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

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HENRY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDffiONAL FINANCIAL INFORMATION
I '
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

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

32

2 SCHEDULE OF STATE REVENUE

34

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

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HENRY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

37 .

5

BYPROGRAM

38

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ONAN 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

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SECTION I FINANCIAL

RussEu. \\'. H1NTO:'li
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2)-l Washington StrLct. S.\V.. Suite 21-1Atl:rnt;.i. Cic(,r);!i.i 3tl33-l-~X--H)O
March 26, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Henry 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 Henry 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 Henry County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the talcing of either the Federal donated commodities inventory or purchased foods inventory at June30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2000ARL-13

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As described in the notes to the general puipose 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 puipose 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 accc;mnting principles.
* School activity accounts maintained at the individual schools are not included in the
general .puipose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general puipose 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 puipose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general pUipose financial statements ofthe matters referred to in the preceding paragraph, the general puipose financial statements referred to above present fairly, in all material respects, the financial position of the Henry County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2001, on our consideration ofthe Henry 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 Government Auditing Standards and should be read in conjunction with this report:in considering the results of our audit.
Our audit was performed for the puipose of forming an opinion on the general pUipose financial statements of the Henry County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5),
2000ARL-13

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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 information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:jb 2000ARL-13

State Auditor

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HENRY COUNTY BOARD OF EDUCATION

HENRY 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 Compensated Absences
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,785,237.20 $ 1,054,676.60 $ 48,180,746.46

9,249,250.91

580,514.96

1,365,584.29

418,907.07

4,500,000.00

86,806.54 62,018.24

$ 12.400,072.40 $ 1,622,408.45 $ 53,261,261.42

LIABILITIES AND FUND EQUl'f".
LIABILITIES
Accounts Payable Salaries Payable Contracts Payable Retainages Payable Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Ou~ay Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

20,050.53 $

96,592.44 $

82,999.40

452,067.06

1,740,580.50

2,874,601.05

$

20,050.53 $

548 659.50 $ 4,698,180.95

$ 1,068,112.96

$

31,095.20

86,806.54 62,018.24

43,338,438.06 4,156,529.45

$

644,283.88

11 735 737.99

893,828.97

0.00

$ 12,380,021.87 $ 1,073,748.95 $ 48,563,080.47

Total Liabilities and Fund Equity

$ 12.400,072.40 $ 1,622,408.45 $ 5312611261.42

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

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EXHIBIT "A"

DEBT SERVICE
FUND
$ 3,573,857.77
12,984,226.71
2,823,107.32

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

{Memorandum Ont:t:}

JUNE 30, 2000

JUNE 30, 1999

$ 54,594,518.03 $ 25,441,132.68

22,813,992.58

42,009,710.54

9,107,598.68

4,272,645.13

$ 19,381,191.80

86,806.54 62,018.24
19,381,191.80

138,230.84 58,552.33
14,773,289.29

137,013,808.20 1 533 916,69

137,013,808.20 1,533,916.69

123,596,710.71 1 415405.48

$ 19 381191.80 $ 157,928,916.69 $ 244,593,850.76 $ 211,705,677.00

$
$ 1,533,916.69 156,395,000.00

199,642.37 $ 452,067.06 1,740,580.50 2,874,601.05 1,533,916.69 156,395,000.00

125,913.52 386,192.19 3,699,560.44 3,617,641.70 1,415,405.48 138,370,000.00

$ 157,928,916.69 $ 163,195,807.67 $ 147 614 713.33

$ 19,381,191.80
0.00 $ 19 381191.80

$ 1,068,112.96 $

839,184.55

31,095.20

130,687.13

19,381,191.80

14,773,289.29

86,806.54 62,018.24 43,338,438.06 4,156,529.45

138,230.84 58,552.33 24,346,495.50 12;123,533.91

644,283.88 12,629,566.96

673,372.50 11 007 617.62

$ 81,398,043.09 $ 64,090,963.67

$ 19381191.80 $ 157,928:916.69 $ 244,593,850.76 $ 211,705,677.00

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

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REVENUES
State Funds Federal Funds Taxes Other Funds

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Total Revenues

EXPENDITURES
' .

Current

Instruction

l,,

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

Enterprise Operations

Community Services Operations

Capital OuUay

Debt Service

Principal Interest Paying Agent Fees

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Total Expenditures

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Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Premium on Bonds Sold

Accrued Interest on Bonds Sold

Proceeds from General Obligation Bonds

Par Value Operating Transfers In Operating Transfers Out

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Total Other Financing Sources (Uses)

Excess of Revenues and Other Financing Sour~s over (under) Expenditures and Other Financing Uses v;

Fl,!ND BALANCE JULY 1

Food Inventory - Net Change in Peri_od

Donated Commodities

Purchased Food

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GENERAL FUND

SPECIAL REVENUE
' FUND
~-

$ 70,346,801.08 $
129,989.51 44,886,700.06
3,562,350.54
$ 118,925,841.19 $

942,204.79 4,533,617.09
3 351 509.92
8,827,331.80

$ 80,243,340.86 $

4,395,680.90

2,305,891.27

'

,, - ., 2,767,615.54
840,927.47

8,077,699.46 -

593,130.56

9,736,935.73

5,878,8_10.60 .

497,368.94

498,675.67

79,305.23 1,508,298.58

2,715,363.97 231,729.89 317,997.09 51,771.24
4,492.88 5,382,980.93

93,263.89

$ 117 516 944.70 $ $ 1,-408,896.49 $

8 704 336.00 122 995.80

$

$

-68 941.98

$

-68 941.98 $

30,318.48 30 318.48

$ 1,339,954.51 $
11,040,067.36

153,314.28 968,393.06

- - -,51 ,424.30 3 465.91

FYND BALANCI;; JUNE JQ

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$ 12,380,021.87 $

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

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1,073,748.95

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30 2000

JUNE 30 1999

$ 12,353,243.38

$ 83,642,249.25 $ 72,876,436.42

4,663,606.60

4,127,362.51

$ 25,566,436.58

70,453,136.64

61,177,990.25

1 979 644.90

503 717.30

9,397,222.66

9495 945.75

$ 14,332,888.28 $ 26 070 153.88 $ 168,156,215.15 $ 147 677 734.93

$

201,571.57

35,465,541.15 $
$ 35,667,112.72 $ $ -21 334 224,44 $

$ 82,958,704.83 $ 71,428,500.95

4,627,410.79 2,623,888.36 2,767,615.54
892,698.71 8,077,699.46
794,702.13 9,736,935.73 5,878,810.60
497,368.94 503,168.55 5,382,980.93
79,305.23 36,973,839.73

4,610,556.07 1,918,497.52 2,517,166.56
715,691.27 6,985,996.23
531,506.13 8,146,672.90 5,000,133.85
526,827.46 301,634.78 5,121,015.58
8,483.91 69,436.09 40,378,651.85

14,675,000.00 7,123,930.83
3 803.09

14,675,000.00 7,217,194.72
3 803.09

11,945,000.00 8,149,898.49
3 751.49

21,802,733.92 $ 183,691,127.34 $ 168,359,421.13

4 267 419.96 $ -15,534,912.19 $ -20,681,686.20

$

109,467.45

$

32,700,000.00 38,623.50
-260,000.00

$ 32,588,090.95 $

$ 80,482.55
260,000.00
340482.55 $

109,467.45 $ 80,482.55
32,700,000.00 328,941.98 -328,941.98
32,889,950.00 $

128,450.40 24,484.44
15,940,000.00 . 488,481.28 -488 481.28
16,092,934.84

$ 11,253,866.51 $ 4,607,902.51 $ 17,355,037.81 $ -4,588,751.36

37,309,213.96

14,773,289.29

64,090,963.67

68,650,869.49

-51,424.30 3 465.91

21,487.22 7 358.32

$ 48,563,080.47 $ 19,381,191.80 $ 81,398,043.09 $ 64,090,963.67

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HENRY COUNTY BOARQ OF EDUCATION COMBINER STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - /NQN-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2000

EXHIBIT ~c~

REVENUES
State Funds Federal Funds Taxes Other Funds
Total R8venues
EXPENDITURES
Current lnstn.1ction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER flNANCTNG SOURCES /USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 1999

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 66,269,390.00 $ 165,000.00
43,206,060.00 2.928.618.24

70,346,801.08 129,989.51
44,886,700.06 3.562 350.54

$ 114.589.068.24 $ 118,925,841.19

$ 78,813,956.34 $ 80,243,340.86

4,863,070.81 2,317,775.03 2,845,296.34
815,437.99 7,532.157.88
546,931.00 9,224,800.78 5,268,355.16
608,071.32 162,464.76

4,395,680.90 2,305,891.27 2,767,615.54
840,927.47 8,077,699.46
593,130.56 9,736,935.73 5,878,810.60
497,368.94 498,675.87

69,438.09 1,349,670.65

79,305.23 1,508,298.58
93 283.89

$ 114 437 424.33 $ 117516944.70

s

151 643.91 $ 1,408,896.49

$

-68941.98

s

-68 941.98

s s 151,643.91

1,339,954.51

9,980,153.00

11 040 067.36

FUND f!Ab8NCE JUNE 30 2QQQ

s s 10 131 796.91

1213801021.87

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

987,613.00 $

942,204.79

3,884,213.03

4,533,617.09

3 314 150.00

3,351,509.92

$ 8 185 976.03 $ 8,827,331.80

$ 2,210,758.09 $ 2,715,363.97

308,488.27 225,309.67

231,729.89 317,997.09

73,800.00

51,TT1.24

10,266.00 5,009,425.01

4,492.88 5,382,980.93

$ 7,838,049.04 $ 8 704 336.00

$

347 928.99 $

122 995.80

$

30,318.46

$

30 318.48

$

347,926.99 $

153,314.28

965 387.51

771 609.89

$ 11313 314.50 $

924 924.17

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

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

.The Henry 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 an_d has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.

FUND ACCOUNTING

The Board uses funds and an account group to report on its financial position and the results of its

operations. F_und 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 s,elf-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

becaus. e

they

do. .

no. t

directly

affect

expendable

available

financial

resources.

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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.

1

Although "school activity accounts" are maintained at the individual schools, neither the assets,

JiabiJjtie~ and fund equity, nor the revel}ues, 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.

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The general purpose financial statements account for ali"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 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.

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

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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-term principal. interest and paying agent fees.

ACCOUNT GROUP

GENERAL LONG-TERM DEBT ACCOUNT GROUP- A financial reporting device used to account for general obligation debt outstanding and accrued compensated absences.
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BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. 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

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_HENRY COUNTY BOARD OFEDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES'! '

substantial number of personnel of the Board were employed for, a one hundred and ninety day period beginning in .late Augustl 999 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 of the compensation paid in July and August 2000 was received and

recorded as revenue in. the fiscal year subsequent to Jun~ 30, 2000. Conv~rsely, 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-furids are received or disbursed.

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BUDGET
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The Henry County Board of Education's budget is a complete financial plan for the Board's fiscal

year and is based upon estimates ofexpenditures 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 atthe aggregate level. The budgetfor governmental.funds was prepared on

a basis other than.generally accepted accounting principles.

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The budget process begins when the Board's administration prepares a tentative budget for the

. Board's approval. :Afterapproval 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, inakes 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), .tothe 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;

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The Statement .of Revenues, Expenditures.and Changes in Fund Balances O Budget and Actual

r presents actual and budgeted data for the General Fund and Special Revenue Eund. To facilitate

comparison with the budget, the following adjustments have been made to fund balance as reflected

on Exhibit "B'' of this report:

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ITJNE 30, 2006

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY I, 1999

$ 968,393.06

Adjustments Inventories - July I, I999 Food Donated Commodities Purchased Foods

-138,230.84 -58,552.33

Fund Balance July I, 1999 (Budget Basis)

$ 771,609.89

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

153,314.28

FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 924,924.17

CASH AND CASH EQUIVALENTS

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

INVESTMENTS

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

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

(2) Obligations issued by the United States government,

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,HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

(5) Prime banker's acceptances,

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(6) The Local Government Investment Pool administered ,by t~e _State of Georgia, Office of Treasury and Fiscal Services,
(7t Repurchase agreements, and ( '
(8); Obligations of other political subdivisions of th,(,! State of Georgia.

RECEIVABLES

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Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures

made but not reimbursed and other receivables disclosed from information available. Receivables

are recorded when either the asset or revenue recognition criteria has. been met . Receivables

recorded on the general purpose fimuicial staie~ents do not include any amounts ~hich would

necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

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,. ._The ,H~nry ~ouri!Y Board of Commissiqners fixed ,the property levy for. the 1999 tax' year

. (calendar year) on August 16; 1999 (levy date). ,Taxe~ were due on D~cember 1, 19,99. 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 Henry 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.

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Tax millage rates le-:ied for the 1999 tax year (calendar year) for the Henry County Board of

Educat_io~_were as foilO\ys (I! ~ill equals $1 per (\iousand:doll~of assesse? yalue): .,, ._ , .

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School Operations

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.Scliool Bonds

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17:so mills~
4.00 mills',

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

1
Note I: 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 $15,043,835.75 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $61,924,579.51 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 items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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-Term Debt Account Group.
INTERFUNDTRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures 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.
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,- HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

,, 'NOTES TO THE GENERAL PURPOSE FINANCIAL STA'fEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -

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

MEMORANDUM ONLY - TOTAL COLUMNS

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Total columns on th'e general purpose_financial .-statements ate 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 of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

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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 slim ofmoney 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 puplic funds being secured after the deduction ofthe amount ofdeposit insurance.

Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market vajue 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.

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,1 Acceptable. security fm.deposits consists of any one of or any combination of the following:

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(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, -certificatesof indebtedness or other direct obligations of the United

Statesor of the State of Georgia,

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-: , : (4) Bo11ds, bills, :notes, certificates.of indebtedness, or. other- obligations .of the counties or

municipalitiesoftheState.ofGeorgia, ,

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

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(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe

State ofGeqrgia, and

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal 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 $58,309,700.70. The amounts of the 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

$ 672,747.05

2

57,636,953.65

3

0.00

Total

$58.309.700,70

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $22,813,992.58 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, 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 of the 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 I 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

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. HENRY.COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE. GENERAL PURPOSE FINANCIAL STATEMENTS

' JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

registered with the SEC as an investment company but does operate Georgia Fund 1 ina manner consistent with Riile 2a-7 ofthe Investment Company A:ct ofl940.and is considered to be a Rule 2a' 7 like pool. The pool's primary objectives are safety of capital, investment income, hquidity and 1 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 participarit'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 ofthe shares. Participation in the pool

is voluntary and deposits consist offunds from local governments; operating and trust funds of

Georgia's state agencies, colleges and universities; and current _operating funds of the State of

Georgia's General Fund.

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Investments in.Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. c' 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 agieeinents. :The weighted average maturity of Georgia Fund. Lmay not exceed, 60 days. The

weighted average maturity for Georgia Fund I on June 30, :2000, was 23 days. The average

investment duration for Fund 6 on June 30, 2000, was .8!) year.

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Note 3: NON-MONETARYTRANSACTIONS , i,-;

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

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The Board liasobtained 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
-'i~ 'nor incurred losses'"(settlements) which exceeded.the Board's insurance coverage in any of the past

three years. ,



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The Board has established a limited risk management program for workers' compensation claims, In

connection with this program, a self-insurance reserve has been established within the General Fund

by the Board. The Board accounts for claims within the_ General Fund. The General Fund

'- r contributes a budgeted amount of$250,000,00 and the School Food Services Fund contributes actual

' _amounts paid during the year.:The Board accounts for claims with expenditure and liability being

,reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 4: RISK MANAGEMENT

estimated. These losses include an estimate of claims that have been incurred but not reported if any. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

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

1999
2000

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 228,725.05 $ 228,725.05 $

0.00

$

0.00 $ 366 068.71 $ 366 068.71 $

0.00

The Board is self-insured with regard to unemployment compensation claims. The Board accounts .for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Henry County Board ofEducation has not incurred any liabilities for unemployment compensation during the past two fiscal years.

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

Position Covered

Amount

Superintendent All Other Employees

$ 100,000.00 $ 50,000.00

Note 5: GENERAL LONG-TERM DEBT

ARBITRAGE REBATE TAX The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The es.timated liability of $1,068,112.96 at June 30, 2000, is based on tax exempt debt subject to the Tax Reform Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through June 30, 2002, at which time payment ofthe final calculated liability for the five-year period is required to be remitted.

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

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' HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

~ NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT
Pumose
General Government -series 2000 General Government - Series 1999 General Government - Series 1997 General G6vernment - Series 1994 General Government - Series 1992 A General Government - Refunding -
Series - 1992 B
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Interest Rates
5.00% - 5.75% ,;. 3.60%- 4.00%
4.50% - 5.00% 5.50%- 7.50% 5.60% - 6.45%
3.75% - 6.30%

Amount
$' 32,700,000:00
15,940,000.00 34,800,000.00 39,600,000.00 25,800,000.00
7,555,000.00
$156.395.000.00

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

follows: -

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., . ' Balance July 1, 1999

General .

1
Compensated

. Obligation .

- Absences ' Bonds

. Total

$1,415,405.48 $138,370,000.00 $139,785,405.48

Additions . . . Annual Leave Earned and
. .. Utilized (Net) 'G. 0. Bonds

. .rr 118,511.21

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118,511.21 32,700,000.00 <32,700,000.00

Deductions ., :. Debt Retired

'!d
14,675,000.00 14,675,000.00

Balance June 30, 2000

$ 1,533,916.69 $156,395.000.00 $157.928,916 69,

,areAt

June

30,

2000,

payments

due

by

fiscal

year

which

includes

pr' incipal

and

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these

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Fiscal Vear Ended June 301 -

1

General ' -' Obligation- !

I.

Bonds

2001

, :--.

2002

2003

2004

2005

2006 - 2010

2011 - 2015

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.,,, $.25,217,327.19 , _ ' 29,844,J00:01 32,229,606.26 12,186,808.76 . -12,411,076;26
61,820,025.66 32,075,677.50

Total Principal and Interest

$205.784,621.64

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $1,293,535.87 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $980,818.58

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$77,571.29

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$235,146.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

98/97S-675-082 GSFIC 00/99Sc675-084 GSFIC 0lG/00S-675-029 Lottery Transportation/Maintenance Expansion East Lake Road Elementary School Henry County Middle School Gym New Parking Facility - Henry County
Performing Arts Center

$ 681,677.91 62,968.62 76,740.92 -8,065.00
202,289.96 1,415,038.10

$ 853,395.80 230,511.30
1,069,425.00

721.785.00

$ 3,168.565,5 I $ 2. I53,332. JO
The amounts described in this note are not reflected in the general purpose financial statements.

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HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 8: CONTINGENT LIABILITIES

Amount~ received 9r receivable principally from the Federal government are subject to audif and review by grantor agencies. This _could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any. will be immaterial to its overall financial position... ,.. r.i . :-

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

Note 9: SUBSEQUENT EVENTS

In the subsequent fiscal year, the Board issued general obligation refunding bonds in the amount of

$40,550,000.00 dated February I. 2001. The proceeds from these bonds will be used for refunding a

portionofSchoolbondsdate!fMayl.1994.. ;_ , ,.,

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Note I0: ACCUMULATED EMPLOYEES' LEAVE, . ,

The Board's personnel policies provide for payments to employees for, accumulated leave at retirement or termination of employment as follows: See Note I - Compensated Absences

Sick Leave:

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Accumulation of 40 days or Jess - none

: 1ccumulation of 41 not to exceed 145 days (inclusive)- $15.00 per day.

Vac_ation Leave ,.

Twelve month employees earn 10 days of vacation leave per year and may accrue a

maximum of. 20 days. Upon retirement or termination of employment, tv.,:elve month

, . employees ~ill b'e compensated at fheir current daily rateJor any accrue_d unused vacation

: -: _. __ : )~~y.e up to the m~i.mum accumulation.

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Note 11: RETIREMENT PLANS

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TEACHERS RETIREMENT SYSTEM OF GEORGIA (T~) :,,,

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TRS PLAN DESCRIPTION . .

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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

elllployer. defined benefit pension.plan. TRS proyi_des ~ervice 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.

HENRY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 11: 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%

$ 7,980,880.82 $ 7,449,241.84 $6,518,357.07

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HENRY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2000

ASSETS

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c.ash and Cash Equivalents

Accounts Receivable ; :.;

Inventories Food ,i . Donated Commodities _- Purchased F,ood

SCHOOL

J ., 1 FOO.D

.,SERVICES .

.., FUND

.

LOTTERY PROGRAMS

. l
$' ' .10)'07:79

86,806.54

62,018.24

,

Total Assets

$ 1343182.44 $ ===1=00:7=07=.7=9=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

$

37,567.93

262,960.76

$

300,528.69 $

10,707.79 10 707.79

$

86,806.54

62,018.24

893,828.97 $

0.00

$ 1,042,653.75 $

0.00

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
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$ 1 343,182.44 $ ===1=00:7=07=.7=9=

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 1,194,357.66 $

982,397.92

$

408,199.28

418,907.07

224,114.51

86,806.54 62 018.24

138,230.84 58,552.33

$.

408,199.28 $ 1,762,089.51 $ 1,403 ,295 .60

$

128,973.27 $

139,681.06

59,024.51

96,592.44 $

48,710.35

189,106.30

452,067.06

386,192.19

$

377 104.08 $

688 340.56 $

434,902.54

$

31,095.20 $

31,095.20 $

130,687.13

86,806.54 62,018.24

138,230.84 58,552.33

0.00

893,828.97

640,922.76

$

31,095.20 $ 1,073,748.95 $

968,393.06

$

408,199.28 $ 1,762,089.51 $ 1,403,295.60

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

REVENUES

: \ _f '

State Funds Federal Funds Other Funds

Total Revenues

EXPENDITURES

Current

..

Instruction

Support Services

Pupil Services

Improvement of Instructional Services

General Administration

Other Support Services

Food Services Operation

Total Expenditures

Excess of Revenues over (under) Expenditure_s

OTHER FINANCING SOURCES

Operating Transfers In

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

FUND BALANCE JULY 1

Food Inventory - Net Change in Period

,

Donated Commodities

Purchased Food

FUND BALANCE JUNE 30

See notes to the general purpose financial statements.
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SCHOOL

FOOD

- ~ERVICES

,. (.'

FUND

-LOTTERY PROGRAMS



$,

434.450.00 $

1,849,927.22

3,351,509.92

507,754.79

: '$ _- 5,635,887.14 $ '

507,754.79

508,203.53

$ 5,382,980.93

5:382.980.93 , $ '_ __;5::.,0c.:8.i::,2c:.03:.:-:.:53'-

$

252,9_Q6.21__:_ $ _

:-448.74

448.74

$

252,906.21 $

0.00

837,705.93

0.00

-51.424.30 3 465.91

; f.

$ 1,042,653.75 $

0.00

,

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

942,204.79 $

789,087.35

$ 2,683,689.87

4,533,617.09

3,895,059.02

3,351,509.92

3 174,379.21

$ 2,683,689.87 $ 8,827,331.80 $ 7,858,525.58

$ 2,207,160.44 $ 2,715,363.97 $ 2,042,998.22

231,729.89 317,997.09
51,771.24 4,492.88

231,729.89 317,997.09
51,771.24 4,492.88 5,382,980.93

266,353.62 164,202.19 37,152.52
1,910.13 5,121,015.58

$ 2,813,151.54 $ 8,704,336.00 $ 7,633,632.26

$

-129,461.67 $

122,995.80 $

224,893.32

29 869.74

30 318.48

48,481.28

$

-99,591.93 $

153,314.28 $

273,374.60

130,687.13

968,393.06

666,172.92

-51,424.30 3 465.91

21,487.22 7 358.32

$

31,095.20 $ 1 073 748.95 $ ===96=8==,3=9=3.=06..,

- 25 -

HENRY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

GEORGIA STATE

__ BOND.

FINANCING AND INVE.STMENT

.

,eROCEEDS

COMMISSION

$ 45.600.890.94 $ : '- 0 '580,514.96

6.577,783.31

n

Total Assets
-, , ' r
LIABILITIES AND FUND EQUITY

$ 46.181,405.90 $ ==6,.;,57;,,;7a!,;,7=8;;,;3;;;,31;,.,

. .

,,,
,\-,'

LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable

.- ;-
.'I-.~

. ,., ....
-~-$' -., ~:~'82,999.40 _

1.144.115.66 $

596,464.84

. "-c1...- - ~

'547,739.82: " ~1.824,789:02

Total Liabilities

~- : $ " . 1,774,854.88 $ : 2.421,253.86

FUND EQUITY

Fund Balances

Reserved

For Arbitrage Rebate Tax

For Purposes of Bond Issue

, ,

For State Capital Outlay Projects

Unreserved

:.:1-- ,: ; ;-

~

Undesignated

$ 1,068,112.96 , 43,338,438.06
$
0.00

4,156,529.45 ,' . i
0.00

Total Fund Equity

Total Liabilities and Fund Equity

$ 46,181 ,405.9~ $ ====6.,..5=7=7.!:,7=8;;;3.;,3,;,,1

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

EXHIBIT "G"

LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 52,178,674.25 $ 17,099,844.43

580,514.96

27,596,662.61

$ 4,500,000.00

4,500,000.00

$ 4,500,000.00 $ 57,259,189.21 $ 44,696,507.04

$ 3,997,927.79 $ 3,997,927.79

82,999.40 $

70,090.94

1,740,580.50

3,699,560.44

502,072.21

2,874,601.05

3,617,641.70

$ 4,500,000.00 $ 8,696,108.74 $ 7,387,293.08

$ 1,068,112.96 $

839,184.55

43,338,438.06

24,346,495.50

4,156,529.45

12,123,533.91

$

0.00

0.00

0.00

$

0.00 $ 48,563,080.47 $ 37,309,213.96

$ 4,500,000.00 $ 57,259,189.21 $ 44,696,507.04

- 27 -

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

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

REVENUES

''

: I

State Funds Other Funds
Total Revenues
EXPENDITURES

-- --- --

C

$

4,811,708.38

$

1,979 644.90

'.

$ 1,979,644.90 $

4,811 708.38

Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

Total Expenditures

..l
.'-,

Excess of Revenues over (under) Expenditures_

,,
.
--- - - -

OTHER FINANCING SOURCES (USES}

$

201,571.57

926,465.57 $ 11,213,886.85
287,722.35

626,106.12 15,724,476.23
1,390,822.83

$ 12,629,646.34 $
~

17,741 405.18

_$, -10,650,00.1.44 $ : -12,929,696.80

Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out

$

109,467.45

32,700,000.00
2,710,765.34 $
-5;6'i9.,360.38

7,899,176.15 -2,611,849.14

Total Other Financing Sources (Uses) .

$ 29;870,872.41 $

5;287,327.01

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

$
-

19,220,870.97 $ 25,185,680.05

-7,642,369.79 11,798,899.24

FUND BALANCE JUNE 30

$ 44,406,551.02 $ ==4=,1=5=6'=,5=29==45=

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

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 7,541,535.00 $ 12,353,243.38 $ 9,072,062.82

1,979,644.90

2,253,714.64

$ 7,541,535.00 $ 14,332,888.28 $ 11,325,777.46

$

201,571.57 $

78,252.75

$ . 4,543,180.99 752,880.21

1,552,571.69 31,481,544.07
2,431,425.39

21,859.50 37,330,076.90
1,592,293.54

$ 5,296,061.20 $ 35,667,112.72 $ 39,022,482.69

$ 2,245,473.80 $ -21,334,224.44 $ -27,696,705.23

$

109,467.45 $

128,450.40

$

471,426.53

-3,041,535.00

32,700,000.00 11,081,368.02 -11,302,744.52

15,940,000.00 34,519,730.19 -34,959, 730.19

$ -2,570 108.47 $ 32,588,090.95 $ 15,628,450.40

$

-324,634.67 $ 11,253,866.51 $ -12,068,254.83

324,634.67

37,309,213.96

49,377,468.79

$ ====,;:,0;;;;0~0 $ 48,563,080.47 $ 37,309,213.96

- 29 -

HENRY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2000

EXHIBIT"!"

ASSETS

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

-

TOTALS .

JUNE 30, 2000

JUNE 30, 1999

Cash and Cash Equivalents $

628,648.72 $ 2,945,209.05 $ 3,573,857.77 $ 5,734,706.06

Investments Accounts Receivable

10,202,182.47 '.

2,782,044.24

284 244.46 : _...:2:,;,5e:3:::8...:,,8"'62.,.8,,,6'-

12,984,226.71 _ 2,823,107.32.

6,491,428.13 2,547,155.10

Total Assets

$ 11115,075.65 $ 8,266,116.15 $ 19381,191.80 $ 14,773,289.29

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Un designated

$ 11,115,075.65 $
0.00

t

8,266,116.15 $, 19,381,191.80 ,$ . .-14,773,289.29

----

t '

..

0.00

_0,00
C

0.00

Total Fund Equity $ 11,115,075.65 $ 8,266,116.15 $ 19,381,191.80 $ 14,773,289.29
i

.;l

See notes to the general purpose financial statements.

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

EXHIBIT"J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS YEAR ENDED JUNE30 2000 JUNE 30. 1999

REVENUES

Taxes Other Funds

$ 10,522,600.83 $ 15,043,835.75 $ 25,566,436.58 $ 22,271,347.93

393,615.38

110 101.92

503 717.30

335 313.41

Total Revenues

$ 10,916,216.21 $ 15,153,937.67 $ 26,070,153.88 $ 22,606,661.34

EXPENDITURES

Debt service Principal Interest Paying Agent Fees

$ 3,475,000.00 $ 11,200,000.00 $ 14,675,000.00 $ 11,945,000.00

4,460,047.50

2,663,883.33

7, 123,930.83

8,056,939.58

2 760.31

1 042.78

3 803.09

3 751.49

Total Expenditures Excess of Revenues over (under) Expenditures

$ 7,937,807.81 $ 13,864,926.11 $ 21,802,733.92 $ 20,005,691.07 $ 2.978.408.40 $ 1,289,011.56 $ 4 267 419.96 $ 2,600,970.27

OTHER FINANCING SOURCES (USES!

Accrued Interest on Bonds Sold Operating Transfers In Operating Transfers Out

$

80,482.55

$

270.000.00

$ 530,000.00

80,482.55 $ 530,000.00 -270,000.00

24,484.44 440,000.00

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

$ -189 517.45 $ $ 2,788,890.95 $

530,000.00 $ 1,819,011.56 $

'340 482.55 $ 4,607,902.51 $

464 484.44 3,065,454.71

FUND BALANCE JULY 1

8,326.184. 70

6 447104.59

14,773,289.29

11,707,834.58

FUND BALANCE JUNE 30

$ 1111151075.65 $ 812661116.15 $ 1913811191.80 $ 14,713,289.29

See nOtes to the general purpose financial statements.

31

HENRY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2000
., ._,

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

Agriculture, U. S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services School Breakfast Program

. '

National School Lunch Program

Total Child Nutrition Cluster

Other Programs

.

Pass-Through From Georgia Department ~f Education

Food and Nutrition Program

Food Distribution Program (1)

Total U.S. Department of Agriculture

Education, U. S. Department of Special Education Cluster . Pass-Through F:rom Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education - C.ipacity Building tnlpro\ferTlerlt Flow Through Preschool

' .

Total Special Education Cluster.

., Ottier Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

TiUel
Grants to Locai Educational Agencies

TiUe II

Eisenhower Professional Development

TitteVI

Innovative Education Program Strategies

Class Size Reduction

Goa\s2000

State and Local E~ucation Systemic

Improvement Grants

Vocational Education ~ Basic Grants to States

High School Program

Basic Grant

Total u. S. Department of Education

OTHER FEDERAL ASSISTANCE

Defense, U. S. Department of Direct Department of the Navy R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

N/A $ NIA
$

215,790.28 1,340,828.89 $
1,556,619.17 $

(2) 5,089 672.88 (3)
5,089,672.88

10.550

NIA

293,308.05

$. 1,849,927.22 $

293,308.05 5,382,980.93

84.173 84.027 84.173

NIA $ NIA NIA
$

42,180.00 $ 1,237,064.58
81 965.00
1,361,209.58 $

46,488.45 (3) 1,237,064.58
82 301.51 (3)
1,365,854.54
.,

84.010 84.281 84.298 84.340
84.276
84.048

NIA

808,655.29

808,655.29

NIA

60,659.00

63,656.88 (3)

NIA

78,490.00

79,069.54 (3)

NIA

199,490.00

201,490.00 (3)

NIA

92,205.00

202,876.47 (3)

NIA $

82,981.00 2,683,689.87 $

91,548.82 (3) 2,813,151.54

$

129 989.51

(4)

Total Federal Financial Assistance NIA = Not Available

32-

$

4 663,606.60 $

8,196,132.47

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

SCHEDULE "1"

Notes to the Schedule or Expe'nditures 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 syst8m during the current fiscal year.
(2) Expenditures for the School Breakfast Program mre 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) Expenditures on this program were not maintained by fund source.
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
Henry County Board of Education and is presented on the modified accrual basis of accounting which is
the basis of accounting used in the presentation of the general purpose financial statements.

See.notes to the general purpose financial statements.

33

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

SCHEDULE "2"

AGENCY/FUNDING

-

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 Tr~nsportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance lnSchool Suspension Midterm Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Attemative Program Apprenticeship Program AtRisk Summer School Program Environmental Science Program Health Insurance Mentor Teactier Program National Teacher Certification Grants Pay for Perfonnance Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital OuUay

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

-FUND

FUND

TOTAL

$ 44,025,389.00 8,538,079.00 1,523,450.00 1,918,986.00 541,126.00 11,431,440.00
1,339,964.00 .386,252.00 77,359.00
1,576,922.00 446,041.00 259,861.00
3,745,969.00 193,277.00 173,054.00
-11,426,580.00 3,336,911.00 $ 35,607.00
313,542.00 45,000.00 50,083.85 3,000.00
980,818.58 44,874.00 3,384.00
202,000.00 234,663.00
13,276.36 77,571.29

\~)
$ 44,025,389.00 8,538,079.00
.. 1,523,450.00 1,918,986.00 541,126.00
11,431,440.00

434,450.00

1,339,964.00 386,252.00 11:359.00
1,576,922.00 446,041.00 259,861.00
3.745,969.00 193,277.00 173,054.00
-11,426,580.00 3,336,911.00 434,450.00 35,607.00

313,542.00 45,000.00 50,083.85 3,000.00
980,818.58 44,874.00 3,384.00
202,000.00 234,663.00
13,276.36 77,571.29

40,441.79 467,313.00
$

7,541,535.00

40,441.79 467,313.00 7,541,535.00

Georgia Department of Community Affairs Local Assistance Grant

15,000.00

15,000.00

Georgia Forestry Commission Urban Resources Partnership Grant

5,235.00

5,235.00

Georgia State Financing and Investment
Commission Reimbursement on Construction Projects

4,811,708.38

4,811,708.38

Office of Treasury and Fiscal Services Public School Employees Retirement

235,146.00

235,146.00

OTHER Georgia Commission on the Holocaust Reimbursement of Substitute Teachers

100.00

100.00

$ 70,346,801.08 $

See notes to the general purpose financial statements.

34.

942,204.79 $ 12,353,243.38 $ 83,642,249.25
-.

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

SCHEDULE "3"

PROJECT
The cost of acquiring, constructing, and equipping three new elementary schools, two new. middle schools, and one new high school. acquiring land for future schools, adding to, renovating, replacing, repairing, improving and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary-property, therefor, both real and personal

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 95,000,000.00 $ 100,468,590.67 $ 37,483,187.71 $ 50,757,227.28

(1) The Board's original cost estimate as specified in the resolution calling for the imposilion of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion.
(3) The voters of Henry County approved the imposition of a 1% sales tax to fund the above project 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 project.

See notes to the general purpose financial statements.

35.

~

'C
,.Jl
"'.!I
. '
;,: '(.....

, '...~

,

...' ..

'.l.'..,''

.,

j '.l,. ! ., :.

I..
.~;
'.11
-, ' u,:

. \

.,

.1.'

HENRY 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
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

59,022,599.00 $

1,808,424.00

$

71,141,655.91

4,734,056.34 $

3,961,421.05

$

75,875,712.25

-701,302.88

$

75,174,409.37

$

0.00 $====.;;O;;;.O;;,O

See notes to the general purpose financial statements. 37

HENRY COUNTY BOARD OF EDUCATION '

~ ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS' BYPROGRAM

GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS c

.

YEAR ENDED JUNE 30 2000

GENERAL AND CAREER EDUCATION PROGRAMS

Kindergarten (*)

Grades 1 - 3 1)

Sub-Total K3

Grades 4 - 5 ()

(1:

Grades 6 8 (')
'" Grades 9 - 12 ()
-High School Laboratories'(*)

Vocational Education Laborat?ries (") Total General and Career Education Programs

SPECIAL EDUCATION PROGRAMS

Regular Programs Category I(') Category II(') Category Ill () Category IV (') CategOl)I V (')

Sub-Total RE!gular

Category VI (Gifted) 1) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM t\

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ....!!._

ORIGINAL

MID-TERM

$ 4,706,499.00

$ 4,235,849.10 $

-30,858.00

13,043,988.00

11,739,589.20

488,838.00

$ 17,750,487.00 90 $ 15,975,438.30 $

457,980.00

5,774,965.00 .,go-,

5,197,468.50

''.'738,117.00

9,474,957.00 90

8,527,461.30

673,902.00

5,740,179.00 90

5,166,161.10

. 507,193.00

3,337,597.00 90

3,003,837.30

360,509.00

1,947,204.00 90

1,752,483.60

71,914.00

$ 44,025,389.00
' -.
$ 6,822,523.00

$. 39,622,850.10 $

--~ '

_,,

$ 6,140,270.70 $ .. L

2,809,615.00 831,397.00

$ . 6,822,523.00 - 90 $ 6,140,270.70 $

1,715,556.00 90

1,544 000.40

$ 8,538,079.00

$ 7,684,271.10 $

$ 1,523,450.00 90 $ 1,371 105.00 $

$ 54,086,918.00

$ 48,678,226.20 $

831,397.00 -18,249.00 813,148.00 -714 324.00 2,908,439.00

$ 1,523,692.00 90 $ 1,371,322.80 $

395,294.00 100

395,294.00

$ 1,918,986.00

$ 1,766,616.80 $

79,473.00 28,783.00
108,256.00

Total Fourteen Weighted and Media Center Programs $ 56,005,904.00

$ 50,444,843.00 $ 3,016,695.00

TAFF DEVl;bOPMENT PROGRAM Cost of lnStruction Professional Development
Total Staff Development Programs
n Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

175,685.00

365,441.00

$

175,685.00 $

365 441.00

12,625.00 0.00

$

541,126.00 100 $

0, - 38 -

541,126.00 $
. ,,.., ,

12,625.00

SCHEDULE "5"

EDUCATION TOTAL.
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 4,204,991.10 $ 5,485,898.53 $

234,050.19 $ 5,719,948.72

12,228.427.20

18117,971.63

823,763.85

18,941,735.48

$ 16.433.418.30 $ 23,603,870.16 $ 1,057,814.04 $ 24,661,684.20 $

0.00

5,935,585.50

7, 196,090.57

552,641.57

7,748,732.14

0.00

9,201,363.30

12,511,240.32

744,338.38

13,255,578.70

0.00

5,673,354.10

8,444,570.65

994,715.26

9,439,285.91

0.00

3,364,346.30

3,466,207.88

21,834.07

3,488,041.95

0.00

1,824,397.60

2,430,084.27

314,264.75

2,744,349.02

0.00

$ 42.432,465.10 $ 57,652,063.85 $ 3,685,608.07 $ 61,337,671.92

$ 6,971,667.70 $

61,480.27 $ 129,217.78 7,673,058.69 773,161.03 32,944.92

38,885.00 $ 181,409.85
7,714.73

100,365.27 310,627.63 7,680,773.42 773,161.03
32,944.92

$ 6,971,667.70 $ 8,669,862.69 $

228,009.58 $ 8,897,872.27

0.00

1,525,751.40

1,641,324.99

26,173.18

1,667,498.17

0.00

$ 8,497,419.10 $ 10,311,187.68 $

254,182.76 $ 10,565,370.44

$

656,781.00 $ 1,222,494.79 $

21,630.22 $ 1,244,125.01

0.00

$ 51,586,665.20 $ 69,185,746.32 $ 3,961,421.05 $ 73,147,167.37

$ 1,450,795.80 $ 1,955,909.59

$ 1,955,909.59

0.00

424,077.00

$

772,635.29

772,635.29

0.00

$ 1,874,872.80 $ 1,955,909.59 $

772,635.29 $ 2,728,544.88

$ 53,461,538.00 $ 71,141,655.91 $ 4,734,056.34 $ 75,875,712.25 $

0.00

$

188,310.00

365,441.00

s ===55=3=,7=5=1=.o=o

$

484,775.88 $

484,775.88

69,166.63

69,166.63

$

553,942.51 $

553,942.51 $======.;O;;;.O;;;,O

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SECTION II COMPLIANCE AND INTERNAL CONIROL REPORTS

RLISSELI. \\', HINTOr,.i
STATE AUDITOR {404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2)--t W;.isliington Street. S.W.. Sui'tc 214 Atlanta. Georgia >0~34-K400
March 26, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Henry 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 ofHenry County Board ofEducation as of and for the year ended June 30, 2000, and have issued our report thereon dated March 26, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with 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:
We did not observe the taking of either the Federal donated commodities im'.entory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Henry County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

2000YB-40

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Internal Control Over Financial Reporting

In planning and performing our audit, we considered Henry County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Henry County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6751-00-01.

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 performing 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 also considered to be a material weakness.

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

RWH:jb 2000YB-40

Respectfully submitted,

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~inion State Auditor

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RussEu. \\1 H1NTON
STATE AUDITOR (40J) 656-2174

0EPART!\,1ENT OF AUDITS AND ACCOUNTS
2)4 w~1shing1on S1n:e1. S.\V.. s.uite 21..t Allant~. Gt.:\irgia 3(1334-840()
March 26, 2001

Honorable Roy E. Baines, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Henry 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 of Henry County Board ofEducation with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2000. Henry County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Henry County Board ofEducation's management. Our responsibility is to express an opinion on Henry County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Henry County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Henry County Board of Education's compliance with those requirements.
2000SA-10

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In our opinion, the Henry County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Henry County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Henry County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarilydisclose 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 normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management,.members of the Henry 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 2000SA-10

State Auditor

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

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

PRJOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6751-98-0 I FS-6751-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to maintain General Fixed Assets Account Group Finding Control Number: FS-6751-99-01

The Henry County Board of Education student enrollment is increasing by approximately 2000 students a year, therefore, there is a great demand for classrooms and teachers to accommodate this growth. The priority ofthe Board at the present time is to fund teachers salaries and provide classrooms for.students with the funds currently available. The need to implement a system-wide General Fixed Assets Account Group is recognized, however, the Board elects to apply its limited resources to the priorities aforementioned.

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SECTIONN FINDINGS AND QUESTIONED COSTS

HENRY 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 Henry County Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Henry County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Henry County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Henry County Board of Education did not disclose any reportable conditio_ns in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Henry County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .5 IO(a) of 0MB Circular A-133 The Henry County Board ofEducation's audit did not disclose audit findings required to be reported by section .51 0(a) of 0MB 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 Henry County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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HENRY 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

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Reportable Condition -Material Weakness

Finding Control Number: FS 6751-00-01

The Henry County Board of Education did not:maintairi a system-wide General Fixed Assets

Account Group within the formal a~counting records as required.by generally accepted accounting

principles. This condition results in the gener:'tf 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 of a 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 Asset

Account Group.

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ill FEDERAL AWARD FINDIN,,GS AND QUESTIONED COSTS

'No matters were reported.

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