L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 30 GRADY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 32 2 SCHEDULE OF STATE REVENUE 34 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 3 OVERALL 35 4 BYPROGRAM 36 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS '"REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION III 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 H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washing1on S1rect. S.W.. Suite 214 Atlanta. Georgia 30334-8400 April 27; 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendeni and Members of the Grady County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general purpose financial statements ofthe Grady County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Grady County Board ofEducation'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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management; as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 2000ARL-13 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been 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 ofthe Grady County Board ofEducation as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles. In accordance with Governrnent Auditing Standards, we have also issued our report dated April 27, 2001, on our consideration ofthe Grady County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in .accordance with Governrnent 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 ofthe Grady County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules I through 4), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole: 2000ARL-13 A copy ofthis report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. Respectfully submitted, RWH:gp 2000ARL-13 State Auditor GRADY COUNTY BOARD OF EDUCATION GRADY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 1.473,134.81 $ . 486.064.18 243,000.00 238.438.00 513,524.57 25,443.88 16 488.81 Total Assets $ 1,954,572.81 $==1=0=4=1=52=1=.4=4= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 421,588.16 $ 362.81 $ 421 950.97 $ 197,889.09 293,113.63 91 360.14 582,362.86 $ $ 1,532,621.84 $ 1,532,621.84 $ 25.443.88 16,488.81 417,225.89 459,158.58 Total Liabilities and Fund Equity $ 1,954,572.81 $==='1=04=1=5=2=1-,,;.44,;.. The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT"A" TYPES CAPITAL PROJECTS FUND FIDUCIARY FUND TYPES TRUST FUNDS TOTALS (Memorandum Only) JUNE 30, 2000 JUNE 30, 1999 $ 204,700.00 $ 15,977.56 $ 2,179,876.55 $ 2,508,465.23 77,222.44 320,222.44 75,883.76 751,962.57 495,340.47 25,443.88 16 488.81 27,959.29 16 890.68 $ 204 700.00 $ 93 200.00 $ 3,293,994.25 $ 3,124,539.43 $ 150.00 $ 619,627.25 $ 809,926.71 293,113.63 265,546.13 91,722.95 14 266.14 $ 150.00 $ 1,004,463.83 '$ 1,089,738.98 $ $ 10,182.00 194 518.00 $ 204 700.00 $ 7,500.00 $ $ 7,500.00 44,308.81 7,500.00 282.68. 85,550.00 93 050.00 $ 25,443.88 16,488.81 10,182.00 2,229,915.73 2,289,530.42 $ 27,959.29 16,890.68 11,982.00 1,925,876.99 2,034,800.45 $ 204,700.00 $ 93,200.00 $ 3,293,994.25 $ 3,124,539.43 -3- GRADY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2000 GOVERNMENTAL FUND TYPES .. t. - ,.,,,I -SPECIAL CAPITAL GENERAL .. REVENUE ,. PROJECTS -FUND FUND FUND REVENUES State Funds Federal Funds Taxes Other Funds $ 18,690,045.08 ~$, 770,906.05 $ 0.00 -L 3,355,247.24 5,416,568.95 il '7 256,484.89 355,735.26 Total Revenues $ 24,363,098.92 $ 4 481 888.55 $ _ _ _ _o"'.O"'O'-- 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 Ope..-ations Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures $ 16,012,268.34 $ 2,151,198.66 1,186, 138.28_ 1,000,983.91 797,653.43 243,637.93 1,351,829.40 . 190,742.42 2,069,266.84 - 904,136.12 163,153.02 483.86 24,522.32 47,845.76 59,151.95 328,247.09 6,865.12 125,280.35 6,541.59 39,976.87 189,529.91 1,593,450.33 25,082.15 - - - - - - $ _ _.,::6~8,..::3.::.00"-'.::.00~ - $ 23,992,661.63 $ 4,525,324.02 $_--'6""8"'3""0"'0.""00~ $ 370 437.29 $ -43 435.47 $ _ _-..::6.::.8..::3.::.00::.,,,::.00~ OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) _ $ $' --.::.63=17'-4~.0~0'-- $ -63 174.00 $ Excess of Revenues and Other Financing Sources over (under) Expenditures and Other _Financing Uses $ 307,263.29 $ FUND BALANCE JULY 1 1,225,358.55 174.00 $ 63,000.00 174.00 $ ---'6""3"',0"'0"'0.""00~ -43,261..4- 7 $ 505,337.33 -5,300.00 210,000.00 Food Inventory - Net Change in Period Donated Commodities Purchased Food -2,515.41 -401.87 FUND BALANCE JUNE 30 ;> ====='===== $ 1,53.2.621.84 $ 459 158.58 $ 204,700.00 The notes to the general purpose financial statements are an integral part of this statement. -4 - EXHIBIT"B" TOTAL FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 19.460,951.13 3,355,247.24 5,416,568.95 612,220.15 $ $ 28,844,987.47 $ $ 19,460,951.13 $ 19,413,702.56 3,355,247.24 3,522,976.36 5,416,568.95 5,184,574.70 7 551.91 619 772.06 547,099.36 7 551.91 $ 28,852,539.38 $ 28,668,352.98 $ 18,163,467.00 1,245,290.23 1,329,231.00 804,518.55 368,918.28 1,351,829.40 190,742.42 2,075,808.43 944,112.99 163,153.02 $ 190,013.77 1,617,972.65 72,927.91 68 300.00 $ 28,586,285.65 $ $ 258,701.82 $ $ 18,163,467.00 $ 17,585,013.05 5,077.00 3,889.59 1,245,290.23 1,329,231.00 804,518.55 368,918.28 1,351,829.40 190,742.42 2,075,808.43 944,112.99 168,230.02 190,013.77 1,617,972.65 76,817.50 68,300.00 1,213,020.01 1,447,424.90 756,727.30 . 347,083.83 1,394,023.77 204,884.96 2,067,584.48 963,671.37 243,019.34 184,670.19 1,626,759.12 54,952.85 8,966.59 $ 28,595,252.24 $ 28,088,835.17 -1 414.68 $ 257.287.14 $ 579 517.81 $ 63,174.00 -63 174.00 $ 0.00 $ 258,701.82 $ 1,940,695.88 -2,515.41 -401.87 $ 63,174.00 $ 204,827.93 -63 174.00 -204,827.93 $ 0.00 $ 0.00 -1,414.68 $ 257,287.14 $ 579,517.81 86,381.75 2,027,077.63 1,433,277.22 -2,515.41 -401.87 11,694.65 2,587.95 $ 2, 196.480.42 $ 84 967.07 $ 2,281.447.49 $ 2,027,077.63 -5- GRADY COUNlY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - {NON-GMP 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 $ 18,055,063,00 $ 18,690,045.08 5,219,020.00 38 500.00 5,416,568.95 256 484.89 Total Revenues $ 23,312,583.00 $ 24,363,098.92 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 $ 15,750,991.00 $ 16,012,268.34 1,123,950.00 922,389.00 780,615.00 232,300.00 1,359,482.00 184,425.00 1,891,574.00 891,000.00 170,857.00 1,186,138.28 1,000,983.91 797,653.43 243,637.93 1,351,829.40 190,742.42 2,069,266.84 904,136.12 163,153.02 483.86 24,522.32 47 845.76 Total Expenditures $ 23,307,583.00 $ 23,992,661.63 Excess of Revenues over (under) Expenditures $ 5 000.00 $ 370 437.29 OTHER FINANCING SOURCES /USES) Other Sources Other Uses $ -5 000.00 $ -63 174.00 Total Other Financing Sources (Uses) $ -5 000.00 $ -63 174.00 .Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 0.00 $ 307,263.29 FUND BALANCE JULY 1 1999 0.00 1,225,358.55 FUND BALANCE JUNE 30 2000 $ 0.00 $ 115321621.84 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 586,907.50 $ 770,906.05 2.687,304.00 3,355,247.24 376,900.00 355 735.26 $ 3,651,111.50 $ 4,481,888.55 $ 1,556,269.50 $ 2,151,198.66 107,388.00 125,560.00 129,744.00 59,151.95 328,247.09 6,865.12 125,280.35 2,500.00 35,450.00 6,541.59 39,976.87 187,300.00 1,455,975.00 189,529.91 1,593,450.33 25,082.15 $ 3,600,186.50 $ 4,525,324.02 $ 50,925.00 $ -43 435.47 $ 174.00 $ 174.00 $ 50,925.00 $ 448 010.26 -43,261.47 460 487.36 $ 4981935.26 $ 4171225.89 The notes to the genera_l purpose financial statements are an integral part of this statement -7- . GRADY COUNTY BOARD OF EDUCATION STATEMENT-OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUND YEAR ENDED JUNE 30 2000 EXHIBIT "D" OPERATING REVENUES None Recorded OPERATING EXPENSES .. ,,. ,: ~- None Recorded . OperaUng Income ' ' ',t ' .NONOPERATING REVENUES : lnt~rest Earned Net Income r'. ' FUND BALANCE JULY 1 ..' r FUND BALANCE JUNE 30 - MILDRED PELHAM .SCHOLARSHIP FUND TOTALS (Memorandum Onlll YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ :: . 0.00 $ 0.00 $ 0.00 $ : $ ' .. -$ ' .. $ 0.00 $ 0.00 $ 360.11 360.11 $ 7 722.82 8 082.93 $ 0.00 $ 0.00 0.00 $ 0.00 360.11 360.11 $ 7722.82 8 082.93 $ 403.60 403.60 . 7 319.22 -. 7 722.82 ,, i' The notes to the general purpose financial statements are an integral part of this statement. GRADY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30 2000 EXHIBIT"E" Cash Flows from Investing Activities: Interest Received on Investments Purchase of Investments Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1 Cash and Cash Equivalents - June 30 MILDRED PELHAM SCHOLARSHIP FUND TOTALS (Memorandum Onl~l YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 360.11 $ 360.11 $ 403.60 -338.68 -338.68 -383.76 $ 21.43 $ 21.43 $ 19.84 839.06 839.06 819.22 $ 860.49 $ 860.49 $====8=3=9.=06= The notes to the general purpose financial statements are an integral part of this statement. -9- GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Grady County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds 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. 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 Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a 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. 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. - 11 - GRADY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 EXHIBIT "F" Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. " ' I FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unfr in a trustee capacity or as an.agent for individuals. private organizations. other government units and/or other funds., These funds include: , . ,. I . - .. ' ' NONEXPENDABLETRUSTFUND Mildred Pelham 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 college scholarships. EXPENDABLE TRUST FUNDS Eleanor KelleyScholarship Fund - the fund used to account for principal and earnings which may be expended to provide college scholarships. Ken ridge Fund - the fund used to account for'jirincipal and earnings whlch may be expended to provide drug education programs. Martin Lincoln Beller Trust Fund -the fund used to account for principal and earnings whlch may be expended to provide deserving and/or needy children assistance in treatment of eye diseases and blindness,,.;. . , 0 ,,, .. , Wight Nurseries Scholarship Fund - the fund used to a<;count for principal and earnings whlch may beeiqiended to provide scholarships to g'raduating1seniors. BASIS OF ACCOUNTING 1:. ; .: ' . _~f , 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. , '. ' . 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 ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting 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. Those revenues considered susceptible to accrual are property 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 of the 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. 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 Grady County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget-for governmental funds was prepared on a basis other than generally accepted accounting principles. . - 13 - .::; , GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 1 . 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 202,167(c), tci the Georgia Department of Education. The'Board may increase or decrease the b'udget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement of-Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B", of this report: . . - c. ' ; . :, :.. "Special . , I . ' H' Revenue , Fund \( :Jj_ , -I .1 1 FUND BALANCE-JULY J, 1999 . $ 505,337.33 . Adjustments,..,; , . ~,.~ '.h' ~ . Inventories - July l, 1999 ,.., . Food ., Donated Comm9dities Purchased Foods , , .. :. ,.. 1 Fund ~alanc_e July l_,-1999 (Budget Basis) I 1 ., . ,,. ~ ... ' . .1 I. -27,959.29 -16,890.68 $ 460;487.36 . Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing , !}ses , ,,_IJ . FUND BALANCE JUNE 30, 2000 (Budget Basis) ' -43,261.47 $ 417,225 89 CASH AND CASH EQUIVALENTS ,, ..: CQMPQSITION OF DEPOSITS , . Cash and cas.h equivalents consist of deposits in authorized financial institutions. Oeorgia 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 arid loan associations. ) ' :... ' \ C J4 - GRADY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 EXHIBIT "F" Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. 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: (I) 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 ihe United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services; (7) Repurchase agreements, and (8) Obligations of other political subdivisions ofthe State of Georgia. RECEIVABLES Receivables consist ofgrant 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 Grady County Board of Commissioners fixed the property tax levy for the 1999 tax year. (calendar year) on October 8, 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 - 15 - GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" ,., ,NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 60 days after year-end are reported as revenue in fiscal year 2000. The Grady 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. . ,, ~..,) I ' : b. The tax millage rate levied for the 199<} tax year (calendar year) for the Grady County Board of Education_ :was as. follows (a 111\U equals $1 per thous.and dollars of assessed value): School Operations:_, . , .ll.8.Q mills : INVENTORIES J. ' C . ' :l FOOD INVENTORIES Inventories of donated food commodities' used in the preparation of meals are reporti:d 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 mi 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 comp9nent 9f net current assets. ,,, INTERFUND TRANSACTIONS The Board_ has the_followipg types of_i_nte_rfund transac!ions: J,~ 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. I .. . J - .f J Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY -TOTAL COLUMNS "" Total columns on th!) general purpose financial statem~nts are captioned ','Memorandum Only" to indicate that they are present~d only.to facilitate financial analysis. Data in these columns do not , present financial p_qsition, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neith!)r are such data comparable to a consolidation. lnterfund eliminations have not been made in the aggregation of this data. . ,, .._, ... - 16 - GRADY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 EXHIBIT "F" 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 of money which has not been secured by surety bond, by guarantee of insurance, or 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. I) 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 45-8-1 l(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: (I) 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 bythe laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and (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 arid 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 $5,688,696.66. The amounts ofthe total bank balances are classified into three categories of credit risk: - 17 - GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS '. , Category I - Cash that is insured (e.g., Federal clepository insurance) or collateralized with securities held by the.Board or by the Board's agent in the Board's name..: .., Category 2 - Cash collateralized with securities held. by the pledging financial institution's trust department or agent in the Board's name.. " :, . Category 3 - Uncollateralizeddeposits. (This includesanybankbalancethatiscollateralized with securities held by the pledging financial institution, or by its trust . department or agent but not in the Board's name.) 1 I l I ' l . ,'__; I ;.. The Boar.d's deposits are classified by risk category at Jun~ 30, 2000,:as follows: Risk Category I ,, . 2 3 r ;Jli Bank Balance .$ 238,006.08 1,268,557.09 :C 4,}82!133.49 Total , 'J. r ., $ 5.688.696,66 . ,. Note 3: NON-MONETARY TRANSACTIONS ( ;. ...;. _; '_, I ._ , .~ ' J , .J I , 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 expose_d to.various risks of.loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related .illness or injuries to employees; natural disaster and unemployment compensation. , ,,.. . ,,, , - The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past .three years. The. Board _is_ self-ins_ured with regard to.unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two' fiscal years are as follows: .. , ' " L . GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 4: RISK MANAGEMENT Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability 1999 $ 0.00. $ 3 136.00 $ 3 136.00 $ 0.00 2000 $ o:oo $ 1,102.00 $ I 102.00 $ 0.00 The Board participates in the Georgia School Boards Association Workers" Compensation Fund, a public entity risk pool organized on July I, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board 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 Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Superintendent All Other Employees Note 5: OPERATING LEASES Amount $ 15,000.00 $ I00,000.00 Grady County Board ofEducation has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $91,050.00. Future minimum lease payments for these leases are as follows: Year Ending 2001 2002 Total Note 6: ON-BEHALF PAYMENTS Amount $ 91,050.00 91,050.00 $ 182,) 00.00 The Board has recognized revenues and expenditures in the amount of $398,906.99 for health insurance and retirement contributions paid on the Board"s behalf by the following State Agencies. - 19 - GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 6: ON-BEHALF PAYMENTS . , Georgia Department of Education, Paid to the Georgia Department ofCommunitfHealth For Health Insurance of Non-Certified Personnel In the amount of$334,227.99 ( ( ~' . . 'I Office of Treasury and Fiscal Services Paid to the,Public School Employees Retirement System I ,, -, ' . . ' _,,. '' For Public Schooi'Employees Retirement (PSERS) Employer's Cost 1" Intheamounfor'$64,679.00 . -. L , . , , ,. .' . ,,, . ~ ,,,:- I,,' Note 7: SIGNIFICANT COMMITMENTS an ', . , ,. - , '' ' ' t . I The following is analysis of significant outstanding construction orrenovation c:ontracts executed by the Board as of June 30, 2000. together with funding available: " '" 'IJ, C . ,;~-. '' Project . ' (, Unearned Executed Contracts Funding Available From State 00G/99S-665-025 Lottery '' $ 688,fi:Z l.4Q $ IQ:Z,832.0Q The amounts described in this note are not reflected in the general purpose .financial statements. Note 8: CONTINGENT LIABILITIES I Amounts: received or r~ceivable principally fro~ the Federal gove~ent are ~ubject to adit and review by grantor agencies. This could result ih requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. . '\ Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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 SystemofGeorgia iss~es a'separate stand'alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. - 20- GRADY COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30. 2000 Note 9: 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 2000 1999 1998 Percentage Contributed 100% 100% 100% Required Contribution $ 1,920,043.29 $ 1,940,267.05 $ 1,787,732.75 - 21 - GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2000 ASSETS . Cash and Cash Equivalents , r./ Accounts Receivable . Inventories Food Don"ated Commodities Purchased Food l " Total Assets SCHOOL FOOD . SERVICES FUND LOTTERY PROGRAMs 455.439.40 $; .,. 44,610.52 114.067.89 11.152.69 25.443.88 16 488.81 $ 541 982.61 $==1,;,:2,;;5,:,,2;;;,20;;;-;;;58;;. LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Contfnuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 11.702.95 $ 73.368.86 71,121.08 51.851.72 $ 82 824.03 $ 125,220.58 $ 25.443.88 16.488.81 417 225.89 $ $ 459 158.58 $ 0.00 0.00 $ 541 982.61 $==1:.:,2;:;:,5,,;.22;;;0::a;.5~8;.. See notes to the general purpose financial statements. c 22 - EXHIBIT"G" FEDERAL PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 569,507.29 $ 716,639.21 $ 457,761.36 513,524.57 230,990.48 25,443.88 16 488.81 27,959.29 16 890.68 $ 457 761.36 $ 1124 964.55 $===9=9='2=47=9=.6==6 $ 83,443.11 $ 83,443.11 112,817.28 197,889.09 $ 212,831.44 170,140.83 293,113.63 265,546.13 91 360.14 91 360.14 8 764.76 $ 457 761.36 $ s 665,805.97 487 142.33 $ 44,308.81 $ 25,443.88 16,488.81 27,959.29 16,890.68 $ 0.00 417 225.89 416 178.55 $ 0.00 $ 459 158.58 $ 505 337.33 $ 457 761.36 $ 1,124,964.55 $ ==9=9=2'=4=79...6,..6.,, 23 GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30 2000 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations 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 SCHOOL FOOD SJ:R\/ICES . FUND LOTTERY PROGRAMS , $ 117.878.00 $ 1,120,884.41 355,735.26 , 611,43.6.05 :$. 1 594 497.67 $ 611 436.05 --- - ; ' ;-: ...' $ 1,593,450.33 $ 1,593,450.33 $ $ 1,047.34 $ 547,386.13 43,689.78 5,727.99 2,906.32 3,998.72 7,728.11 611 437.05 -1.00 $ :: f 1"' 1,047.34 $ 461.028.52 -2.515.41 -401.87 1.00 0.00 0.00 FUND BALANCE JUNE 30 $ 459158.58. $=====0=.0==-0 See notes to the general purpose financial statements. : - 24 - EXHIBIT "H" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 41,592.00 $ 770,906.05 $ 709,682.71 2,234,362.83 3,355,247.24 3,522,976.36 355,735.26 363 354.88 $ 2,275,954.83 $ 4 481 888.55 $ 4,596,013.95 $ 1,603,812.53 $ 2,151,198.66 $ 2,264,680.21 15,462.17 322,519.10 6,865.12 122,374.03 2,542.87 32,248.76 189,529.91 25082.15 59,151.95 328,247.09 6,865.12 125,280.35 6,541.59 39,976.87 189,529.91 1,593,450.33 25,082.15 67,440.73 291,746.94 8,416.11 113,636.54 15,167.36 36,523.97 182,918.12 1,606,088.88. 2 771.85 $ 2,320,436.64 $ 4,525,324.02 $ 4,589,390.71 $ -44,481.81 $ -43,435.47 $ 6,623.24 173.00 174.00 241.17 $ -44,308.81 $ -43,261.47 $ 6,864.41 44,308.81 505,337.33 484,190.32 -2,515.41 -401.87 11,694.65 2 587.95 $ 0.00 $ 459158.58 $===50=5"',3=3=7=.3==3 25 GRADY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000 EXHIBIT "I" ASSETS Cash and Cash Equivalents REGULAR LOTTERY PROJECT $ 194,518.00 $ TOTALS JUNE 30,2000 JUNE 30, 1999 204 700.00 $ __2;;.;1_0..0.=0.0..0..0.. FUND EQUITY Fund Balances Reserved For State Capital Outlay Projects UnreServed Undesignated $ $ __1~9~4=5~18=.0=0~ 10,182.00. $ 0.00 10,182.00 _$ 194,518.00 11,982.00 198,018.00 Total Fund Equity $ 194 518,00 . $' 10 .182.00 $ 204,700.00 $ ' 210,000.00 \ ., I ,' ' I \ ',)' ' . See notes to the general purpose financial statements. -26- GRADY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2000 EXHIBIT "J" REVENUES None Recorded EXPENDITURES Capital OuUay Building and Building Improvements Excess of Revenues over (under) Expenditures OTHER FINANCING SQURCES Operating Transfers In Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 REGULAR LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 66 500.00 $ 1 800.00 $ 68,300.00 $ 0.00 $ -66,500.00 $ -1.800:00 $ -68,300.00 $ 0.00 63,000.00 63,000.00 204,586.76 $ -3,500.00 $ 198 018.00 -1,800.00 $ 11 982.00 -5,300.00 $ 210,000.00 204,586.76 5 413.24 FUND BALANCE JUNE 30 $ 194 518.00 $ s _.. 10 182.00 $ 204 100.00 2. .1._0,..,00_0_..o,._o See notes to tt"!e general purpose financial statements. -27 - GRADY COUNTY BOARD OF EDUCATION .COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2000 '/' ...., . . - . ASSETS Cash and Cash Equivalents ' -, ' , ... Investments - " r - , '. Total Assets " 'S s LIABILITIES AND FUND EQUITY ~.;1 LIABILITIES Accounts Payable FUND EQUITY Fund Balances Reserved For Endowment Corpus Unreserved Undesignated Total Fund Equity NONEXPENDABLE TRUST FUND MILDRED PELHAM SCHOLARSHIP FUND ELEANOf3 KELLEY SCHOLARSHIP FUND $ 860.49 $ .,. ' 7 222.44' 2.458.44 24 000.00 $ 8 082.93 $ ,.J,, .... 26 458.44 J ' "' ... -:. $ 7,500.00 582.93 $ 26 458.44 $ 8 082.93 $ 26 458.44 Total Liabilities and Fund Equity $ 8 082.93 $ ==.:,2;;;6,;;;4,;;;;58~.4,;,,4;,. See notes to the general purpose financial statements. -,-28- EXHIBIT "K" EXPENDABLE TRUST FUNDS MARTIN KENRIDGE LINCOLN BELLER FUND TRUST FUND WIGHT NURSERIES SCHOLARSHIP FUND TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 5,588.42 $ 3,132.56 $ 3,937.65 $ 15,977.56 $ 18,220.81 46 000.00 77 222.44 75 883.76 $ 5 588.42 $ 49 132.56 $ 3 937.65 $ 93 200.00 $-~=9=4=1.0.4-=.5=.7 . $ _ _ _--'1"'5"'0.0.0.=-- $ _ _ _.:..:15,,,o.,.,,.o"'--o $ 7,500.00 $ 7,500.00 $ 5 438.42 $ 49 132.56 $ _ ___,,,3,,,93