Gilmer County Board of Education, Ellijay, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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_Gii.M.ER COUNTY BOARDOf.EDUCATION~:

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GILMER COUNTY BOARD OF EDUCATION
-TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITIJRES 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, EXPENDITIJRES 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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

11

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

GILMER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

34

2 SCHEDULE OF STATE REVENUE

36

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

39

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

40

5

BY SITE

41

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 ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
REPORT ON COMPLIANCE WI11I REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

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

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

w. RUSSELL

HtNTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W, Suite 214 Atlanta, Georgia 30334-8400
June 6, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gilmer County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Gilmer County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Gilmer County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial 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 op1ruon.
As described in the notes to the general-purpose financial statements, the Board of Education'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:

2001ARL-13

The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to 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 of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, 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, 2000, were improperly recorded in the year ended June 30, 2001. 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 determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Gilmer County Board of Education as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity 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 6, 2002, on our consideration ofthe Gilmer 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 performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Gilmer County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
2001ARL-13

general-pwpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-pwpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-pwpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
.- l-0.4-k. Respectfully submitted,

RWH:as 2001ARL-13

State Auditor

GILMERCOUNfYBOARDOFEDUCATION

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

GlbMliB !:.Ql.!IID'. QABt! QE lit!l.!!:.ADQl':I !:.QMll':IE12 M~l':li;;I; t:llili!
ALL El.!1':11:1 D'.elii A!':112 A!:i!:iQ!Jl':II GBQ!Je
J!Jl':IE 30 2001

~ Cash and Cash Equtvalents
Investments
Accounts Receivable
Prepaid Hems
Inventories Food Donated Commodrbes Purchased Food
Amount Available in Debt SaMce Fund
Amount to be ProVlded In Future Years
For Payment ot
Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

11,695.46 s 300,88066 s 1,141,621 97

8,702,412 33

1,189,376.81

204,364 12

2,840 79

6,788 99 7,252.23

s 1,201,012 27 $

519,284 00 $ 9,848,875 09

b!ABlblIIE 81':112 E!.!1':112 EQ!JID'.
b!ABlblIIE
Cash Overdraft Accounts Payable Salanes Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retalnages Payable Deferred Revenue Capital Lease Agreements General Obl1gatlon Bonds Payable
Total Ltablllbes
E!.!1':112 EO!JID'.
Fund Balances Reserved For Debt SeMce For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodrties Purchased Food For Purpose of Bond Issue For State Capital Outlay Proiects Unreserved Designated for Sall-Insurance Deficit Undes,gnated
Total Fund Equrty

$

226,817.39 $

1, 125,000 00 34,44218

134,18064 $ 211,568 94
43,07978

4,156.25

4,863 20
118,893 n

$ 1,386,259 57 $ 392,96559 $

123,756 97

$

1,326 30

$

6,786 99

7,252 23

$ 9,723,11812

27,534 10

-214,047 70

0 00

11227919

000

$

-185, 187 30 s 126,318 41 $ 9,723,118 12

Total llabdltles and Fund Equity

$ 1,201,01221 $

The notes to the general-purpose financial statements are an integral part of this statemem

-2-

519,284 00 $ 9,846,875 09

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On!):!

JUNE 301 2001

JUNE 30, 2000

$ 1,765,497 03 $

10,258 54

$ 3,229,953.66 $ 1,515,928 88

8,702,412.33

538,357.59

1,934,939.31

1,637,557.98

2,76266

6,78699 7,252 23

$

2,303,854 62

2,303,854.62

10,538 74 9,949 54
858,996 93

9,881,145 38 506 55211

9,861,145 38 506,55211

1,651,003 07 507,179 66

$ 213031854 62 $

101256 54 $

121671155211 $ 2615521896 63 $ 6 193 915 44

$

556,m11

$

365,641 23

261,704 56

211,566 94

200,687.46

1, 125,000 00

1,470,873 76

n,521 94

15,751 18

118,893n

31,726.00

4,156.25

$

506,552 11

506,552 11

507,17966

12,165,000 00

12,165,000 00

2,510,000 00

$

12,671,552 11 $ 14,574,534 24 $ 5,576,700 37

$ 2,303,854 62 $

10,000 00

0 00 $ 2,303,654 62 $

258 54 1025854

$ 2,303,854 62 $ 10,000 00 1,326.30

856,996 93 10,000 00 119,700 65

6,786 99 7,252 23 9,723,11812
27.534 10 -214,047 70 11253773
$ 11,978,362 39 $

10,536 74 9,949 54
1,2n oo
26,211 12 -52B,1n.20 106 720 38
617 215 07

$ 213031854 62 $

10 258 54 $

1216711552 11 $ 261552,896 63 $ 61193191544

-3-

GILMER COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnstrudlonal SeMces Educational Media Services General Admimstrabon School Administration Busmess Administration Maintenance and Operation of Plant Student Transportation Services Central Support SeMces Other Support Services Food Services Operation
Capital Outlay Debt Service
Pnndpal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINA~I~ ~!.!~E !!.!liJES}
Premium on Bonds Sold Acal.led Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Capital Leases OperatJng Transfers In Operating Transfers Out
Total Other Fmanang Sources (Uses)
Excess of Revenues and Other Finanang Sources over (under) Expenditures and Other Fmanang Uses
FUND BALANCE JULY 1
Food Inventory- Net Change In Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 13,681,204.06 $ 80,240.30
7,474,494 92 296,248.64
$ 21,532,187.92 $

694,509.95 2,019,210.05
493,815.22
3,207,535.22

$ 14,800,931.90 $
644,005.84 227,711.79 480,598.92 387,416.83 1,379,887.35 415,182.35 1,457,16399 1, 126,576.68 74,13002
9,454 73 272,23140
223,183.55 32,312 06

1,541,183.30
95,929.91 35,047.64
170.32 154,114.00
480.15
5,268.81 7,78646
1,956.94 1,399,319.60

$ 21,530,787 41 $

$

140051 $

3,241,257 13 -33 721 91

$

222,556.00

11,950 00 $

-40,828.29

$

193,677.71 $

39,430 51 39,430 51

$

195,078 22 $

-380,265 52

5,70860 127,056 87

-3,749 75 -2,697.31

FUND BALANCE JUNE 30
The notes to the general-purpose financial statements are an Integral part of tt11s statement -4-

$ -185,187 30 $

1261318 41

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 14,375,714.01 $ 14,152,776.85

2,099,450.35

1,991,10775

$ 1,911,960.77

9,386,455.69

5,703,934.86

$

207,041.22

20 477.23

1,017,582.31

750,954.28

$

207,041.22 $ 1,932,438.00 $ 26,879~02.36 $ 22,598,773.74

$ 16,342,115.20 $ 13,839,940.65

$

164,606.10

322,391.63

739,935.75 262,75943 480,769 24 541,530.83 1,380,367.50 579,788.45 1,462,432.80 1,134,36314
74,13002 1,956.94
1,408,774.33 594,623.03

1,631,726.29 424,530.88 456,857.90 431,749.03
1,274,345.86 333,749.30
1,314,049.28 1,029,781.49
49,305.83 14,200.33 1,292,751.52 1,553,530.40

$

345,000.00

155,467.50

1,060 00

568,183.55 187,779.56
1,060.00

518,106 66 203,10667
2,000.00

$

486,997.73 $

501,527.50 $ 25,760.569 77 $ 24,369,732.09

$

-279,956.51 $ 1,430,910.50 $ 1.118,632.59 $ -1,770,958 35

$

12,349.85

$

10,000,000.00

1,397.78 -11,950 00

$ 10,001,797.63 $

$ 13,947.19

12,34985 13,947.19

10,000,000 00 222,55600 $ 52,778.29 -52.778.29

13 94719 $ 10,248.853 04 $

216,781.00 426,881.24 -426.881.24
216,781.00

$ 9,721,841.12 $ 1,444,857 69 $ 11,367,485.63 $ -1,554,177.35

1,277.00

858,996 93

607,065.28

2,168,259.85

-3,749.75 -2,697.31

-9,404 19 2.386 97

$ 9:723,118.12 $ 2,303,854 62 $ 11,968,10385 $

607,065 28

-5-

GILMER COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - tNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other funds

$ 13,354,411 00 $ 13,681,204 06

41,000.00

80,240 30

7,672,735.00

7,474,494 92

296 248 64

Total Revenues

$ 21,068,146 00 $ 21,532,187 92

~PENQIIl,IRES
Current Instruction Support SeMces Pupil SeMces Improvement of Instructional SeMces Educational Media Services General Adm1nistrst1on School Administration Business Administration Maintenance and Operation of Plant Student Transportation Servtces Central Support Servtces Other Support SeMces Food Services Operation
Caprtal Outlay DebtSeMce

$ 14,357,742 00 $ 14,800,931 90

640,833 00 181,527.00 470,402 00 362,479 00 1,306,711 00 382,050 00 1,509,887 00 1,061,137 00 76,446 00

644,005 84 227,711 79 480,598 92 387,416 83 1,379,887 35 415,182 35 1,457,163 99 1,126,576 68
74,130 02

10,000 00 268,932 00

9,454 73 272,231 40 255 495 61

Total Expenditures Excess of Revenues over (under) Expenditures

$ 20,628,146 00 $ 21,530,787 41

$

440,000 00 $

1 400 51

OTHER FINANCING SQURCl;S IUSESl

Other Sources

Other Uses

$

Total Other Financing Sources (Uses) $

$ -440,000 00
-440 000 00 $

234,506 00 -40 828 29
193 677 71

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

FU!':U2 BALANCE JULY 1 2000

Food Inventory - Net Change in Penod Donated Commod1bes Purchased Food

0 00 $ -358,621 77

195,078.22 -380,285 52

FUND BALANCE JUN!; 30 2001

$ -358.62111 s_..,...;1,.8,_5.,1.8.7...,3_0;..

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 697,131 00 $ 694,509 95

1,583,839 00

2,019,210 05

499,990 00

493,815 22

$ 2,780,960 00 $ 3,207,535 22

$ 1,251,400 00 $ 1,541,183 30

88,600 00 40,727 00
3,700.00 42,840 00 20,025 00

95,929 91 35,047 64
17032 154,114 00
480 15

2,500 00 4,075 00

5,268 81 7,78646

8,740 00 1,318,353 00

1,956 94 1,399,319 60

$ 2,780,960 00 $ 3,241,257 13

$

0 00 $ -33,721 91

$

39,430 51

$

39 430 51

$

000 $

5,708 60

-16,350 47

127,056 87

-3,749 75 -2 697 31

$ -16 350 47 $ ~-12_6,.3._1_8=4,..1_

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

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

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

GILMER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
DR EDWARDW WATKINS
SCHOLARSHIP FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

000 $

0.00 $

0 00

$

50000 $

50000 $

500.00

$

-500 00 $

-500 00 $

-500.00

608.75

608 75

54567

$

108 75 $ >

108 75 $

45 67

10 149 79

10 149 79

10 104 12

$

10,258 54 $

10,258 54 $ ,,_-=1=0=-1...,49=7=9=

The notes to the general-purpose financial statements are an integral part of this statement -8-

GILMER COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001

EXHIBIT WE"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities: Interest Received on Investments Sale of Investments Net Cash Provided by Investment Activities
Net Increase in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND
DR. EDWARD W. WATKINS
SCHOLARSHIP FUND

TOTALS

(Memorandum Onlv)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

-500.00 $

-500.00 $

-500.00

$

608.75 $

608.75 $

545.67

10,000.00

$

608.75 $

608.75 $

10,545.67

$

108.75 $

108.75 $

10,045.67

10,149.79

10149.79

104.12

$

10,258.54 $

10,258 54 $===1=0=1==49-==79=

The notes to the general-purpose financial statements are an integral part of this statement -9 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Gilmer County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District 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 School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits 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 of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. 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 School District, 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 of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 11 -

GILMER COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLETRUSTFUND Dr. Edward W. Watkins Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to needy students within the School District's jurisdiction who might otherwise not be able to attend college.
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-Term Debt Account Group.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
- 12 -

GILMER COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. With the exception ofproperty taxes, the School District considers receivables collected within sixty days after year-end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Gilmer County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget
- 13 -

GILMER COUNlY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for all governmental funds is prepared by fund, function and object. The legal level of budget 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 School District'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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) 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 School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
- 14 -

-,
GILMER COUNTY BOARD OF EDUCATION
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State ofGeorgia, 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 information 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 installation of new computer programming and the associated start-up problems with the new programs along with significant bill addressing errors resulted in delay in mailing that was not resolved until August 2001. The 2000 tax year property tax levy was set December 20, 2000 (levy date). The due date for property taxes was February 20, 2001 (lien date). Taxes collected within the current fiscal period and through November 1, 2001, are reported as revenue in the fiscal year 2001. The Gilmer County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $7,398,975.66 and for school bonds amounted to $561,002.42.

Tax millage rates levied for the 2000 tax year (calendar year) for the Gilmer County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

15.97 mills .94 mills

SALES TAXES

~mills

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to

- 15 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
$1,350,958.35 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $13,649,041.65 has been collected oron December 31, 2005, whichever occurs first.
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.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction or'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 of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in 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.

- 16 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATE:MENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DEFICIT FUND BALANCE

The fund reporting a deficit fund balance position at June 30, 2001, was as follows:

Fund Type/Fund Name

Deficit Balance

Governmental General Fund

$ 214,047.70

The Gilmer County Board of Education expects to fund the deficit in the General Fund with the elimination of the property tax billing delays experienced during the current fiscal period.

Note 2: DEPOSITS

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, 9r by collateral. The aggregate of the 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. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities 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,

- 17 -

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

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate 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, 2001, the bank balances were $13,314,603.83. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category
1 2 3
Total

Bank Balance
$ 1,865,720.47 11,321,809.05 127,074.31
$13.314.603.83

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (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 School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

- 18 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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

The School District has elected to self-insure for all losses related to natural disaster (earthquake). The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District 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.

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

2000 2001

Beginning of Year Liability

Claims and Changes m Estimates

Claims Paid

End of Year Liability

$

0.00 $

682.50 $

682.50 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

The School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent Principals

$ 50,000.00 $ 15,000.00 - $ 20,000.00

- 19 -

GILMER COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES
The Gilmer County Board of Education has entered into various lease agreements as lessee for school buses. 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.

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

Purpose

Interest Rates

Amount

General Government - Series 1989 General Government - Series 1991 General Government - Series 2001

6.00% - 6.75% 5.20%- 6.75% 3.70%-4.00%

$ 460,000.00 1,705,000.00
10,000.000.00

$12.165.000,00
The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

Balance July 1, 2000

Capital Leases

General Obligation
Bonds

Total

$ 507,179.66 $ 2,510,000.00 $ 3,017,179.66

Additions Capital Leases G.O. Bonds

222,556.00

222,556.00

10,000,000.00 10,000,000.00

Deductions Debt Retired
Balance June 30, 2001

223.183.55

345.000.00

568.183.55

$ ~Q6,552,l 1 $12,165,000,QQ $12,671,552.11

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

- 20-

GILMER COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30,2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005 2006

$ 225,763.85 $ 920,488.33 $ 1,146,252.18 191,910.23 2,977,815.00 3,169,725.23 99,016.61 3,156,925.00 3,255,941.61 50,742.72 3,353,357.50 3,404,100.22 3,568,595.00 3,568,595.00

Total Principal and Interest Deduct: Imputed Interest

$ 567,433.41 $13,977,180.83 $14,544,614.24 60,881.30

Net Present Value of Future Minimum Lease Payments $ 506,552.11

Note 6: SHORT-TERM DEBT

The School District obtains temporary loans in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-tenn debt is to provide for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount ofshort-tenn debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-tenn debt to be repaid no later than December 31 of the calendar year in which the debt was incurred.

Temporary Loans

Beginning
Balance

Additions

Payments

Ending
Balance

$ 1,470,873.76 $ 5,681,355.75 $6,027,229.51 $ 1,125,000.00

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $429,539.58 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $349,343.49

- 21 -

GILMER COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia
For Teachers Retirement System (TRS) Employer's Cost
In the amount of $28,715.09

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$51,481.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

02G/0 1S-661-018

$ 1,182,623.23 $ 1.249.603,00

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

Note 9: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and

- 22 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 10: RETIREMENT PLANS

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 School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District 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

2001 2000 1999

100% 100% 100%

$ 1,499,525.64 $ 1,433,736.09 $ 1,360,826.31

- 23 -

-- ---- ----- -------------------
GILMER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

188,772.89 $

73,816.31

19,497.79

6,786.99 71252.23

Total Assets

$

2221309.90 $===7=3=18=16==31=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved 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
- 24-

$

30,498.49 $

19,459.18

65,493.00

53,721.06

636.07

$

95,991.49 $

73,816.31

$

6,786.99

7,252.23

112,279.19 $

$

126,318.41 $

0.00 000

$

222,309.90 $===7=3=8=16...,,....,31=

EXHIBIT"G"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

38,291.46 $

300,880.66 $

274,642.65

184,866.33

204,364.12

183,226.56

2,464.66

6,786.99 7,252.23

10,536.74 9,949.54

$

223,157.79 $

s 519,284.oo ==-=4..s...o..=,s=20==15..,.

$

43,139.13

$

84,202.97 $

134,160.64

98,512.62

92,354.88

211,568.94

200,687.48

42,443.69

43,079.76

11,424.05

4,156.25

4,156.25

$

223,157.79 $

392,965.59 $

353,763.28

$

$ _ _ ____,;o=.o=o--

$

0.00 $

6,786.99 $ 7,252.23

10,536.74 9,949.54

112,279.19

106,570.59

126,318.41 $ _ _1=2'-'-7=,0-=-56=.8.;;;..;7_

$

223,157.79 $

5191284 00 $==-4,_8::::0:!:1::8:=20:=.:::::15mo

- 25 -

--- - - ---------------
GILMER COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2001

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 School Administration Maintenance and Operation of Plant Student Transportation 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

$

92,118.00 $

793,562.33

493,815.22

$ 1,379,495.55 $

602,391.95 602,391.95

$

$ 1,373,786.95

$ 1,373,786.95 $

$

5,708.60 $

512,291.24
62,027.73 6,478.61
16,296.42 261.61
5,268.81 896.24 117 45 196.40
603,834.51
-1,442.56

$

5,708.60 $

127,056.87

-3,749.75 -2,697.31

1 442.56
0.00 0.00

$

126,318.41 $====-0...,.00:::::i:me

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

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

694,509.95 $

743,240.06

$ 1,225,647.72

2,019,210.05

1,953,325.11

493,815.22

489,904.93

$ 1,225,647.72 $ 3,207,535.22 $ 3,186,470.10

$ 1,028,892.06 $ 1,541,183.30 $ 1,057,094.74

33,902.18 28,569.03
170.32 137,817.58
218.54
6,890.22 1,839.49 25,336.25

95,929.91 35,047.64
170.32 154,114.00
480.15 5,268.81 7,786.46 1,956.94 1,399,319.60

718,805.27 28,745.66
96,053.91 1,113.70 310.00 3,636.64
13,645.33 1,283,827.27

$ 1,263,635.67 $ 3,241,257.13 $ 3,203,232.52

$

-37,987.95 $

-33,721.91 $

-16,762.42

37,987.95

39,430.51

67,376.38

$

0.00 $

5,708.60 $

50,613.96

0.00

127,056.87

83,460.13

-3,749.75 -2,697.31

-9,404.19 2,386.97

$

0.00 $

126,318.41 $=--=1=2=7!:a,0_56=.8=7=

- 27 -

- - - - - - - - - - - - - ---- --------- - ----------- - - - - - -
GILMER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Notes Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay ProJects Unreserved Undesignated Total Fund Eqwty
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

0.00 $ 1,022,532.45

8,702,412.33

2,840.79

$

0.00 $ 9,727,785.57

$

4,667.45

$

4 667 45

$ 9,723,118.12

$

0.00

0.00

$

0.00 $ 9?23,118.12

$

0.00 $ 9,727,785.57

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

EXHIBIT"!"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

54.00 $

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 301 2000

119,035.52 $ 1,141,621.97 $

435,873.76

8,702,412.33

2,840.79

44,430.50

$

54.00 $

119,035.52 $ 9,846,875.09 $....,.=4=8=0=,3=04==26==

$

11,427.50

$

54.00 $

141.75 $

4,863.20

435,873.76

118,893.77

118,893.77

31,726.00

$

54.00 $

119,035.52 $

123,756.97 $

479,027.26

$ 9,723,118.12 $

1,277.00

$

o.oo $ _ _ _ _0__._0_0____

o.oo

0.00

$

o.oo $ _ _ _ _0==00~ $ 9,7231118.12 $ _ _ _1_,2_11_._o__o_

$

54.00 $

119,035.52 $ 9,846,875.09 $==4=8=0=,3=04=m26...,

- 29-

GILMER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Books, Textbooks and Periodicals Land and Land Improvements Building and Building Improvements
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

$

20,850.00 $

186,191.22

$

20,850.00 $

186,191.22

$

164,606.10

$

8,900.00

4,447.58

$

8,900.00 $

169,053.68

$

11,950.00 $

17137.54

$

12,349.85

10,000,000.00

$

-11,950.00

-306,369.27

$

-11,950.00 $ 9,705,980.58

$

0.00 $ 9,723,118.12

0.00

0.00

$

0.00 $ 9,723,118.12

See notes to the general-purpose financial statements. - 30 -

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

488,277.60

$

0.00 $

0.00 $ ____2=0_7_.;;,04...;..;..1.=22~

$

o.oo $ _______o__.o"-'o"-- $

201,041.22 $ _ _4.;.;;8=8._,2;.;_11.;.;._6_o;a...

$

164,606.10

$

51,904.00 $

257,140.05

4,447.58 8,900.00 $ 309,044.05

394,111.57 913,778.76

$

51,904.00 $

257,140.05 $

486,997.73 $ t,307,890.33

$

-51,904.00 $ -257.140.05 $ -279,956.51 $ -819,612.73

$

12,349.85

10,000,000.00

$

51,904.00 $

257,816.05

309,720.05 $

394,111.57

-1,953.00

-320,272.27

-34,606.71

$

51,904.00 $

255,863.05 $ 10,001,797.63 $

359,504.86

$

0.00 $

-1,277.00 $ 9,721,841.12 $ -460,107.87

0.00

1,277.00

1,277.00

461,384.87

$

o.oo $===--==o=..o..o= $ 9,723,118.12 $==-===1=2.1.1.=.o=o=

- 31 -

- - - - - - - - - - - - - - --- --
GILMER COUNJY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2001

EXHIBIT"K"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Debt Service
Unreserved Undesignated
Total Fund Equrty

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 870,750.51 $

894,746.52 $ 1,765,497.03 $

849,829.29

62,706.24

475,651 35

538,357.59

9 167 64

s s a1 933A5615

11370,397

$ 21303,854 62 $...,,,._8_5_.B,..,,99,..6..,9..,3_

$ 933,456.75 $ 000

1,370,397.87 $ 2,303,854 62 $

000

000

858,996.93 000

$ 933A56 75 $ 1,370,397 87 $ 2,303,854.62 $...,,."'""""85;.;89.,;;.96_._93...,

See notes to the general-purpose financial statements

-32-

GILMER COUNTY BOARD Of EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2001

EXHIBIT"L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

REVENUES Taxes Other Funds
Total Revenues
EXPENDITURES

$

561,002.42 $ 1,350,958.35 $ 1,911,960.TT $

446,344.TT

14,984.90

5,492.33

20,4TT.23

17,500 90

$

575,987.32 $ 1,356,450.68 $ 1,932,438.00 $

463,845.67

Debt Service

Prinapal

$

Interest

Paying Agent Fees

Total Expenditures

$

Excess of Revenues over (under) Expenditures

$

OTHER Fl~NCING OURCES

Accrued Interest on Bonds Sold

Excess of Revenues and Other Fmandng Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

345,000.00 $ 155,467.50
1,060 00
501,527.50 $
74,459.82 $

000 $
0.00 $ 1,356,450.68 $

345,000.00 $ 155,467.50
1,060.00
501,527.50 $
1,430,910.50 $

13 947.19

13 94719

74,459.82 $ 858,99693

1,370,397.87 $ 000

1,444,857.69 $ 858,996 93

320,000.00 176,957 50
2,000.00 498,957.50 -35,111.83
-35, 111.83 894,108.76

FUf!!O BALANCI; JUNE ;IQ

$

933,456 75 $ 1,370,397 87 $ 2,303,854 62 $

858,996.93

See notes to the general-purpose finanaal statements

- 33-

GILMER COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001

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 EducaUon Food and Nutrition Program Food SeMc:es School Breakfast Program National School Lunch Program

. 10.553 . 10555

NIA $ 189,192.29

(2)

NIA

534,651.12 $ 1,304,068.03 (3)

Total Chlld Nutr1Uon Cluster

$ 723,84341 $ 1,304,068.03

Other Programs Pass-TIYough From Georgia Department of Educabon Food and Nutribon Program Food DlstribuUon Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Resel"\/8 Funds
Total U.S. Department of Agriculture

10.550 10665

NIA

69,718.92

69,718.92

N/A

1,295.00

!4l

$ 794,857.33 $ 1,373,766.95

EducaUon, U. S. Department of Speoal Education Cluster Pass-TIYough From Georgia Department of EducaUon lndMduals with Disabilities EducaUon Act Part B - Special Educabon Flow Through Capacity BUIiding Improvement Preschool

84.027 84027 84173

NIA

s 244,873 36 $

NIA

5,39495

NIA

27,63000

244,873 36 5,394.95
29,357.81 (3)

Total Speoal EducaUon Cluster

$ 2TT,898.31 $

279,62612

Other Programs

Pass-Through From Georgia Department of Edi.cabon

Elementary and Secondary Educabon Act TIUel Grants to Local Educational Agencies

. 84.010

NIA

Title II

8senhower Professional Development

84.281

NIA

TIUeVI

Innovative EducaUon Program Strategies

84.298

NIA

Class Size Reducbon

84.340

NIA

TltleVII

Immigrant Education

84.162

NIA

Safe and Drug-Free Schools and Communities

84.186

NIA

Vocabonal Educabon - Basic Grants to States

High School Program

Basic Grant

84.048

NIA

Pass-Through From Hall County Board of Education

d/b/a Piedmont Migrant Educabon Agency

Elementary and Secondary Education Ad

TIUel

Migrant Education

84.011

NIA

412,577.59 11,843 75 14,629 95 72.46600 39,974.00 17,349.57
28,450.12
23,837 28

412,577.59 11,843 75 14,629.95 80,964 50 (3) 61,421.93 (3) 17,349.57
34,721 69 (3)
23,899 42 (3)

Total U. S Department of Education

$ 899,046.57 $

937,034 52

- 34-

GILMER COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

Health and Human Services, U. 5. Department of Pass-Through From Georgia Department of Human Resources Mental Health/Mental Retardatlon Substance Abuse and Prevention Grant Pass-Through From Ninth Dlstnd Opportunity, Incorporated Projed Head Start Pass-Through From Office of Planning and Budget Abstinence Education Block Grant

93.959 93.600 93.235

Total U. 5. Department of Health and Human SeMces

Labor, U. 5. Department of Pass-Through From Coosa Valley Regional Development Center Job Training Partnership Ad

17.250

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA $ 35,536.24 $

NIA

326,382.61

NIA

43,409.06

$ 405,327.91 $

35,536.24 326,382.61 43,409.06 405,327 91

NIA $

218.54 $

218.54

Total Federal Financial Assistance

$ 2,099,450.35 $

NIA = Not Available

Notes to the Schedule of Expendrtures of Federal Awards

(1) The amounts shown for the Food Dlstnbullon Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the rurrent fiscal year.
(2) Expenditures the School Breakfast Program were not maintained separately and are included In the 2001 Natlonal School Lunch Program
(3) Expenditures for this program indude State, and/or Other Funds. Expenditures are not maintained by fund source
(4) Funds earned on this program do not requl/'8 reporting of expenditures

MaJor Programs are ldentlfied by an astensk c> In front of the CFDA number.

The School Dlstrid did not provide Federal Assistance to any Subreaplent

The accompanying schedule of expenditures of Federal awards includes the Federal grarrt activity of the GIimer Courrty Board of Educatlon and Is presented on the modified acaual basis of accounting which Is the basis of accounting used In the presentation of the general-purpose finanaal statements

2,716,367.92

See notes to the general-purpose finanaal statements

- 35-

GILMER COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Prlrraary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Educat10n (9-12) Program Vocatioraal Laboratory (9-12) Program Students with D1sablhtles Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Madia Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnnclpal Supplements Vocatloraal Supervisors Mid-Tenn AdJustmant Hold-Hannlass Educational Equahzat10n Funding Grant FoodSeMces Vocabonal Education Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Special Education Low Incidence Grant Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Ass1St1Ve Technology Computers in the Classroom
Office of the Governor School Attendance Support Grant
Office of School Readiness Pre-Kindergarten Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

801,476.00

49,792.00

2,113,922.00

250,502.00

1,133,104.00

1,843,345.00

1,479,626.00

382,457.00

21,737.00 305,518.00 674,639.00 112,15700
68,513.00 164,39000 n.ss2.oo 134,313.00 151,938.00 315,490 00
81,188.00 1,894,n2 oo

$

801,476.00

49,792.00

2,113,922.00

250,502.00

1,133,10400

1,843,345.00

1,479,626.00

382,457.00

21,737.00 305,518.00 674,639.00 112,157.00 68,513.00 164,390.00 n,56200 134,313.00 151,938 00 315,490.00 81,188.00 1,894,722 00

445,TT9.00 143,701.00 86,894.00
14,923 00 15,735.00 20,762 00 65,188.00
$ 121,557.38

92,11800

2,000.00 5,890.18 349,343 49 5,000.00 29,638.00 7,009.00 51,266 00 3,027 35 28,715.09

3,344 53 74,558 51

445,TT9 00 143,701 00 86,894.00
14,923.00 15,735 00 20,762.00 65,188 00 92,118.00 121,557.38
2,000 00 5,89018 349,343 49 5,000.00 29,638.00 7,009.00 51,266 00 3,027.35 28,715 09
3,344.53 74,558.51

25,635.88

25,635.88

524,48891

524,488 91

- 36-

GILMER COUNTY BOARD Of EDUCATION
SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE"2"

AGENCY/FUNDING
GRANTS
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS
Educabon, Georgia Department of
Reading First Program
Reading Challenge Program
Human Resources, Georgia Department of Children's Community Based Initiative Family Connection Grant
Whitfield County Board of Health Northwest Health District Tobacco Use Prevention

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

51,481 00

$

51,481.00

41,125.00 34,735.00
10,127.69 50,000.00
15.28000

41,125.00 34,735.00
10,127.69 50,000 00
15,280.00

$ 13,681.204 06 $ 694,509.95 $ 14,375,714 01

See notes to the general-purpose financial statements

- 37

GILMER COUNTY BOARD Of EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Retire previously incurred general obligation debt in a maximum amount of $1,500,000.00

$ 1,500,000.00 $ 1,500,000.00 $

0.00 $

0.00 Ongoing

Acquisition, construction and equipping of a new elementary school in Gilmer County, the constructJon of addruonal
dassrooms and the adding to,
remodefmg, renovating, improving and equipping of dassrooms, physical education, instructional and support space and grounds at Gilmer Middle School, Oakland Elementary School, Ellijay Pnmary School, and Gilmer High School, including furnishings, equipment and fixtures for such schools and other existing facilllies Within the School Oistnct; the construcl.lon of an agnculture fadlity at Gilmer High School, and the purchase of copiers, energy management systems, heating and air conditioning systems, lighting and similar equipment, and computers and other technology, and the remodeling and retrofitting of existing facilities to accommodate computers and other technology

13,500,000.00 13,500,000.00

471,516 95

Ongoing

s 1510001000.00 s 1510001000 oo s 471,516.95 s_ _.....,o_oo..,

(1) The School Orstrict's original cost estimate as specified in the resolution calling for the 1mpos1bon of the Local Option Sales Tax.
(2) The School Drstrict's current esbmate of total cost for the proJects. lndudes all cost from proJed rnceptron to completion
(3) The voters of Gilmer County approved the imposition of a 1% sales tax to fund the above pl'Ojeds and retire assoaated debt Amounts expended for these projects may indude sales tax proceeds, state, local property taxes and/or other funds over the lrfe of the pl'Ojects.

See notes to the general-purpose finanaal statements

- 39-

GILMER COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM {QBEl
ALLOTMENTS AND EXPENDITURES BY PROGRAM
YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct lnstructtonal Programs

Kindergarten Program

$

984,239 00 $ 1,043,404.43 $

23,382 78 $ 1,066,787.21

Kindergarten Program-Early Intervention Program

61,147.00

75,506.81

1,851.98

77,358 79

Primary Grades (1-3) Program

2,595,965.00

2,544,583 92

72,445.77

2,617,029.69

Primary Grades-Early Intervention (1-3) Program

307,624.00

309,703.53

1,911.00

311,614.53

Upper Elementary Grades (4-5) Program

1,391,489.00

1,495,793.22

44,312.17

1,540,105.39

Middle School (6-6) Program

2,263,688.00

2,398,020 49

61,170 03

2,459,190.52

High School General Education (9-12) Program

1,817,029.00

2,050,570.56

91,465.77

2,142,036 33

Vocational Laboratory (9-12) Program

469,670.00

542,484.18

125,286.27

667,770.45

Students with Disabilities

1,452,228.00

Category I

103.00

103.00

Category II

269,205.01

2,638.26

271,843.27

Category Ill

873,340 57

152,610.81

1,025,951.38

Category IV

94,503.63

1,615.02

96,118.65

Category V

129,469 74

802 57

130,272.31

Gifted Student Category VI

201,875.00

199,269.01

2,606.90

201,875 91

Remedial Education Program

95,24800

182,826.04

213.16

183,039.20

Alternative Education Program

164,941.00

219,199.50

26,154.73

245,354.23

I

English Speakers of Other Languages (ESOL)

186,584.00

1981622.03

31554.14

2021176.17

I.

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

11,991,727 00 $ 12,626,605 67 $ 612,021.36 $ 13,238,627.03

Media Center Program Staff and Professional Development

387,432.00 99 701.00

385,718.03 32,130 38

75,067.60 76,984 81

460,785 63 109,11519

TOTAL QBE FORMULA FUNDS

$

12,478,860.00 $ 13,044,454.08 $ 764,073 77 $ 13,808,527.85

(1) Comprised of State Funds plus Local Five Mill Share

See notes to the general.purpose financial statements

40-

GILMER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE Ellijay Primary School Gilmer High School Gilmer Middle School Ellijay Elementary School Oakland Elementary School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,818,141.00 $ 3,134,780.60

2,952,430.00

3,445,955.28

2,815,754.00

3,030,920.93

2,346,693.00

2,536,318.18

893,768.00

984,949.51

164,941.00

105?02.53

$ 11,991,727.00 $ 13,238,627.03

See notes to the general-purpose financial statements.
- 41 -

SECTIONil COMPLIANCE AND INTERNAL CON1ROL REPORTS

RussE1.L W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W.. Suite 214 Atlanta, Georgia 30334-8400
June6,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gilmer County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER ANANCIAL REPORTING BASED ON AN AUDIT OF ANANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Gilmer County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated June 6, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Gilmer County Board of Education's financial statements are free of material misstatement, we perfonned 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Gilmer County Board of Education's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-41

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 of the internal control over financial reporting that, in ourjudgment, could adversely affect Gilmer 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 of Findings and Questioned Costs as item FS-6611-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of perf0In1ing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6611-01-01 to be a material weakness.
This report is intended solely for the infoIIllation and use of management, members of the Gilmer County Board of Education, 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:as 2001YB-41

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 6, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gilmer 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 ofGilmer County Board ofEducation 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, 2001. Gilmer County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of 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 Gilmer County Board of Education's management. Our responsibility is to express an opinion on Gilmer 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 of America; 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 perform 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 Gilmer County Board of Education's compliance with those requirements and performing 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 determination on Gilmer County Board of Education's compliance with those requirements.
2001SA-30

In our opinion, the Gilmer 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, 2001.
Internal Control Over Compliance
The management of Gilmer 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 Gilmer 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 Gilmer 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-6611-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level 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 performing 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 Gilmer 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:as 2001SA-30

R ssell W. Hinton State Auditor

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

GILMER COUNTY BOARD OF EDUCATION
AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200 I

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6611-99-0 I FS-6611-99-02 FS-6611-00-0 I FS-6611-00-02 FS-66 I 1-00-03

Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6611-00-03

As of July 1, 2002, the School District will begin a general fixed assets account group.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-66 I 1-00-0I

Previously Reported Corrective Action Implemented

SECTIONN FINDINGS AND QUESTIONED COSTS

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Gilmer County Board ofEducation's financial statements was qualified 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 Gilmer 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 Gilmer 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 Gilmer 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 Gilmer County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Gilmer County Board of Education1s audit disclosed an audit finding required to be reported by section .5 IO(a) of0MB Circular A-133. This audit finding is 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 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
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GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

9. Low Risk Auditee

The Gilmer County Board of Education did not qualify as a low risk auditee as defined by

Section .530 ofOMB Circular A-133.



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-6611-01-01

The Gilmer County Board of Education 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 School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District 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 School District 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.

BUDGET PREPARATION/EXECUTION Deficit Fund Balance Nonmaterial Noncompliance Finding Control Number: FS-6611-01-02

At June 30, 2001, the liabilities and reserved fund balances exceeded assets available for the General Fund by $214,047.70. O.C.G.A. 20-2-67(b) requires that the Superintendent submit to the Georgia Department of Education both a response to this condition and a corrective action plan designed to correct the budget deficit. The School District should establish budgetary procedures to ensure that funding is available prior to the School District committing to expenditures.

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GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department of Education Through Georgia Department of Education Amount: $1,326.30 Finding Control Number: FA-6611-01-01 A Review of cash management procedures and internal controls for the Elementary and Secondary Education Act Title I, Grants to Local Educational Agencies (CFDA 84.010) disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. During fiscal year 2001, the Title I program had an average cash balance of $26,192.69 with excessive monthly cash balances in nine months. In accordance with A-102 Common Rule paragraph 21(h)2(n interest earned on advances by local government grantees is required to be submitted promptly to the Federal grantor agency. Up to $100.00 per year maybe retained for administrative expenses. The Title I program (CFDA 84.010) earned interest amounting to $1,426.30 of which $1,326.30 should have been submitted to the Georgia Department ofEducation. The interest earned on this program's funds was recorded in the School District's General Fund. Management should become familiar with the Federal regulations for the Title I program in order to develop adequate control procedures designed to provide for the achievement of compliance
objectives. In addition, excessive interest earned totaling $1,326.30 should be refunded to the
Georgia Department of Education.
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