Floyd County Board of Education, Rome, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

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STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS



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1776
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FLOYD COUNTY BOARD OF EDUCATION
ROME, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

FLOYD COUNTY BOARD OF EDUCATION

-TABLE OF CONTENTS-

Page

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8


ADDITTONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ANALYSIS OF

J.u EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

35

5

BYPROGRAM

36

FLOYD COUNTY BOARD OF EDUCATION

- TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION ill
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 2 I4 Atlanta, Georgia 30334-8400
June 11, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Floyd County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Floyd County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Floyd County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, 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 perfo11n the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.

2000ARL-13A

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to confo1m to generally accepted accounting principles.
* The Board did not report compensated absences within the general purpose financial
statements as required by generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been dete11nined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters refe11ed to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Floyd County Board ofEducation as ofJune 30, 2000, and the results ofits operations for the year then ended, in confu11nity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 11, 2001, on our consideration ofthe Floyd County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfo1med in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
2000ARL-13A

Our audit was perfo11ned for the purpose of forming an opinion on the general purpose financial



statements ofthe Floyd County Board ofEducation taken as a whole. The accompanying combining

statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which

includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement

and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are

presented for purposes of additional analysis and are not a required part of the general purpose

financial statements. Such info11nation has been subjected to the auditing procedures applied in the

audit of the general purpose financial statements and in our opinion, except for the effect of

adjustments, if any, on the Special Revenue Fund, as might have been dete11nined to be necessary

had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed

in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph,

such information is fairly stated, in all material respects, in relation to the general purpose financial

statements taken as a whole.

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.

- - - -Respectfully submitted,

RWH:gp
2000ARL-13A

Ru ell W. Hinton State Auditor





FLOYD COUNTY BOARD OF EDUCATION


FLOYD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Due From Other Funds
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

286.84

$ 11,174,600.50 $ 880,316.06

31,314,912.75

669,300.90

219,068.81

835,265.94

77,759.34

58,146.90 49,288.95

$ 11,843,901.40 $ 1,284,580.06 $ 32,150,465.53

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due To Other Funds General Obligation Bonds Payable Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$ 3,513,398.39 $ 2,024.22 6,374.66
77,759.34

139,515.98 141,835.61 460,413.74
2,493.51
$

450,631.09 93,676.49

$ 3,599,556.61 $ 744,258.84 $

544,307.58

$

5,481.28

$

14,363.20

305,827.46 7,924,154.13
$ 8,244,344.79 $

58,146.90 49,288.95
$

30,050,588.71 27,429.00

427,404.09
540,321.22 $

1,528,140.24 31,606,157.95

Total Liabilities and Fund Equity

$ 11,843,901.40 $

The notes to the general purpose financial statements are an integral part of this statement.

1,284,580.06 $

32,150,465.53

-2-

EXHIBIT "A"

DEBT SERVICE
FUND

$

701,366.08

1,337, 178.22

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

701,652.92 $ 9,756,173.32

43,369,829.31

3,060,813.87

941,534.66

77,759.34

$ 2,038,544.30

58,146.90 49,288.95
2,038,544.30

50,985.68 41,737.78

28,376,455.70 6,051,392.69

28,376,455.70 6,051,392.69

6,280,528.50

$ 2,038,544.30 $ 36,466,392.69 $ 83,783,883.98 $ 17,070,959.94

$ 3,652,914.37

143,859.83 $

466,788.40

2,493.51

450,631.09

93,676.49

n,759.34

$ 30,415,000.00

30,415,000.00

6,051,392.69

6,051,392.69

$ 36,466,392.69 $ 41,354,515.72 $

108,709.92 404,620.33
89,599.85 13,249.00 56,689.20
6,280,528.50
6,953,396.80

$ 2,038,544.30
0.00 $ 2,038,544.30

$

$

5,481.28

2,038,544.30

14,363.20

33,702.04

58,146.90 49,288.95 30,050,588.71 27,429.00


50,985.68 41,737.78
45,319.15

305,827.46 9,879,698.46

413,815.04 9,532,003.45

$ 42,429,368.26 $ 10,117,563.14

$ 2,038,544.30 $ 36,466,392.69 $ 83,783,883.98 $ 17,070,959.94

-3-

FLOYD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Accrued Interest on Bonds Sold Premium on Bonds Sold Proceeds from General Obligation Bonds
Par Value Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 35,902,173.73 $ 530.17
21,516,684.00 1,479,852.26

1,666,114.65 3,810,214.34
1,554,197.81

$ 58,8991240.16 $ _ _7:...,.,0::..:3~0.J.::,5:26::.:..8::..:0~

$ 36,625,944.59 $

2,791,156.81

2,463,195.32 1,589,051.08 1,650,938.02 1,086,354.76 5,039,687.66
447,490.06 4,988,646.26 2,427,780.97
591,646.12 160,993.83 77,368.16 295,276.43
92,041.07

295,565.27 182,629.69
5,686.50 34,078.82
610.87 110,687.52 61,084.91 30,586.60 3,526,838.49

229,135.81 102,555.89

$ 57,868,106.03 $ _ _7;..i.,0;;.;3=8=,9=25=.4.;.;:8a..

$ 1,031,134.13 $ _ _ _-8.:,:.,:::,3::.,98::.:,:,6,::=8:..

$ _ _..:..72::7~,4!!,2:.:::;9,:::,00~

$ _ _.;..;72=7-'",4=2=9=0_0_

$

303,705.13 $

7,940,639.66

,8,398.68 534,007.51

7,161.22 7 551.17

FUND BALANQf JUNf 30 .

$ 8.244.344.79 $ ___54..,;,;0,i,;,3.2.1,_.2;;,;2..,

The notes to the general purpose financial statbr rrents are an Integral part of this statement -4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

42,857.20

$

$ 1,938,578.12
2,320,573.84

37,611,145.58 $
3,810,744.51 23,455,262.12
5,354,623.91


36,408,326.63 3,231,768.03
21,272,870.49 2,816,579.62

$ 2,363,431.04 $ 1,938,578.12 $ 70,231,776.12 $ 63,729,544.77

$ 39,417,101.40 $ 37,017,736.39

$ 463,578.26 3,294,687.20

2,758,760.59 1,771,680.77 1,656,624.52 1,120,433.58 5,039,687.66
911,068.32 4,989,257.13
2,538,468.49
652,731.03 191,580.43 3,604,206.65 295,276.43
3,386,728.27

2,369,805.36 1,482,576.63 1,560,370.22 1,146,567.05 4,752,202.41
442,277.87 11,357,927.24 2, 165,920.54
758,271.00 174,223.92 3,543,132.72 229,269.65 2,361,949.08

$

0.00

229,135.81

102,555.89

$ 3,758,265.46 $ _ _ _=0-=00;;... $ 68,665,296.97 $ 69,362,230.08

$ -1,394,834.42 $ 1,938,578.12 $ 1,566,479.15 $ -5,632,685.31

$ $ 215,647.40
30,415,000.00 727,429.00
$ 31,358,076.40 $

99,966.18 $ 99,966.18 $

99,966.18 215,647.40
30,415,000.00 $
727,429.00 -727,429.00
30,730,613.58 $

6,280,528.50 1,655,530.87 -1,655,530.87
6,280,528.50

$ 29,963,241.98 $ 2,038,544.30 $

1,642,915.97

0.00

32,297,092.73 $
10,117,563.14

647,843.19 9,478,478.01

7,161.22 7 551.17

-15,537.90 6 TT9.84

$ 31.606.157.95 $ 2.038.544.30 $ 42.429,368.26 $ 10.117.563.14

-5-

FLOYD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2000

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 34,989,664.00 $ 35,902,173.73

530.17

20,505,000.00

21,516,684.00

320,000.00

1,479,852.26

$ 55,814,664.00 $ 58,899,240.16

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 37,989,017.00 . $ 36,625,944.59

2,426,725.00 1,512,935.00 1,738,240.00
847,135.00 5,173,210.00
469,450.00 6,082, 125.00 2,571,960.00
664,155.00 41,500.00 57,000.00 35,120.00

2,463,195.32 1,589,051.08 1,650,938.02 1,086,354.76 5,039,687.66

447,490.06 4,988,646.26 2,427,780.97
591,646.12 160,993.83 77,368.16 295,276.43 92,041.07 331,691.70

$ 59,608,572.00 $ 57,868,106.03

$ -3,793,908.00 $ 1,031,134.13

OTHER FINANCING USES Other Uses

-400,000.00

-727,429.00

Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1. 1999

$ -4, 193,908.00 $ 303,705.13

6,600,126.71

7,940,639.66

FUND BALANCE JUNE 30. 2000

s s 214001218.11

81244 1344.79

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,428,714.00 $ 1,666,114.65

4,204,182.00

3,810,214.34

1,546,000.00

1,554,197.81

$ 7,178,896.00 $ 7,030,526.80

$ 3,243,341.00 $ 2,791,156.81

291,508.00 149,023.00
5,756.00 1,200.00

295,565.27 182,629.69
5,686.50 34,078.82

3,762.00
69,800.00 7,681.00
97,025.00 3,309,690.00

610.87 110,687.52 61,084.91 30,586.60 3,526,838.49

$ 7I1781786.00 $ 7,0381925.48

$

110.00 $

-8,398.68



$

110.00 $ -8,398.68

657,554.61

441,284.05

$ 657.664.61 $ 432.885.37

The notes to the general purpose financial statements are an integral part of this statement. -7-

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Floyd County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although ''school activity accounts'' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-terrn principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP -A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Ter111 Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). ''Measurable'' means the amount of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day
-9-

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Floyd County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B'' of this report:

- 10 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 534,007.51

Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods

-50,985.68 -41,737.78

Fund Balance July 1, 1999 (Budget Basis)

$ 441,284.05

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

-8,398.68

FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 432,885.37

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

INVESTMENTS

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

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

(2) Obligations issued by the United States government,

- 11 -

FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000


EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of
Treasury and Fiscal Services,
(7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES
The Floyd County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on August 26, 1999 (levy date). Taxes were due on November 15_, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Floyd County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.85 mills

SALES TAXES
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,938,578.12 and was recorded in the Debt Service Fund. The State will tt;Iminate collection of this tax once an additional $33,761,421.88 has been collected or on March 31, 2004, whichever occurs first.

- 12 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
However, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources. is material to the general purpose financial statements and has not been recorded in the General Long-Te11n Debt Account Group as required by generally accepted accounting principles.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Tc:;Im Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

- 13 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned ''Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

- 14 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOT} ... TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

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

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $720,019.26. The bank balances were entirely covered by Federal depository insurance or by collateral held by the Board or the Board's agent in the Board's name.

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the

Board's name.

Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust

department or agent in the Board's name.

Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its

'

trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 2000, the carrying value of the Board's total investments was $43,351,666.06. The investments are classified as to risk categories as follows:

Type of Investment
U. S. Government
Local Government Investment Pools
U.S. Treasury Money Market Mutual Funds Pooled Investments
Total Investments

Risk Categories

1

2

3

Carrying Amount

Fair Value

$29,721,552.6 I $

o.oo $.=====lo,!,!,l.o!!,,!!o $29,121,ss2.61 $29,121,ss2.61

37,790.90

37,790.90



13,592,322.55 13,592,322.55
$43,35 I,666.06 $43,351,666.06

- 15 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
The carrying amounts shown above include amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services and in an investment pool by Simulated Environments Incorporated (SEI) in which the Board owns no identifiable securities. The investment policies of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) and the SEI Daily Income Trust do not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio and the Daily Income Trust is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool d_istributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
The Daily Income Trust consists ofU. S. Treasury Money Market Mutual Funds (Fund) which is a combination local and state government investment pool. The Daily Income Trust Fund is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The Fund is registered with the Securities and Exchange Commission as an investment company and operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940. The Fund's primary objectives are preserving principal and maintaining liquidity while providing current income ($1.00 per share value). Net asset value is calculated as deemed appropriate to ensure stability. The Fund distributes earnings on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at amortized cost which approximates fair value. The Fund does not issue any legally binding guarantees to support the value of the shares.

- 16 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

The Simulated Environments Incorporated Daily Income Trust Fund invests exclusively in U. S. Treasury obligations, obligations issued or guaranteed as to principal and interest by agencies or instrumentalities of the U. S. Government and repurchase agreements fully-collateralized by such obligations. The weighted average maturity ofSimulated Environments Incorporated Daily Income Trust Fund may not exceed 90 days and may not purchase any instrument having a remaining maturity of more than 397 days. The weighted average maturity for Simulated Environments Incorporated Daily Income Trust Fund on June 30, 2000, was 43 days. The average investment duration for Simulated Environments Incorporated Daily Income Trust Fund on June 30, 2000, was not calculated on money market funds since the length of duration is so short.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

The Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount
of that loss can be reasonably estimated. An excess coverage insurance policy covers individual
claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

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

1999 2000

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 269,560.78 $ 269,560.78 $_ _ _~0:.:.i:.O~O

$

0.00 $ 235,546.77 $ 235,546.11 $_ ___,o=.o=o

- 17 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1999 2000

$

0.00 $

7,398.00 $

7,398.00 $_ _ _--=-0=.0-=-0

$

0.00 $

4 641.00 $

4 641.00 $_ _ _...:0.:.:.0=0

The Board has purchased a surety bond to provide additional insurance coverage as follows:


Position Covered

Amount

Superintendent

$ 100,000.00

Note 5: GENERAL LONG-TERM DEBT



CAPITAL LEASES The Floyd County Board of Education has entered into a lease agreement as lessee for energy management systems. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the
date of its inception.

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

Purpose

Interest Rates

General Government - Series 1999 General Government - Series 1999

4.35% - 5.00% 5.00% - 5.25%

Amount
$10,000,000.00 20.415.000.00
$30.415.000.00



The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as

follows:

- 18 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1999

$ 6,280,528.50 $

0.00 $ 6,280,528.50

Additions G.O. Bonds

30,415,000.00 30,415,000.00

Deductions Debt Retired

229,135.81 - - - -

229,135.81

Balance June 30, 2000

$ 6.051.392.69 $30.415.000.00 $36.466.392.69

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004 2005 2006 - 2010

$ 729,721.74 796,060.08 796,060.08 796,060.08 796,060.08
3,714,947.04

$ 1,651,336.87 8,465,395.00 8,393,466.25 8,327,943.75 8,270,237.50

$ 2,381,058.61 9,261,455.08 9,189,526.33 9,124,003.83 9,066,297.58 3,714,947.04

Total Principal and Interest $ 7,628,909.10 $35.108.379.37 $42.737.288.47

Deduct: Imputed Interest

1,577,516.41

Net Present Value of Future Minimum Lease Payments $ 6.051.39269

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $752,725.16 for health
insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

- 19 -

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel
In the amount of $576,309.01

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost
In the amount of $47,606.15

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost
In the amount of $128,810.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed
by the Board as of June 30, 2000:

Proiect
Johnson Elementary School - New Construction McHenry Elementary School Renovations

Unearned Executed Contracts
$4,597,291.56 126,848.00

$ 4,724,139.56

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

Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant tetms. The Board believes that such disallowances, if any, will be immaterial to its overall fmancial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfotmance of routine Board operations. The ultimate disposition of these proceedings is not presently dete1minable, but is not believed to be material to the general purpose financial statements.

- 20-

FLOYD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The Board's professional personnel earn one and one-quarter days of sick and personal leave each month with a maximum accumulation of 60 days. Sick and personal leave vest with the employee after five years ofcontinuous service and an amount based on unused sick and personal leave, up to the maximum accumulations, is paid to employees at their current rate of pay upon retirement or termination of employment.

The Board's administrative staff and certain other full-time employees earn .833 days per month of annual leave. Annual leave may be accumulated to a maximum of 15 days and an amount based on unused leave, up to the maximum accumulation, is paid to employees at their current rate of pay
upon retirement or te1mination of employment. See Note 1 - Compensated Absences -

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 4,215,588.07 $ 4,172,743.95 $ 3,826,017.99

'
- 21 -

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Due From Other Funds
Inventories Food Donated Commodities Purchased Food

FLOYD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000
SCHOOL FOOD
SERVICES FUND


LOTTERY PROGRAMS

$

586,480.52 $

184,171.73

31.50

14,394.04

77,759.34

58,146.90 49,288.95

Total Assets

$

771,707.21 $ ==1,;.;;9=8,5.6..5.;.,;=77:.,,

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
.
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
-22-

$

57,246.14

$

58,654.77

32,825.94

178,212.50

108,451.36

42.33

$

2361867~27 $ _ _1.:.,::9:.:::8.z5.:,:;65::.:_,7.:...,:7~

$

58,146.90

49,288.95

427,404.09 $ _ _ ____,;0;.:..0::.:0:....

$

534,839.94 $ _ _ _ _0::.:.:::.;00::....

771,707.21 198,565.77 $ -- -- --- - - ---- - -

$ -- -------- --------

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

905,480.95

$

109,663.81 $

880,316.06

204,643.27

219,068.81

138,693.94

77,759.34

58,146.90 49,288.95

50,985.68 41,737.78

$

314,307.08 $ 1,284,580.06 $ 1,136,898.35

$

82,269.84 $

139,515.98

50,354.90

141,835.61 $

108,670.66

173,749.88

460,413.74

404,620.33

2 451.18

2,493.51

89,599.85

$

308,825.80 $

744,258.84 $ _ ___;6;;;.;:0;.;;:;2,1.;:,8"'-90;:;...;.;::.84.;....

$

5,481.28 $

5,481.28

58,146.90 $ 49,288.95

50,985.68 41,737.78

0.00

427,404.09

441,284.05

$

5,481.28 $

540,321.22 $ _ _5..3._4_..._,0_0__7___._5_1___

$

314,307.08 $ 1,284,580.06 $ 1,136,898.35

-------------

-23-

FLOYD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

266,760.00 $ 1,215,041.83

1,684,035.90

1,554,197.81

$ 3,504,993.71 $ 1,215,041.83

$ 1,070,356.00

118,174.09 6,712.28

4,528.97

2,020.69

5,284.98

$

7 964.82

$ 3,518,873.67 $ _....;1:..i.:,2:..:1..:.5,~04..:,.1!.!;.8::.,:3;_

$

-13,879.96 $

0.00

$

-13,879.96 $

534,007.51

7,161.22 7 551.17

$

534,839.94 $

0.00 0.00
0.00

See notes to the general purpose financial statements.
-24-

EXHIBIT "F"

TOTALS

FEDERAL PROGRAMS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

'

$

184,312.82 $ 1,666,114.65 $ 1,399,226.50

2,126,178.44

3,810,214.34

3,230,549.66

1,554,197.81

1,563,883.06

$ 2,310,491.26 $ 7,030,526.80 $ 6,193,659.22

$ 1,720,800.81 $ 2,791,156.81 $ 2,269,396.04

177,391.18 175,917.41
5,686.50 29,549.85
610.87 108,666.83 61,084.91 25,301.62

295,565.27 182,629.69
5,686.50 34,078.82
610.87 110,687.52 61,084.91
30,586.60 3,526,838.49

175,888.58 157,814.52
4,798.50 49,412.10 20,000.00 52,090.77 70,379.15 14,101.89 3,452,717.54

$ 2,305,009.98 $ 7,038,925.48 $ 6,266,599.09.

$

5,481.28 $

-8,398.68 $

-72,939.87

25,530.87

$

5,481.28 $

-8,398.68 $

-47,409.00

0.00

534,007.51

590,174.57

7,161.22 7 551.17

-15,537.90 6 779.84

$

5,481.28 $

540,321.22 $ ==5..3...,4_,0_01_...,.51...,

-25-

FLOYD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

REGULAR

BOND PROCEEDS

$

286.84

$ 1,528,140.24

29,759,343.51

835,265.94

$ 1,528,140.24 $ 30,594,896.29

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Un designated
Total Fund Equity

Total Liabilities and Fund Equity



$

450,631.09

93,676.49

$ _ __,;54~4.i;:3:,~07:.:.5:::.:8::...

$ 30,050,588.71

$ 1,528,140.24

0.00

$ 1,528,140.24 $ 30,050,588.71

$

--

1--,-5-2- 8--,

14 --

0.24
---

$

30,594,896.29



See notes to the general purpose financial statements. -26-

EXHIBIT "G"


LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

286.84 $ 1,712,854.17

$

27,429.00

31,314,912.75

835,265.94

283,216.50

$

27,429.00 $ 32,150,465.53 $ 1,996,070.67

$

450,631.09

93,676.49

283,216.50 13,249.00 56,689.20

$

544,307.58 $ _ _3::.;:5:;.:3.L.1:I~54..:.;'-=-70;...

$ 30,050,588.71

$

27,429.00

27,429.00 $

45,319.15

0.00

1,528,140.24

1,597,596.82

$

27,429.00 $ 31,606,157.95 $ 1,642,915.97

$

27,429.00 $ 32,150,465.53 $ 1,996;070.67

- 27 -

FLOYD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00

______ $

$

0.00 $

2,320,573.84 2,320,573.84

$

463,578.26

$

328,018.33

393,358.45

48,079.80

788,670.78 1,634,361.49
5,222.00

$

769,456.58 $ 2,891,832.53

$ -769,456.58 $ _ ___,;-5:a.:7...:.1=,2:.:a5.::;a8=69=-

$

215,647.40

$

700,000.00

30,415,000.00 -8,800.00

$

700,000.00 $ 30,621,847.40

$

-69,456.58 $ 30,050,588.71

1,597,596.82

0.00

$

1,528,140.24

-- --

--

------

$ --- 3-0- -,-0--50- ,5- - 88- .71

See notes to the general purpose financial statements.
- 28-

EXHIBIT "H"

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$

42,857.20 $

42,857.20 $ 668,931.30

2,320,573.84

23,366.41

$

42,857.20 $ 2,363,431.04 $ 692,297.71

$

463,578.26

$

4,000.00

1,120,689.11

92,976.35

2,120,696.29 $ 1,710,701.32

53,301.80

193,346.65

$

96,976.35 $ 3,758,265.46 $ 1,904,047.97

$

-54119.15 $ -1,394,834.42 $ -1,211,750.26

$

215,647.40

30,415,000.00

$

36,229.00

736,229.00 $ 1,630,000.00

-8,800.00

$

36,229.00 $ 31,358,076.40 $ 1,630,000.00

$

-17,890.15 $ 29,963,241.98 $ 418,249.74

45,319.15

1,642,915.97

1,224,666.23

$

27,429.00 $ 31,606,157.95 $ 1,642,915.97

-29-

FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID .
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster

10.553 10.555

NIA

$ 346,611.44

(2)

N/A

1,153,690.37 $ 3,335,139.58 (3)

$ 1,500,301.81 $ 3,335,139.58

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds
Total U. S. Department of Agriculture

10.550 10.665

NIA

183,734.09

183,734.09

N/A

530.17

(4)

$ 1,684,566.07 $ 3,518,873.67

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool
Total Special Education Cluster

84.027 84.027 84.173

N/A $ 26,280.00 $

N/A

630,841.52

NIA

111,479.72

$ 768,601.24 $

26,280.00 630,841.52 111,479.72
768,601.24

Other Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Even Start Grants to Local Educational Agencies
TIiie II Eisenhower Professional Development
Title VI Innovative Education Program Strategies Class Size Reduction
Goals 2000
State and Local Education Systemic Improvement Grants
Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education

84.332
84.213 84.010 84.281 84.298 84.340
84.276
84.048

NIA

59,419.00

53,937.72

N/A

154,040.69

154,040.69

N/A

777,829.12

777,829.12

N/A

28,286.09

28,286.09

NIA

47,219.00

47,219.00

NIA

145,332.06

145,332.06

N/A

50,951.85

235,264.67 (3)

N/A

71,838.00

71,838.00

$ 2,103,517.05 $ _ _::.2,,:28:::2:,.:,34=8:.:::.5::::..9

Labor, U. S. Department of Pass-Through From Coosa Valley Regional Development
Center Job Training Partnership Act

17.250

NIA $ 22,661.39 $ _ __..:2::2:,.:,6:,:6~1-:::;3:::..9

Total Federal Financial Assistance
NIA = Not Available

30-

$ 3,810,144.51 $ ___5._82_3.:,,B.8_,3._6;,.5

FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"


Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained
separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Funds earned on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.



See notes to the general purpose financial statements.

31

FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grants
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Education Counselors Grades 4 and 5 Technology Specialist Local. Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Distant Learning Exceptional Growth-Capital Outlay
Georgia Council for the Arts Georgia Challenge Grant
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and, Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

43,750.00

$

43,750.00

23,940,209.00 5,002,283.00 404,680.00 1,012,569.00 265,897.00 5,984,006.00

1,212,389.00 374,644.00 840,467.00 185,736.00 287,556.00 59,894.00 512.00 111,830.00 144,212.00
-6,695,566.00 1,329,470.00
$
40,105.00

266,760.00

101,689.00 55,000.00 36,044.49 1,500.00 576,309.01 -82.70 24,138.00 186,000.00 123,279.67 15,987.11 47,606.15

36,285.13 226,314.91
6,377.67 $ 42,857.20

23,940,209.00 5,002,283.00 404,680.00 1,012,569.00 265,897.00 5,984,006.00
1,212,389.00 374,644.00 840,467.00 185,736.00 287,556.00 59,894.00 . 512.00 111,830.00 144,212.00
-6,695,566.00 1,329,470.00
266,760.00 40,105.00
101,689.00 55,000.00 36,044.49 1,500.00
576,309.01 -82.70
24,138.00 186,000.00 123,279.67
15,987.11 47,606.15
36,285.13 226,314.91
6,377.67 42,857.20

31,250.00

31,250.00

946,064.12

946,064.12

128,810.00

128,810.00

30,000.00

184,312.82

214,312.82

$ 35,902,173.73 $ 1,666,114.65 $ 42,857.20 $ 37,611,145.58
See notes to the general purpose financial statements. 32-

FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECT
Acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, including, but not limited to, four new schools, acquiring real property for new school buildings and related facilities, adding to, repairing, renovating, improving and equipping existing buildings, structures and facilities of the Floyd County School District and acquiring the necessary property therefor, both real and personal

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 35,700,000.00 $ 39,642,339.oo $ 2,437,054.27 $=====o=.o=o

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion.
(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above project and retire
associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

See notes to the general purpose financial statements.
- 33-

FLOYD COUNTY BOARD OF EDUCATION

SCHEDULE "4"

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

YEAR ENDED JUNE 30, 2000

Minimum Expenditure Requirements {Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

_ _ 30,419,446.00 $

900,011.00 ___;;..;;..;..:..;.__,;...

$

34,063,551.34

1,871 ,579. 10 $ _ _.;.:1.:..67;..;8;..,9;,;.c.7,.;_5;.,6;,.=2

$

35,935, 130.44

-616,594.91 $ _ _3:.:5:.z;,3=-1:..::8a.:5:,:.:3.:..5:.:5.:..3

$

o.oo $ ========o.=o=o

See notes to the general purpose financial statements. - 35 -

FLOYD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten () Grades 1 - 3 () Sub-Total - K-3 Grades 4 - 5 () Grades 6 - 8 () Grades 9 - 12 ()
High School Laboratories () Vocational Education Laboratories ()
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs Category I () Category 111 () Category IV () Category V () Sub-Total - Regular Category VI (Gifted) () Total Special Education Programs
REMEDIAL EDUCATION PROGRAM() Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 2,359, 163.00

$ 2,123,246.70 $

0.00

7, 126,828.00

6,414,145.20

$ 9,485,991.00 90 $ 8,537,391.90 $

0.00

3,332,764.00 90

2,999,487.60

5,071,535.00 90

4,564,381.50

2,531,001.00 90

2,277,900.90

1,884,556.00 90

1,696,100.40

1,634,362.00 90

1,470,925.80

59,705.00

$ 23,940,209.00

$ 21,546,1aa.10 $ _ _..;;.s.;;.:9.;...;10;..;;;s"".o""-o

$ 4,238,953.00

$ 3,815,057.70 $

0.00

$ 4,238,953.00 90 $ 3,815,057.70 $

0.00

763,330.00 90

686,997.00

$ 5,002,283.00

$ 4,502,054.70 $

0.00

------""""-'-

$

404,680.00 90 $

364,212.00 $- - - -0.-00

$ 29,347,172.00

$ 26,412,454.80 $ - - - -5-9,-70'5-.00-

$

820,764.00 90 $

191,805.00 100

$ 1,012,569.00

$

738,687.60 $

0.00

191,805.00

s_ _ _ 930,492.60

__,;:;.o;.;;;..o-=-o

Total Fourteen Weighted and Media Center Programs $ 30,359,741.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

86,308.00

179,589.00

$ 27,342,947.40 $

59,705.00

---------

$

86,308.00 $

179,589.00

189.00 0.00

Total Staff Development Programs
ci Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

265,897.00

------

100

$ ------- 2--6-5--,897-.-0-0

189.00 $
- - - - - - --- -----


- 36 -

SCHEDULE "5"



EDUCATION

AMOUNT OF
UNDEREXPENDITURE

TOTAL

ACTUAL EXPENDITURES

FOR REQUIRED

REQUIRED

SALARIES

OPERATIONS

TOTAL

ALLOTMENT

$ 2,123,246.70 $ 2,506,914.70 $

16,177.71 $ 2,523,092.41

6,414,145.20

7,403,987.18

300,134.72

7,704,121.90

$ 8,537,391.90 $

9,910,901.88 $

316,312.43 $ 10,227,214.31 $

0.00

2,999,487.60

3,854,264.04

48,359.48

3,902,623.52

0.00

4,564,381.50

6,306,919.16

403,573.43

6,710,492.59

0.00

2,277,900.90

3,362,552.96

326,260.53

3,688,813.49

0.00

1,696,100.40

1,953,001.52

140,453.41

2,093,454.93

0.00

1,530,630.80

1,782,677.80

245,950.69

2,028,628.49

0.00

$ 21,605,893.10 $ 27,170,317.36 $ 1,480,909.97 $ 28,651,227.33

$ 3,815,057.70 $

158,278.77 3,840,992.50 $
179,512.45 25,818.05

$ 134,177.50
44,976.25 880.07

158,278.TT 3,975, 170.00
224,488.70 26,698.12

$ 3,815,057.70 $

4,204,601.77 $

180,033.82 $ 4,384,635.59

0.00

686,997.00

788,043.71

18,031.83

806,075.54

0.00

$ 4,502,054.70 $ 4,992,645.48 $

198,065.65 $ 5,190,711.13

$

364,212.00 $

464,028.07 $

.
0.00 $ _ _4;..;;.6-'-'4,0,;;;.;;2;;.;;.8;.;;.07.;..

0.00

$ 26,472,159.80 $ 32,626,990.91 $ 1,678,975.62 $ 34,305,966.53

$

738,687.60 $

1,436,560.43

$ 1,436,560.43

0.00

191,805.00 - - - - - - $

192,603.48

192,603.48

0.00

$

930,492.60 $

1,436,560.43 $

192,603.48 $ 1,629,163.91

$

-2-7-,

402, ---

652.40
-----

$ --

3

4

,

063
--

,551.
--

3--

4 -

$

-

-

1,871,57
- - ---- -

9-.

1

0--

$

---

35,935, ------

130.44
-----

$ - - ---- -- -

0" .-00-

$

86,497.00

179,589.00

$ = .......2.s..s..0..8...6....0..0..


$

188,516.70 $

188,516.70

101,182.92

101,182.92

$ - - -2-8-9- ,-6-9-9-.-6-2

$ ---

289,699.62
- - - ------ --

$ -- ---- --- -

---

0.00
------

37 -

,
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

,

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 11, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Floyd County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofFloyd County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated June 11, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, 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.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2000YB-40A

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Floyd County Board of Education's internal .:ontrol over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Floyd County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6571-00-01.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of perfonning their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the inforn1ation and use of management, members of the Floyd County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp
2000YB-40A

Ru sell W. Hinton State Auditor



w. RUSSELL HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 11, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Floyd County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofFloyd County Board of Education with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) .Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Floyd County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Floyd County Board ofEducation's management. Our responsibility is to express an opinion on Floyd County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and perfo1ming such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal deterrnination on Floyd County Board of Education's compliance with those requirements.
2000SA-30A

In our opinion, the Floyd County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.

Internal Control Over Compliance

The management of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Floyd County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.

We noted a certain matter involving the internal control over compliance and its operation that we

consider to be a reportable condition. Reportable conditions involve matters coming to our attention

relating to significant deficiencies in the design or operation ofthe internal control over compliance

that, in our judgment, could adversely affect the Floyd County Board of Education's ability to

administer a major Federal program in accordance with applicable requirements oflaws, regulations,

contracts and grants. The reportable condition is described in the accompanying Schedule of

Findings and Questioned Costs as item FA-6571-00-01.



A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of perforr11ing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness.

This report is intended solely for the information and use of management, members of the Floyd County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

_,.....---R.;.;;,espectfully submitted,

RWH:gp
2000SA-30A

ell W. Hinton Sta e Auditor


SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6571-98-01 FS-6571-99-01

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6571-99-01

The Floyd County Board ofEducation has chosen not to maintain a system-wide General Fixed Assets Account Group within the fo1mal accounting records. We \vill implement this as soon as guidelines are provided by the State Department ofEducation and funding is available.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6571-99-01 FA-6571-99-02

Unresolved - See Corrective Action/Responses Further Action Not Warranted

CORRECTIVE ACTION/RESPONSES

CASH MANAGEMENT Excessive Cash Drawdowns Finding Control Number: FA-6571-99-01

We believe that we have implemented procedures to ensure that funds are not requisitioned until needed. The procedures include reviewing cash balances and cash needs on a monthly basis.

SECTIONN FINDINGS AND QUESTIONED COSTS

FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Floyd County Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Floyd County Board of Education disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

The reportable condition described above is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit ofthe Floyd County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Floyd County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement.

Cash Management

The reportable condition described above is not considered to be a material weakness.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Floyd County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Fi.ndings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Floyd County Board ofEducation's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-133. These audit findings are included in section IV of this report.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

8. Type ''A'' Program Dollar Threshold

,

The dollar threshold for type ''A'' programs was $300,000.00.

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FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Floyd County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6571-00-01
The Floyd County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial Noncompliance Finding Control Number: FS-6571-00-02
The Board failed to transfer local matching funds from the General Fund to the Lottery Capital Projects Fund as required by the approved State Capital Outlay Projects for the 2000 fiscal year. The instructions in Chapter 41 of the Financial Management for Georgia Local Units ofAdministration require that the Board transfer local ma~ching funds by year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $27,429.00 from the General Fund to the Lottery Capital Projects Fund as required.
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FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
CASH MANAGEMENT Excessive Cash Balances Reportable Condition Repeated From Prior Year U.S. Department of Education Through Georgia Department of Education Amount: $14,363.20 Finding Control Number: FA-6571-00-01 A review of cash management procedures and internal controls for the Special Education Cluster (CFDA Numbers 84.027 and 84.173) disclosed that cash draws were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. During the year under review, the cluster had an average cash balance of $48,090.41 with excessive ending balances in seven months. In accordance with A-102 Common Rule paragraph 21 (h)2(1), interest earned on advances by local government grantees is required to be submitted promptly to the Federal grantor agency. Up to $100 per year may be kept for administrative expenses. The Special Education Cluster earned interest amounting to $14,463.20 of which $14,363.20 should have been submitted to the Georgia Department ofEducation. The interest earned on this program's funds was recorded in the Board's General Fund. This internal control deficiency resulted from management's use of budgeted amounts rather than actual amounts when forecasting cash needs. The Board should review the Federal compliance procedures in place, design procedures which enhance monitoring compliance with Federal guidelines and proper internal controls relative to the above Federal compliance requirement. The Board should implement procedures to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement ofsuch funds. In addition, excessive interest earned totaling $14,363.20 should be refunded to the Georgia Department of Education.
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