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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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NEWTON COUNTY BOARD OF EDUCATION
COVINGTON, GEORGIA
REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

NEWTON COUNTY BOARD OF EDUCATION
-TABLE OF CONTENTS-


SECTION I

FINANCIAL



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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL, REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

-

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES



Page
2
4
6 7
22
24
26
28 30 31

NEWTON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING AND INDNIDUAL FUND STATEMENTS

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

M

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ANALYSIS OF M.., ~ ...,... EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

O\TERALL

5

BYPROGRAM

Page

32 34 35
36 38 39 - 41 42


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 AUDfl'ING STANDARDS

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

NEWTON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
v~Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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




SECTION I
FINANCIAL



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


DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 25, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

and



Superintendent and Members of the

Newton County Board of Education

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

Ladies and Gentlemen:

We have audited the accompanying general purpose financial statements of the Newton County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Newton County Board of Education'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 auditiJ).g standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo11n the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.

2000ARL-13A

As described in the notes to the general purpose financial statements, the Board's fmancial 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 confonn to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo1n1 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 confo1n1 to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if-any, on the Special Revenue Fund, as
might have been dete1n1ined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the_general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Newton County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in confo11nitywith accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 25,
2001, on our consideration of the Newton County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
2000ARL-13A

Our audit was perfo1n1ed for the purpose of fo11ning an opinion on the general purpose financial statements of the Newton County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through M) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office of Management 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 ofthe general purpose financial statements. Such info1111ation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been dete11nined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such info11nation 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 pe1111anent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.

RWH:gp
2000ARL-13A

Respectfully submitted,

~-
ell W. Hinton Sta e Auditor




NEWTON COUNTY BOARD OF EDUCATION

-


NEWTON 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 Capital Lease Agreements Compensated Absences

Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,448,110.42 $

575,784.43 $

260,134.75

6,330,328.21

26,565,939.56

2,392,844.43

532,262.36

808,905.00

76,754.39 28,113.62

$ 10,171,283.06 $ 1,212,914.80 $ 27,634,979.31

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements Compensated Absences General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Deficit Designated for Self-Insurance Undesignated
Total Fund Equity



$ 1,840,644.98 $ 2,429.26

320,118.60 $ 631,686.21

142.43
2,111,370.87 319,733.18

$ 1,843,074.24 $

951,804.81 $

2,431,246.48
-

$

76,754.39

28,113.62

$ 17,855,138.72

6,870,701.00

$

340,982.56

7,987,226.26

$ - 8,328,208.82 $

156,241.98

477,893.11

261,109.99 $ 25,203,732.83

Total Liabilities and Fund Equity

$ 10,171,283.06 $ 1,212,914.80 $ 27,634,979.31

The notes to the general purpose financial statements are an integral part of this statement.
-2-

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS {Memorandum Onl~l JUNE 30, 2000 JUNE 30, 1999

$

905,066.73 $

1,646.79

$ 3,190,743.12 $ 3,244,449.82

2,452,034.99

35,348,302.76

4,594,587.90

1,346,055.78

5,080,067.57

3,266,777.19

$

4,703,157.50

76,754.39 28,113.62
4,703,157.50

76,569.34 36,842.44
1,431,455.63

55,441,842.50 171 037.00

55,441,842.50 171,037.00

31,123,544.37 1,354,351.34 181,350.00

$ 4,703,157.50 $

1,646.79 $ 60,316,037.00 $ 104,040,018.46 $ 45,309,928.03

$ 2,160,906.01 $ 2,444,112.87

631,686.21

567,021.19

2,429.26

3,325.73

2,111,370.87

319,733.18

$

171,037.00

.
171,037.00

1,354,351.34
181,350.00

60,145,000.00 60,145,000.00

32,555,000.00

$ 60,316,037.00 $ 65,542,162.53 $ 37,105,161.13

-

$ 4,703,157.50
0.00 $ _ ____;1.;;6'-'4""6.;.:..79;:... $ 4 I703,157.50 $ -----'-1""64..:.6::.,.:..:79::_

$

957.18

$ 4,703,157.50

1,431,455.63

76,754.39 28,113.62 17,855,138.72 6,870,701.00
340,982.56 8,623,008.14
$ 38,497,855.93 $

76,569.34 36,842.44 182,942.84
7,500.00
-53,217.44 354,495.55 6,167,221.36
8,204,766.90

$ 4,703,157.50 $

. 1 646.79 $ 60,316,037.00 $ 104,040,018.46 $ 45,309,928.03

-3-

NEWTON 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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

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

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL REVENUE

CAPITAL PROJECTS

FUND

FUND

$ 38,437,800.06 $
21,313,032.73 1,225,753.24
$ 60,976,586.03 $

1,988,059.93 $ 5,199,648.54
1,626,084.69
8,813,793.16 $

808,905.00
928,546.75 1,737,451.75

$ 38,957,477.19 $
2,564,524.08 2,401,314.14 1,642,318.40
535,568.67 3,287,416.90
431,379.99 5,270,848.48 2,950,222.27
398,245.39 89,965.91
158,944.56 90,291.44

3,971,744.69
434,755.32 291,579.66
9,272.12 76,437.14
$
560.00 6,058.46
42,662.93 3,772,220.60

144,739.08
4,761,366.41 1,195,406.78

$ 58,778,517.42 $ $ 2,198,068.61 $

8,605,290.92 $ 208,502.24 $

6,101,512.27 -4,364,060.52

s_ _-1.;..:o;..;o.i.o::c,.:;,oo=-:.""oo=-
$ _ _-1.;..:o""'o.i.o::c,.:;,oo=-:-=-oo=-
$ 2,098,068.61 $ 6,230,140.21

$ 28,500,000.00 487,362.60 100,000.00

$ 29,087,362.60

208,502.24 $ 24,723,302.08

61,151.52

480,430.75

185.05 -8,728.82

FUND BALANCE JUNE 30

$

261,109.99 $ 25,203,732.83

The notes to the general purpose financial statements are an integral part of this statement. -4-

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2000

JUNE 30, 1999

$ 41,234,764.99

$ 41,234,764.99 $ 37,577,947.24

5,199,648.54

5,199,648.54

4,587,537.41

$ 5,739,626.30

27,052,659.03

27,052,659.03

23,546,718.05

51,957.29

3,832,341.97 $ _ _ _11~0_0_~0._o_o~

3,833,341.97

2,499,886.23

$ 5,791,583.59 $ 77,319,414.53 $

1,000.00 $ 77,320,414.53 $ 68,212,088.93

$ 42,929,221.88

$ 42,929,221.88 $ 39,206,158.52

2,999,279.40 2,692,893.80 1,651,590.52
612,005.81 $ 3,287,416.90
576,119.07 5,271,408.48 2,956,280.73
398,245.39 132,628.84 3,772,220.60 4,761,366.41

942.00

2,999,279.40 2,692,893.80 1,651,590.52
612,947.81 3,287,416.90
576,119.07 5,271,408.48 2,956,280.73
398,245.39 132,628.84 3,772,220.60 4,761,366.41

2,897,342.61 2,559,375.07 1,520,460.86
580,131.27 3,075,516.74
324,376.01 4,491,812.85 2,625,733.16
331,706.99 114,872.67 3,596,328.06 3,370,230.32

$

910,000.00

1,780,331.44

4,530.42

2,264,351.34 1,870,622.88
4,530.42

2,264,351.34 1,870,622.88
4,530.42

1,074,838.66 1,854,235.60
4,735.39

$ 2,694,861.86 $ 76,180,182.47 $ _ _ _~94~2._0_0~ $ 76,181,124.47 $ 67,627,854.78

$ 3,096,721.73 $ 1,139,232.06 $

58.00 $ 1,139,290.06 $ _---'5'-"84---1=2"'-34---.1-'--'5'-

$

174,980.14 $

174,980.14

28,500,000.00 487,362.60 100,000.00 -100,000.00

$

174 980.14 $ 29,162,342.74

$ 3,271,701.87 $ 30,301,574.80 $

1,431,455.63

8,203,178.11

$

174,980.14

28,500,000.00 487,362.60 100,000.00 $ -100,000.00

591,243.74 -591,243.74

$ 29,162,342.74 $ _ _ _____;o::..:;.o::.::o'-


58.00 $ 30,301,632.80 $

1,588.79

8,204,766.90

584,234.15 7,617,137.54

185.05 -8,728.82
$ 4,703,157.50 $ 38,496,209.14 $

185.05 -8,728.82

-2,004.82 5,400.03



1 646.79 $ 38,497,855.93 $ 8,204,766.90

NEWTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 36,234,931.00 $ 38,437,800.06

19,480,287.00 877,452.00

21,313,032.73 1,225,753.24

$ 56,592,670.00 $ 60,976,586.03

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
Debt Service
Total Expenditures

$ 39,076,974.00 $ 38,957,477.19

2,558,923.00 2,329,569.00 1,636, 112.00
545,595.00 3,295,216.00
323,384.00 4,601,434.00 2,993,780.00
388,176.00 72,269.00

2,564,524.08 2,401,314.14 1,642,318.40
535,568.67 3,287,416.90
431,379.99 5,270,848.48 2,950,222.27
398,245.39 89,965.91

249,236.00

$ 57,821,432.00 $ 58,778,517.42

Excess of Revenues over (under) Expenditures $ -1,228,762.00 $ 2,198,068.61

OTHER FINANCING USES Other Uses

-100,000.00

-100,000.00

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$ -1,328,762.00 $ 2,098,068.61

FUND BALANCE JULY 1, 1999

3,884,632.39

6,230,140.21

Adjustments

FUND BALANCE JUNE 30, 2000

$ 2,555,870.39 $ 8,328,208.82

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,704,797.00 $ 1,988,059.93 5,287,658.00 5,199,648.54
1,710,000.00 1,626,084.69
$ 8,702,455.00 $ 8,813,793.16

$ 3,972,038.00 $ 3,971,744.69

463,698.00 327,876.00
13,500.00 29,364.00
110.00

434,755.32 291,579.66
9,272.12 76,437.14

2,880.00 9,000.00

560.00 6,058.46

36,989.00 3,843,000.00

42,662.93 3,772,220.60

$ 8,698,455.00 $ 8,605,290.92

$

4,000.00 $ 208,502.24

$

4,000.00 $ 208,502.24

64,410.73

-52,260.26

-239.30

$ 68,171.43 $ 156,241.98

'

The notes to the general purpose financial statements are an integral part of this statement. -6-

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Newton County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are

not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo1n1 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 confo11n to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements..
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all fmancial resources ofthe Board except those required to be accounted for i_n another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
"
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-te1m principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a
trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:

EXPENDABLE TRUST FUNDS
Porter Fund - the fund used to account for the principal and earnings which may be expended to
provide for the bette11nent of the Olive Swann Porter Memorial Auditorium.

Employee Recognition Fund - the fund used to account for the principal and earnings which
may be expended to provide for employee recognition awards.


AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other



funds, governments, or individuals.

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

BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is dete11nined 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 measm:e 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-T~11n Debt Account Group.

-8-

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

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
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 dete1111ined and ''available'' .means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July ancl 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 ~ubsequent 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.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Newton County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together wi~h 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.

-9-

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE 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 Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B" of this report:
Special Revenue
Fund

FUND BALANCE JULY l, 1999

$ 61,151.52

Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods
Fund Balance July 1, 1999 (Budget Basis)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JUNE 30, 2000 (Budget Basis)

-76,569.34 -36,842.44 $ -52,260.26

208,502.24 $ 156,241.98

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.

- 10 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: 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:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State 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 of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Newton County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on July 1, 1999 (levy date). Mid-year taxes were due on September 20, 1999 and the final taxes were due on December 20, 1999 (due dates). The lien date for property taxes was
- 11 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Newton 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.

Tax millage rates levied for the 1999 tax year (calendar year) for the Newton County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

17.40 mills 2.23 mills

19.63 mills

SALES TAXES
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,026,608.95 and was recorded in the Debt Service Fund. The State will te11ninate collection of this tax once an additional $40,973,391.05 has been collected or on December 31, 2005, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inv.entories 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 in".;entories 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.

- 12 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO IBE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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-Te1n1 Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another
fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

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

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to

indicate that they are presented only to facilitate financial analysis. Data in these columns do not

present financial position or results ofoperations in confotmity with generally accepted accounting

principles. Neither are such data comparable to a consolidation. Interfund eliminations have not

been made in the aggregation of this data.

.


Note 2: DEPOSITS AND INVESTMENTS


COLLATERALIZATION OF DEPOSITS
Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days~ sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after tp.e deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discret-ion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

- 13 -

-
NEWTON COUNTY BOARD OF EDUCATION
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2000

11 11
EXHIBIT D


Note 2: DEPOSITS AND INVESTMENTS
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
-
CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $4,581,325.84. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 2000, as follows:

- 14 -

NE"WTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 1,347,821.93

2

0.00

3

3,233,503.91

Total

$4,581,325.84

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

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

At June 30, 2000, the carrying value of the Board's total investments was $35,348,302.76. The investments are classified as to risk categories as follows:

Type of Investment
Repurchase Agreements Local Government
Investment Pools
Total Investments

Risk Categories

I

- - " '2- - - .

3

Carrying Amount

Fair Value

$27,068,953.02 $

o.oo $.===='o""'.o~o $27,o6s,9s3.02 $27,o6s,9s3.02

-

.8.279.349.74 8,279,349.74

$35,348,302.76 $35,348,302.76

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

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe-Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset

- 15 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-tt:im instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned
value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation; and employee dental and optical expenses.
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The Board has not significantly reduced coverage for these risks in any of the pas-t three years. For the 1998 fiscal year, an age discrimination tort claim exceeded commercial insurance coverage by $15,000.00. Settled claims did not exceed commercial insurance for the 1999 or 2000 fiscal years.
The Board has established a limited risk management program for Dental/Optical coverage of its employees. The Board accounts for claims within the General Fund. In connection with this program a self-insurance reserve has been established within the General Fund by the Board. Estimated claims are budgeted by management based on known claims and prior experience.
Changes in the Dental/Optical claims liability during the last two fiscal years are as follows:

- 16 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

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 2000

$

0.00 $ 170,621.34 $ 170,621.34 $_ ___::0;..:.::.0'-"-0

$

0.00 $ 190,114.87 $ 190,114.87 $_ _ _-"'O=.O=O

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 with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit.

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

,
1999 2000

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 188,346.21 $ 188,346.21 $_ ___::0;..:.::.0'-"-0

$

0.00 $ 185,163.01 $ 1ss.163.01 $_ _ _'""'o=.o=o

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

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

follows:





1999 2000

Beginning
of Year
Liability

Claims and Changes in Estimates

'

$

0.00 $ 2,223.00 $

$

0.00 $ 2,725.43 $

Claims Paid

End of Year Liability

2.223.oo $._ _ _~o~.o=o 2,725.43 $_ _ _...::co=.o=o

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

Position Covered
Superintendent Each Principal Business Manager

Amount
$ 50,000.00 $ 10,000.00 $ 25,000.00




- 17 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

General Government - Series 1992 General Government - Series 1996 General Government - Refunding - Series 1997 General Government - Series 1999

5.85% - 6.30o/o
4.80% - 6.00% 3.60% - 5.30% 4.70% - 5.50%

Amount
$ 2,685,000.00 20,850,000.00 8,110,000.00 28,500,000.00
$60.145.000.00

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

Capital Leases

Compensated _ Absences

General Obligation
Bonds

Total

Balance July 1, 1999

$ 1,354,351.34 $ 181,350.00 $32,555,000.00 $34,090,701.34

Additions G.0. Bonds

28,500,000.00 28,500,000.00

Deductions Annual Leave Earned and Utilized (Net) Debt Retired

1,354,351.34

10,313.00

10,313.00 910,000.00 2,264,351.34

Balance June 30, 2000

$===o~.o~o $ 111,031.00 $60,145.ooo.oo $60.3J6,o31.oo


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

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016

$ 4,531,358.76 8,680,668.76

9,657,226.26 9,797,266.26 9,847,241.26 22,070,331.30 15,218,682.54 3,052,562.50

Total Principal and Interest

$ .855.337.64

- 18 -

-
NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1997, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 2000, $7,640,000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $1,051,013.16 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education

Paid to the Georgia Department of Community Health

For Health Insurance ofNon-Certified Personnel

In the amount of $862,120.79



Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $31,032.37

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 $157,860.00

-

Note 8: SIGNIFICANT COMMITMENTS



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




- 19 -

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 8: SIGNIFICANT COMMITMENTS

Proiect
Lottery O1G/OOS-707-031 Ficquett Elementary School Modifications and
Renovations New Oak Hill Elementary School Newton County High School Modifications and
Renovations Palmer Stone Elementary School Modifications
And Renovations Porterdale Elementary School Modifications and
Renovations

Unearned Executed Contracts
$ 6,621,175.00
1,431,437.51 5,010,182.00
1,047,677.44
360,873.37
803,414.93

Funding Available From State
$ 314,970.00

$15,274,760.25 $ 314,970.00

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

Note 9: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

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 deter1ninable, but is not believed to be material to the general purpose financial statements.

Note 10: ACCUMULATED EMPLOYEES' LEAVE
The Board's professional personnel earn one and one quarter days of sick and personal leave each month with a maximum accumulation of one hundred and twenty days. Sick and personal leave vests with the employee and unused accumulated sick and personal leave, up- to the maximum accumulation, is paid only upon retirement at a maximum rate of $45.00 per day if the employee is eligible under the Teachers' Retirement System ofGeorgia and has been employed by the Board for at least five years.
The Board's administrative staffand certain other full-time employees earn one day ofvacation leave for each twenty-three days worked. Vacation leave may be accumulated to a maximum often days, and an amount based on accumulated leave, up to the maximum accumulation, is paid to employees at their current rate of pay upon retirement. See Note 1 - Compensated Absences

-20-

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 11: RETIREMENT PLANS

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees 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
$ 4,477,732.69 $ 4,386,182.43 $3,980,041.36


- 21 -

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



ASSETS

Cash and Cash Equivalents

Accounts Receivable

Inventories



Food

Donated Commodities



Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

381,385.52 $

203,317.62

51,424.90

76,754.39 28,113.62

Total Assets

$

486,253.53 $ =====2=5=4-7,.4..2. ==52=

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 Deficit Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

44,925.24 $

105,420.22



180,218.30

149,322.30

$

225,143.54 $ _ ____;2::.;:5:...:4.i.:7.,...:.4:.:2-~52=-

$

76,754.39

28,113.62

156,241.98 $ _ _ _ _.=.;0.=00.;;....

$

261,109.99 $ _ _ _ _.::.;0.~00=-



$

486,253.53 $-====2=54...;.i,;7,.4...;;.;2-~52;;;,.

See notes to the general purpose financial statements. -22-

EXHIBIT "E"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

9,336.71 $

594,039.85 $

431,169.11

$

480,837.46

532,262.36

425,234.24



76,754.39

28,113.62

76,569.34 36,842.44

$

480,837.46 $

9 336.71 $ 1,231,170.22 $ ===9=69=,8=15=.13=

$

18,255.42

160,436.43 $

302,145.61

$
9,336.71

18,255.42 $ 320,118.60 631,686.21

37,232.70 304,409.72 567,021.19

$

480,837.46 $

9,336.71 $

970,060.23 $ _ _9__0__8__._,6_63_.6_1_




$

957.18

$

76,754.39

28,113.62

76,569.34 36,842.44

-53,217.44

$

o.oo $ _ _ _ _0;;.;..o;;:..;o;;...

156,241.98

0.00

$

0.00 $

0.00 $

261,109.99 $ _ _ _6_1._,1_51_._52_

$

480,837.46 $

---====--==== 9 336.71 $ 1,231,170.22 $

969,815.13

-23-

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



SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

REVENUES

State Funds

Federal Funds

Other Funds



Total Revenues

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

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

$

261,822.00 $ 1,509,316.93

2,093,773.33

1,626,084.69

$ 3,981,680.02 $ 1,509,316.93

$ 1,331,826.27 146,696.62 8,857.51
21,198.81 737.72

$ _ _;3;;.i.,7;_;,7..:;;;;2=,2=20==60~



$ 3,772,220.60 $ __1;.,.;,5;;.;;0;.;;.9=,3..;..16==93~

. $

209,459.42 $

0.00

$

209,459.42 $

60,194.34

185.05 -8,728.82


0.00 0.00

FUND BALANCE JUNE 30

$

261,109.99 $

0.00

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

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$
$ 3,105,875.21
$ 3,105,875.21 $

216,921.00 $
216,921.00 $

1,988,059.93 $
5,199,648.54 1,626,084.69
8,813,793.16 $

1,776,097.85 4,587,537.41 1,401,443.54
7,765,078.80

$ 2,435,961.23 $
288,058.70 269,758.34
9,272.12 55,238.33
560.00 5,320.74 42,662.93

$ 3,106,832.39 $

$

-957.18 $

203,957.19 $ 12,963.81
216,921.00 $
0.00 $

3,971,744.69 $ 3,343,958.37

434,755.32 291,579.66
9,272.12 76,437.14
560.00 6,058.46 42,662.93 3,772,220.60

340,187.46 279,782.90
11,169.78 30,406.89
19,433.24 37,824.08 3,596,328.06

8,605,290.92 $ 7,659,090.78

208,502.24 $ 105,988.02

743.74



$

-957.18 $

957.18

0.00 $ 0.00

208,502.24 $ 61,151.52

106,731.76 -48,975.45

185.05 -8,728.82

-2,004.82 5,400.03

$

0.00 $

0.00 $

261,109.99 -$ -- ----

--~~----- ..

61,151.52

- 25-

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

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

REGULAR

BOND PROCEEDS

$

478,035.54

$ 19,460,689.56

$

478,035.54 $ 19,460,689.56


$
$

$ 142.43
142.43 $

85,368.79
1,372,431.87 147,750.18
1,605,550.84


$ 17,855,138.72

$

477,893.11

0.00

$

477893.11 $ 17,855,138.72



$

478,035.54
----- -----

$

19,460,689.56



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

EXHIBIT "G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00

$

LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

478,035.54 $

220,358.18

7,105,250.00

26,565,939.56

262,978.72

808,905.00

808,905.00



$

0.00 $ 7,914,155.00 $ 27,852,880.10 $ ==4.;.;;8=3...,,3.3..6==90=

-

$

132,532.00 $

217,900.79

142.43 $

738,939.00

2,111,370.87

171,983.00

319,733.18

2,906.15

$ 1,043,454.00 $ 2,649,147.27 $ _ _-=2J.:,9..:.06=.:.:15::;_

$
$ _ _ _ _-o==ooa... $ - - - - = o=oo'- $

$ 17,855,138.72 $

6,870,701.00

6,870,701.00

182,942.84 7,500.00

o.oo

477,893.11

289,987.91

6,870,101.00 $ 251203,732.83 $ _ _4.:.::8:.:ao.&.:,4-=-3o=.:.;75::;_

$

0.00 $ 7,914,155.00 $ 27,852,880.10 $

483,336.90

-27-

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

REVENUES

State Funds Other Funds

Total Revenues

EXPENDITURES

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

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES}

r:>roceeds from General Obligation Bonds Par Value Premiums on Bonds Sold
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

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

FUND BALANCE JULY 1



FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

15,352.05 $ _ _6~7..::.3..0::.,;.16.;:;.:.;;.58;;._

$

15,352.05 $ _ _6~7..::.3..0::.,;.16.;:;.:.;;,.58;;._

$

144,739.08

$

33,000.61

230,159.00 1,993,841.82
564,910.98

1,195,406.78

$

33,000.61 $ 4,129,057.66

$

-17 648.56 $ -3,456,041.08

$ 28,500,000.00

487,362.60

$

290,442.84

87,795.23

-84,889.08

-7,946,920.87

$

205,553.76 $ 21,128,236.96

$

187,905.20 $ 17,672,195.88

289,987.91

182,942.84

$

477,893.11
----- ---- -

$

17,855,138.72

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ $ _ _ _ _.;;.;o..;;..oo:;..

$

0.00 $

808,905.00 $ 240,178.12

1,049,083.12 $

808,905.00 $ 928,546.75

59,233.60 331,461.04

1,737,451.75 $ 390,694.64

$

0.00

$

144,739.08

$ 1,939,454.00

230,159.00 $ 3,966,296.43
564,910.98

5,408.00 3,202,904.19
161,918.13

1,195,406.78

$

0.00 $ 1,939,454.00 $ 6,101,512.27 $ 3,370,230.32

$

0.00 $ -890,370.88 $ -4,364,060.52 $ -2,979,535.68

$ - 28,500,000.00

487,362.60

$ 7,761,071.88

8,139,309.95 $ 1,168,766.49

$

-7 500.00 - - - - - -

-8,039,309.95

-578,266.49

$

-7 500.00 $ 7,761,071.88 $ 29,087,362.60 $

590,500.00

$

-7,500.00 $ 6,870,701.00 $ 24,723,302.08 $ -2,389,035.68

7,500.00

0.00

480,430.75

2,869,466.43

$=====0.=00= $ 6,870,701.00 $ 25,203,732.83 $

480,430.75

- 29-

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 1,233,100.05

$ 1,233,100.05 $ 1,096,333.37

$ 2,452,034.99

2,452,034.99

252,648.24

1,093,407.54

1,346,055.78

335,122.26

Total Assets

$ 1,485,748.29 $ 3,545,442.53 $ 5,031,190.82 $ 1,431,455.63

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft
FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated
Total Fund Equity

$

328,033.32 $ _ __.:;.32=8;:.:,0=3=3-=32;;...

$ 1,485,748.29 $ 3,217,409.21 $ 4,703,157.50 $ 1,431,455.63

0.00 _ _ _ _0:::.:-=00;;...

0.00

0.00

$ 1,485,748.29 $ 3,217,409.21 $ 4,703,157.50 $ 1,431,455.63

Total Liabilities and Fund Equity

$ 1,485,748.29 $ 3,545,442.53 $ 5,031.190.82 $ 1,431,455.63



See notes to the general purpose financial statements.

30-

NEWTON COUNTY BOARD OF EDUCATION

EXHIBIT "J"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30. 2000

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES
Taxes Other Funds
Total Revenues

$ 2,713,017.35 $ 36,137.17
$ 2,749,154.52 $

3,026,608.95 $ 5,739,626.30 $ 2,812,769.44

15,820.12

51,957.29

44,642.86

3,042,429.07 $ 5,791,583.59 $ 2,857,412.30

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 910,000.00 $
1,780,331.44 4,530.42

0.00 $

910,000.00 $ 1,780,331.44
4,530.42

860,000.00 1,821,866.26
4 735.39

$ 2,694,861.86 $ _ _ _.....::.:0.::,;00:::... $ 2,694,861.86 $ . 2,686,601.65

$

54,292.66 $ 3,042,429.07 $ 3,096,721.73 $

170,810.65

OTHER FINANCING SOURCES Accrued Interest on Bonds Sold

174,980.14

174 980.14

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

$ 54,292.66 $ 3,217,409.21 $ 3,271,701.87 $ 170,810.65

1,431,455.63

0.00

1,431,455.63

1,260,644.98

FUND BALANCE JUNE 30

$ 1,485,748.29 $ 3.217,409.21 $ 4,703,157.50 $ 1,431,455.63


See notes to the general purpose financial statements.

- 31 -

NEWTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000

ASSETS Cash and Cash Equivalents

EXPENDABLE TRUST FUNDS

EMPLOYEE

PORTER

RECOGNITION

FUND

FUND

$

1 588.43 $ =======58=.3=6=

FUND EQUITY
Fund Balances Unreserved Undesignated

$

1 588.43 $ ======58==36=

See notes to the general purpose financial statements. - 32-

EXHIBIT "K"

AGENCY FUND

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

1 646.79 $ ====1='5.8..8....7_9=

$

0.00 $

1 646.79 $ ======1,1,,;;,5.;;;88==79===








- 33-

NEWTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "L"

REVENUES
Other Funds
EXPENDITURES
Current Support Services General Administration
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PORTER FUND

EMPLOYEE RECOGNITION
FUND

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

$

0.00 $

1 000.00 $

1 000.00 $ _ _..:.1i.::Oc=-60::.:=.;00:..

$

0.00 $

$

0.00 $

1,588.43

942.00 $ 58.00 $ 0.36

s_ _ 942.00

-=9..:...11..:..;.o""'o:....

58.00 $

89.00

1 588.79

1 499.79

FUND BALANCE JUNE 30

$ 1 588.43 $

58.36 $

1 646.79 $ ===1,i;;5;;;;8;;;;8-,;,;79=



See notes to the general purpose financial statements.

-34-

NEWTON COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND
YEAR ENDED JUNE 30, 2000

EXHIBIT "M"

0. W. PORTER, JR. SCHOLARSHIP FUND
ASSETS Cash and Cash Equivalents

BALANCE
JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE
JUNE 301 2000

$==--0....0..0.... $ 1,000.00 $ 1,000.00 $--=====o..o..o...

LIABILITIES Funds Held for Others

$===-o.....o=o= $ 1,000.00 $ 1,000.00 $

0.00

See notes to the general purpose financial statements.

- 35-

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

SCHEDULE "1"


FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

School Breakfast Program

National School Lunch Program



10.553 10.555

NIA

$ 449,945.75

(2)

NIA

1,447,740.75 $ 3,576,133.77 (3)

Total Child Nutrition Cluster

$ 1,897,686.50 $ 3,576,133.77

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

N/A

196,086.83

196,086.83

Total U. S. Department of Agriculture

$ 2,093,773.33 $ _-=.,3'"-77:.:2:.,.:,2=2:.::.0:.::;.6.::..0

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

84.027 84.173 84.173


N/A $ 900,164.99 $

N/A

5,384.53

N/A

109,467.11

900,164.99 5,384.53
109,467.11

$ 1,015,016.63 $ 1,015,016.63

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

-

Grants to Local Educational Agencies

Title II

Eisenhower Professional Development

Title VI

Innovative Education Program Strategies

Class Size Reduction

Goals 2000

State and Local Education Systemic Improvement

Grants

Safe and Drug-Free Schools and Communities

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.010 84.281 84.298 84.340
84.276
84.186
84.048

NIA

1,483,720.36

1,483,720.36

NIA

41,021.96

41,021.96

N/A

52,661.36

52,661.36

NIA

192,948.94

192,948.94

NIA

90,396.72

91,353.90

NIA

48,792.21

48,792.21

NIA

181,317.03

181,317.03

Total U. S. Department of Education

$ 3,105,875.21 $ _-=.,3,c:_106=,8~3=2:.3::.=-9

Total Federal Financial Assistance
NIA = Not Available


$ 5,199,648.54 $ 6,879,052.99

36-

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

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

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

Newton 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.

37-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Local Assistance Grant

$

45,000.00

$

45,000.00

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

21,534,633.00 6,292,815.00 1,314,108.00 981,746.00 284,329.00 5,896,991.00

838,454.00 249,236.00
79,738.00 779,041.00 337,426.17 199,657.00 958,708.00
96,664.00 115,370.00 -5,781,993.00 2,130,597.00
$ 584,133.85

261,822.00

147,449.00 85,000.00 40,113.19 1,463.69
862,120.79 4,977.88 S-,520.25 16,686.00
138,030.38 9,892.49
31,032.37

42,437.79 226,954.00
11,645.91

$ 808,905.00

21,534,633.00 6,292,815.00 1,314,108.00 981,746.00 284,329.00 5,896,991.00
838,454.00 249,236.00
79,738.00 779,041.00 337,426.17 199,657.00 958,708.00
96,664.00 115,370.00 -5,781,993.00 2,130,597.00 261,822.00 584,133.85
147,449.00 85,000.00 40,113.19 1,463.69
862,120.79 4,977.88 6,520.25 16,686.00
138,030.38 9,892.49 31,032.37
42,437.79 226,954.00
11,645.91 808,905.00

Office of School Readiness Pre-Kindergarten Program

1,228,279.23

1,228,279.23

Office of Treasury and Fiscal Services Public School Employees Retirement

157,860.00

157,860.00

CONTRACT Education, Georgia Department of Reading Challenge Program

216,921.00

216,921.00

$ 38,437,800.06 $ 1,988,059.93 $ 808,905.00 $ 41,234,764.99

See notes to the general purpose financial statements.

-38-

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

To acquire, construct and equip one new elementary school and one new middle school, acquire school buses presently leased by it and instructional and administrative technology improvements for existing schools, add to, renovate, repair, improve and equip existing school buildings and other buildings and facilities useful or desirable in connection therewith and acquire any necessary property therefor, both real and personal, all at a maximum cost of $39,000,000.00

$ 39,000,000.00 $ 39,000,000.00 $ 5,923,772.58 $

0.00

To retire a portion of the Series 1992 Bonds, the Series 1996 Bonds and the Series 1997 Bonds by paying or making provision for the payment of the principal of and interest on the Newton Bonds coming due on August 1, 2000 through February 1, 2005, in the maximum amount of $5,000,000.00

5,000,000.00

5,000,000.00

0.00

0.00

======= $ 44,000,000.00 $ 44,000,000.00 $ 5,923,772.58 $

0.00

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

See notes to the general purpose financial statements. - 39 -

NEWTON 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

100o/o TEST FOR
OPERATIONS PORTION OF. FOURTEEN WEIGHTED PROGRAMS

$

31,082,010.00 $ _ __.=.;85:.::3~,2=-=8.::;;3:.::.0=-0

$

34,801,469.73

2I 050I 757,87 $ _ _1.:.z.,;:;.;82:.;:3;.,.3;:t:.:;8.::;;6:.;;,38=-

$

36,852,227.60

-624,570.68 $ _ _3_6__,2_2_7.._,6_5_6._92_

$

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




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

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



ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*)

Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*)
Total General and Career Education Programs

$ 2,610,417.00

$ 2,349,375.30 $

0.00

6,244,678.00

5,620,210.20

$ 8,855,095.00 90 $ 7,969,585.50 $

0.00

2,886,396.00 90

2,597,756.40

4,701,705.00 90

4,231,534.50

479,354.00

3,220,133.00 90

2,898,119.70

898,485.00 90

808,636.50

972,819.00 90

875,537.10

$ 21,534,633.00

$ 19,381,169.10 $ _ _4:.:..79::;.!=-=354:..;.;.:;.o.;:..o

SPECIAL EDUCATION PROGRAMS
Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*)
Sub-Total - Regular
Category VI (Gifted) (*)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM(*)
Total Fourteen Weighted Programs

$ 5,471,365.00

$ 4,924,228.50 $

479,354.00

$ 5,471,365.00 90 $ 4,924,228.50 $

479,354.00

821,450.00 90

739,305.00

$ 6,292,815.00

$ 5,663,533.50 $_-'4;.;.79;;.:.,3;;;..;54;.;..;.;;..0.;;..0

$ 1,314,1oa.oo 90 $ 1,1a2,697.20 $ _ _ ___,;;,o~.o.;;..o

$ 29,141,556.00

$ 26,227,400.40 $ _ __,9:.;:;5::;.!B,.:..;70:;;:B;:,,:-O;.;:..O

MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

$

783,708.00 90 $

705,337.20 $

0.00

198,038.00 100

198,038.00

$

981,746.00

$

903,375.20 $ _ _ ___,;;,o~.o.;:..o

Total Fourteen Weighted and Media Center Programs $ 30,123,302.00

$ 27,130,775.60 $ =====9=5=8=,=7=0=8=.0=0=

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

92,193.00

$

92,193.00 $

0.00

192,136.00

192,136.00

0.00

Total Staff Development Programs



$

284,329.00 100 $

284,329.00 $

0.00

(*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.


- 42 -

SCHEDULE 5

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,349,375.30 $ 2,683,976.91 $

57,393.62 $ 2,741,370.53

5,620,210.20

5,359,966.32

367,583.66

5,727,549.98

$ 7,969,585.50 $ 8,043,943.23 $

424,977.28 $ 8,468,920.51 $

0.00

2,597,756.40

2,580,831.22

213,!'j35.32

2,794,366.54

0.00

4,710,888.50

5,270,116.14

447,918.64

5,718,034.78

0.00

2,898,119.70

4,498,970.19

456,992.94

4,955,963.13

0.00

808,636.50

962,171.31

17,232.52

979,403.83

0.00

875,537.10

1,288,932.08

73,607.13

1,362,539.21

0.00

$ 19,860,523.70 $ 22,644,964.17 $ 1,634,263.83 $ 24,279,228.00

$ 5,403,582.50
$

737,112.12 $ 1,886,421.65 3,628,114.67
297,467.47 53,264.00

42,422.16 $ 37,537.37 93,200.30
76.84

779,534.28 1,923,959.02 3,721,314.97
297,544.31 53,264.00

$ 5,403,582.50 $ 6,602,379.91 $

173,236.67 $ 6,775,616.58

0.00

739,305.00

994,129.53

14,513.23

1,008,642.76

0.00



$ 6,142,887.50 $ 7,596,509.44 $

187,749.90 $ 7,784,259.34

.

$ 1,182,697.20 $ 3,181,050.93 $

1,372.65 $ 3,182,423.58

0.00

$ 27,186,108.40 $ 33,422,524.54 $ 1,823,386.38 $ 35,245,910.92

$

705,337.20 $ 1,378,945.19

$ 1,378,945.19

0.00

198,038.00 - - - - - - $ _ ___;22=.,.7,c;.37;...1;.;..4;.;:;...9

227,371.49

0.00

$

903,375.20 $ 1,378,945.19 $

227,371.49 $ 1,606,316.68

$ 28,089,483.60 $

34,801,469.73 $ -

2,05-0-,-7-57..87--

$ 36,852,227.60 -----~- -

$ 0.00 -- .. - - - - - - - - - - - - - - -

$

92,193.00

192,136.00

$ ==2=84='=32=9=.0=0

$

241,876.32 $

241,876.32

49,979.75

49,979.75



$

291,856.07 $

2-9-1-,8-5-6-.0-7 $

0.00

43





SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 25, 2001

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

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

Ladies and Gentlemen:

We have audited the financial statements of Newton County Board of Education as of and for the

year ended June 30, 2000, and have issued our report thereon dated May 25, 2001. This report was

qualified for a scope limitation and for various departures from generally accepted accounting

principles, as identified in the auditor's report on the general purpose financial statements. Except as

discussed in the following paragraph, we conducted our audit in accordance with auditing standards

generally accepted in the United States of America and the standards applicable to financial audits

contained in Government Auditing Standards, issued by the Comptroller General of the United

States.



We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance

As part of obtaining reasonable assurance about whether Newton 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 dete11nination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

2000YB-40A .

Internal Control Over Financial Reporting
In planning and perfo11ning our audit, we considered Newton County Board ofEducation's ir1ternal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 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 Newton County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7071-00-01.
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 nu11nal course of perforn1ing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use ofmanagement, members of the Newton County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
,---.R..e..spectfully submitted,

RWH:gp
2000YB-40A

sell W. Hinton State Auditor





w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 25, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education

and Superintendent and Members of the Newton 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 ofNewton County Board ofEducation with the types ofcompliance
requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended
June 30, 2000. Newton 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 ofNewton County Board ofEducation's management. Our responsibility is to express an opinion on ~ewton County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A-
l 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and
0MB Circular A-133 require that we plan and perfo1n1 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance 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 Newton County Board of Education's compliance with those requirements and perforrning 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 Newton County Board ofEducation's compliance with those requirements.
2000SA-10A


In our opinion, the Newton County Board ofEducation 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 Newton 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 Newton 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 deterrnine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the norrnal course ofperforming 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 infor1nation and use of management, members of the Newton County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,


RWH:gp
2000SA-10A

ell W. Hinton



State Auditor





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


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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7071-98-01 FS-7071-99-01

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-7071-99-01

The Newton County Board ofEducation maintains inventories offood service equipment, equipment purchased with Federal grants, state lottery funds and vehicles. The Board, however, has not implemented a system to maintain and inventory all fixed assets because of time, money and personnel constraints.



SECTION IV FINDINGS AND QUESTIONED COSTS

,

NEWTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED TTJNE 30. 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements

The auditor's opinion on the Newton County Board ofEducation'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 Newton County Board ofEducation disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

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

3. Noncompliance Material to the Financial Statements The audit of the Newton County Board of- Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Newton County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs

The auditor's opinion on the Newton CountyBoard ofEducation's report on compliance with

requirements applicable to major programs was unqualified.

.

6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Newton County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(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 Newton County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.

;_ 1 -

NEWTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated Ftom Prior Year Finding Control Number: FS-7071-00-01 The Newton County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an . inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Asset Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
'
No matters were reported.
-2-