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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3 9 10 12 
15 
17 
34 35 
36 37 38 39 40 
41 42 43 
44 45 
 
 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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76 
77 78 
82 86 
87 
88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 
108 
110 111 112 
 
 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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lV 
 
 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 
9 
 
 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 
 
10 
 
 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 
 
11 
 
 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 
12 
 
 FINANCIAL SECTION 
13 
 
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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 
15 
 
 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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150