204
391,608
96,215,637 $

$ (98,975,284) $ (95,789,156) $ (91,775,707) $

294,436 $

2,752,414

5,762,422

3,874,727

3,864,869

3,739,338

82,746,889

84,580,360

6,101,161

53,544

99,508,965 $ 94,261,195

(78,559,313) $ (80,362,716)

$

99,496,866 $ 92,166,178 $ 87,468,396 $

2,791,990

3,033,194

2,909,438

872,943

931,184

771,895

27,790

13,424

16,735

3,549,276

3,576,846

3,546,985

2,826,447 873,898

2,678,460 517,064

1,381,476 616,932

$ 110,439,210 $ 102,916,350 $ 96,711,857 $

$

11,463,926 $

7,127,194 $

4,936,150 $

79,192,771 3,517,674 755,296 218,882

71,782,580 3,738,421
425,612

3,477,950

3,154,754

1,049,443 1,256,581 89,468,597 $

2,063,527 778,454
81,943,348

10,909,284 $

1,580,632

117

Fayette County Board of Education Fund Balances of Governmental Funds
Last Ten Fiscal Years
(unaudited)

General Fund Nonspendable Restt-icted Committed Assigned Unassigned
Reserved Unreserved Total General Fund

2011 {A}

Fiscal Year

2010

2009

$

38,475 $

$

230,102 16,435,948 9,632,929

2008 $

17,288,019 $ 26,337,454 $ 17,288,019 $

4,509,616 4,509,616 $

1,678,283 1,678,283

"-l,_ll other governmental funds

Nonspendable

$

259,836 $

$

$

Restt-icted

30,318,985

Committed

2,442,754

Assigned

1,625,873

Unassigned

Reserved Unreserved, reported in:
Special projects funds Capital projects funds
Total all other governmental funds

3,453,437

2,635,889

2,298,020

4,117,102 21,596,282

3,099,256 14,433,786

2,638,343 18,850,160

$ 34,647,448 $ 29,166,821 $ 20,168,931

$ 23,786,523

Note:

Includes all governmental fund types.

A Reflects implementation of GASB Statement No. 54

Balances previously reported as reserved fund balance related to capital project ftmds funded with bond proceeds and as reserved fund balance related to special revenue funds have been reclassified to unreserved classification because the funds in which the balances are accounted limit its usage. That is, the restt-iction on the fund balance is not narrower than the pmpose of the fund itself.

Increase in fund balance in this pet-iod was due to the issuance of general obligation bonds during the period for capital projects.

Source: School System records 118

2007 $

2006 $

Fiscal Year

2005

2004

$

$

2003 $

2002 $

6,555,409

5,427,148

4,799,001

6,120,096

6,338,338

9,213,143

$

6,555,409 $

5,427,148 ~$==4~,7=99~,0=0=1 $

6,120,096 $

6,33 8,338 ~$==9~,2=13~,1=4=3

$

$

$

$

$

$

4,629,016

4,667,476

42,253,938

19,956,232

34,595,240

58,744,193

2,699,479

2,821,627

34,227,555

21,738,700

3,145,184

$ 41,556,050 $ 29,227,803 $ 45,399,122 2 $ 19,956,232 $ 34,595,240 ~$==5=8~,7=44~,1=9=3

119

Fayette County Board of Education Changes in Fund Balances of Governmental Funds
Last Ten Years (modified accrual basis of accounting)
(unaudited)

Revenues State funds Federal funds Local and other funds
Total ren.;nucs
Expenditures Current
Instruction Support services
Pupil services Improvement of instructional services Educational media services General administration School administration Business adrninisttation Maintenance and operation of facilities Student transportation services Central support scn.jces Other support services Comn1unity senricc l1'ood scrYices ()ther non-instructional set-vices Capital outlay Debt Service Pt~ncipal retirement Interest and fees Bond issuance cost
Total expenditures

Fiscal Year

2011

2010

2009

2008

$

86,636,341

$

77,735,483 $ 91,168,857 $ 101,587,596

14,515,896

20,439,527

9,745,900

7,234,301

130,272,481

144,926,435

135,324,244

123,177,217

231,424,718

243,101,445

236,239,001

231,999,114

126,536,594
9,305,224 4,132,770 3,540,744 1,155,654 12,772,049 1,112,059 13,790,653 7,153,794 3,181,093
297,832 2,177,702 7,030,245
12,914,799
11,062,504 4,042,368
220,206,084

129,413,149
5,133,136 4,303,987 3,406,581 1,162,559 12,502,590 1,064,214 13,920,860 7,078,540 3,605,247
282,244 2,387,429 6,810,308
8,612,189
18,766,832 3,009,514 81,061
221,540,440

138,027,216
5,139,291 4,430,882 3,910,192 1,167,459 13,316,070
941,630 14,723,060 7,301,975 3,668,489
326,650 2,979,114 7,328,239
13,591,204
18,068,590 4,391,888
239,311,949

143,371,200
5,260,974 4,853,123 4,205,362 1,448,959 13,556,618 1,193,107 15,609,988 9,054,471 3,826,798
227,472 3,134,538 7,262,468 2,311,561 18,882,946
16,967,044 4,958,756
256,125,385

Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses) Sale of assets Issuance of bonds Premium (discount) on issuance of bonds Capital lease Refunding bonds Payment to refunded bond escrow agent
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital expenditures

11,218,634

21,561,005

(3,072,948)

(24,126,271)

3,311,428
3,311,428 14,530,062
6.9%

1,118,947 127,103
24,800,000 (25,830,762)
215,288
21,776,293
10.1%

2,286,689
2,286,689 (786,259)
9.8%

1,479,618
1,479,618 (22,646,653)
9.2%

Negative change in total fund balance is the result of spending proceeds of previously issued debt on large capital projects. Positive change in total fund balance is the result of the issuance of general obligation debt. Capital assets not recorded. Ratio calculated on capital outlay, not capital asset additions. Source: School System records

120

Fiscal Year

2007

2006

2005

2004

2003

2002

$

98,868,501

$

85,750,375

$

79,716,303

$

83,334,681 $

79,088,535 $

6,909,759

7,521,162

5,750,007

5,244,106

5,453,695

120,567,784

113,314,825

106,519,973

100,441,851

91,281,390

84,172,198 4,031,854 84,469,041

226,346,044

206,586,362

191,986,283

189,020,638

175,823,620

172,673,093

133,447,372
5,039,509 4,884,050 3,925,284 1,809,808 12,092,048 1,327,015 14,495,969 7,274,856 3,538,616
241,819 3,304,322 6,462,068 2,572,397 23,975,915
15,203,484 4,406,505 158,412
244,159,449
(17,813,405)
29,965,000 1,304,913
31,269,913
13,456,508
9.0%

123,924,803
4,427,063 4,780,798 3,651,713 2,027,439 10,718,073 1,178,267 13,957,845 8,668,870 2,839,589
195,724 2,955,767 6,304,995 2,656,276 17,753,339
13,589,396 4,896,009
21,044
224,547,010
(17 ,960,648)
2,417,476
2,417,476
(15,543,172)
9.1%

113,571,854
4,485,522 4,110,379 3,404,294 1,769,569 10,285,912 1,009,732 12,494,337 7,004,495 3,030,099
347,824 2,997,403 6,176,344 3,216,384 12,280,797
12,216,292 5,317,301 160,712
203,879,250
(11,892,967)
52,106 35,000,800
(101,915) 1,063,771
36,014,762
24,121,795
9.2%

108,246,557
4,217,086 3,536,290 3,299,354 1,936,236 9,612,826
990,234 11,509,039
6,211,512 2,957,379
289,995 2,396,438 5,697,961 3,491,013 34,479,105
11,514,270 5,545,593
215,930,888
(26,91 0,250)
901,000
1,152,000

105,478,766
4,098,437 3,570,616 3,401,268 1,590,361 10,436,569
901,104 11,793,871
4,765,947 2,138,900
507,437 2,443,388 5,594,411 3,091,298 27,788,797
9,589,215 6,047,871
203,238,256
(27,414,636)
390,879

2,053,000 (24,857,250) 1
8.9%

390,879 (27,023,757) 1
9.3%

99,924,022
3,403,346 3,382,934 3,008,617 1,440,634 8,639,410
980,649 10,117,005
5,262,205 1,922,180
520,223 2,110,045 5,411,846 2,467,562 25,442,349
7,430,904 7,468,719
142,010
189,074,660
(16,401,567)
19,072,117 (18,926, 100)
146,017
(16,255,550)
9.2/o 3

121

(This page intentionally left blank.) 122

Fayette County Board of Education
Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(in thousands of dollars) (unaudited)

MAINTENANCE AND OPERATIONS

Fiscal Year

Real Property

Assessed Valued Personal Privately~Owned Property Public Utilities

Less: Freeport Homestead Exemption

Total Taxable Assessed Value

Total Direct Tax Rate

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

4,889,256 5,278,389 5,245,804 5,085,472 4,794,801 4,372,044 4,036,879 3,709,205 3,442,392 3,116,897

320,137 397,857 390,440 350,968 329,427 339,547 345,487 346,465 339,847 328,554

73,325 71,407 67,292 70,522 64,713 64,757 64,305 62,756 61,966 57,599

704,898 727,311 670,759 627,651 582,484 512,898 469,733 435,809 403,125 383,108

4,577,820 5,020,342 5,032,777 4,879,311 4,606,457 4,263,450 3,976,938 3,682,617 3,441,080 3,119,942

20.000 20.000 19.750 18.596 18.600 18.750 18.990 18.869 17.650 18.053

Estimated Actual Taxable Value

Assessed Values as a Percentage of Actual Value

13,206,795

40%

14,369,133

40%

14,258,840

40%

13,767,405

40%

12,972,353

40%

11,940,870

40%

11,116,678

40%

10,296,065

40%

9,610,513

40%

8,757,625

40%

DEBT SERVICE

Fiscal Year

Real Property

Assessed Valued Personal Privately~Owned Property Public Utilities

Less: Freeport Homestead Exemption

Total Taxable Assessed Value

Total Direct Tax Rate

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

4,833,300 5,323,047 5,245,804 5,085,471 4,794,801 4,372,044 4,036,879 3,709,205 3,442,392 3,116,897

320,137 397,857 390,440 350,968 329,427 339,547 345,487 346,465 339,847 328,554

73,325 71,407 67,292 70,522 64,713 64,757 64,305 62,756 61,966 57,599

704,898 727,311 357,425 341,788 537,084 467,752 425,345 391,943 360,477 342,008

4,521,864 5,065,000 5,346,111 5,165,173 4,651,857 4,308,596 4,021,326 3,726,483 3,483,728 3,161,042

1.650 3.420 4.170 3.550 3.550 3.600 3.687 3.825 4.044 3.730

Estimated Actual Taxable Value

Assessed Values as a Percentage of Actual Value

13,066,905

40%

14,480,778

40%

14,258,840

40%

13,767,403

40%

12,972,353

40%

11,940,870

40%

11,116,678

40%

10,296,065

40%

9,610,513

40%

8,757,625

40%

Source: Georgia Department of Revenue

123

Fayette County Board of Education Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (unaudited)

School System

Operating Millage

Debt Service Millage

Total Millage

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

20.000 20.000 19.750 18.596 18.600 18.750 18.990 18.869 17.650 18.053

1.650 3.420 4.170 3.550 3.550 3.600 3.687 3.825 4.044 3.730

21.650 23.420 23.920 22.146 22.150 22.350 22.677 22.694 21.694 21.783

Unincorporated Operating Millage

County Incorporated
Operating Millage

7.391 7.391 7.391 5.432 4.888 5.191 5.420 5.870 6.200 6.640

5.400 5.400 5.400 5.432 5.692 6.083 6.380 6.820 7.120 7.590

Fire (1) Distr-ict Millage

EMS (2) District Millage

1.991 1.991 1.991 2.000 2.906 3.091 3.230 3.390 3.580 3.780

0.548 0.548 0.548 0.550
N/I~
N/A N/A N/A N/A N/A

Source: Georgia Department of Revenue
Notes (1) Levied in all municipalities except Fayetteville and Peachtree City. (2) Established EMS tax district to allocate cost of EMS based on use.

124

Overlapping Governments

City of Fayetteville
Millage

City of Tyrone Millage

City of Brooks :Millage

City of Peachtree City
Millage

City of Peachtree City Debt Service

3.240 2.988 2.988 2.990 2.990 3.033 3.033 3.033 3.110 3.220

2.889 2.889 2.889 2.900 2.900 2.900 2.900 2.900 2.900 2.500

0.789 0.730 0.730 0.764 0.794 0.862 0.900 0.935 1.000 0.864

6.384 5.134 5.120 4.985 5.533 5.283 5.283 5.283 4.703 4.315

0.399 0.399 0.411 0.548

State Millage
0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250 0.250

125

Fayette County Board of Education Property Tax Levies and Collections
Last Ten Fiscal Years (Unaudited)

Fiscal Year
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

M&O Tax Levy

Debt Service Tax Levy

89,949,880 95,475,793 99,164,240 90,226,100 85,394,697 79,600,481 74,971,265 68,984,474 59,755,477 56,324,310

7,493,511 16,479,111 21,124,335 17,384,940 16,459,467 15,445,744 14,720,465 14,151,670 14,088,195 11,790,686

Total Tax Levy for the Fiscal Year
97,443,391 111,954,904 120,288,575 107,611,040 101,854,164
95,046,225 89,691,730 83,136,144 73,843,672 68,114,996

Collected within the Fiscal Year of the Levy

Amount

Percentage of Levy

95,253,547 107,530,037 116,809,520 105,166,788 100,341,217 93,417,376 88,077,077
81,597,242 72,328,989 66,189,820

97.8% 96.0% 97.1% 97.7% 98.5% 98.3% 98.2% 98.1% 97.9% 97.2%

Source: As reported by the Fayette County Tax Commissioner

Note

Tax levy includes levy on motor vehicles.

126

Collections in Subsequent
Years
885,554 3,842,305 3,072,909 2,280,702 1,437,901
141,660 1,521,627 1,537,211 1,509,871 1,923,661

Total Collections to Date

Amount

Percentage of Levy

96,139,101 111,372,342 119,882,429 107,447,490 101,779,118 93,559,036
89,598,704 83,134,453 73,838,860 68,113,481

98.7% 99.5% 99.7% 99.8% 99.9% 98.4% 99.9% 100.0% 100.0% 100.0%

127

Fayette County Board of Education Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years

Fiscal Year

Property Tax

/mto Ad Valorem

Intangible Tax

Transfer Tax

State Reimbursement of Homestead
Exemption

2011 $ 91,741,352 $ 7,422,283 $ 1,331,459 $ 266,814 $

2010

107,637,996

7,630,393

1,273,783

265,509

2009

107,123,149

7,961,595

1,623,315

340,522

2008

96,299,582

8,082,433

2,149,764

578,761

2007

91,485,816

8,011,050

2,791,990

872,943

2006

84,382,779

7,783,399

3,033,194

931,184

2005

79,681,683

7,686,713

2,909,438

771,895

2004

71,488,701

7,704,070

3,517,674

755,296

2003

NA

NA

NA

NA

2002

NA

NA

NA

NA

3,768,591 3,537,233 3,549,276 3,576,846 3,546,985 3,477,950
NA NA

Source: School System records NA: Data not available

128

Special Purpose Local Option Sales Tax

Other Taxes

Total

$ 18,259,865 $

$ 119,021,773

18,802,125

135,609,806

4,488,524

125,305,696

110,647,773

27,790

106,738,865

13,424

99,720,826

16,735

94,613,449

218,882

87,162,573

NA

NA

NA

NA

NA

NA

129

Taxpayer
NCR Corporation DDRTC Fayette Pavilion I & II Coweta-Fayette El\IC DDRTC Fayette Pavilion III & IV BellSouth Adanta Gas Light Hoshizaka America Georgia Power Company Summit Properties Partnerships CP Venture Five - APC LLC Matsushita Communications Corp. Fourth Quarter Properties TDK/Electronic Corp. Photocircuits Corporation Lawson Mardon Packaging Co. Fasson Roll Division "\I\ILI Residential Property LP "\lean Packagin.g Other Taxpayers

Fayette County Board of Education Principal Taxpayers (Top Ten)
June 30,2011 and Nine Years Ago

FY 2011 Assessed Valuation

Rank

Percentage of Total Assessed Valuation

34,221,404 1 28,788,204 2 25,541,145 3 17,259,208 4 12,856,188 5 11,925,199 6 11,742,161 7 10,710,014 8 9,865,200 9 8,863,560 10

0.70% 0.59% 0.52% 0.35% 0.26% 0.24% 0.24% 0.22% 0.20% 0.18%

4,717,483,717 4,889,256,000

96.49% 100.00%

FY 2002 Assessed Valuation

Rank

Percentage of Total Assessed Valuation

41,672,972 1

1.28%

15,153,145 7

0.32%

21,576,976 6

0.71%

26,586,467 2 25,130,890 3 23,830,091 4 22,466,089 5 11,335,374 8 11,006,473 9
7,247,059 10
3,297,043,94 7 3,503,049,483

0.71% 0.60% 0.70% 0.80% 0.37% 0.47% 0.23%
93.81% 100.00%

Source: Note:

Fayette County Tax Commissioner (current year infom1ation) and the Fayette County Comprehensive "-\nnual Financial Report (FY2002 information).
Amounts for FY 2011 relate to tax year 2010.

130

Fayette County Board of Education Ratios of Outstanding Debt by Type
Last Ten Fiscal Years

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Governmental Activities

General

Obligation

Certificates

Bonds

of Participation

$ 79,728,368 $ 1,300,000 $

88,670,800

1,690,000

105,720,800

2,065,000

122,345,800

2,420,000

138,045,800

2,765,000

122,185,800

3,095,000

134,780,800

3,410,000

110,980,000

3,710,000

121,605,000

3,995,000

130,340,000

4,270,000

Capital Leases 4,910,785 3,329,429 4,649,158 3,451,059 2,893,485 3,661,969 1,923,889 1,576,410 1,028,679 1,607,895

Total Primary Government $ 85,939,153
93,690,229 112,434,958 128,216,859 143,704,285 128,942,769 140,114,689 116,266,410 126,628,679 136,217,895

Percentage of Personal
Income NA NA
2.44% 2.68% 2.95% 2.93% 3.34% 2.92% 3.31% 3.70%

Per Capita
NA NA 1,052.88 1,205.07 1,356.56 1,229.88 1,366.23 1,163.23 1,291.71 1,419.11

Note: Details regarding the School System's debt can be found in the notes to the basic financial statements. Source: School System records NA: Personal income data and population data not available for calculation of amounts.

131

Fiscal Year
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Fayette County Board of Education Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years

General Obligation
Bonds

Less: Amounts Available in Debt
Service Funds

Total

Percentage of Estimated Actual
Taxable Value of Property

$ 79,728,368 $ 4,255,661 $ 75,472,707

88,670,800

3,690,296

84,980,504

105,720,800

2,985,220

102,735,580

122,345,800

2,495,960

119,849,840

138,045,800

4,452,153

133,593,64 7

122,185,800

4,474,443

117,711,357

134,780,800

5,147,919

129,632,881

110,980,000

5,608,690

105,371,310

121,605,000

6,317,619

115,287,381

130,340,000

6,176,059

124,163,941

0.57% 0.59% 0.72% 0.87% 1.03% 0.99% 1.17% 1.02% 1.20% 1.42%

Per Capita
NA NA 962.05 1,126.43 1,261.11 1,122.75 1,264.02 1,054.23 1,176.02 1,293.54

Note:

Details regarding the School System's outstanding debt can be found in the notes to the basic fmancial statements.
See the Schedule of Assessed and Estimated Actual Value of Taxable Property on page 123 for property value data.
NA - population data not available for calculation of per capita amount.

132

Fayette County Board of Education Direct and Overlapping Governmental Activities Debt
As of June 30, 2011

Governmental Unit
Debt repaid with property taxes: Peachtree City 2002 Bonds 2003 Bonds 2004 Bonds
Total Overlapping Debt
Fayette County Board of Education
Total Direct and Overlapping Debt

Debt Outstanding

Estimated Percentage Applicable (1)

Estimated Share of Overlapping
Debt

$

595,000

1,240,000

2,995,000

100% 100% 100%

$ 595,000
1,240,000 2,995,000
4,830,000
79,728,368
$ 84,558,368

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundries of the School System. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses within the School System's boundries. This process recognizes that, when considering the School System's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the
municipalityI authority's taxable assessed value that is within the School System's boundries and dividing it by the the municipalityI authority's total taxable assessed value.

133

Fayette County Board of Education Legal Debt Margin Information Last Ten Fiscal Years

Legal Debt Margin Calculation for Fiscal Year 2011

Assessed value 2010 tax digest
Limit of bonded indebtedness, 10% of net assessed taxable property value
Amount of debt applicable to the debt limit

$ 4,621,863,747
462,186,3 75 81,028,368

Legal Debt Margin

$ 381,158,007

Debt limit Total debt applicable to limit

2011 $ 462,186,375
81,028,368

2010 $ 506,500,006

2009 $ 534,611,072

2008 $ 516,517,319

90,360,800

107,785,800

124,765,800

Legal debt margin

$ 381,158,007 $ 416,139,206 $ 426,825,272 $ 363,165,289

Total debt applicable as a percentage of debt limit

17.5%

17.8%

20.2%

24.2%

Source: School System records
Note: Under the Constitution of the State of Georgia, the School System may not incur long-term debt in excess of ten percent of the assessed value of all taxable property within the district.

134

2007

2006

$ 465,185,735 $ 430,859,581

2005 $ 282,698,104

2004 $ 251,131,394

2003 $ 233,286,603

2002 $ 199,840,493

140,810,800

125,280,800

142,245,000

83,840,000

90,840,000

89,165,000

$ 324,374,935 $ 305,578,781 $ 140,453,104 $ 167,291,394 $ 142,446,603 $ 110,675,493

30.3%

29.1%

50.3%

33.4%

38.9%

44.6%

135

Fayette County Board of Education Operating Statistics Last Ten Fiscal Years (unaudited)

Fiscal Year 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

General Fund Expenditures $ 174,862,115
173,796,697 186,618,421 198,344,607 184,323,313 172,647,046 158,711,504 149,840,860 144,960,971 135,457,509

Student Enrollment
21,120 21,683 22,047 22,108 22,367 22,291 22,338 21,624 21,239 20,817

Cost Per Pupil 8,279.46 8,015.34 8,464.57 8,971.62 8,240.86 7,745.15 7,105.00 6,929.38 6,825.23 6,507.06

Percentage Change 3.3% -5.3% -5.7% 8.9% 6.4% 9.0% 2.5% 1.5% 4.9% 0.3%

Teaching Staff 1,483 1,493 1,570 1,675 1,620 1,565 1,529 1,515 1,524 1,459

Pupil/Teacher Ratio 14.62 14.77 14.09 13.35 13.76 14.27 14.14 14.02 13.66 13.59

Source: School System records

136

Fiscal Year 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Fayette County Board of Education Teacher Salaries
Last Ten Fiscal Years (unaudited)

Minimum Salary 34,723 33,161 34,723 33,953 33,055 31,904 31,340 30,787 30,482 29,611

Maximum Salary 80,383 76,766 80,383 78,614 76,553 73,909 72,615 69,494 68,806 66,868

Statewide Base 33,424 33,424 33,424 32,609 31,659 30,441 29,259 29,259 29,259 26,779

Source: School System records

137

Fayette County Board of Education School Building Information Last Ten Years (unaudited)

Elementary

Braehnn (1989)

Square feet

Capacity

Eruolhnent

Brooks

(1962)

Square feet

Capacity

Enrolhnent
Robt. J. Burch (1989)

Square feet

Capacity

Enrolhnent

Crabapple Lane (2004)

Square feet

Capacity

Enrollment

East Fayette (1955)

Square feet

Capacity

Eruolhnent

Fayetteville Intennediate (1974)

Square feet

Capacity

Enrollment

Hood Avenue (1970)

Square feet

Capacity

Enrolhnent

Huddleston (1979)

Square feet

Capacity

Enrolhnent

Inman Road (2009)

Square feet

Capacity

Enrollment

Kedron

(1995)

Square feet

Capacity

Eruolhnent

2011
70,860 675 493
60,413 525 307
73,146 675 634
94,816 800 535
53,386
72,673 550 421
73,176 575 394
79,694 625 565
86,172 663 507
87,734 725 586

2010
70,860 675 544
60,413 525 313
73,146 675 664
94,816 800 554
53,386
72,673 550 455
73,176 575 404
79,694 625 590
86,172 663 546
87,734 725 597

2009

2008

70,860 675 568
60,413 525 315
73,146 675 701
94,816
sou
565
53,386
72,673 550 469
73,176 575 417
79,694 625 633
86,172 663 539
87,734 725 592

70,860 675 516
60,413 525 324
73,146 675 734
94,816 800 488
53,386 550 572
72,673 550 469
73,176 575 425
79,694 625 619
87,734 725 510

Note: Capacity information is based on State of Georgia capacity calculations using the total number of instructional units for the facility and allowable class sizes.
138

2007
70,860 675 504
60,413 525 326
73,146 675 726
94,816 800 560
53,386 550 586
72,673 550 486
73,176 575 438
79,694 625 624
87,734 725 527

2006

2005

2004

2003

2002

70,860 675 519
52,725 450 358
73,146 675 754
94,179 800 495
53,386 575 617
65,792 550 471
73,176 575 410
79,694 625 607

70,860 675 519
52,725 450 354
73,146 675 628
94,179 800 481
53,386 575 580
65,792 550 429
73,176 575 415
79,694 625 605

70,860 675 586
52,725 450 358
73,146 675 588
94,179 800 463
51,014 575 587
65,792 550 480
73,176 575 429
79,694 625 631

70,860 675 629
52,725 450 403
73,146 675 604
51,014 575 635
65,792 550 470
73,176 575 467
79,694 625 668

70,860 675 701
52,725 450 569
73,146 675 586
51,014 575 655
65,792 550 573
73,176 575 520
79,694 625 690

87,734 725 422

87,734 725 434

87,734 725 471

87,734 725 849

87,734 725 845

continued 139

Elementary - continued

Cleveland

(2003)

Square feet

Capacity

Enrollment

S. H. Minter (2003)

Square feet

Capacity

Enrollment

North Fayette (1980)

Square feet

Capacity

Enrollment

Oak Grove (1986)

Square feet

Capacity

Enrollment

Peachtree City (1968)

Square feet

Capacity

Enrollment

Peeples

(1998)

Square feet

Capacity

Enrollment

Spring Hill (1996)

Square feet

Capacity

Enrollment

Tyrone

(1980)

Square feet

Capacity

Enrollment

Middle

Fayette

(1986)

Square feet

Capacity

Enrollment

Fayette County Board of Education School Building Information- continued
Last Ten Years (unaudited)

2011

2010

2009

2008

2007

94,179 800 542
94,179 800 593
75,785 750 458
71,040 725 514
62,732 525 490
94,655 800 669
94,655 800 518
59,580 450 346

94,179 800 556
94,179 800 613
75,785 750 478
71,040 725 516
62,732 525 467
94,655 800 699
94,655 800 542
59,580 450 338

94,179 800 556
94,179 800 648
75,785 750 492
71,040 725 485
62,732 525 446
94,655 800 751
94,655 800 556
59,580 450 329

94,179 800 539
94,179 800 689
75,785 750 476
71,040 725 506
62,732 525 550
94,655 800 839
94,655 800 582
59,580 450 336

94,179 800 508
94,179 800 711
75,785 750 471
71,040 725 496
62,732 525 507
94,655 800 876
94,655 800 582
59,580 450 367

135,649 1,125 751

135,649 1,125 791

135,649 1,125 820

135,649 1,125 823

135,649 1,125 1,030

140

2006

2005

2004

2003

2002

94,179 800 469
94,179 800 732
75,785 750 521
71,040 725 465
62,732 550 562
94,655 800 846
94,655 800 599
59,580 450 418

94,179 800 437
94,179 800 738
75,785 750 481
71,040 725 474
62,732 550 481
87,734 725 842
87,734 725 648
59,580 450 388

94,179 800 374
94,179 800 717
75,785 750 487
71,040 725 543
62,732 550 463
87,734 725 823
87,734 725 598
59,580 450 362

94,179 800 350
94,179 800 635
75,785 750 496
71,040 725 561
62,732 550 448
87,734 725 776
87,734 725 615
59,580 450 403

75,785 750 456
71,040 725 610
62,732 550 454
87,734 725 715
87,734 725 906
59,580 450 417

135,649 1,162 1022

135,649 1,162 989

135,649 1,162 955

135,649 1,162 981

135,649 1,162 960 continued

141

Middle continued

Bennett's Mill (2008)

Square feet

Capacity

Enrollment
J. C. Booth (1979)

Square feet

Capacity

Enrollment

Flat Rock

(1989)

Square feet

Capacity

Enrollment

Rising Starr (1996)

Square feet

Capacity

Enrolhnent

\'Vhitewater (1989)

Square feet

Capacity

Enrollment

High

Fayette County (1998*)

Square feet

Capacity

Enrollment

Mcintosh

(1981)

Square feet

Capacity

Enrollment

Sandy Creek (1990)

Square feet

Capacity

Enrollment

Starr's Mill (1998)

Square feet

Capacity

Enrollment

Whitewater (2004)

Square feet

Capacity

Enrolhnent

Source: School System records

Fayette County Board of Education School Building Information- continued
Last Ten Years (unaudited)

2011

2010

2009

2008

2007

158,653 1,475 607
139,581 1,175 1,021
137,068 1,012 839
156,409 1,175 1,039
137,879 1,050 818

158,653 1,175 625
139,581 1,175 1,018
137,068 1,012 826
156,409 1,175 1,103
137,879 1,050 855

158,653 1,175 569
139,581 1,175 988
137,068 1,012 840
156,409 1,175 1,077
137,879 1,050 907

158,653 1,175 548
139,581 1,175 994
137,068 1,012 845
156,409 1,175 1,058
137,879 1,050 935

139,581 1,175 1,200
137,068 1,012 926
156,409 1,175 1,091
137,879 1,050 1,177

259,536 1,725 1,360
270,793 1,625 1,636
248,280 1,625 1,178
226,980 1,650 1,555
279,822 1,475 1,533

259,536 1,725 1,431
270,793 1,625 1,621
248,280 1,625 1,240
226,980 1,650 1,508
279,822 1,475 1,623
142

259,536 1,725 1,451
270,793 1,625 1,600
248,280 1,625 1,278
226,980 1,650 1,621
279,822 1,475 1,679

259,536 1,725 1,359
270,793 1,625 1,598
248,280 1,625 1,329
226,980 1,650 1,653
279,822 1,475 1,679

259,536 1,725 1,291
270,793 1,625 1,552
248,280 1,625 1,342
226,980 1,650 1,611
279,822 1,475 1,696

2006

2005

2004

2003

2002

139,581 1,175 1,192
137,068 1,075 945
141,013 1,087 1,120
137,879 1,070 1,185

139,581 1,175 1,166
137,068 1,075 928
141,013 1,087 1,213
137,879 1,070 1,158

139,581 1,175 1,142
137,068 1,075 868
141,013 1,087 1,158
137,879 1,070 1,078

139,581 1,175 1,137
137,068 1,075 925
141,013 1,087 1,224
137,879 1,070 984

139,581 1,175 1,088
137,068 1,075 938
141,013 1,087 1,131
137,879 1,070 982

259,536 1,700 1528
270,793 1,600 1,568
248,280 1,562 1,327
226,980 1,625 1,722
279,822 1,475 1249

259,536 1,700 1736
205,598 1,600 1,569
248,280 1,562 1,285
226,980 1,625 1,717
279,822 1,475 826

259,536 1,700 1976
205,598 1,600 1,499
248,280 1,562 1,243
226,980 1,625 1,751
279,822 1,475 435

259,536 1,700 2260
205,598 1,600 1,505
227,711 1,562 1,272
226,980 1,625 1,870

259,536 1,700 2134
205,598 1,600 1,438
227,711 1,562 1,191
226,980 1,625 1,663

143

Position Administrators Teachers Media Counselors Clerical Paraprofessionals Custodians Lunchroom Other Areas*
Total employees

Fayette County Board of Education System Employees
Last Ten Fiscal Years (unaudited)

2011
100 1,483
28 58 157 320 171 178 420
2,915

2010
100 1,493
28 58 160 320 177 174 428
2,938

2009
102 1,570
36 61 162 350 178 174 456
3,088

2008
102 1,675
35 65 189 356 177 174 510
3,283

2007
103 1,620
36 59 169 339 184 170 570
3,250

Source: School System records
Note: Employee data does not include substitute teachers and is based on fulltime equivalent employment.
*Prior to 2009, Other Areas may have included Community Coaches, After School Employee, and At-Will Employees.

144

2006
102 1,565
35 59 163 303 183 166 557
3,133

2005
97 1,529
34 57 161 291 172 159 480
2,980

2004
99 1,515
32 56 157 294 169 162 393
2,877

2003
96 1,524
31 53 146 280 163 164 445
2,902

2002
94 1,459
27 51 141 266 150 165 432
2,785

2001
89 1,386
29 45 135 261 150 148 387
2,630

145

Fayette County Board of Education School Lunch and Breakfast Program
Last Ten Fiscal Years (unaudited)

Lunch Meals Served Free Reduced Paid Total
Daily Average Student Price

2011
544,183 102,357 975,988 1,622,528
9,150 $2.10 - $2.25

2010
487,840 126,018 1,063,608 1,677,466
9,449 $2.05 - $2.15

2009
417,595 125,967 1,214,298 1,757,860
9,861 $2.00 - $2.1 0

2008
360,542 11 9,440 1,309,593 1,789,575
9,966 $1.90 - $2.00

Breakfast Meals Served Free Reduced Paid Total
Daily Average Student Price

112,236 14,370 33,602
160,208
932 $1.35 - $1.45

101,422 17,014 27,857
146,293
853 $1.35 - $1.45

Total lVleals Served Free Reduced Paid Total
Daily Average

656,419 116,727 1,009,590 1,782,736
10,082

589,262 143,032 1,091,465 1,823,759
10,302

Source: School System records NA: data not available.

80,954 14,437 29,936 125,327
688 $1.35 - $1.45
498,549 140,404 1,244,234 1,883,187
10,549

71,146 15,442 27,955 114,543
688 $1.25
43 1,688 134,882 1,337,548 1,904,118
10,654

146

2007
337,321 116,103 1,324,475 1,777,899
9,913 $1.90- $2.00

2006
320,901 101,313 1,342,753 1,764,967
9,961 $1.90

2005
256,984 84,992
1,336,162 1,678,138
9,457 $1.90

2004
225,978 76,517
1,355,843 1,658,338
9,384 $1.75

2003
NA NA NA NA
NA.
$1.75

2002
161,330 53,152
1,419,400 1,633,882
9,078 $1.75

59,899 11,407 24,148 95,454
561 $1.25

57,145 10,015 29,319 96,479
582 $1.15

40,096 8,544
24,744 73,384
443 $1.15

35,421 6,830
23,628 65,879
398 $1.00

397,220 127,510 1,348,623 1,873,353
10,474

378,046 111,328 1,372,072 1,861,446
10,543

297,080 93,536
1,360,906 1,751,522
9,900

261,399 83,347
1,379,471 1,724,217
9,782

NA NA NA NA
NA
$1.00

32,372 7,043
29,340 68,755
408 $1.00

NA

193,702

NA

60,195

NA.

1,448,740

N"\

1,702,637

NA

9,486

147

Fiscal Year 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

Fayette County Board of Education Demographic and Economical Statistics
Last Ten Fiscal Years

Estimated Population (1)
NA NA 106,788 106,398 105,933 104,842 102,556 99,951 98,032 95,988

Personal Income (in $1,000) (1)
NA NA 4,614,827 4,785,290 4,875,941 4,399,912 4,190,399 3,975,133 3,825,393 3,683,927

Per Capita Personal Income (1)
NA NA 43,215 44,975 46,029 41,967 40,860 39,771 39,022 38,379

School Enrollment
21,120 21,683 22,047 22,108 22,367 22,291 22,338 21,624 21,239 20,817

Unemployment

Rate

(2)

9.2%

8.7%

8.9%

5.2%

4.2%

4.5%

5.0%

4.3%

4.4%

4.1%

Source

(1) Bureau of Economic Analysis, U.S. Department of Commerce, Table CA 1-3, updated April 21, 2011
(2) Bureau of Labor Statistics, U.S. Department of Labor, for June of each year, updated with data from BLS as ofNovember 16,2011

NA Data not available.

148

Fayette County Board of Education Major Employers Current Year

Employer

Employees (1)

Percentage of County Employment (2)

Piedmont Fayette Hospital NCR Cooper Lighting Hoshizaki America, Inc. Panasonic World Airways APAC- Georgia FAA Tracon Alenco, Inc Avery Dennison
Total

1,435 850 550 500 460 275 200 190 181 180
4,821

4.69% 2.78% 1.80% 1.63% 1.50% 0.90% 0.65% 0.62% 0.59% 0.59% 15.74%

Sources:
Note 1: Note 2:

(1) Fayette County Development Authority, www.fayettega.org website data as of November 2011
(2) Based on total private sector employment of Fayette County of 30,642. Georgia Department of Labor 2010 data, as updated October 2011.
Data for FY 2002 not available.
Employment data from the Fayette County Development Authority includes private sector employment only.

149

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