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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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GORDON COUNTY BOARD OF EDUCATION

CALHOUN, GEORGIA
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REPORT ON AUDIT



OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor


GORDON 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

AND EXPENDABLE TRUST FUND

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

ADDIDONAL 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

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

31

GORDON COUNTY BOARD OF EDUCATION -TABLEOFCONfENTS-

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

V>Y EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

,

5

BY PROGRAM

Page
32 34 35 37 38

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 AUDII'ING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

SECTION ill
AUDIIEB'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV 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 214 Atlanta, Georgia 30334-8400
June 15, 2001

Honorable Roy E. Barnes, Govern.or Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gordon 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 Gordon County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Gordon 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 requir~ that we plan and perfo11n 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 op1 n1 on.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
-

2000ARL-13A

* The general purpose financial statements 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 conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conforrn 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 confor1n 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 Gordon County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confurmity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing-8tandards, we have also issued our report dated June 15, 2001, on our consideration ofthe Gordon County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit perfo1111ed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was perforrned for the purpose of forming an opinion on the general purpose financial statements of the Gordon County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such infu1111ation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such info1n1a.tion is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-l 3A

A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:jb 2000ARL-13A

LA.).
Ru sell W. Hinton State Auditor

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GORDON COUNTY BOARD OF EDUCATION




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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,848,144.92 $

405,319.09 $ 1,185,621.45

39,737.34

3,010,502.28

442,106.02

641,897.10

709,119.00

10,889.03 8,433.22

Total Assets

$ 3,329,988.28 $ 1,066,538.44 $ 4,905,242.73

I

LIABILITIES AND FUND EQUITY

'

LIABILITIES

Accounts Payable

Salaries Payable

.

Expired Grant Balances Payable

Contracts Payable

Retainages Payable

General Obligation Bonds Payable

Total Liabilities

FUND EQUITY

$
-
$

144,320.26 $
. 77,804.80

147,929.90 $
401,041.34

3,758.23
461,011.73 628,367.94

222,125.06 $

548,971.24 $

1,093,137.90


Fund Balances Reserved For Debt Service 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

$

$

58,640.30

3,049,222.92

$ 3,107,863.22 $

10,889.03 8,433.22
$

3,702,917.93 109,186.90

498,244.95 517,567.20 $

0.00 3,812,104.83

Total Liabilities and Fund Equity

$ 3,329,988.28 $ 1,066,538.44 $

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

-2-

4,905,242.73

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$ 5,122,371.54 $

1,172.74

$ 9,562,629.74 $ 7,703,167.39

3,050,239.62

10,244,725.08

815,989.49

2,609, 111.61

1,685,381.62

10,889.03

39,642.43



8,433.22

8,528.08

$

5,938,361.03

5,938,361.03

4,237,738.40



4,981,638.97

4,981,638.97

9,612,261.60

$ 5,938,361.03 $

1172.74 $

10,920,000.00 $

26,161,303.22 $

3 -

3 -

,

5--3

1,44 ~----

4

.

6 -

0
--

$

296,008.39 $

288,726.88

478,846.14

454,450.57

240.28

461,011.73

720,925.13

628,367.94

328,507.64

$

10,920,000.00

10,920,000.00

13,850,000.00

$

10,920,000.00 $ 12,784,234.20 $ 15,642,850.50

$ 5,843,062.46
95,298.57 $ _ __:1.i..,:1~7=2-~74.!... $ 5,938,361.03 $ _ ____,;1.L.;1:.;.7=2."--74.a.,..

$ 5,843,062.46 $ 4,237,738.40

10,889.03 8,433.22
3,702,917.93 109,186.90

39,642.43 8,528.08
9,990,117.14

58,640.30 3,643,939.18

49,951.27 3,562,616.78

$ 13,377,069.02 $ 17,888,594.10

$ 5,938,361.03 $

1172.74 $

10,920,000.00 $ 26,161,303.22 $ 33,531,444.60

-3-

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

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 22,360,476.88 $ 19,531.68
8,923,992.01 665,027.72
$ 31,969,028.29 $

1,496,492.39 $ 2,659,132.43
938,514.88
5,094,139.70 $

804,699.00
414 130.47 1,218,829.47

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 Paying Agent Fees

$ 20,229,771.02 $
1,420,012.11 1,233,632.32
750,636.12 449,890.97 1,914,152.47 146,900.89 3,011,500.05 2,012,191.56 121,337.72
25,607.38
300,342.58 332,137.01

2,513,650.48
285,879.32 51,724.75 3,408.02 1,015.25 100.00
77,634.89 2,152.84
119.79 2,121,056.73
$

7,460,783.29

Total Expenditures Excess of Revenues over (under) Expenditures

$ 31,948,112.20 $

$

20,916.09 $

5,056,742.07 $ 37,397.63 $

7,460,783.29 -6,241,953.82

OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

$
$ ---=2:.::0i::,2a:.:69::.:;.8:.:3:..

20,269.83

$ -20,269.83 $ _ ____:2:.:0:,,.:,2:.::6.:::.:9a:,:83::...

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

646.26 $

FUND BALANCE JULY 1

3,107,216.96

57,667.46 $ -6,241,953.82

488,748.00

10,054,058.65

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-28,753.40 -94.86

FUND BALANCE JUNE 30

$ 3,107,863.22 $ 517,567.20 $

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

-4-

3,812,104.83

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 24,661,668.27

$

2,678,664.11

$ 4,998,951.79 13,922,943.80

216,826.74

2,234,499.81 $ _ _ _13.....,,_5_0_0._0__0~

24,661,668.27 $ 2,678,664.11 13,922,943.80 2,247,999.81

22,503,526.77 2,573,302.19 12,681,462.10 2,379,134.72

$ 5,215,778.53 $ 43,497,775.99 $

13,500.00 $ 43,511,275.99 $ 40,137,425.78





$ 22,743,421.50 $

13,159.35 $ 22,756,580.85 $ 20,706,505.17

1,705,891.43 1,285,357.07
754,044.14 450,906.22 1,914,252.47 146,900.89 3,089,134.94 2,014,344.40 121,337.72
25,727.17 2,121,056.73
300,342.58 7,792,920.30

1,705,891.43 1,285,357.07
754,044.14 450,906.22 1,914,252.47 146,900.89 3,089,134.94 2,014,344.40 121,337.72
25,727.17 2,121,056.73
300,342.58 7,792,920.30

1,578,563.96 1,250,626.63
733,577.55 469,093.30 1,659,729.83 142,840.39 2,884,868.37 1,805,026.32 119,322.67
29,814.87 2,055,961.71
263,839.15 6,676,300.14

$ 2,930,000..00 584,505.00 650.90

2,930,000.00 584,505.00 650.90

2,930,000.00 584,505.00 650.90

1,550,000.00 826,200.63 852.25

$ 3,515,155.90 $ 47,980,793.46 $

13,159.35 $ 47,993,952.81 $ 42,753,122.94

$ 1,700,622.63 $ -4,483,017.47 $ _ _ _3__4__0_._6_5_ $ -4,482,676.82 $ -2,615,697.16

$

20,269.83

-20,269.83

$ - - - - - 0.00

$ 1,700,622.63 $ -4,483,017.47 $
4,237,738.40 17,887,762.01

-28,753.40 -94.86

$

20,269.83 $

23,088.07

-20,269.83

-23,088.07

$

o.oo $ _ _ _ _o.....a;.;ooa..

340.65 $ . -4,482,676.82 $

832.09

17,888,594.10

-2,615,697 .16 20,507,357.34

-28,753.40 -94.86

375.56 -3,441.64

$ 5,9381361.03 $ 1313751896.28 $

11172.74 $ 1313771069.02 $ 17,8881594.10 -5-

GORDON 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

$ 21,607,298.00 $ 22,360,476.88

3,000.00

19,531.68

7,815,193.00

8,923,992.01

93,000.00

665,027.72

$ 29,518,491.00 $ 31,969,028.29

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
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 20,043,074.00 $ 20,229,771.02

1,385,247.00 1,166,337.00
741,362.00 441,012.00 1,819,015.00 137,856.00 3,095,773.00
1,820,656.00
121,280.00
25,400.00

1,420,012.11 1,233,632.32
750,636.12 449,890.97 1,914,152.47
146,900.89
3,011,500.05
2,012,191.56
121,337.72 25,607.38

564,150.00

300,342.58
332,137.01

$ 31,361,162.00 $ 31,948,112.20

$ -1,842,671.00 $

20,916.09

OTHER FINANCING SOURCES IUSESl
Other Sources Other Uses
Total Other Fi/lancing Sources (Uses)

$

-43,640.00 $ _ _-2::;:0:.,:,26:.::;9;:;.:..8;::.;:3~

$

-43,640.00 $ _ _.::;20::..,26=9:.:a.83=-

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

$ -1,886,311.00 $ 2,841,700.82

646.26 3,107,216.96

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 1,275,100.00 $ 1,496,492.39

2,315,717.00

2,659,132.43

853,632.00

938 514.88

$ 4 444 449.00 $ 5,094,139.70

$ 2,180,094.00 $ 2,513,650.48

287,530.00 42,071.00
500.00

285,879.32
51,724.75 3,408.02 1,015.25 100.00

3,300.00

77,634.89 2,152.84

6,632.00 1,899,294.00
10,334.00

119.79 2,121,056.73

$ 4,429,755.00 $ 5,056,742.07

$

14 694.00 $

37 397.63

$

43,640.00 $

20,269.83

$

43,640.00 $ _ _.::;20..,,2,:::6;::.;9=:83=-

$

58,334.00 $

57,667.46

486,235.15

440 577.49

FUND BALANCE JUNE 30. 2000

$

955,389.82 $ 3,107,863.22

$

5441569.15 $ _ _4_9_8_,2_44_.9_5_


The notes to the general purpose financi'al statements are an integral part of this statement.
.7.


GORDON COUNfY 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 Gordon County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo1111 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 confo1111 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-

GORDON 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-te1m 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:
EXPENDABLE TRUST FUND Ratner Fund - the fund used to account for the principal and earnings which may be expended to provide expenditures approved by trustees of the Ratner Foundation for specific purposes.

ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.

BASIS OF ACCOUNTING
-
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust 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-Te11n Debt Account Group.

Governmental and expendable trust funds are accounted for using the modified accrual basis of

accounting under which:

.

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GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 deter1nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this .employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two.months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Gordon County Board ofEducation'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.
- 10 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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:

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 488,748.00

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

-39,642.43 -8,528.08

Fund Balance July 1, 1999 (Budget Basis)

$ 440,577.49

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

57,667.46

FUND BALANCE JUNE 30, 2000 (Budget Basis)
-
CASH AND CASH EQUIVALENTS

$ 498,244.95

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:

- 11 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions ofthe 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 n<:>t include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Gordon County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 20, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Gordon 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 Gordon County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17.48 mills

- 12 -

GORDON COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 $4,989,099.35 and was recorded in the Debt Service Fund. The State will te11ninate collection of this tax once an additional $9,176,523.07 has been collected or on December 31, 2002, 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 itetns 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 v~sting 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 tliis amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Te;;1n1 Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese fmancial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities .. Bond p1e1niums 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-Tetm Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
- 13 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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 confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS

Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on

deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not

been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face

value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 perc' ent ofthe public funds being secured after th~ 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 ofthe State of Georgia,

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

municipalities ofthe State of Georgia,

.


(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

- 14 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the 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, 2000, the bank balances were $10,258,838.69. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 2000, as follows:

Risk Category

Bank Balance

1

$ 4,822,167.35

2

5,138,529.92

3

298,141.42

Total

$10\258.838.69

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.

- 15 -



GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

At June 30, 2000, the carrying value of the Board's total investments was $3,050,239.62. The investments are classified as to risk categories as follows:

Type of Investment
Repurchase Agreements Local Government
Investment Pools
Total Investments

Risk Categories

I

2

3

Carrying Amount

Fair Value

$ 100.000.00 $ 2.9)0.502.28 $,===0.0~0 $ 3,010,502.28 $ 3,010,502.28

39.737.34

39,737.34

$ 3.050.239.62 $ 3.050.239.62

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for
the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1; which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary 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 distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-te11n 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.

- 16 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks 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 and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

The Board 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 of the 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 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.

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

1999 2000

Beginning
ofYear
Liability

Claims and Changes in Estimates

Claims Paid

EndofYear
Liability

$

760.00 $

0.00 $

760.00 $_ _ _...,0:.:.,,0=0

$

0.00 $

490.97 $

490.97 $_ _ _...,0:.:.,,0=0

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

- 17 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 4: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent Director of Personnel Director of School Nutrition Each Principal

$ 30,000.00

$ 5,000.00

$ 5,000.00



$ 5,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1997 General Government - Series 1998

4.00% - 4.35% 4.00% - 4.35%

$ 3,640,000.00 7,280,000.00

$10,920,000,00

The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows:

-
Balance July 1, 1999

General Obligation
Bonds
-
$13,850,000.00

Deductions Debt Retired

2,930,000.00

Balance June 30, 2000

$10,920,000.00



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


- 18 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 5: GENERAL LONG-TERM DEBT
Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003
Total Principal and Interest

$ 3,656,575.00 3,992,595.00 4,247,045.00
$ 11,896.215.00

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $467,933.25 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies..

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $352,969.74

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $21,233.51

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$93,730.00

Note 7: SIGNIFICANT COMMITMENTS
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000:

- 19 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Ashworth Middle School Belwood Elementary School Red Bud Elementary School Sonoraville East Middle School Tolbert Elementary School

$ 59,240.09 18,271.70
152,750.00 165,941.90
1,364.06

$ 397.567.75

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 grantor agency for any expenditures which are disallowed under grant te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staffand certain other full-time employees earn up to 15 days per year of annual leave based on the number of years of service with a maximum accumulation of 20 days. Upon termination ofemployment or retirement, employees shall be paid, at the current rate ofpay, for unused accrued annual leave up to the maximum accumulation. 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 ernployed by local school systems 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 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.

-20-

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 10: RETIREMENT PLANS

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

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 2,305,336.03 $ 2,218,047.41 $ 2,000,222.75








- 21 -

GORDON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 2000

ASSETS

Cash and Cash Equivalents

Accounts Receivable

Inventories

Food



Donated Commodities

Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

662,355.26 $

158,369.86

457.06

16,810.42

10,889.03 8,433.22

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
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.
-22 -

$

682,134.57 $ ====17=5,=18=0=.28=

$

48,570.17 $

41,867.01

115,997.20

133,313.27

$

164,567.37 $ _ _1....;7--"5-'-',1..;;.80==28;_

$

10,889.03

8,433.22

498,244.95 $ _ _ _ _o=.;;;..oo;_

$

517,567.20 $ _ _ _ _0==00~

$ 682,134.57 $ =====1=7=5=,=1=8=0.=2=8=

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

820,725.12 $

735,935.82

$

624,629.62

641,897.10

653,094.34

10,889.03 8,433.22

39,642.43 8,528.08

$

624,629.62 $ 1,481,944.47 $ 1,437,200.67

$

415,406.03 $

415,406.03 $

439,704.69

57,492.72

147,929.90

119,661.77

151,730.87

401,041.34

388,845.93

240.28

-

$

624,629.62 $

964,377.27 $ _ _.:;..94.:.;:8;.r..;,4;.;:.5=:.:2.=67;,_

$

$ _ _ _ _ _o._oo_

$

0.00 $

$

624,629.62 $

10,889.03 $ 8,433.22

39,642.43 8,528.08

498,244.95

440,577.49

517,567.20 $ _ _4-'-'a"-"a"'"7'",...;.48=.;;...oo'--



1,481,944.47 $ 1,437,200.67

- 23-

GORDON COUNTY BOARD OF EDUCATION

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

YEAR ENDED JUNE 30, 2000



SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

REVENUES

State Funds Federal Funds Other Funds

Total Revenues

$

159,116.00 $ 1,337,376.39

1,110,803.61'

902,472.38

$ 2,172,391.99 $ _ __.1,_3_3'--7-"",3_7__6_._3_9_

EXPENDITURES

Current

Instruction

Support Services



$ 1,200,425.01

Pupil Services

51,455.37

Improvement of Instructional Services

3,765.10

Educational Media Services

General Administration

School Administration

100.00

Maintenance and Operation of Plant

77,634.89

Student Transportation Services

543.32

Other Support Services



Food Services Operation

$ 2,114,724.53

3,452.70

Total Expenditures
-
Excess of Revenues over (under) Expenditures

$ 2,114,724.53 $ _--'-'1,..;;;.33;;..;;7...<.;,3;..;.7..;;;.6.=3.;;.....9

$

57,667.46 $

0.00

OTHER FINANCING SOURCES

Operating Transfers In

Excess of Revenues and Other Financing Sources over (under) Expenditures

$

57,667.46 $

0.00

FUND BALANCE JULY 1

488,748.00

0.00

Food Inventory- Net Change in Period Donated Commodities Purchased Food

-28,753.40 -94.86

FUND BALANCE JUNE 30 See notes to the general purpose financial statements.
- 24-



$

517,567.20 $ =====0.=00=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 1,496,492.39 $ 1,354,771.74

$ 1,548,328.82

2,659, 132.43

2,543,837.12

36,042.50

938,514.88

886,610.18


$ 1,584,371.32 $ 5,094,139.70 $ 4,785,219.04

'

$ 1,313,225.47 $ 2,513,650.48 $ 2,254,511.00

234,423.95 47,959.65 3,408.02 1,015.25



1,609.52

119.79

2,879.50

285,879.32 51,724.75 3,408.02 1,015.25 100.00 77,634.89 2,152.84 119.79
2,121,056.73

284,327.02 68,077.86 3,598.54 1,358.75
79,055.18 3,313.58 7,955.47
2,055,961.71

$ 1,604,641.15 $ 5,056,742.07 $ 4,758,159.11

$

-20,269.83 $

37,397.63 $

27,059.93



20,269.83

20,269.83

23,088.07

$

0.00 $

57,667.46 $

50,148.00

0.00

488,748.00

441,666.08

-28,753.40 -94.86

375.56 -3 441.64

$

0.00 $

517,567.20 $ ==4=8=8.,.7..=48==00=

-25 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

BOND PROCEEDS

$

0.00 $

897,204.15

3,010,502.28

Total Assets

$

0.00 $ 3,907,706.43

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts 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 Equity

$

3,758.23

82,518.63

118,511.64

$ _ _2_0_4.._,7_8_8._50_

$ 3,702,917.93

$ _ _ _ _....;o;.;..o;;..;o;....

0.00

$ _ _ _ _~0.;..;;;..00.;.... $. 3,702,917.93

Total Liabilities and Fund Equity

$ ====0==00= $ 3,907,706.43

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

EXHIBIT "G"

LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

288,417.30 $ 1,185,621.45 $ 1,135,633.88

3,010,502.28

10,010,703.63

709,119.00

709,119.00

$

997,536.30 $ 4,905,242.73 $ 11,146,337.51



$

3,758.23 $

42,846.09

$

378,493.10

461,011.73

720,925.13

509,856.30

628,367.94

328,507.64

$

888,349.40 $ 1,093,137.90 $ 1,092,278.86





$ 3,702,917.93

$

109,1as:90

109,186.90

9,990,117.14

0.00

0.00

63,941.51

$

109,186.90 $ 3,812,104.83 $ 10,054,058.65

$

997,536.30 $ 4,905,242.73 $ 11,146,337.51

-27 -

GORDON 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

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

Total Expenditures

Excess of Revenues over (under} Expenditures

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

-

Total Other Financing Sources (Uses}

Excess of Revenues and Other Financing Sources
over (under} Expenditures and Other Financing Uses

FUND BALANCE JULY 1

Residual Equity Transfer

FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00

- - - - - - $ ___4_14_.,_13_0_.4_7_

$

0.00 $ _ _4.;..1;_;4.,.1;,.;;.3.;.;0....;.,47'--

$
$ _ _..;6;.;;3.i.;,9..;.4.;.;.1.;;;...51~

1,961,399.82 236,294.01

$

63,941.51 $ _....;2='--'-'19"-'7..t.:,6=9=3.;.;;;.83~

$

-63,941.51 $ -1,783,563.36

$ -4,918,600.64

$ -4,918,600.64


$

-63,941.51 $ -6,702,164.00

63,941.51

9,990,117.14

414,964.79



$

0.00 $ ==3=,7=0=2=,9=1=7..9..3=

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

EXHIBIT "H"

TOTALS

LOTTERY

YEAR ENDED



PROJECT

JUNE 30, 2000

JUNE 30, 1999

$

804,699.00 $

804,699.00

414,130.47 $ _ _7;..;3;.;;.3.<,;e,8.;;.50;.;.7.;_;5;..

$

804,699.00 $ 1,218,829.47 $ _ _7;...;;3;.;;;.3"8-".,;;;..50;;.;..7.;_;5;....

$

$ 5,147,060.94 $ 7,108,460.76

52,087.01

352,322.53

$ 5,199,147.95 $ 7,460,783.29 $

$ -4,394,448.95 $ -6,241,953.82 $

61,500.00 6,163,079.89
286,195.93
6,510,775.82
-5,776,925.07

$ 4,918,600.64 $ 4,918,600.64 -4,918,600.64

$ 4,918,600.64 $

0.00

$

524,151.69 $ -6,241,953.82 $ -5,776,925.07

0.00

10,054,058.65 $ 15,830,983.72

-414,964.79

0.00

$

109,186.90 $ 3,812,104.83 $ 10,054,058.65



-29-

GORDON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

93,630.91 $ 5,028,740.63 $ 5,122,371.54 $ 3,504,053.65

1,667.66

814,321.83

815,989.49

733,684.75

Total Assets

$

95,298.57 $ 5,843,062.46 $ 5,938,361.03 $ 4,237,738.40

FUND EQUITY

Fund Balances

Reserved

For Debt Service

Unreserved

Undesignated

$

$ 5,843,062.46 $ 5,843,062.46 $ 4,237,738.40

95,298.57

0.00

95,298.57

0.00

Total Fund Equity

$ ------9-5~,2-9-8-.5-7 $

5,843,062.46 $


5,938,361.03 $ 4,237,738.40

-




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

GORDON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "J"


REVENUES

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees

$

9,852.44 $ 4,989,099.35 $ 4,998,951.79 $ 4,489,871.78

2,247.02

214,579.72

216,826.74

111 049.42



$

12,099.46 $ 5,203,679.07 $ 5,215,778.53 $ 4,600,921.20


$ $ _ ___:6;,::;50:.:,.9::..,0:....

2,930,000.00 $ 584,505.00

2,930,000.00 $ 584,505.00 650.90

1,550,000.00 826,200.63 852.25

Total Expenditures

$ _ ___:6;.::;50:.:..9::..,0:.... $ 3,514,505.00 $ 3,515,155.90 $ 2,377,052.88

Excess of Revenues over (under) Expenditures $

11,448.56 $ 1,689,174.07 $ 1,700,622.63 $ 2,223,868.32

FUND BALANCE JULY 1

83,850.01

4,153,888.39

4,237,738.40

2,013,870.08



FUND BALANCE JUNE 30

$

95,298.57 $ 5,843,062.46 $ 5,938,361.03 $ 4,237,738.40










See notes to the general purpose financial statements.

- 31 -

GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

10.553 * 10.555

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Educatiqn Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds

10.550 10.665

Total U. S. Department of Agriculture

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 Grant Flow Through Preschool

84.173 84.027 84.173

Total Special Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants

Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth
Vocational Education - Basic Grants to States High School Program Basic Grant

84.010
84.281 84.298
81.340 84.276 84.196
84.048

Total U. S. Department of Education

Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Substance Abuse Block Grant

93.959

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

17.250

PASSTHROUGH
ENTITY ID
NUMBER

N/A

$

NIA

$

NIA N/A
$

N/A

$

N/A

N/A

$

NIA N/A N/A N/A N/A NIA
N/A
$

N/A

$

N/A

$

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

263,728.82 726,774.10 $
990,502.92 $

(2)
1,994,423.84 (3)
1,994,423.84

120,300.69 646.68
1,111,450.29 $

120,300.69
(4)
2,114,724.53

36,129.00 $ 435,623.36
81,285.00
553,037.36 $

36,129.00 435,623.36
81,285.00
553,037.36

684,337.11 8,158.64
30,102.00 107,162.00 119,482.66
13,885.00

684,337.11
8,158.64
30,102.00 107,162.00 119,482.66
13,885.00

38,439.25 1,554,604.02 $

38,439.25 1,554,604.02

51000.00 $ _ ___;5:....,o:;..:o;.;;;o.;.;;.o~o

7,609.80 $

8131.37(3)

Total Federal Financial Assistance
N/A = Not Available

-32-

$ 2,678,664.11 $ 3,682,459.92


GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000
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 Gordon 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.

SCHEDULE "1"

See notes to the general purpose financial statements.


-33-




GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers Retirement Lottery Programs Assistive Technology
- Computers in the Classroom
Exceptional Growth - Capital Outlay

$ 12,783,961.00 2,845,922.00 199,218.00 542,647.00 150,982.00 3,327,552.00
823,324.00 259,058.00
56,540.00 427,303.00 382,978.00 102,010.00 409,423.00
55,535.00 57,685.00 -2,471,910.00 1,626,266.00
$
49,540.48
35,000.00 9,663.59 750.00
352,969.74 5,000.00 6,804.00
63,440.00 6,263.43
21,233.51

159,116.00
26,585.36 123,650.77
$

$ 12,783,961.00 2,845,922.00 199,218.00 542,647.00 150,982.00 3,327,552.00

823,324.00 259,058.00
56,540.00 427,303.00 382,978.00 102,010.00 409,423.00
55,535.00 57,685.00 -2,471,910.00 1,626,266.00 159,116.00 49,540.48

35,000.00 9,663.59 750.00
352,969.74 5,000.00 6,804.00
63,440.00 6,263.43
21,233.51

804,699.00

26,585.36
123,650.77
804,699.00

Office of School Readiness Pre-Kindergarten Program

1,187,140.26

1,187,140.26

Office of Treasury and Fiscal Services Public School Employees Retirement

93,730.00

93,730.00

CONTRACTS Education, Georgia Department of Georgia's Reading Challenge

26,071.00

26,071.00

Georgia Soil and Water Conservation Commission Wildlife Habitat Restoration and Improvement

4,000.00

4,000.00

Human Resources, Georgia Department of Family Advocate Program

107,517.13

107,517.13

$ 22,360,476.88 $ 1,496,492.39 $

804,699.00 $ 24,661,668.27

See notes to the general purpose financial statements.

-34-

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

SCHEDULE "3"

PROJECT
Principal and interest coming due on the Series 1973 Bonds beginning February 1, 1998 to maturity
Acquisition, construction, and equipping of new school facilities and the renovating, expanding, and improving of Belwood, Fairmount, Red Bud, Swain, and Tolbert Elementary Schools, Ashworth and Sonoraville Middle Schools, and Gordon Central High School, including specifically but not limited to the acquisition of necessary land, site work, and paving for such facilities, the acquisition of pupil transportation equipment, and the acquisition and construction of classrooms, kitchen and cafeteria areas, physical education, media and technology labs and centers, together with necessary equipment, including HVAC

systems, technology, wiring, cabling, and classroom equipment. The capital ouUay projects shall also include the acquisition, construction, renovation, and equipping of bus maintenance and transportation facilities

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

$

672,000.00 $

206,000.00 $

206,000.00 $



19,622,147.00

20,088,147.00

7,396,841.78

AMOUNT EXPENDED
IN PRIOR YEARS 218,000.00
5,890,579.09

$ 20,294,147.00 $ 20,294,147.00 $ 7,602,841.78 $ 6,108,579.09

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion.

(3) The voters of Gordon County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board has incurred interest expense to provide advance funding for the above projects as follows:

Prior Years Current Year Total

$

808,200.63

584,505.00

$ 1,392,705.63

See notes to the general purpose financial statements.

-35-

GORDON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND-QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100/o TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

16,781,171.00 $ - - -50-2,6-66.0-0

$

17,923,295.91

885,165.93 $ - - -77-7,1-12.1-7

$

18,808,461.84

-196,867.88 $ _ _1_8..._,6_1_1_,5__93_._96_

Amount of Underexpenditure for Total Allotment

$


0.00 $=====0.=00=





See notes to the general purpose financial statements.
- 37 -

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

I

GENERAL AND CAREER EDUCATION PROGRAMS

Kindergarten (*)

$ 1,416,459.00

$ 1,274,813.10 $

0.00

Grades 1 - 3 (*)

3,795,845.00

3,416,260.50

Sub-Total K-3

$ 5,212,304.00 90 $ 4,691,073.60 $

0.00

Grades 4 - 5 (*)

1,657,346.00 90

1,491,611.40

409,423.00

Grades 6 8 (*) Grades 9 - 12 (*)

2,584,934.00 90

2,326,440.60



1,813,098.00 90

1,631,788.20

High School Laboratories (*)

596,386.00 90

536,747.40

Vocational Education Laboratories (*) Total General and Career Education Programs

919,893.00 90

827,903.70

$ 12,783,961.00

s s_ _ 11,505,564.90

4. ;.;0:. ; 9c:. ,4.;.: 2:. :;3.;.: .o. ; . o

SPECIAL EDUCATION PROGRAMS

Regular Programs Category II (*) Category Ill (*) Category IV (*) Category V (*)



Sub-Total - Regular

$ 2,606.211.00

$ 2,345,590.80 $

0.00

$ 2,606,211.00 90 $ 2,345,590.80 $

0.00

Category VI (Gifted) (*)

239,711.00 90

215,739.90

Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*l
- Total Fourteen Weighted Programs

$ 2,845,922.00

$

199,218.00

s 15,829,101.00

$ 90 $
s

----~-'- 2,561,330.70 $

0.00

179,296.20 $ 0.00 _ _ _ _..;.;.a..;..

s_ _ 14,246,191.80

4;. ; .0.; . :9. ;.;42; .; 3;.;.;.o;.; . o

MEDIA CENTER PROGRAMS

Salaries Operations

$

434,806.00 90 $

391,325.40 $

0.00

107,841.00 100

107,841.00

Total Media Center Programs

$

542,647.00

- - - - - - $

499,166.40 $

0.00

Total Fourteen Weighted and Media Center Programs $ 16,371,748.00

------ - - -

----

$ 14,745,358.20 $ ------ ------

409,423.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

s

48,998.00

$

48,998.00 $

0.00

101,984.00

101,984.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

150,982.00 100 $

150,982.00 $

0.00

-

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

See notes to the general purpose financial statements.

38

SCHEDULE 5

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,274,813.10 $

1,527,972.37 $

3,416,260.50

3,604,150.65

$ 4,691,073.60 $

5,132,123.02 $

1,901,034.40

2,068,382.72

2,326,440.60

2,757,993.59

1,631,788.20

1,634,413.31

536,747.40

1,634,245.01

827,903.70

736,330.65

$ 11,914,987.90 $ 13,963,488.30 $

40,711.00 $ 1,568,683.37

188,816.00

3,792,966.65

229,527.00 $ 5,361,650.02 $

105,653.81

2,174,036.53

134,030.94

2,892,024.53

115,639.80

1,750,053.11

25,504.68

1,659,749.69

100,960.96

837,291.61

711,317.19 $ 14,674,805.49

0.00 0.00 0.00 0.00 0.00 0.00

$ 2,345,590.80 $

$ 2,345,590.80 $

215,739.90

$ 2,561,330.70 $

$

179,296.20 $

$ 14,655,614.80 $

492,495.05 $ 2,323, 112.44
51,217.80 38,444.20
2,905,269.49 $
226,613.00
3,131,882.49 $
196,464.00 $
17,291,834.79 $

2,990.07 $ 53,121.27

495,485.12 2,376,233.71
51,217.80 38,444.20

56,111.34 $ 2,961,380.83

5,221.05

231,834.05

61,332.39 $ 3,193,214.88

4,462.59 $ _ __:2:.::;0.:.,0,.:,:92:.::6;:.;:.5:.=,.9

777,112.17 $ 18,068,946.96

0.00 0.00
0.00

$

391,325.40 $

631,461.12

$

631,461.12

107,841.00 _ _ _ _ _ _ s _ ___,;1.;;..08;c,.,o;;..;5;.;;;3_1_.a..6

108,053.76

$

499,166.40 $

631,461.12 $

108,053.76 $ _......:,7.:::39::;i:,5::.;1:.;;:4.:.::.8=..8

0.00



0.00

$

15,154,781.20

$

-

-

17,9
----

2
-

3-

,

29 -

5

.

91
--

$

885,165.93

$

-

-

18
---

,--8-0

8,
..

4

61. --

8
-

4 -

$

0.00

$

48,998.00 $

101,984.00

34,874.05 $ 43,127.27

75,746.75 $

110,620.80 43,127.27

$ -

150,982.00
-- --- -----

$ ----- -

78,001.32 --- ----

$ -

75,746.75

---- - ----

---

$

153,748.07 $ --

0.00 - - ------

----

---



- 39


SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS



ot...!::



"I;'.

C')





+-.

-

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 15, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gordon County Board of Education

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Ladies and Gentlemen:

We have audited the financial statements of Gordon County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 15, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government -Auditing Standards, issued by the Comptroller General of the United States.

Compliance



As part of obtaining reasonable assurance about whether Gordon County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detern1ination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and perfu11ning our audit, we considered Gordon County Board ofEducation's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal

2000YB-40A

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable 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 Gordon County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6641-00-01.

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 perfo11ning 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, the reportable condition described above is considered to be a material weakness.

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

Respectfully submitted,

RWH:jb 2000YB-40A


00 w' \ . ..,1J~ 7 u ,
Ru sell W. Hinton State Auditor



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

17-71:,
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingto11 Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 15, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gordon 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 ofGordon 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, 2000. Gordon 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 ofGordon County Board ofEducation's management. Our responsibility is to express an opinion on Gordon 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 perfo1n1 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirei11ents 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 Gordon County Board of Education's compliance with those requirements and perfc,1ming 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 dete11nination on Gordon County Board of Education's compliance with those requirements.
2000SA-10A

In our opinion, the Gordon 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 Gordon 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 perfo1ming our audit, we considered Gordon 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 dete1mine 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.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, 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 notm'1.l course ofperfo11ning their assigned functions. We noted no matters involvingthe internal control over compliance and its operation that we consider to be material weaknesses.

This report is intended solely for the info1n1ation and use of management, members ofthe Gordon 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,

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Russell W. Hinton State Auditor
RWH:jb 2000SA-10A


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

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GORDON 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-6641-98-01 FS-6641-99-01

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-6641-99-01

In the past due to staffing limitations and budgetary considerations prohibiting the hiring of additional staff, the Board decided not to pursue the recording of fixed assets on the financial statements. However, the Board now plans to pursue the recording of general fixed assets. The Board has agreed to purchase McAleer Fixed Asset software and will begin July 1, 2001, recording current fixed assets. The Board has also agreed to budget funds in Fiscal Year 2002 for a third party to inventory and value fixed assets currently on hand. These amounts will be available to be included in our Fiscal Year 2002 financial statements.






SECTION IV FINDINGS AND QUESTIONED COSTS





GORDON 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 Gordon 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 F1nancial Statements The audit report for the Gordon County Board ofEducation 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 of the Gordon County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Intei11al Control Over Major Programs The audit report for the Gordon County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Gordon 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 Gordon County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
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.
9. Low Risk Auditee The Gordon County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation.
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GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeat From Prior Year Finding Control Number: FS-6641-00-01

The Gordon 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 of the 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 ofland, 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.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.





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