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

.

.

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

GA



A3oo
_R I

)_ (o

?5
l9~ct-1ooo

Oo 000000 O
1776


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


PICKENS COUNTY BOARD OF EDlJCATION - 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

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

ADDIDONAL FINANCIAL INFORMATION



COMBINING 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

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2
4
6
7

20 22
24
26 28
29
30
32
33


PICKENS COlJNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page
SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF VlJ.l"

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

35

5

BYPROGRAM

36

SECTION IT
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 AUlJfl'ING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CON. TROL. OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION ID AUDI'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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


SECTION I FINANCIAL


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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 11, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Pickens 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 Pickens 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 r~sponsibility of the Pickens County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we pIan and perforrn the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1 n1 on.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
-

2000ARL-13A

* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to confo11n to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo1111 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 confo11n 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 dete1ruined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Pickens County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo11nity with accounting principles generally accepted in the United ~tates ofAmerica.
In accordance with Government Auditing Standards, we have also issued our report dated May 11, 2001, on our consideration of the Pickens County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regu1ations, contracts and grants. That report is an integral part of an audit perfo11ned in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
Our audit was perfo11ned for the purpose of fo11ning an opinion on the general purpose financial
statements of the Pickens 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 fo! 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 ofthe general purpose financial statements and in our opinion, except
for the effects ofthe matters referred to in the third paragraph, such info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13A


A copy of this report has been filed as a pe1"111anent 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.
Respectfully submitted,


RWH:gp 2000ARL-13A

ssell W. Hinton State Auditor



PICKENS COUNTY BOARD OF EDUCATION


PICKENS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALLFUNOTYPESANDACCOUNTGROUP JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,610,720.74 $ 128,926.58 $

144.37

2,748,399.85

481,306.73

257,260.96

446,724.20

Due from Other Funds

Inventories



Food

Donated Commodities

Purchased Food

14,534.64 9,483.35

Amount Available in Debt Service Fund

Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

Total Assets

$

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Notes Payable Due to Other Funds Deferred Revenue Cl3pital Lease Agreements General Obligation Bonds Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For Bus Replacement Funds

For Debt Service

For Inventories

Food

Donated Commodities

Purchased Food

For Purposes of Bond Issue

For SPLOST Projects

For State Capital Outlay Projects

Unreserved



Deficit

Undesignated

Total Fund Equity

$

59,539.20 $

36,130.90

137,769.34



$

59,539.20 $ ----'-'17:..,:3:.c9,:.,:::0~0=.24:!...

$

14,655.54

$

14,534.64



9,483.35

$ 3,195,268.42

2,017,832.73 $ 2,032,488.27 $

212,287.30 236,305.29 $

0.00
3,195,268.42

Total Liabilities and Fund Equity

$

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

-2-

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

724.20

$ 1,740,515.89 $

365,608.00

2,748,399.85

1,010,715.00

1, 1 8 5 , 2 9 1 . 8 9

1,232,626.00

298,809.00

14,534.64 9,483.35

15,051.00 10,344.00

$

724.20

724.20

242,125.00

9,119,275.80 624,038.10

9,119,275.80 624,038.10

9,087,875.00 431,657.00

$

724.20 $

9,744,038.10 $ 15,442,263.72 $ 12,694,810.00

$

213,055.00

$

95,670.10

647,694.00

137,769.34

132,129.00

75,000.00

298,809.00

$

624,038.10

624,038.10

88,999.00 431,657.00

9,120,000.00

9,120,000.00

9,330,000.00

$

9,744,038.10 $ 9,977,477.54 $ 11,217,343.00

$

724.20

0.00 $ _ _ _..,_7.=,24-'-'.2=.,0:....

$

14,655.54

724.20 $

242,125.00

14,534.64 9,483.35
3, 195,268.42

15,051.00 10,344.00
616.00 1,232,524.00
46,412.00

2,230,120.03

-237,559.00 167,954.00

$ 5,464,786.18 $ 1,477,467.00

$

724.20 $

9,744,038.10 $ 15,442,263.72 $ 12,694,810.00

-3-

PICKENS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
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 Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases 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

SPECIAL REVENUE
FUND

$ 13,268,405.96 $
10,243,450.99 139,908.86

285,389.00 2,038,740.96
789,015.95

$ 23,651,765.81 $ __3""'"'""11"-'3'-'-,1-'---4'-"5-'-'.9_1_

$ 13,675,448.62 $
1,180,858.34 404,362.30 489,413.97 761,644.16
1,395,232.58 225,826.01
1,918,847.61 1,395,765.38
18,528.16 39,327.34 77,429.93 27,162.73
120,909.52 10,663.89

1,672,395.31 9,780.75
49,707.91 52,008.64
1,266,608.36 18,311.25

$ 21,741,420.54 $ _.....;3;;.,0;;.;;6;.;;;.8..,;;;,8...;.:12:a.:;.2:;;;;2;;...
$ 1,910,345.27 $ _ _ _44;..;.;,3;.;;;.33;:.a.6.::;.:9;..


$

313,290.00

46,412.00

$ _ _3=5=9.,;.,7..;;;02==00~

$ 2,270,047.27 $ -237,559.00

44,333.69 193,349.00

-

-516.61

-860.79

FUND BALANCE JUNE 30

__ ...... $ 2,032,488.27 $ ,2_3...6.,,.3..;0;;5;;.;29

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30 1999 1

$ 13,553,794.96 $ 13,915,532.00

$ 2,313,296.43 $

453,040.29

103,294.04 _ _ _ _6_9___7._1

2,038,740.96 13,009,787.71
1,032,288.56

1,794,475.00 9,613,679.00
790,011.00

$ 2,416,590.47 $

453,110.00 $ 29,634,612.19 $ 26,113,697.00

$

454,462.05

$

$

454,462.05 $

$ 1,962,128.42 $

$ 15,347,843.93 $ 14,663,320.00

210,000.00 484,077.50
433.30
694,510.80 $

1,190,639.09 454,070.21 489,413.97 813,652.80
1,395,232.58 225,826.01
1,918,847.61 1,395,765.38
18,528.16 1,305,935.70
95,741.18 481,624.78
330,909.52 494,741.39
433.30
25,959,205.61 $

1,206,600.00 450,667.00 496,921.00 556,251.00
1,478,448.00 182,739.00
1,922,296.00 967,433.00 34,173.00
1,380,320.00 73,095.00
3,778,576.00
478,764.00 543,217.00
841.00
28,213,661.00

-241,400.80 $ 3,675,406.58 $ -2,099,964.00

$

-46,412.00

$

-46,412.00

$

313,290.00 $

234,957.00

46,412.00

2,200,609.00

-46,412.00

-2,200,609.00

$

313,290.00 $

-
234,957.00



$ 1,915,716.42 $

-241,400.80 $ 3,988,696.58 $ -1,865,007.00

1,279,552.00

242,125.00

1,477,467.00

3,342,474.00

-516.61 -860.79

$ 3,195,268.42 $ _ _ _ _12_4_.2_0 $ 5,464,786.18 $ 1,477,467.00

-5-

PICKENS 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, 2000

EXHIBIT "C"

GENERAL FUND ACTUAL (BUDGET

BUDGET

BASIS)

SPECIAL REVENUE FUND ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 12,735,642.00 $ 13,268,405.96

10,363,350.00 20,500.00

10,243,450.99 139,908.86

$ 23,119,492.00 $ 23,651,765.81


$ 192,496.00 $ 285,389.00
1,312,808.00 2,038,740.96

555,500.00

789,015.95

$ 2,060,804.00 $ 3,113,145.91

Current Instruction

$ 13,982,190.00 $ 13,675,448.62

$ 710,717.01 $ 1,672,395.31

Support Services Pupil Services Improvement of Instructional Services

1,377,755.00 437,603.00

1,180,858.34 404,362.30

Educational Media Services

515,025.00

489,413.97

General Administration

691,698.00

761,644.16

School Administration

1,428,341.00

1,395,232.58

Business Administration

150,895.00

225,826.01

Maintenance and Operation of Plant

2,543,999.00

1,918,847.61

Student Transportation Services

1,344,486.00

1,395,765.38

Other Support Services

16,000.00

18,528.16

Food Services Operation

75,000.00

39,327.34



Community Services Operations

77,429.93

Capital Outlay

126,500.00

27,162.73 131 573.41

Debt Service

40,931.00 13,889.00
28,606.00

9,780.75 49,707.91
52,008.64

13,164.00 1,319,800.00

1,266,608.36 18,311.25

Total Expenditures

$ 22,689,492.00 $ 21,741,420.54

$ 2,127,107.01 $ 3,068,812.22

Excess of Revenues over (under) Expenditures $ 430,000.00 $ 1,910,345.27

$ -66,303.01 $

OTHER FINANCING SOURCES Other Sources
Excess of Revenu-es and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1, 1999 Adjustments

359,702.00

$ 430,000.00 $ 2,270,047.27

230,089.98

-237 ,559.00

232,089.98


$ -66,303.01 $ 44,333.69

0.00

167,953.61

FUND BALANCE JUNE 30, 2000

$ 892,179.96 $ 2,032,488.27

$ -66,303.01 $ 212,287.30

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

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER.A.L PURPOSE FINANCIAL ST,t\TEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Pickens 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 of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11n to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although ''school activity accounts'' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confo1111 to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
,
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-





PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER.A.L PlJRPOSE FIN.A.NCI.A.L ST.A.TET\1ENTS

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-term principal, interest and paying agent fees.

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

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement

focus. All governmental funds are accounted for using a current financial resources measurement

focus. With this measurement focus, only current assets and current liabilities generally are

included on the balance sheet. Operating statements.of these funds present increases (i.e., revenues

and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current



assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Te11n Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nined 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

-8-

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCI.A..L STATEi\fENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

BUDGET

The Pickens County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

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:





-9-

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCI.AL STATEMENTS

JUNE 30, 2000



Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 193,349.00

Adjustments

Inventories - July 1, 1999

Food



Donated Commodities

Purchased Foods

Fund Balance July 1, 1999 (Budget Basis)

Excess of Revenues over (under) Expenditures

FUND BALANCE JUNE 30, 2000 (Budget Basis)

-15,051.25 -10,344.14
$ 167,953.61 44,333.69
$ 212,287.30

CASH AND CASH EQUIVALENTS

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

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

(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,

- 10-

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PlTRPOSE FIN.A.NCIAL ST.A.TEi\IEN"TS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 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 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 Pickens County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 30, 1999 (levy date). Taxes were due on January 31, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as.. revenue in fiscal year 2000. The Pickens County Tax

Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.
:
The tax millage rate levied for the 1999 tax year (calendar year) for the Pickens County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations
SALES TAXES

18.53 mills

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
$2,765,296.43 and was recorded in the Capital Projects and Debt Service Funds. The State will

ter111inate collection of this tax once an additional $3,795,592.52 has been collected or on June 30,
2002, whichever occurs first.

- 11 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER.i\L PlJRPOSE FINANCIAL STATEJ\1ENTS

JUNE 30, 2000

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). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is prooable 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-Tettn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Tetm Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
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.

- 12 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCI.A.l STATEI\1ENTS

JUNE 30, 2000

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 not 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. Certain reclassifications have been made to the comparative data to conforrn to the current year classifications.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS

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

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

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

value of such surety bond and the market value of securi_ties pledged shall be equal to not less than

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

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

securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,

waive the requirement for security in the case ofoperating funds placed in demand deposit checking

accounts.





Acceptable security for deposits consists of any one of or any combination of the following:



(1) Surety bond signed by a surety company duly qualified and authorized to transact business

within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United

States or 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 ofdevelopment authorities created by the laws ofthe State of Georgia, and

- 13 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER.A.L PlJRPOSE FINANCIAL STATEi\1EN'TS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS
At June 30, 2000, the bank balances were $2,995,507.12. The amounts ofthe total bank balances are
classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

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

Risk Category
1
2 3
Total

Bank Balance
$ 100,724.20

0.00 2,894,782.92
$ 2.995.507.12

CATEGORIZATION OF INVESTMENTS
At June 30, 2000, the carrying value of the Board's total investments was $2,748,399.85 which is
materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal

Services which are not required to be categorized since the Board did not own any specific

identifiable securities in the pool. The investment policy ofthe State 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 of the Primary

Liquidity Portfolio is as follows:



The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 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 SEC as an investment company but does operate Georgia Fund 1 in a manner

- 14 -


PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER.A.L PlJRPOSE FIN:'\NCIAL ST.A.TEl\1ENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 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 ofthe 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 1 and Fund 6 are directed toward short-te11n instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned
value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.
The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for theserisks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.
Due to the cost ofavailable coverage, the Board has elected to discontinue commercial insurance for natural disaster and errors and omissions risks. For the current year the Board is self-insured for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

- 15 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PlJRPOSE FIN.I\NCIAL ST.I\TEi\1ENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

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:


Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1999 2000

$

0.00 $

6,062.00 $

6,062.00 $_ _ _..;:O.:.O;:.=O

$

0.00 $

2,904.00 $

2,904.00 $_ _ _-"'O=.O=O

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

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

Position Covered
-
Superintendent All Other Employees

Amount
$ 25,000.00 $ 5,000.00

Note 5: GENERAL LONG.:TERM DEBT

CAPITAL LEASES The Pickens County Board of Education has entered into various lease agreements as lessee for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Purpose


Interest Rates

General Government - Series 1995

3.90% - 5.65%

Amount $9,120,000.00

- 16 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FIN,A.NCIAL STATE1\1ENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows:

Balance July 1, 1999
Retroactive Restatement of Prior Year Balances
Balance July 1, 1999 Restated
Additions Capital Leases
Deductions Debt Retired
Balance June 30, 2000

Capital Leases

General Obligation
Bonds

Total

$ 430,035.00 $ 9,330,000.00 $ 9,760,035.00
-

1,622.62

1,622.62

$ 431,657.62 $ 9,330,000.00 $ 9,761,657.62

313,290..00

313,290.00

120,909.52

210,000.00

330,909.52

$ 624.038.10 $ 9.120.000.00 $ 9.744.038.10

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

2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016 - 2020

Capital Leases

General Obligation
Bonds


Total Debt

$ 232,803.88 $ 725,257.50 $ 958,061.38

187,956.79

759,632.50

947,589.29

133,603.01

796~00.00

930,403.01

97,682.46

836,447.50

934,129.96

59,774.82

878,247.50

938,022.32



4,470,232.50 4,470,232.50

4,641,030.00 4,641,030.00

950,850.00

950,850.00

Total Principal and Interest $ 711,820.96 $14.058.497.50 $14.770.318.46

Deduct: Imputed Interest

87,782.86

Net Present Value of Future Minimum Lease Payments $ 624,038.10

- 17 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TI-IE GEJ\1ER.>\L PURPOSE FINANCIAL STATET\1ENTS

JUNE 30, 2000

Note 6: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $410,605.93 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.
Georgia Department of Education Paid to the Georgia Departtnent of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $351,407.93
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 $59,198.00
Note 7: 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 tc::rn1s. 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 detc::11ninable, but is not believed to be material to the general purpose financial statements.
Note 8: SUBSEQUENT EVENTS
On March 20, 2001, the voters ofPickens County voted in favor ofa Special Purpose Local Option Sales Tax Referendum for education purposes. The imposition ofthe tax by the voters, as stated on the Official Ballot Pickens County was as follows:
''Shall a special one percent sales and use tax be imposed in Pickens County (such tax is a continuation ofthe existing one percent sales and use tax and is not an additional sales and use tax) for a period of time not to exceed 20 calendar quarters for the raising of not more than $19,960,000 for the purpose of funding (i) the acquisition and installation ofnew technology and equipment at all educational facilities; (ii) the acquisition, construction and equipping of one new school and the purchase of land to be used as a site for said new school; (iii) the acquisition, construction and equipping ofclassroom additions, physical educational facilities and renovations and modifications to existing educational facilities system wide, and a system wide bus garage; (iv) a media center with classrooms at Jasper Primary School; and (v) the payment of principal and interest on the School District's Series 1995 Bonds maturing February 1, 2003, through and including August 1, 2007, totaling $4,229,626.25? If imposition ofthe tax is approved by the voters, such vote shall also constitute approval ofthe
- 18 -

PICKENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER.A..L PlJRPOSE FINANCIAL STATEJ\1ENTS

JUNE 30, 2000

Note 8: SUBSEQUENT EVENTS

issuance ofgeneral obligation debt ofPickens County School District in the principal amount of $5,000,000 to be first paid from the sales and use tax for the above capital outlay projects.''

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staff and certain other full-time employees earn up to one and onequarter days per month of annual leave. In the event of retirement, resignation or te11nination of employment, individuals are eligible for payment ofearned but unused annual leave at their current rate of pay. 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 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 ofthe Board who are covered by.TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 1,538,567.59 $ 1,540,127.00 $ 1,344,544.39

- 19 -

PICKENS 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

$

290,948.10

3,114.74 $

17,531.06

14,534.64 9,483.35

Total Assets

$

318,080.83 $.....,.......,...,1=7=,5=31=.0=6=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Due to Other Funds



Total Liabilities

FUND EQUITY

Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated

Total Fund Equity

Total Liabilities and Fund Equity

$

17,531.06

$

7,792.42

73,983.12

$

81,775.54 $ _ _...;1..;..7,=5;:;..31;.:.;.0:..:6c..



$

- 14,534.64

9,483.35



212,2a1.30 $ _______o__.o;;.;;:o__

$

236,305.29 $ _ _ ____;0:.a;.o=-=oc..

$

318,080.83 $

17,531.06

See notes to the general purpose financial statements.
-20-

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

290,948.10 $

246,492.00

$

236,615.16

257,260.96

376,074.00

14,534.64 9,483.35

15,051.00 10,344.00

$

236,615.16

$

-

-

-

572
-

,

227. ----

05---

$

--

647,961.00
- ------------

$

144,490.46 $

162,021.52

28,338.48

36,130.90 $

24,060.00

63,786.22

137,769.34

132,129.00

298,423.00

$

236,615.16 $

335,921.76 $ _ _4.:.:54:..:.i.::,6~12::.:.::,;00=-

$

$ -------'o""'".o"""'o~

$

0.00 $

14,534.64 $ 9,483.35

15,051.00 10,344.00

212,287.30

167,954.00

236,305.29 $ _ _1.:.;:9;,.a:3.1.a:3:.:.49=-=.=.;oo~

$

236,615.16 $

512,221.05 $ _ _6...,4=7.,.,9..6...1....0..0_

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

87,646.00 $

146,339.00

596,964.37

626,331.68

162,684.27

$ 1,310,942.05 $ _._;3;;..;;0...;;.9..,;;.,0=23=.2=7-

$

309,023.27

$ 1,266,608.36

$ 1,266,608.36 $ _ ___,;3;;..;;0,.;;;..9.,_,0=23=.2=7~

$

44,333.69 $

0.00

193,349.00

0.00

-516.61 -860.79

$

236,305.29 $

- ------

0.00

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

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

51,404.00 $

285,389.00 $

272,485.00

1,441,776.59

2,038,740.96

1,792,943.00

789,015.95 . 552,255.00

$ 1,493,180.59 $ 3,113,145.91 $ 2,617,683.00

$ 1,363,372.04 $ 1,672,395.31 $ 1,208,230.00

9,780.75 49,707.91 52,008.64
18,311.25

9,780.75 49,707.91 52,008.64
1,266,608.36 18,311.25

46,354.00 14,794.00 46,540.00
697.00 48.00
14,130.00 1,307,832.00
17,266.00 1,000.06

$ 1,493,180.59 $ 3,068,812.22 $ 2,656,891.00

$

0.00 $

44,333.69 $ -- -39,208.00

0.00

193,349.00

232,557.00

-516.61 -860.79

$

0.00 $

236,305.29 $ _ _1_9..3.,.,3...,49..,._oo_


-23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

Total Assets

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

0.00 $

144.37

2,748,399.85

446,724.20

$

0.00 $

- - ---- ----

--

3,195,268.42

FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 3,195,268.42

$ _ _ _ _.:a,:0.~00=-

0.00

$ -- - - - --

0.00
---

$

3,195,268.42



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

EXHIBIT "G"

LOTTERY PROJECT

TOTALS

JUNE 3012000

JUNE 3011999

$

0.00 $

144.37 $

118,062.00

2,748,399.85

1,010,715.00

4461724.20

1501775.00

$

0.00 $ 3,195,268.42 $ 1,279,552.00

$
$ _ _ _ _o;;;..;..o=o'-

$
3,195,268.42
0.00

616.00 1,232,524.00
46,412.00
0.00

$

0.00 $ 3,195,268.42 $ 1,279,552.00



-25-


PICKENS 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
Taxes

Other Funds

Total Revenues

EXPENDITURES



Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Operating Transfers In



Operating Transfers Out

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

FUND BALANCE JULY 1

FUND BALANCE JUNE 30

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$
$ _ _ _....;.7-=-69=.=25=-

$

769.25 $

2,313,296.43 102,524.79
2,415,821.22

$

0.00 $

24,494.80

429,967.25

$

0.00 $ _ _4.:.,::54:.:.,.:,4.::;62:.:-=-05::.,.

$

769.25 $ 1,961,359.17

$
$ ___-....;.1..,;;,3=85==25=-

1,385.25

$

-1,385.25 $ _ ___,;.1J..=3-=-85;;.;:.;25=-

$

-616.00 $ 1,962,744.42

616.00

$

0.00 $ -

-~3-,-1-,9-5~-,268.42

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

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$
$ _ _ _--'o=.o=-=o:...

$

0.00 $

$
2,313,296.43 103,294.04
2,416,590.47 $

653,595.00 1,804,501.00
148,258.00
2,606,354.00

$

0.00 $

24,494.80 $

844,897.00

429,967.25

1,753,993.00

531,545.00

$

0.00 $

454,462.05 $ 3,130,435.00 - -

$

0.00 $ 1,962,128.42 $ -524,081.00

$
$ --...:.:::.-46,z.:.4.:.:12:.:.;0. :::.::0:...

1,385.25 $ 2,200,609.00

-47,797.25

-1,960,513.00

$ C -46,412.00 $

-46,412.00 $ _ _;2:.;4:.::;0.1.::,0~96:.:.::.:00:...




$

-46,412.00 $ 1,915,716.42 $

-283,985.00

46,412.00

1,279,552.00

1,563,537.00

$ 0.00 $ - ----- ---- ----

3,195,268.42 $

1,279,552.00



-27-

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable Due from Other Funds
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

724.20 $

724.20 $

1,054.00

241,071.00

386.00

$

0.00 $

724.20 $

724.20 $ ...,.....,;2.4.:,;;;2-=,5~1,:.1-,;;,00==

LIABILITIES AND FUND EQUITY
LIABILITIES
Due to Other Funds
FUND EQUITY
Fund Balances Reserved
For Debt Service
Unreserved Undesignated
Total Fund Equity

$

$ _ _ _-=-'0."'-00=-

$

0.00 $

Total Liabilities and Fund Equity

$

0.00 $

$ _ ____,3::.::;8.:.:6.=..:oo._

724.20 $ 0.00
724.20 $
724.20 $

724.20 $

242,125.00

0.00

0.00

124.20 $ ---=-24.:..:2""1.c::2:::.:5.""'oo._

724.20 $ ___24..;;2.,5;;..;1_1._,;00=

See notes to the general purpose financial statements.


-28-

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

EXHIBIT "J"

REVENUES

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

Taxes Other Funds
Total Revenues
EXPENDITURES

$ 1,040.29 $ 69.71
$ 1,110.00 $

452,000.00 $ 452,000.00 $

453,040.29 $ 69.71
453,110.00 $

647,400.00 430.00
647,830.00

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

$

0.00 $

210,000.00 $ 210,000.00 $ 160,000.00

484,077.50

484,077.50

490,638.00

433.30

433.30

841.00

$

0.00 $ 694,510.80 $ 694,510.80 $ 651,479.00

$ 1,110.00 $ -242,510.80 $ -241,400.80 $ _ _3=,6"-4=9.=oo;:;....

Operating Transfers In Operating Transfers Out

$ $ -2,596.00

Total Other Financing Sources (Uses)

$ -2,596.00 $

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -1,486.00 $

FUND BALANCE JULY 1

1,486.00

2,596.00 $

2,596.00 -2,596.00

21596.oo $ _ _ _ _o___.-=-oo._

-239,914.80 $ -241,400.80 $

240,639.00

242,125.00

-3,649.00 245,774.00

FUND BALANCE JUNE 30

$

o.oo $

724.20 $

724.20 $ 242,125.00


See notes to the general purpose financial statements.

-29-

PICKENS 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

Total Child Nutrition Cluster

NIA

$ 139,483.15

(2)

NIA

391,994.32 $ 1,201,121.46 (3)

$ 531,477.47 $ 1,201,121.46

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture

10.550

N/A

65,486.90

65,486.90

$ 596,964.37 $ 1,266,608.36

Education,U.S.Departmentof 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

* 84.027 * 84.173 * 84.173

Total Special Education Cluster



N/A $ 272,052.00 $

NIA

15,198.00

NIA

31,750.00

$ 319,000.00 $

272,052.00 15,198.00 31,750.00
319,000.00



Other Programs

Pass-Through From Georgia Department of Education

- Elementary and Secondary Education Act Title I

-

Grants to Local Educational Agencies

84.010

NIA

394,677.28


394,677.28

Title II Eisenhower Professional Development

84.281

NIA

16,000.00

16,000.00

Title VI Innovative Education Program Strategies Class Size Reduction

84.298

NIA

84.340

NIA

18,295.00 60,651.00

18,295.00 60,651.00

Goals 2000

State and Local Education Systemic Improvement

Grants Safe and Drug-Free Schools

84.276

NIA

84.186

NIA

92,205.00 13,844.00

92,205.00 13,844.00

Vocational Education - Basic Grants to States

High School Program



Basic Grant

84.048

NIA

Pass-Through From Board of Regents of the University

26,796.00

26,796.00

System of Georgia

Title II Teacher Quality Enhancement Grant for State
and Partnerships

84.336

NIA


11,500.00

11,500.00

Total U. S. Department of Education

$ 952,968.28 $

952,968.28

- -........-'-'~c=..

- 30-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Pass-Through From Ninth District Opportunity, Incorporated Head Start Program Pass-Through From Office of the Governor Abstinence Education Block Grant
Total U. S. Department of Health and Human Services


CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.600 93.235

NIA

$ 468,275.90 $

NIA

20,532.41

468,275.90 20,532.41

$ 488,808.31 $ _ _4.;..:;8..;;.:8,"'-80;;..;:8.;..c.3-'-1

Total Federal Financial Assistance
NIA = Not Available

$ 2,038,740.96 $ 2,708,384.95

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 induded in the 2000 National School Lunch Program.
(3) Expenditures for this program indude 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 indudes the Federal grant activity of the Pickens County Board of Education and is presented on the modified acaual 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.

31 -

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES SPECIAL

GENERAL

REVENUE

FUND

FUND

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English-Speaking 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 Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teachers Preschool Handicapped Program Remedial Summer School Year 2000 Project Funding Lottery Programs Applied Technology Labs Assistive Technology Computers in the Classroom Distant Learning
Georgia Children's Trust Fund Commission Second Step Grant Program
Office of Treasury and Fiscal Services Public School Employees Retirement

$ 8,136,179.00
2,104,844.00 69,015.00 354,885.00 96,408.00
2,189,170.00
462,718.00 137,808.00
18,964.00 274,076.00 394,705.00
69,630.00 244,108.00
39,758.00 28,842.00 -2,409,438.00 477,792.00
$
19,502.00
2,000.00 12,833.15 351,407.93
5,000.00 6,800.00 4,212.00 37,046.00 2,928.01 27,442.50
13,072.37
59,198.00

$
87,646.00
50,000.00 8,815.00
81,104.00 6,420.00

CONTRACTS Education, Georgia Department of Implementation and operation of after school programs for students in grades 4 - 8
Development and implementation of the Reading
First Program

37,500.00

51,404.00

TOTAL
8,136,179.00 2,104,844.00
69,015.00 354,885.00
96,408.00 2,189,170.00
462,718.00 137,808.00
18,964.00 274,076.00 394,705.00
69,630.00 244,108.00
39,758.00 28,842.00 -2,409,438.00 477,792.00 87,646.00 19,502.00
2,000.00 12,833.15 351,407.93
5,000.00 6,800.00 4,212.00 37,046.00 2,928.01 27,442.50
50,000.00 8,815.00
81,104.00 6,420.00
13,072.37
59,198.00
37,500.00
51,404.00

$ 13,268,405.96 $

285,389.00 $ 13,553,794.96

See notes to the general purpose financial statements.

- 32-

PICKENS 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 retire bonded indebtedness incurred by
the issuance of $9,690,000.00 Pickens
County School District General Obligation
School Bonds Series 1995 as authorized
by the voters of Pickens County on
September 19, 1995 from February 1, 1998 through August 1, 2002

$ 3,423,225.00 $ 3,423,225.00 $ 694,077.50 $ 1,004,483.00

To pay the cost of acquiring, construction and equipping a new elementary for the school district and to pay for the cost of acquiring real estate therefore

6,000,000.00 5,166,631.53

15,106.58

To reroof the primary wing and lunchroom at Tate Elementary School

85,000.00

41,650.00

41,560.00

To pay the cost of replacing four (4) heating and air conditioning systems at Jasper Primary School

100,000.00

89,718.97

11,882.97

77,836.00

To pay the cost of replacing window heating and air conditioning units at Jasper Primary School

60,000.00

To pay the cost of replacing the heating and air conditioning units at Jasper Upper Elementary School

50,000.00

To pay the cost of fencing the playground and for playground equipment at Jasper Upper Elementary School

30,000.00

30,815.00

30,815.00

To pay the cost of construction and equipping an agriculture barn at the new Pickens High School

50,000.00

140,063.00

140,063.00

To pay the cost of completing the construction of the football stadium, field house, baseball diamond, track, six (6) tennis courts, athletic and band practice fields at the new Pickens High School

1,250,000.00 2,156,121.50

427,472.50 1,728,649.00

$ 11,048,225.00 $ 11,048,225.00 $ 1,148,539.55 $ 3,023,406.00

(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 Pickens County approved the imposition of a 1o/o 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.

-33-

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

--------- 10,909,031.00 $

344,294.00

$

11,965,564.09

683,469.67 $ _ _.._;;_;59;..c7-'-C,3C-7..;..1._;.42_

$

12,649,033.76

-124,527 .48 $ _ _1_2_,_5_2_4_,5__0_6._28_

$

0.00 $ ===============0-=00=

See notes to the general purpose financial statements. - 35 -

PICKENS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAr,1s YEAR ENDED JUNE 30, 2000

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

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 I*) Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

783,212.00

$

704,890.80 $

0.00

2,557,387.00

2,301,648.30

$ 3,340,599.00 90 $ 3,006,539.10 $

1,185,799.00 90

1,067,219.10

0.00 244,108.00

1,647,768.00 90

1,482,991.20

1,063,116.00 90

956,804.40

491,145.00 90

442,030.50

407,752.00 90

366,976.80

$ 8,136,179.00

$ 7,322,561.10 $ ----=2;..:.44..:..:,.:.:10:,;:;8.;.;;.0~0

$ 1,673,588.00

$ 1,506,229.20 $

0.00

$ 1,673,588.00
- 431,256.00

90 $
90

$ 2,104,844.00

$

$

69,015.00 90 $

$ 10,310,038.00

$

1,506,229.20 $

0.00

388,130.40

1,894,359.60 $ _ _ ___,.;;O.;.;;.O.a;..O

s2.113.50 $ _ _ _---=o.;.;;.o.a;..o

9,279,034.20 $ _ __:2;..:.44..:..:,.:.:10:,;:;8:.::,.00;;_

$

286,280.00 90 $

257,652.00 $

0.00

68,605.00 100

68,605.00

$

354,885.00

$

326,257.00 $ _ _ ___,.;;O.;.;;.O~O

Total Fourteen Weighted and Media Center Programs $ 10,664,923.00

$ 9,605,291.20 $ ____2_44_._1o.s..o..o...

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

$

31,284.00

65,124.00

$

31,284.00 $

65,124.00

-

$

96,408.00 100 $

96,408.00 $

- 36 -

0.00 0.00
0.00

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

704,890.80 $ 1,060,920.50 $

20,157.27 $ 1,081,077.77

2,301,648.30

2,487,563.73

115,677.46

2,603,241.19

$ 3,006,539.10 $

3,548,484.23 $

135,834.73 $ 3,684,318.96 $

0.00

1,311,327.10

1,442,026.58

95,207.33

1,537,233.91

0.00

1,482,991.20

1,572, 139.32

119,707.75

1,691,847.07

0.00

956,804.40

1,446,141.27

124,699.34

1,570,840.61

0.00

442,030.50

565,765.42

23,043.72

588,809.14

0.00

366,976.80

683,073.98

56,520.66

739,594.64

0.00

$ 7,566,669.10 $ 9,257,630.80 $

555,013.53 $ 9,812,644.33

$ 1,506,229.20 $

99,076.83 $ 531,382.30 1,005,295.44 135,311.64
29,785.38

3,577.40 $ 4,723.58 25,345.70 2,091.55 1,744.51

102,654.23 536,105.88 1,030,641.14 137,403.19
31,529.89

$ 1,506,229.20 $ 388,130.40

1,800,851.59 $ 430,292.92

37,482.74 $ 4,231.11

1,838,334.33

434,524.03



$ 1,894,359.60 $ 2,231,144.51 $

41,713.85 $ 2,272,858.36

$

62,113.50 $

83,474.55 $

$ 9,523,142.20 $ 11,572,249.86 $

644.04 $ _ _.8.;4;.,.1;.1a.8;...5._9~
-
597,371.42 $ 12,169,621.28


0.00 0.00
0.00

$

257,652.00 $

393,314.23

$

393,314.23

0.00

68,605.00 - - - - - - $ _ _ _86_.,0_9_8_.2_5

86,098.25

0.00

$

326,257.00 $

393,314.23 $

86,098.25 $ _ _4""-79_,4-'-1_2_.48.a..

$ 9,849,399.20 $ 11,965,564.09 $

683,469.67 $ 12,649,033.76 $

0.00

-

---- -----

------ - - - -

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

$

31,284.00

65,124.00

$ ===96==,4=0=8=.o=o

$

80,052.12 $

80,052.12

21,306.86

21,306.86



$

101,358.98 $

101,358.98 $ - - - - --

- ---- ----- 0.00

- 37 -

SECTION IT COMPLIANCE AND INTERNAL CON1ROL REPORTS



w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

oY. . Q

,__,.,,...

:,.,,,

". .,. ,1....

......
~

.,,.., '

- ': .~~

'',._,.,;.,'

.' r_..; ,\,,,I'

:::__ ,>,;
""'4

"" .........-..--

I 7 7 t,

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

May 11, 2001

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

year ended June 30, 2000, and have issued our report thereon dated May 11, 2001. This report was

qualified for various departures from generally accepted accounting principles, as identified in the

auditor's report on the general purpose financial statements. We conducted our audit in accordance

with auditing standards generally accepted in the United States of America and the standards

applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States~

-

Compliance

As part of obtaining reasonable assurance about whether Pickens County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the 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 ofout tests disclosed no instances ofnoncompliance
that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting

In planning and perfo11ning our audit, we considered Pickens County Board ofEducation's internal control over financial reporting in order to dete11ni11e our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Pickens 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-7121-00-01.
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 no11nal course of perfo11ning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness.
This report is intended solely for the info1111ation and use ofmanagement, members ofthe Pickens 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.

RWH:gp
2000YB-40A

Respectfully submitted,

~-
ssell W. Hinton State Auditor

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 11, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

and



Superintendent and Members of the

Pickens 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 ofPickens 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. Pickens 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 ofPickens County Board ofEducation's management. Our responsibility is to express an opinion on Pickens 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 Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1111 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requiretnents 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 Pickens County Board of Education's compliance with those requirements and perfo11ning 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 dete1mination on Pickens County Board of Education's compliance with those requirements.

2000SA-10A

In our opinion, the Pickens County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year
ended June 30, 2000.
Internal Control Over Compliance
The management of Pickens 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 perfu1111ing our audit, we
considered Pickens 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 dete1111ine 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 e1nployees in the no11nal course ofperforrning 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 infotrnation and use ofmanagement, members ofthe Pickens 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,

"1 cc m l.cJ
ssell W. Hinton State Auditor
RWH:gp 2000SA-10A


SECTION ID AUVfIEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


PICKENS 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-7121-98-01 Finding No. 99-1

Further Action Not Warranted Unresolved - No Corrective Action Implemented


CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding No. 99-1

At this time, the Board ofEducation has made no decision regarding implementing a fixed asset program.


--



SECTIONN FINDINGS AND QUESTIONED COSTS





PICKENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS A1\TD QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Pickens County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Pickens 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 Pickens County Board of Education disclosed no instances of noncompliance that were deemed to be material ~o the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs
The audit report for the Pickens 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 Pickens County Board ofEducation's report on compliance with

requirements applicable to major programs was unqualified.






6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133



The Pickens County Board ofEducation's audit did not disclose audit .findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs

Federal awards audited as major programs are as follows:

10.553

.
Food and Nutrition Program - Food Services - School Breakfast Program

10.555 Food and Nutrition Program - Food Services - National School Lunch Program

84.027 Individuals with Disabilities Ed,ucation Act - Part B - Special Education -

Flow Through

84.173 Individuals with Disabilities Education Act - Part B - Special Education -

Capacity Building Improvement

84.173 Individuals with Disabilities Education Act - Part B - Special Education -

Preschool

8. Type ''A'' Program Dollar Threshold

.

The dollar threshold for type ''A'' programs was $300,000.00.

- 1-

PICKENS COUNTY BOARD OF EDUCATION SCHEDULE OF Fll\TDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee
The Pickens County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education. 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-7121-00-01 The Pickens County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo1n1al accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-