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;}L'J;.>:O:")fX" . " ' : ....., , ' ' ' .. "'  ' . ,. . .. REPORT ON,:AUDIT, . . ' /;' ; . " ; /~! .;:~:.?~;'!.}:}t:~ :-::.:)(~J.}:<-...-:1 \/r\::. \d"i~ )J-iE'.F1ttANc1A($t4r~Mii:irs,r;C' .:.:..... ,. j :--: ._ ,, . ~<::i':' 
 
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.rr: ;\ :'FOR}~~-F1SCALYE,AR.ENDED JUNE 30;.20/if> <' >.: . >': 
 
. ,  
 
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'('. 
 
 PAULDING 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 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHA."I\IGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
AND EXPENDABLE TRUST FUND 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
. GENERAL AND SPECIAL REVENUE FUNDS 
 
7 
 
D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
8 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
22 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
24 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
26 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
28 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
30 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
31 
 
SCHEDULES 
 
l SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
32 
 
2 SCHEDULE OF STATE REVENUE 
 
34 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
37 
 
 PAULDING COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BY PROGRAM 
 
38 
 
5 
 
BY SITE 
 
39 
 
SECTION II 
 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR 
 
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 
 
0MB CIRCULAR A-133 
 
. 
 
SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RussEt.L \I\'. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
2:i4 Washington Stn:ct. S.W.. Suite 214 At Ianta. Cicorgia :m33..\-X400 
March 19, 2002 
 
. Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Paulding 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 Paulding County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial-statements are the responsibility of the Paulding 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 auditing standards generally accepted in the United States of America and the st<l!ldards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
 
2001ARL-13 
 
 As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
* The general-purpose financial statements of the Board of Education did not contain a 
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts .should be included in the general-purpose financial statements. 
* The Board of Education did not recognize as expenditures, in the year ended 
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects 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-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Paulding County Board ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 
In accordance with Government Auditing Standards, we have also issued our report dated March 19, 2002, on our consideration of the Paulding 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. 
2001ARL-13 
 
 Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Paulding County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. .Such 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 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 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 tpe press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
Respectfully submitted, 
?. ....Q~W~. 
~sell W. Hinton . State Auditor 
RWH:as 2001ARL-13 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001 
 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of Bond Debt 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 
 
401,642.76 $ 1,228,001.66 $ 
 
261,541.71 
 
883,171.87 
 
21,655,004.15 
 
1,385,025.75 
 
315,212.10 
 
1,480,339.08 
 
112,459.11 38,361.96 
 
Total Assets 
 
$ 2,669,840.38 $ 1,694,034.83 $ 23,396,884.94 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue 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 SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 1,148,375.39 $ 1,000.00 
 
217,404.47 $ 474,386.78 
21,932.94 
 
11,936.88 
 
4,472.00 
273,865.20 391,418.53 
 
$ 1,149,375.39 $ 
 
725,661.07 $ 
 
669,755.73 
 
$ 
$ 1,520,464.99 $ 1,520,464.99 $ 
 
112,459.11 38,361.96 $ 
 
13,588,510.06 8,192,543.59 802,779.73 
 
817,552.69 
 
143,295.83 
 
968,373.76 $ 22,727,129.21 
 
Total Liabilities and Fund Equity 
 
$ 2,669,840.38 $ 1,694,034.83 $ 23,396,884.94 
 
The notes to the general-purpose financial statements are an integral part of this statement. -2 - 
 
 EXHIBIT"A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 3,711,164.76 $ 
 
600.00 
 
$ 5,602,950.89 $ 6,467,654.74 
 
4,087,163.72 
 
26,625,339.74 
 
10,528,548.53 
 
165,967.03 
 
3,346,543.96 
 
3,029,246.34 
 
$ 7,964,295.51 $ 
 
$ 
 
7,964,295.51 
 
112,459.11 38,361.96 
7,964,295.51 
 
21,425.88 35,670.87 
8,620,474.78 
 
54,805,704.49 
 
54,805,704.49 
 
40,209,525.22 
 
600.00 $ 
 
s 62.110,000.00 
 
98A95.655.66 $ 68,912,546.36 
 
$ 
 
387,008.41 
 
$ 1,370,251.86 
 
180,532.20 
 
475,386.78 
 
418,230.34 
 
21,932.94 
 
273,865.20 
 
744,769.25 
 
391,418.53 
 
286,222.27 
 
11,936.88 
 
$ 
 
62,770,000.00 
 
62?70,000.00 
 
48,830,000.00 
 
$ 
 
62?70,000.00 $ 65,314?92.19 $ 50,846,762.47 
 
$ 7,964,295.51 
0.00 $ $ 7,964,295.51 $ $ 7,964,295.51 $ 
 
600.00 600.00 
 
$ 
 
7,029.75 
 
$ 7,964,295.51 
 
8,620,474.78 
 
112,459.11 38,361.96 
13,588,510.06 8,192,543.59 802,779.73 
 
21,425.88 35,670.87 2,278,857.85 3,187,525.34 287,297.72 
 
2,481,913.51 
 
3,627,501.70 
 
$ 33,180,863.47 $ 18,065,783.89 
 
600.00 $ 
 
62,770,000.00 $ 98,495,655.66 $ 68,912,546.36 
 
-3 - 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001 
 
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 Administ;ation Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
GOVERNMENTAL FUND 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 65,204,128.03 $ 
25,144,329.69 2,030,934.17 
$ 92,379,391.89 $ 
 
1,272,876.65 $ 4,356,132.39 
2,996,871.98 
8,625,881.02 $ 
 
455,718.58 
4,792,468.99 773 251.10 
6,021,438.67 
 
$ 65,617,722.12 $ 
1,941,341.44 3,317,562.85 2,187,244.77 
488,823.08 5,906,858.38 
657,610.75 6,814,309.82 4,648,796.56 
326,571.87 37,617.50 
1,233,308.82 
 
2,636,485.68 
348,974.41 189,100.58 103,465.79 
83,092.97 13,473.66 
968.93 $ 27,998.37 190,336.12 
5,472.24 5,280,355.65 
2,720.85 
 
258,130.00 8,297,903.17 
 
$ 93 177 767.96 $ 
 
$ 
 
-798 376.07 $ 
 
8,882,445.25 $ 8,556,033.17 -256,564.23 $ -2,534,594.50 
 
$ 
 
$ 
 
-17 899,38 
 
$ 
 
-17 899.38 $ 
 
$ 17,899.38 
 
19,840,000.00 -572,930.67 
 
17,899.38 $ 19,267,069.33 
 
$ 
 
-816,275.45 $ 
 
-238,664.85 $ 16,732,474.83 
 
2,336,740.44 
 
1,113,314.29 
 
5,994,654.38 
 
91,033.23 2,691.09 
 
FUND BALANCE JUNE 30 
 
$ 1,520,464.99 $ 
 
The notes to the general-purpose financial statements are an integral part of this statement. -4- 
 
968,373.76 $ 22,727,129.21 
 
 EXHIBIT "B" 
 
TYPES DEBT 
SERVICE FUND 
 
TOTAL 
 
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 66,932,723.26 
 
4,356,132.39 
 
$ 7,256,323.43 
 
37,193,122.11 
 
343,216.50 
 
6,144,273.75 $ 
 
$ 7,599,539.93 $ 114,626,251.51 $ 
 
$ 0.00 
 
66,932,723.26 $ 4,356,132.39 37,193,122.11 6,144,273.75 
 
61,396,885.72 3,981,885.35 
33,269,098.20 4,277,288.82 
 
0.00 $ 114,626,251.51 $ 102,925,158.09 
 
$ 68,254,207.80 $ 
 
2,290,315.85 3,506,663.43 2,290,710.56 
571,916.05 5,920,332.04 
916,709.68 6,842,308.19 4,839,132.68 
326,571.87 43,089.74 
5,280,355.65 1,236,029.67 8,297,903.17 
 
$ 5,900,000.00 2,951,999.14 8,006.24 
 
5,900,000.00 2,951,999.14 
8,006.24 
 
$ 8,860,005.38 $ 119,476,251.76 $ 
 
$ -1,260,465.45 $ -4,850,000.25 $ 
 
$ 
 
31,355.51 $ 
 
31,355.51 
 
572,930.67 
 
19,840,000.00 590,830.05 -590,830.05 
 
$ 
 
604,286.18 $ 19,871,355.51 
 
$ 
 
-656, 179.27 $ 15,021,355.26 $ 
 
8,620,474.78 
 
18,065,183.89 
 
91,033.23 2 691.09 
 
$ 7,964,295.51 $ 33,180,263.47 $ 
 
0.00 $ 68,254,207.80 $ 56,840,973.75 
 
2,290,315.85 3,506,663.43 2,290,710.56 
571,916.05 5,920,332.04 
916,709.68 6,842,308.19 4,839,132.68 
326,571.87 43,089.74 5,280,355.65 1,236,029.67 8,297,903.17 
 
4,036,657.83 2,746,484.89 2,102,731.11 
594,947.29 5,229,727.18 
449,137.99 6,333,120.75 4,396,580.06 
284,207.59 46,456.10 
4,274,683.72 887,433.82 
8,759,772.09 
 
5,900,000.00 2,951,999.14 
8,006.24 
 
5,484,479.76 3,058,927.47 
10 506.27 
 
0.00 $ 119,476,251.76 $ 105,536,827.67 
 
0.00 $ -4,850,000.25 $ -2,611,669.58 
 
$ 
 
31,355.51 
 
19,840,000.00 590,830.05 $ -590,830.05 
 
$ 19,871,355.51 $ 
 
100,364.52 -100,364.52 
0.00 
 
0.00 $ 15,021,355.26 $ -2,611,669.58 
 
600.00 
 
18,065,783.89 
 
20,710,309.83 
 
91,033.23 2,691.09 
 
-37,909.22 5,052.86 
 
600.00 $ 33,180,863.47 $ 18,065,783.89 - 5- 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND.BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS\ GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 64,057,714.00 $ 65,204,128.03 
 
24,516,444.00 1 427 249.00 
 
25,144,329.69 2,030,934.17 
 
Total Revenues 
 
$ 90,001,407.00 $ 92,379,391.89 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations 
 
$ 64,725,225.00 $ 65,617,722.12 
 
1,912,558.00 3,220,800.00 2,065,558.00 
483,877.00 5,836,428.00 
655,848.00 6.632.134.00 4,535,088.00 
315,756.00 37,618.00 
 
1,941,341.44 3,317,562.85 2, 187.244.77 
488,'823.08 5.906,858.38 
657,610.75 6,814,309.82 4,648,796.56 
326,571.87 37,617.50 
 
935 406.00 
 
1,233,308.82 
 
Total Expenditures 
 
$ 91,356,296.00 $ 93 177 767.96 
 
Excess of Revenues over (under) Expenditures 
 
$ -1,354,889.00 $ -798 376.07 
 
OTHER FINANCING SOURCES (USES} 
 
Other Sources Other Uses 
 
$ 
 
-17 899.38 
 
Total Other Financing Sources (Uses) 
 
$ 
 
-17 899.38 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
$ -1,354,889.00 $ 
 
-816,275.45 
 
FUND BALANCE JULY 1 2000 
 
1,732,536.00 
 
2,336,740.44 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
FUND BALANCE JUNE 30 ioo1 
 
$ 377 647.00 $ 1.520 464.99 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
.(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 1,262,019.00 $ 1,272,876.65 
 
4,782,062.53 
 
4,356,132.39 
 
2 580 715.00 
 
2,996,871.98 
 
$ 8,624,796.53 $ 8,625,881.02 
 
$ 3,066,350.48 $ 2,636,485.68 
 
416,132.00 331,921.05 158,126.00 213,355.00 
13,486.00 974.00 
260,064.00 
 
348,974.41 189,100.58 103,465.79 
83,092.97 13,473.66 
968.93 27,998.37 190,336.12 
 
11,588.00 4,619,483.00 
5 000.00 
 
5,472.24 5,280,355.65 
2,720.85 
 
$ 9,096,479.53 $ 8,882,445.25 
 
$ -471 683.00 $ -256,564.23 
 
$ 
 
17,899.38 
 
$ 
 
17 899.38 
 
$ -471,683.00 $ -238,664.85 
 
1,113,007.66 
 
1,113,314.29 
 
91,033.23 2 691.09 
 
$ 6411324.66 $ 
 
968 373.76 
 
The notes to the general-purpose financial statements are an integral part of this statement. - 7. 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Paulding County Board of Education (School District) 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 School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The School District uses funds and an account group to report on its financial position and the results 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 School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting .principles, these accounts should be recorded in the general-purpose financial statements. 
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
 
-8- 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
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 pa~ent of, general long-term principal, interest and paying agent fees. 
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: 
EXPENDABLE TRUST FUND McGarity Fund - the fund used to account for the principal and earnings which may be expended to provide the purchase of a hardwood tree at McGarity Elementary School and also to purchase awards, recognition plaques, etc. for outstanding students of the Paulding County School System. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account.for general obligation debt outstanding. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial reso.urces 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 and expendable trust funds are accounted for using the modified accrual basis of accounting under which: 
-9 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but"two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
BUDGET 
The Paulding County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
 
- 10 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board; such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize "the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates 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 ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
. (1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government age_ncy, 
(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, 
- 11 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
RECEIVABLES 
 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Paulding County Board of Commissioners fixed the property' tax levy for the 2000 tax year (calendar year) on August 8, 2000 (levy date). Taxes were due on November 15, 2000 (lien date). Taxes collected within the current fiscal year or. within 60 days after year-end are reported as revenue in fiscal year 2001. The Paulding County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $23,631,187.53 and for school bonds amounted to $3,613,891.43. 
 
Tax millage rates levied for the 2000 tax year (calendar year) for the Paulding County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):. 
 
School Operations School Bonds 
 
16.40 mills 2.40 mills 
 
18.80 mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. The School District collected revenue from two separate sales tax referendums during the fiscal year. Sales tax revenues oh the first referendum during fiscal year 2001, which terminated  on March 31,2001, amounted to $4,625,089.58 and were recorded in the Capital Projects and Debt Service Funds. 
 
Collections on the second referendum began on April 1, 2001, and sales tax revenues during the fiscal year amounted to $3,486,221.01. These amounts were recorded in the Capital Projects Fund and Debt Service Funds. The State will terminate collection of this second tax once an additional $76,513,778.99 has been collected or on March 31, 2006, whichever occurs first. 
 
- 12 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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). Donat_ed 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 School District 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. 
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. 
GENERAL OBLIGATION BONDS 
The School District issues ge~eral obligation bonds to provide funds for the acquisition and construction ofmajor 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 of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS 
The School District has the following types of interfund transactions: 
Reimbursements of expenditures 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. 
- 13 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF.SIGNIFICANT ACCOUNTING POLICIES 
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 no_t present financial position or results ofoperations 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 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, 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 the 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 discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United  States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any public authority created by the laws of the State of Georgia;providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
- 14 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
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, 2001, the bank balances were $10,776,134.96. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with secmities held by the pledging firnmcial institution, or by its trust department or agent but not in the School District's name.) 
 
The School District's deposits are classified by risk category at June 30, 2001, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 4,118,164.76 
 
2 
 
5,266,517.87 
 
3 
 
1,391,452.33 
 
Total 
 
$10.776.134.96 
 
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 School District or the School District's agent in the School District's name. 
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. 
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. 
[ 
 
- 15 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
At June 30, 2001, the carrying value of the School District's total investments was $26,625,339.74 which is materially the same as fair value. The investments are classified as to risk categories as follows: 
 
Type of Investment 
 
Risk Categories 
 
2 
 
3 
 
Carrying Amount 
 
Fair Value 
 
U. S. Government 
 
$=====0.,.,0,...0 $ 25 355 099 61 $ 387,068.26 $ 25;742,167.87 $25,932,318.46 
 
Local Government Investment Pools 
 
883,171.87 
 
886,175.42 
 
Total Investments 
 
$ 26,625 339.74 $ 26 818 493 .88 
 
The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office of Treasury and Fiscal Services in which the School District 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 l,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 AAArn 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 of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. 
 
Investments in Georgia Fund land Fund 6 are directed toward short-term 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, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. 
 
- 16 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The School District receives food commodities from the United States Department of Agriculture 
 
(USDA) for school breakfast and lunch programs. These commodities are recorded at their 
 
Federally assigned value. See Note 1 - Inventories 
 
 
 
Note 4: RISK MANAGEMENT 
 
The School District is exposed to various risks of loss related to torts; theft of, damage to, and 
 
destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster 
 
and unemployment compensation. 
 
  
 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. 
 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
2000 2001 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End ofYear Liability 
 
$ 
 
0.00 $ 
 
7,219.00 $ 
 
7,219.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
2,056.00 $ 
 
2.056.00 $ 
 
0.00 
 
The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit. 
 
The School District has purchased a surety bond to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent 
 
$ 100,000.00 
 
- 17 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 5: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 2001 
 
4.69% 
 
General Government - Series 2000 
 
4.72% 
 
General Government - Series 1997 
 
4.00%- 5.00% 
 
General Government - Series 1995 
 
4.60% - 5.50% 
 
General Government - Series 1992 A 
 
6.40% - 6.625% 
 
General Government - Refunding - Series 1992 B 3.75% - 6.40% 
 
General Government - Series 1991 
 
4.40% - 6.10% 
 
$ 9,850,000.00 9,990,000.00 7,955,000.00 
20,435,000.00 10,720,000.00 
1,840,000.00 1,980,000.00 
 
$62,770,000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: 
 
General Obligation 
Bonds 
 
Balance July 1, 2000 . 
 
$48,830,000.00 
 
Additions General Obligation Bonds Issued 
 
19,840,000.00 
 
Deductions Debt Retired 
 
5,900,000.00 
 
Balance June 30, 2001 
 
$62,770,000.00 
 
At June 30, 2001, payments due by fisc~l year which includes principal and interest for these items are as follows: 
 
- 18 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 
 
$ 9,940,723.00 12,053,200.25 8,668,786.00 8,774,494.25 8,909,326.00 22,364,944.00 11,785,225.00 
 
Total Principal and Interest 
 
$82,496.698.50 
 
Note 6: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of$1,322,169.73 for health insurance and retirement contributions paid on the School District's behalfby 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 $1,046,40"5.62 
 
Paid to the Teachers Retirement System of Georgia  For Teachers Retirement System (TRS) Employer's Cost 
In the amount of $65,012.11 
 
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 $210,752.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: 
 
- 19 - 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
Project 
00/99S-710-098 026/0lS-710-035 Nebo Elementary School Addition Panter Elementary School Addition Roberts Elementary School Addition 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
$ 123,678.85 477,762.77 354,068.12 233,275.64 224,990.80 
 
$ 232,824.46 3,436,360.00 
 
$1,413,776.18 $3,669,184.46 
 
The amounts described in this note are not reflected in the general-purpose financial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The School District is a defendant in a legal proceeding pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general-purpose financial statements. 
 
Note 9: SUBSEQUENT EVENTS 
 
The School District's administrative staffand certain other full-time employees earn a maximum of one and one-quarter days per month of annual leave. Annual leave may be accumulated to a maximum of 20 days and an amount based on unused leave, up to the maximum accumulation, is paid at the current rate of pay to employees upon retirement or termination of employment. See Note 1 - Compensated Absences 
 
Note 10: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and 
 
- 20- 
 
 PAULDING COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 10: RETIREMENT PLANS 
 
survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2001 2000 1999. 
 
100% 100% 100% 
 
$ 6,424,644.22 $ 5,647,557.96 $ 5,089,425.55 
 
- 21 - 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET .. SPECIAL REVENUE FUND JUNE 30. 2001 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 1, 133,846.65 $ 
 
73,783.14 
 
2,521.50 
 
9,268.95 
 
112,459.11 38,361.96 
 
Total Assets 
 
$ 1,287,189.22 $ ===8=3=,0=52==09= 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
 Total Liabilities and Fund Equity 
See notes to the general-purpose financial statements. 
- 22 - 
 
$ 
 
92,214.95 $ 
 
233,315.76 
 
20,996.56 55,340.28 
 
$ 
 
325,530.71 $ 
 
76,336.84 
 
$ 
 
112,459.11 
 
38,361.96 
 
810,837.44 $ 
 
$ 
 
961,658.51 $ 
 
6 715.25 6 715.25 
 
$ 1,287,189.22 $===8=3=,0=52==09= 
 
 EXHIBIT"E" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
JUNE 301 2001 
 
JUNE 301 2000 
 
$ 
 
20,371.87 $ 1,228,001.66 $ 1,333,996.73 
 
303,421.65 
 
315,212.10 
 
340,221.33 
 
112,459.11 38,361.96 
 
21,425.88 35,670.87 
 
$ 
 
323,793.52 $ 1,694,034.83 $ 1,731,314.81 
 
$ 
 
59,525.14 
 
$ 
 
104,192.96 $ 
 
217,404.47 
 
141,245.04 
 
185,730.74 
 
474,386.78 
 
417,230.34 
 
21,932.94 
 
21,932.94 
 
11,936.88 
 
11,936.88 
 
$ 
 
323,793.52 $ 
 
725,661.07 $ 
 
618,000.52 
 
$ 
 
7,029.75 
 
$ 
 
112,459.11 
 
38,361.96 
 
21,425.88 35,670.87 
 
$ 
 
0.00 
 
817,552.69 
 
1,049,187.79 
 
$ 
 
0.00 $ 
 
968,373.76 $ 1,113,314.29 
 
$ 
 
323,793.52 $ 1,694,034.83 $ 1,731,314.81 
 
- 23- 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
See notes to the general-purpose financial statements. - 24- 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
345,470.00 $ 
 
1,720,506.48 
 
2,974,651.60 
 
$ 5,040,628.08 $ 
 
759,468.15 22,220.38 
781.688.53 
 
$ 
 
750,011.11 
 
29,482.35 699.72 
 
396.91 
 
$ 5,278,978.43 
 
650.93 1,377.22 
 
$ 5,278,978.43 $ $ -238,350.35 $ 
 
782,618.24 -929.71 
 
$ -238,350.35 $ 1,106,284.54 
91,033.23 2,691.09 
 
7 644.96 
6,715.25 0.00 
 
$ 
 
961,658.51 $ =====6:!,,;,7=15=.2=5~ 
 
 EXHIBIT"F" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
167,938.50 $ 1,272,876.65 $ 1,867,974.55 
 
2,635,625.91 
 
4,356,132.39 
 
3,981,885.35 
 
2,996,871.98 
 
2,482,858.74 
 
$ 2,803,564.41 $ 8,625,881.02 $ 8,332,718.64 
 
$ 1,886,474.57 $ 2,636,485.68 $ 3,327,802.94 
 
319,492.06 188,400.86 103,465.79 
82,696.06 13,473.66 
968.93 27,998.37 189,685.19 
5,472.24 
2,720.85 
 
348,974.41 189,100.58 103,465.79 
83,092.97 13,473.66 
968.93 27,998.37 190,336.12 
5,472.24 5,280,355.65 
2,720.85 
 
304,827.84 204,391.43 
53,397.73 83,505.97 13,582.43 
10,000.00 188,635.64 
11,146.10 4,110,108.44 
3,756.45 10,000.00 
 
$ 2,820,848.58 $ 8,882,445.25 $ 8,321,154.97 
 
$ 
 
-17,284.17 $ 
 
-256,564.23 $ 
 
11,563.67 
 
10,254.42 
 
17,899.38 
 
100,364.52 
 
$ 
 
-7,029.75 $ 
 
-238,664.85 $ 
 
111,928.19 
 
. 7,029.75 
 
1,113,314.29 
 
1,034,242.46 
 
91,033.23 2,691.09 
 
-37,909.22 5,052.86 
 
$ 
 
0.00 $ 
 
968,373.76 $ 1,113,314.29 
 
- 25 - 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
 
REGULAR 
 
BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
$ 
 
143.295.83 
 
$ 
 
386.447.29 
 
$ 14,151,706.43 
 
Total Assets 
 
$ 
 
143,295.83 $ 14,151,706.43 $==3=8==6=,4==4=i7.=29=== 
 
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 SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
361,718.93 
 
4.472.00 
 
.175,925.44 $ 
 
21,080.00 
 
$ 
 
563,196.37 $ 
 
15,333.53 361 340.03 
376,673.56 
 
$ 13,588,510.06 
 
$ 
 
$ 
 
143,295.83 
 
0.00 
 
$ 
 
143,295.83 $ 13,588,510.06 $ 
 
9,773.73 0.00 
9 773.73 
 
Total Liabilities and Fund Equity 
 
$ 
 
143,295.83 $ 14,151,706.43 $==3=8==6=,4=47:i.=29=== 
 
See notes to the general-purpose financial statements. 
 
-26- 
 
 EXHIBIT"G" 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
$ 
 
93,517.52 
 
6,618,686.99 $ 
 
1,480,339.08 
 
LOTTERY PROJECT 
 
TOTALS 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
623,260.64 $ 1,582,393.59 
 
884,610.73 
 
21,655,004.15 
 
4,870,181.05 
 
1,480,339.08 
 
573 071.26 
 
$ 8,192,543.59 $ 
 
884,610.73 $ 23,758,603.87 $ 7,025,645.90 
 
$ 
 
361,718.93 
 
4,472.00 
 
$ 
 
82,606.23 
 
273,865.20 $ 
 
744,769.25 
 
8,998.50 
 
391,418.53 
 
286,222.27 
 
$ 
 
91 604.73 $ 1,031,474.66 $ 1,030,991.52 
 
$ 8,192,543.59 $ 
0.00 
$ 8,192,543.59 $ 
 
$ 793,006.00 
 
13,588,510.06 $ 8,192,543.59 
802,779.73 
 
0.00 
 
143,295.83 
 
793,006.00 $ 22,727,129.21 $ 
 
2,278,857.85 3,187,525.34 
287,297.72 
240,973.47 
5,994,654.38 
 
$ 8,192,543.59 $ 
 
884,610.73 $ 23,758,603.87 $ 7,025,645.90 
 
- 27 - 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 
 
REGULAR 
 
-BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND  
INVESTMENT COMMISSION 
 
REVENUES 
 
State Funds Taxes Other Funds 
 
$ 54,938.36 $ 
 
$ 450,987.49 
 
360,618.38 
 
Total Revenues 
 
$ 54,938.36 $ 450,987.49 $ 
 
360,618.38 
 
EXPENDITURES 
 
Current Support Services Business Administration 
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment 
 
$ 258,130.00 
 
$ 152,616.00 
 
1,473,788.25 1,112,608.76 $ 1,777,349.24 
 
3,506,075.84 15,000.00 
 
Total Expenditures 
 
$ 152,616.00 $ 4,621,876.25 $ 3,521,075.84 
 
Excess of Revenues over (under) Expenditures 
 
$ -97,677.64 $ -4, 170,888.76 $ -3, 160,457.46 
 
OTHER FINA_NCING SOURCES (USES) 
 
Proceeds from General Obligation Bonds Par Value 
Operating Transfers In Operating Transfers Out 
 
$ 19,840,000.00 79,030.81 $ 
-4,438,489.84 
 
2,882,933.47 
 
Total Other Financing Sources (Uses) 
 
$ 15,480,540.97 $ 2,882,933.47 
 
Excess of Revenues and Other Financing Sources over (under) Expe~ditures and Other Financing Uses $ -97,677.64 $ 11,309,652.21 $ 
 
-277 ,523.99 
 
FUND BALANCE JULY 1 
 
240,973.47 
 
2,278,857.85 
 
287,297.72 
 
FUND BALANCE JUNE 30 
 
$ 143,295.83 $ 13,588,510.06 $====9!:i::7==73==73= 
 
See notes to the general-purpose financial statements. - 28 - 
 
 EXHIBIT"H" 
 
SPECIAL PURPOSE LOCAL OPTION 
SALES TAX 
 
LOTTERY PROJECT 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ $ 4,792,468.99 
267,325.25 
$ 5,059,794.24 $ 
 
95,100.20 $ 95,100.20 $ 
 
455,718.58 $ 4,792,468.99 
773,251.10 
6,021,438.67 $ 
 
4,745,970.96 2,456,960.71 
280,402.15 
7,483,333.82 
 
$ 
 
0.00 $ 
 
$ 
 
0.00 $ 
 
$ 5,059,794.24 $ 
 
$ 
 
258,130.00 
 
 6,288.75 219,059.85 
35,116.48 
 
1,480,077.00 $ 4,990,360.45 1,827,465.72 
 
273,375.50 7,390,773.97 
991,222.62 
 
260,465.08 $ 8,556,033.17 $ 8,655,372.09 
 
-165,364.88 $ -2,534,594.50 $ -1,172,038.27 
 
$ 19,840,000.00 
 
$ 
 
982,625.70 
 
3,944,589.98 $ 1,841,066.98 
 
$ 
 
-54 775.99 
 
-24,254.82 
 
-4,517,520.65 
 
-1,841,066.98 
 
$ 
 
-54 775.99 $ 
 
958,370.88 $ 19,267,069.33 $ 
 
0.00 
 
$ 5,005,018.25 $ 3,187,525.34 
 
793,006.00 $ 16,732,474.83 $ -1,172,038.27 
 
0.00 
 
5,994,654.38 
 
7,166,692.65 
 
$ 8,192,543.59 $ 
 
793,006.00 $ 22,727,129.21 $ 5,994,654.38 
 
- 29- 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2001 
 
EXHIBIT"!" 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 3,718,164.76 
 
$ 3,718,164.76 $ 3,617,189.56 
 
$ 4,087,163.72 
 
4,087,163.72 
 
3,592,407.77 
 
165,967.03 
 
165,967.03 
 
1 417 877.45 
 
Total Assets 
 
$ 3,884,131.79 $ 4,087,163.72 $ 7,971,295.51 $ 8,627,474.78 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Cash Overdraft 
 
$ 
 
FUND EQUITY 
 
Fund Balances Reserved For Debt Service Unreserved Undesignated 
 
$ 3,884,131.79 $ 0.00 
 
Total Fund Equity 
 
$ 3,884,131.79 $ 
 
7,000.00 $ 
 
7 000.00 $ 
 
7,000.00 
 
4,080,163.72 $ 7,964,295.51 $ 8,620,474.78 
 
0.00 
 
0.00 
 
0.00 
 
4,080,163.72 $ 7,964,295.51 $ 8,620,474.78 
 
Total Liabilities and Fund Equity 
 
$ 3,884,131.79 $ 4,087,163.72 $ 7,971,295.51 $ 8,627,474.78 
 
See notes to the general-purpose financial statements. 
 
- 30 - 
 
 PAULDING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
DEBT SERVICE FUND YEAR ENDED JUNE 30. 2001 
 
EXHIBIT "J" 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
REVENUES 
 
Taxes Other Funds 
 
$ 3,937,481.83 $ 3,318,841.60 $ 7,256,323.43 $ 
 
129,323.72 
 
213,892.78 
 
343,216.50 
 
8,877,480.97 274 075.46 
 
Total Revenues 
 
$ 4,066,805.55 $ 3,532,734.38 $ 7,599,539.93 $ 9,151,556.43 
 
EXPENDITURES 
 
Debt Service Principal Interest Paying Agent Fees 
 
$ 1,705,000.00 $ 2,201,980.06 8,006.24 
 
4,195,000.00 $ 750,019.08 
 
5,900,000.00 $ 2,951,999.14 
8,006.24 
 
5,330,000.00 3,049,503.76 
10 506.27 
 
Total Expenditures 
 
$ 3,914,986.30 $ 4,945,019.08 $ 8,860,005.38 $ 8,390,010.03 
 
Excess of Revenues over (under) Expenditures 
 
$ 151,819.25 $ -1,412,284.70 $ -1,260,465.45 $ 
 
761 546.40 
 
OTHER FINANCING SOURCES 
 
Accrued Interest on Bonds Sold Operating Transfers In 
 
$ 
 
31,355.51 $ 
 
31,355.51 
 
572,930.67 
 
572,930.67 
 
Total Other Financing Sources 
 
$ 
 
604,286.18 $ 604,286.18 
 
Excess of Revenues and Other Financing Sources 
 
over (under) Expenditures 
 
$ 
 
151,819.25 $ 
 
-807,998.52 $ -656, 179.27 $ 
 
761,546.40 
 
FUND BALANCE JULY 1 
 
3,732,312.54 
 
4,888, 162.24 
 
8,620,474.78 . 
 
7,858,928.38 
 
FUND BALANCE JUNE 30 
 
$ 3,884,131.79 $ 4,080,163.72 $ 7,964,295.51 $ 8,620,474.78 
 
See notes to the general-purpose financial statements. 
 
- 31 - 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services . School Breakfast Program National School Lunch Program 
 
. 10.553 
. 10.555 
 
N/A 
 
$ 248,352.48 
 
(2) 
 
NIA 
 
1,158,947.39 $ 
 
4,965,771.82 (3) 
 
Total Child Nutrition Cluster 
 
$ 1,407,299.87 $ 
 
4,965,771.82 
 
r 
I 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program 
 
Food Distribution Program (1) 
 
10.550 
 
NIA 
 
313,206.61 
 
313,206.61 
 
Total U. S. Department of Agriculture 
 
$ 1,720,506.48 $ 
 
5,278,978.43 
 
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 Preschool 
 
84.027 84.173 
 
N/A 
 
$ 1,091,405.80 $ 1,091,405.80 
 
NIA 
 
110,002.17 
 
110,002.17 
 
Total Special Education Cluster 
 
$ 1,201,407.97 $ 
 
1,201,407.97 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Comprehensive School Reform Demonstration Project 
 
84.332 
 
N/A 
 
Elementary and Secondary Education Act 
 
Title I Grants to Local Educational Agencies 
 
84.010 
 
NIA 
 
Title II Eisenhower Professional Development 
 
84.281 
 
NIA 
 
Title VI Innovative Education Program Strategies Class Size Reduction 
 
84.298 
 
NIA 
 
84.340 
 
N/A 
 
Goals 2000 
 
State and Local Education Systemic Improvement 
 
Grants Safe and Drug-Free Schools and Communities 
 
84.276 
 
N/A 
 
84.186 
 
N/A 
 
Vocational Education - Basic Grants to States 
 
High School Program Basic Grant 
 
84.048 
 
NIA 
 
Pass-Through From Cherokee County Board of Education 
 
Elementary and Secondary Education Act 
 
Title Ill Technology Literacy Challenge Fund Grants 
 
84.318 
 
NIA 
 
66,820.00 
812,542.18 56,931.26 68,875.11 
199,633.00 
56,991.27 67,175.05 
66,486.00 
-7,029.75 
 
66,820.00 
812,542.18 56,931.26 68,875.11 
199,633.00 
56,991.27 67,175.05 
66,486.00 
 
Total U. S. Department of Education 
 
$ 2,589,832.09 $ 2,596,861.84 
 
- 32 - 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
$ 45,793.82 $ 
 
56,048.24 (3) 
 
Total Federal Financial Assistance 
 
$ 4,356,132.39 $====7'!=9=31;,.,,8;;.;8~8,;;::.5~1 
 
NIA = Not Available 
 
0 
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 2001 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 School District did not provide Federal Assistance to any Subrecipient. 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Paulding 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 - 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS 
 
Education, Georgia Department of 
 
Quality Basic Education 
 
Direct Instructional Cost 
 
Kindergarten Program 
 
$ 3,816,987.00 
 
Kindergarten Program - Early Intervention Program 
 
484,492.00 
 
Primary Grades (1-3) Program 
 
10,490,266.00 
 
Primary Grades - Early Intervention (1-3) Program 
 
1,249,895.00 
 
Upper Elementary Grades (4-5) Program 
 
4,922,552.00 
 
Middle School (6-8) Program 
 
8,124,118.00 
 
High School General Education (9-12) Program 
 
6,162,886.00 
 
Vocational Laboratory (9-12) Program 
 
1,412,225.00 
 
Students with Disabilities 
 
Category I 
 
563,340.00 
 
Category II 
 
1,034,630.00 
 
Category Ill 
 
3,640,596.00 
 
Category IV 
 
1,081,751.00 
 
Category V 
 
102,451.00 
 
Gifted Student - Category VI 
 
347,335.00 
 
Remedial Education Program 
 
701,579.00 
 
Alternative Education Program 
 
569,194.00 
 
English Speakers of Other Languages (ESOL) 
 
11,216.00 
 
, Special Education Itinerant - 
 
2,816.00 
 
Special Education Supplemental Speech 
 
10,560.00 
 
Media Center Program 
 
1,468,812.00 
 
Staff and Professional Development 
 
419,249.00 
 
Indirect Cost 
 
8,672,897.00 
 
Categorical Grants 
 
Pupil Transportation 
 
Regular 
 
1,375,430.00 
 
Bus Replacement 
 
380,026.00 
 
Nursing Services 
 
326,860.00 
 
Principal Supplements 
 
69,377.00 
 
Vocational Supervisors 
 
58,872.00 
 
Education Equalization Funding Grant 
 
4,799,239.00 
 
Food Services 
 
$ 
 
Vocational Education 
 
109,620.10 
 
Other State Programs 
 
Apprenticeship Program 
 
40,000.00 
 
At-Risk Summer School Program 
 
20,296.19 
 
Environmental Science Program 
 
750.00 
 
Governor's Emergency Funds 
 
2,000.00 
 
Health Insurance 
 
1,046,405.62 
 
Mentoring Program 
 
5,146.34 
 
Mentor Teachers 
 
26,471.09 
 
Pay for Performance 
 
970,000.00 
 
Preschool Handicapped Program 
 
185,558.00 
 
Remedial Summer School 
 
8,249.82 
 
Special Education Low Incidence Grant 
 
29,638.00 
 
Teachers' Retirement 
 
65,012.11 
 
Tuition for the Multi-Handicapped 
 
31,322.04 
 
Lottery Programs 
 
Computers in the Classroom 
 
Exceptional Growth-Capital Outlay 
 
$ 3,816,987.00 484,492.00 
10,490,266.00 1,249,895.00 4,922,552.00 8,124,118.00 6,162,886.00 1,412,225.00 
563,340.00 1,034,630.00 3,640,596.00 1,081,751.00 
102,451.00 347,335.00 701,579.00 569,194.00 
11,216.00 2,816.00 
10,560.00 1,468,812.00 
419,249.00 8,672,897.00 
 
345,470.00 
 
319,143.00 $ 
 
95,100.20 
 
1,375,430.00 380,026.00 326,860.00 69,377.00 58,872.00 
4,799,239.00 345,470.00 109,620.10 
40,000.00 20,296.19 
750.00 2,000.00 1,046,405.62 5,146.34 26,471.09 970,000.00 185,558.00 8,249.82 29,638.00 65,012.11 31,322.04 
319,143.00 95,100.20 
 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
 
360,618.38 
 
360,618.38 
 
Office of School Readiness Pre-Kindergarten Program 
 
440,325.15 
 
440,325.15 
 
- 34- 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
 
GRANTS Office of Treasury and Fiscal Services Public School Employees Retirement 
 
CONTRACTS 
 
Administrative Services, Georgia Department of 
 
GSAMS 
 
. 
 
Education, Georgia Department of Georgia's Reading Challenge Reading First Program 
 
OTHER Archives and History, Georgia Department of Historical Records Grant Program 
Community Affairs, Georgia Department of Local Assistance Grant 
Education, Georgia Department of Through Communities In Schools of Georgia, Incorporated Communities In Schools 
Georgia School Boards Association Safety Grant 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
210,752.00 
 
$ 
 
210,752.00 
 
3,225.60 
 
113,071.00 
$ 
 
117,312.00 
 
3,225.60 
113,071.00 117,312.00 
 
1,169.12 
 
50,626.50 
 
1,169.12 50,626.50 
 
25,000.00 10,790.00 
 
25,000.00 10,790.00 
 
$ 65,204,128.03 $ 1,272,876.65 $ 455,718.58 $ 66,932,723.26 
 
See notes to the general-purpose financial statements. 
 
- 35 - 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAXPROJECTS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "3" 
 
PROJECT 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) 
 
PROJECT STATUS 
 
Acquisition, construction and equipping of a new high school, a new elementary school, the purchase of land for future schools, and renovations and additions to existing schools, including the acquisition of all necessary property 
 
$ 21,487,827.00 $ 22,077,503.66 $ 
 
66,502.10 $ 22,011,001.56 Completed 
 
Interest on Bonds 
 
3,512,173.00 
 
3,512,173.00 
 
750,019.08 . 2,367,892.83 Ongoing 
 
Acquisition, construction, and equipping of four new elementary schools, one new middle school, one new high school, a performing arts center, improving sysJ_em wide technology, renovations, repairs, improvements and equipping of existing schools, and the acquisition of related facilities including all necessary properties 
 
76,500,000.00 
 
76,500,000.00 
 
4,447,312.52 
 
Ongoing 
 
Paying a portion of the principal and interest on the School District's general obligation bonds maturing August 1, 2001 through and including February 1, 2006 
 
3,500,000.00 
 
3,500,000.00 
 
Ongoing 
 
$ 105,000,000.00 $ 105,589,676.66 $ 5,263,833.70 $ 24,378,894.39 
 
(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. 
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. 
(3) The voters of Paulding County approved the imposition of a 1% sales tax to fund the above projects. 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. 
 
- 37 - 
 
 PAULDING COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM {QBE) 
ALLOTMENTS AND EXPENDITURES  BY PROGRAM YEAR ENDED JUNE 30. 2001 
( 
 
SCHEDULE "4" 
 
DESCRIPTION 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
Direct Instructional Programs 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program-Early Intervention Program 
 
Primary Grades (1-3) Program 
 
Primary Grades-Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Middle School (6-8) Program 
 
High School General Education (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Disabilities 
 
Category II 
 
Category Ill 
 
Category IV 
 
Gifted Student - Category VI 
 
Remedial Education Program 
 
Alternative Education Program_ 
 
English Speakers of Other Languages (ESOL) 
 
4,232,163.00 $ 4,700,038.61 $ 
 
537,189.00 
 
819,138.70 
 
11,631,297.00 11,816,025.60 
 
1,385,847.00 
 
980,055.65 
 
5,457,982.00 
 
6,639,716.46 
 
9,007,781.00 
 
9,657,984.64 
 
6,833,226.00 
 
7,959,813.06 
 
1,565,833.00 
 
2,021,683.06 
 
7,136,207.00 
 
302,779.11 
 
6,948,298.90 
 
206,765.39 
 
385,113.00 
 
596,667.59 
 
777,889.00 
 
757,951.94 
 
631,106.00 
 
787,461.15 
 
12,436.00 
 
43,520.44 
 
194,949.95 $ 26,143.46 847,016.30 26,146.06 445,738.12 697,454.06 552,160.23 391,519.36 
250,269.18 
18,459.48 35,746.69 23,688.45 
1,087.28 
 
4,894,988.56 845,282.16 
12,663,041.90 1,006,201.71 7,085,454.58 
10,355,438.70 8,511,973.29 2,413,202.42 
302,779.11 7,198,568.08 
206,765.39 615,127.07 793,698.63 811,149.60 
44,607.72 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 
 
49,594,069.00 $ 54,237,900.30 $ 3,510,378.62 $ 57,748,278.92 
 
Media Center Program Staff and Professional Development 
 
1,628,575.00 464,851.00 
 
1,747,692.89 249,711.82 
 
400,719.39 231,324.38 
 
2,148,412.28 481,036.20 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
51,687,495.00 $ 56,235,305.01 $ 4,142,422.39 $ 60,377,727.40 
 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
See notes to the general-purpose financial statements. 
 
 38  
 
 PAULDING COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "5" 
 
SITE 
Hiram High School McGarity Elementary School South Paulding Middle School Floyd L. Shelton Elementary School Sam D. Panter Elementary School Nebo Elementary School C. A. Roberts Elementary School East Paulding High School Northside Elementary School J. A. Dobbins Middle School Allgood Elementary School Ritch Elementary School East Paulding Middle School Dallas Elementary School New Georgia Elementary School Herchel Jones Middle School Paulding County High School Abney Elementary School Union Elementary School Hiram Elementary School Matthews Learning Center Central Office (Alternative Education Program) Other Auxiliary Facility . 
TOTAL 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
3,168,045.00 $ 
 
3,676,376.52  
 
1,945,786.00 
 
2,316,674.84 
 
2,511,774.00 
 
2,913,641.05 
 
1,991,678.00 
 
2,246,113.17 
 
2,696,165.00 
 
2,882,919.39 
 
.2,329, 101.00 
 
2,798,602.67 
 
2,301,895.00 
 
2,882,358.95 
 
3,258,679.00 
 
4,092,013.06 
 
2,107,473.00 
 
2,368,513.11 
 
2,893,651.00 
 
3,185,613.86 
 
1,880,816.00 
 
2,133,165.64 
 
2,699,368.00 
 
3,151,437.19 
 
3,431,800.00 
 
3,625,254.25 
 
2,213, 107.00 
 
2,427,330.15 
 
1,750,893.00 
 
2,016,982.33 
 
2,686,176.00 
 
3,041,312.96 
 
4,106,995.00 
 
5,375,943.51 
 
1,567, 118.00 
 
1,829,736.72 
 
1,436,111.00 
 
1,540,879.50 
 
1,986,332.00 
 
2,275,666.84 
 
593,793.26 
 
631,106.00 
 
254,165.65 
 
119,784.30 
 
$ 
 
49,594,069.00 $ 57,748,278.92 
 
See notes to the general-purpose financial statements. - 39 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RussELL \\'. H1NTON STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
2:'i4 Wasliingto11 Street. S.\V.. Suite 214 Atlanta. Georgia :i,o:n4-X40U 
March 19, 2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Paulding 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 Paulding County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated March 19, 2002. 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, 2001, 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 Paulding County Board of Educatio'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 of our 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. 
 
 
 
2001YB-41 
 
 Internal Control Over Financial Reporting 
 
In planning and performing our audit, we considered Paulding County Board ofEducation'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 Paulding 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-7101-01-01. 
 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be . detected within a timely period by employees in the normal course of 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, we consider item FS-7101-01-01 to be a material weakness. 
This report is intended solely for the information and use of the management, members of the Paulding County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
 
Respectfully submitted, 
 
- 
 
w~~ 
 
RWH:as 2001YB-41 
 
 RussEu. \V. H1NTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
2:'i.:l Washington Street. S.W.. Suite 214 Atlanta. Georgia .-~(1:;:-..i-X-lOO 
March 19, 2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Paulding Coui;lty 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 Paulding County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Paulding County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Paulding County Board of Education's management. Our responsibility is to express an opinion on Paulding County Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular Al 33, 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 Paulding County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Paulding County Board ofEducation's compliance with those requirements. 
2001SA-10 
 
 In our opinion, the Paulding County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001. 
Internal Control Over Compliance 
The management of Paulding 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 Paulding County Board of Education'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 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 of one 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 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 information and use ofmanagement, members ofthe Paulding County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
RWH:as 2001SA-10 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 PAULDING COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7101-99-01 FS-7101-00-01 
 
Further Action Not Warranted Unresolved - No Corrective Action Implemented 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7101-00-01 
 
In fiscal year 2002, the Paulding County Board ofEducation is implementing the necessary policies and procedures to maintain the General Fixed Assets Account Group as part ofthe general ledger. Although the process has not been completed at the time of the audit, we anticipate full compliance by June 30, 2002. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2001 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Paulding 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 Paulding 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 Paulding 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 Paulding 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 Paulding 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 .51 0(a) of 0MB Circular A-133 The Paulding County Board of Education'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 progran1s 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 10.550 Food and Nutrition Program - Food Distribution Program 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Paulding County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. 
- 1- 
 
 PAULDING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group  Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7101-01-01 The Paulding County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by.generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
-2 -