Polk School District Board of Education, Cedartown , Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

28,511.68 $

15,101.04

$ 3,379,885.50 $ 2,865,984.28

1,654,846.62

19,828,169.74

14,736,660.27

582,923.05

1,786,442.73

1,261,364.98

$

2,266,281.35

14,063,718.65

50,648.06 32,959.29 2,266,281.35
14,063,718.65

68,201.91 28,084.32
1,075,469.72
,
11,084,530.28

$ 2,266,281.35 $

15101.04 $

16,330,000.00 $ 41,408,105.32 $ 31,120,295.76

$

139,723.87 $

54,542.92

358,242.50

9,123.86

. .

. .

1,214,045.80 657,137.40

443,099.00 57,624.00

$

16,330,000.00

16,330,000.00

12,160,000.00

$

16,330,000.00 $ 18,699,149.57 $ 12,724,389.78

$ 2,266,281.35

0.00 $ $ 2,266,281.35 $

'
15 101.04
15101.04

$

6,038.20



2,266,281.35 $ 1,075,469.72

50,648.06 32,959.29 16,457,245.99 422,240.45

68,201.91 28,084.32 13,377,509.37 502,066.00

3,473,542.41

3,344,574.66

$ 22,708,955.75 $ 18,395,905.98

$ 2,266,281.35 $

15101.04 $

16,330,000.00 $ 41,408,105.32 $ 31,120,295.76

-3-

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, , , , ..

PObK SCHOOL DISTRICT 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. 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 Maiiiienance 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 {USESl

Acaued Interest on Bonds Sold
Proceeds from General Obligation Bonds Par Value Premium on Bonds Sold
s
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 JUbY 1

. '

Food Inventory C Net Change in Period

Donated Commodities

Purchased Food

GENERAL FUND.

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 28.118.036.29 $
7,914,300.32 430 001.78
$ 36,462,338,39 $

802,707.82 $ 3,600,422.24

4,302,470.62

610 755,63

994 777.26

5,013,885.69 $ _ _.,5:,:,2es9c:..7c,,2;c:.47"'.8"'8'-

$ 25,338,751.19 $

1,520,398.23

683,624.27

. 1,030,813.99 ..

405,401.14

. 2,403,262.16

.

402,475.79

2,439,635.64

1,407,257.39

69,180.41

2,300.28

78,025.70

2,323,419.55

197,510.05 73,413.72
9,084.38 146,520.58
6,705.33 $ .
13,316.48 35,517.75

. 175,250.00

14,256.60 2,187,172.08

8,867,004.35

$ 35,781,126.19 $

$

681,212.20 $

5,006,916.52 $ 6 969.17 $

9,042,254.35 -3,745,006,47

$ 7,010,000.00 99,931.50
-918 402.09

$

681,212.20 $

2,189,119.69

6,969.17 $ 494,611.78

2,446,522.94 14,621,816.46

-17,553.85 . ~4 874.97

FUND BALANCE JUNE 30

'

' 1

$ 2,870,331.89 $

488 902.07' $

The notes to the general purpose financial statements are an integral part of this statement. 0 ,.. . - 4 -

17,068,339.40

EXHIBIT "B"

TYPES
DEBT SERVICE
FUND

TOTAL

FIDUCIARY .FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 33,223,214.73

3,600,422.24

$ 3,541,326.27

11,455,626.59

47605.11

2,083,139.78 $

$ 3,588,931.38 $ 50,362,403.34 $

$
6 096.17 6 096.17 $

33,223,214.73 $ 3,600,422.24 11,455,626.59 2,089,235.95
50,368,499.51 $

27,691,709.41 3,245,943.71
10,047,936.50 2,137,063.42
43,122,653.04


$ 27,662,170.74

$ 27,662,170.74 $ 26,060,581.79

1,717,908.28 $ 757,037.99
1,039,898.37 551,921.72
2,409,967.49 577,725.79
2,452,952.12 1,442,775.14
69,180.41 16,556.88 2,187,172.08 78,025.70 8,867,004.35

5,883.46

1,723,791.74 757,037.99
1,039,898.37 551,921.72
2,409,967.49 577,725.79
2,452,952.12 1,442,775.14
69,180.41 16,556.88 2,187,172.08 78,025.70 8,867,004.35

1,657,506.80 787,418.44
1,177,899.21 492,596.15
2,359,525.21 381,654.54
2,471,801.65 1,319,041.33
68,433.24 17,797.92 2,106,510.92 63,464.69 1,820,074.63

$ 2,840,000.00 492,442.50 3 175.00

2,840,000.00 492,442.50 3 175.00

2,840,000.00 492,442.50 3 175.00

2,720,000.00 676,896.05 4 750.99

$ 3,335,617.50 $ 53,165,914.56 $

5 883.46 $ 53,171,798.02 $ 44,185,953.56

$

253,313.88 $ -2,803,511.22 $

212.71 $ -2,803,298.51 $ -1,063,300.52

$

19,095.66 $

19,095.66

918,402.09

7,010,000.00 99,931.50
918,402.09 -918,402.09

$

937 497.75 $ 7,129,027.16

$ 1,190,811.63 $ 4,325,515.94 $

1,075,469.72

18,381,017.65

-17,553.85 4 874.97

$ 2,266,281.35 $ 22,693,854.71 $

$

19,095.66

7,010,000.00 99,931.50
918,402.09 -918,402.09

$ 7,129,027.16

212.71 $ 14,888.33

4,325,728.65 $ 18,395,905.98

-1,063,300.52 19,470,827.65

-17,553.85 4 874.97

-19,080.44 7 459.29

15101.04 $ 22,708,955.75 $ 18,395,905.98
.5.

POLK SCHOOL DISTRICT l!OARD OF EDUCATION COMl!INED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET ANO ACTUAL (NON-GAAP BASIS) GENERAL ANO SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 27,456,853.00 $ 28, 118,036.29

6,763,114.00 199,395.00

7,914,300.32 430 001.78

Total Revenues EXPENDITURES

$ 34,419,362.00 $ 36,462,338.39

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

$ 25,412,859.00 $ 25,338,751.19

1,535,576.00 689,418.00
1,036,436.00 408,972.00
2,369,567.00 421,408.00
2,675,957.00 1,417,026.00
69,291.00 7,000.00

1,520,398.23 683,624.27
1,030,813:99 405,401.14
2,403,262.16 402,475.79
2,439,635.64 1,407,257.39
69,180.41 2,300.28

78 025.70

Total Expenditures

$ 36,043,510.00 $ 35,781,126.19

Excess of Revenues over (under) Expenditures $ -1,624,148.00 $ 681,212.20

FUND BALANCE JULY 1. 1999

1,903,613.23

2,189,119.69

Food Inventory Net Change in Period Donated commodities Purchased Food

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 754,289.21 $ 802,707.82

3,731,789.00

3,600,422.24

597,500.00

610 755.63

$ 5,083,578.21 $ 5,013,885.69

$ 2,422,535.21 $ 2,323,419.55

202,949.00 54,673.00 36,505.00
141,760.20 13,775.00

197,510.05 73,413.72 9,084.38
146,520.58 6,705.33

24,431.00 39,505.00

13,316.48 35,517.75

28,639.80 2,148,936.00

14,256.60 2,187,172.08

$ 5,113,709.21 $ 5,006,916.52

$

30,131.00 $

6,969.17

491,013.39

494,611.78

-17,553.85 4 874.97

FUND BALANCE JUNE 30, 2000

$ 279,465.23 $ 2,870,331.89

$ 460 882.39 $ 488 902.07

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

' . ,, .

-
POLK SCHOOL DISTRICT BOARD OFEDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANGIAL STATEMENTS

. JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING.ENTITY

The Polk School District Board of Education (Board) was established under the Jaws of the State of

.

Georgia

and

operates under

'

-

the

guidance. of, a

'

.

.

sc
.

h.

o

o

l

board

elected

by

the

voters

and

a

Superintendent appointed by the Board. The Board is organized as a separate legal entity and has

the power to levy taxes and issue bonds'. Its budget is not subject to approval by any other entity.

- Accordingly;the Board is a primary government and consists of all the organizations that compose

its legal entity. __ _

,_ _ -

- , ,


FUND ACCOUNTING

'

-

The Board uses funds 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 resgurces.

the

funds

bec.ause , .

they
-'

do -not ~ .- .

'dir'e. ctly

affect
.

e-x-_p..end.- a.b-le.

a. v-a ila. bl.e

financial

.' ' . ,. '

' '



as ' General Fixed Assets are recorded expenditures in the various funds at the time of purchase. A

General Fixed Assets Account Group is not presently maintained by the Board. ,Tg_ conform to

a -

-ge.nera., lly

accepted

-a

c

cou
'

n

t

i

n

g

prin.ciples,

General Fixed Assets Account Gro.u-p should be

maintained for reporting the cost of assets acquired by governmental fund types. ,

f_

. -.--.

. ;

',

Although "scho_ol 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 fmancial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance. with generally accepted accountjng principles applicable to governmental units, unless otherwise disclosed in these notes. Furids 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.

'
-8-

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...

. POLK SCHOOL DISTRICT BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2000

EXHIBIT "D"

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.



FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity. This fund includes:

EXPENDABLE TRUST FUND Student Special Needs Fund - the fund used to account for contributions and expenditures of private funds which are designated to be used for the purpose of clothing and medical needs for disadvantaged students at the superintendent"s discretion.

ACCOUNT GROUP

I



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 resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

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

.
Governmental and expendable trust funds are accounted for using the modified accrual basis of

accounting under which:



-9-

POLK'SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

. NOTES TO THE GENERAL:PURPOSE FINANCIAL STATEMENTS

l JUNE 30,:2000

. Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. ' -'

!,



'

I

'

, Reventies are recognized when:susceptible to accrual (i.e.;,whentliey become both.measurable and

, , available). "Measurable" means the amount of the.transaction can be determined and "available"

,means collectible within the current period or soon enough thereafter to be used to pay liabilities of

the current period..Those revenues considered susceptible.to accrual are property.taxes, local option

sales taxes, intergovernmental grants and investment income.

. \

.-

..

.'..:, .~r,, _I, J("I'

,~_,,'.),',, _..

';

~~.
, ... : . . ' .

.-1 ,-,


Expenditures are generally recognized when the related fund liability is incurred.: ,

: 'A departure from the above definitions is.the accouriting treatment afforded the-final two payments

on General Fund teachers'. and bus drivers' contracts, a.nd th. e resources available. from the. G. eorgia Department of Education for the State's share of these contracts. During fiscal year 2000, a

.substantial number c:>f personnel of the Board were employed for' a one hundred :and ninety day

period beginning in late August 1999 and ending in early June 2000. Personn1<l 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 notbeen 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 priciples require that

revenues be recorded when available and measurable and that expenditures be recorded when

incurred, rather than when funds are received or disbursed.

:-. - :.

. . ' '

. ... ' ' :


J .. '

,. .The Polle School District Board .of Education's budget is a complete'financial plan for the Board's

fiscal .year and is based upon estimates of expenditures together with probable funding sources.

There is no statutory;prohibition regarding overexpenditute 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
. '' ' ' .
The budget

a basis other than generally accepted accounting principles.

.

' '

.



k

'

0

'

. . . ir:i ' .

'

0

- \ c , .' 1

.,,

.:

-' , , . ' !

process begins wh' en1the Board's administration prepares a tentative

I

. ..



'

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.

- - ---

--------. ---- ------- -- - - - - - - - - - - - -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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:
(!) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, 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 information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables

- 11 -

. . 1

.l . .' .
'



' '' POLK SCHOOL DISTRICT BOARD.OF EDUC:ATION . '

EXHIBIT "D"

. NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

' 'JUNE 30, 2000

. -

~

-

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

'' '' ' ' '

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 -

.' .. '

- ..

-.
"

'

.

'

.

. ' l . - ' .


- . ' ' . -
.

,
.'.... ,..
. '

The Polk County Board ofCommissioners fix eel the property tax levy for the 1999 tax year{calendar

year) on September 7, 1999 (levy date). Taxes were due on December 1, 1999. The_lien date for

property taxes was January I, 1999. Taxes collected within the current fiscal year or within 60 days

after year-end are reported as revenue in fiscal

year 2000.

The

Po. lk

Co'unty

Tax
-' .

Commissioner

.

.

'

bills

and_collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee

. ~ for tax collection and reiriitsthe balance of taxes"collected tci the Board. '

'

. .. -~ .1.

.

. '

..
.

'

- The tax millage rate levied for the 1999 'tax year (calendar year) for the Polk School District Board

: of Education was as follows (a mill equals $1 per thousand dollars 'of assessed value): -

. .

.


.. .

. .

-
'

.

. School Operations

I

' .' ' .

.

..

'

14.70.27 mills
' J

SALES TAXES' . :: . ' . -

. '
"

Special Purpose LocalOptioriSales'Tax is to be used for capital outlay for educational purposes and

debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to

$3,541,326.27 and was recorded in the Debt Service Fund. The State'will terminate collection of

. this tax once
occu' rs .first.

an .

additional $10,058,226.71 --) - ' '--~

has been '

collected -

or

on .

.December

31,

2002. ,

whichever
'

1 -.

- -

-


On March 7, 2000, a new Special Purpose Local Option Sales Tax (SPLOST) referendum was

authorized by the voters of Polk County, Georgia. This tax will be imposed to raise no(more than

$7,940,475.00 and will effect upon the termination ofthe above SPLOST for a period not to exceed

three years.

-. ~

-:

.

.

INVENTORIES

... . ..
'




'

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are rep'orted on the

Combined Balance Sheet at their Federally assigned valu~. 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 cif net current assets.

' '



L ,

"f

.



. ~

,



' 0-.J,

'' I.

., J

,

'

. '

-, .

,.

;
' C J2 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000


EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

COMPENSATED ABSENCES

Compensated absences represent obligations of the Board relating to employees' rights to receive

compensation for future absences based upon service already rendered. This obligation relates only

to vesting accumulating leave in which payment is probable and can be reasonably estimated. No

liability has been recorded in the individual funds for the current portion of this obligation as this

amount is deemed immaterial to the general purpose financial statements.



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 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-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has_the following types ofinterfund 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 inte.rfund transactio. ns other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. lnterfund 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

- 13 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

. A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

ANDEXPENDABLETRUSTFUND

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

.
ADDmONAL 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 REVENlJES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
2
4
7 8
20 22
24
26
28
30 31 33
34

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POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

,. ' JUNE 30; 2000

Note 2: DEPOSITS AND INVESTMENTS

'

been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than -110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

. 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 ofoperating funds placed in demand deposit checking accounts .





,

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

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.' .

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

within ihe 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 authoritycreated by the laws of the State ofGeorgia;.providing that

the

statute
,
.

that

created

the

authority


authorized. th.e

use

of

the

bonds

for

this

purpose,

. (6) Industrial revenue bonds and bonds of development authorities created by the laws of the

State of Georgia, and

. .,

'





(7) -Bonds; bills,. notes, certificates of. indebtedness, or other obligations of a subsidiary

corporation of the United States government, which are fully guaranteed by the United

States government both as to principal and interest or debt obligations issued by the Federal

Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the

,, . Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage



.. Association, and the Federal National Mortgage Association.

:;_ ,

. ,

,

CATEGORIZAT' ION

OF

'
DEPOSITS





,.
. ,

) ' ...

,

: .

. . ,

At June 30, 2000, the bank balances were $4,843,749.99. 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 - Cashcollateralized with securities held by the pledging financial institution's

,,. ,(1 . trust department or.agent in the Board's name: ' ,.

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.r-14-

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POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

. Note 2: DEPOSITS AND INVESTMENTS

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

I

2

. .

3

Total

Bank Balance
$ 200,000.00 517,778.44
4,125,971.55
$ 4.843.749,99

CATEGORIZATION OF INVESTMENTS
At June 30, 2000, the carrying value ofthe Board's total investments was $19,828,169.74 which is materially the same as fair value. This investment consisted entirely offunds 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 ofGeorgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund I is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner
consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 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 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-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 I may not exceed 60 days. The
weighted average maturity for Georgia Fund I on June 30, 2000, was 23 days. The average
investment duration for Fund 6 on June 30, 2000, was .80 year.

- 15 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

' NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 l, ... ' . , .

. " . . , . .

!L,'

... \L

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Note 4: RISK MANAGEMENT t,' ' '' '

._

1 I

<



' '.. .,
,; ,

The Board is'exposed to various risks of loss related to torts; theft of, damage to, and de_s_truction of

asse. ts;

errors

or

omissions; .

job

related

illness

or

injuries.

to

employees;

natura.l.

disaster

and

unemployment compensation.

.

.

:.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or

omissions and natural disaster. The Board has neither significantly reduced coverage for these risks

nor incurred losses (settlements) which exceeded the Board. 's. insurance coverage in.a,ny.of th. e.. past

three

.

'

years..

.,.,,,,.-

.

---

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.

.

, .
. .'J'

. -'-
. .....~ '' . ' . ! __, _ , _ .

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-


'

, .The Boardis self~insured withregard to unemployment compensation claims. The Board accounts

for claimswithin the General Fund and School Food Services Fund with expenditures and liabilities
-. ' . being reported when it is 'probable that a loss has occurred, arid the amount 'of that loss can be

' reasonably estimated.

.

.

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.'



I

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,!..

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

follows:

- ' ' ,. ~- ,, --

.
'
.

' '

1' 999 2000

.' ..
. .
'
.. . .

. .

.. . ,

.

.

.

.. $

$

Beginning of Year Liability

Claims arid Changes in Estimates



. I
' ;

Claims Paid

. .

'

End of Year Liability

0.00 ' $

('- -,




0.00 $

.
'

. .

.- 0.00 $

0.00

..

0.00 $ ". \

6,918.00.

$

.

.
....

6918.00

' ~ --- .

.

$

.

0.00

_

''...

,,

j,;

_, __

,.

.

.The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a

public entity risk p~ol.organized on Juiy l, 199~ to develop,.implement, and _administe~ a program

of workers' ' ..

compensation
'

self-insurance '

for

its

mem. ber,.organizations.

The

Board


pays

.an.

.annual

'

premium to .

the

Fund

for its

gener.al

insurllllce 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











I

to the statutory limit.

. _The .

Board

has

pu.rchased

surety -

bo.nds

to

provide
' -

additional

.

. -

insurance .

coverage

as

follows:

. ..

..

l

Position Covered

.. Amount ,



.

- _,.).

Superintendent



'

All Other Employees

\ I

'' '



C

$ 50,000.00

. $ ' .

so,ooo.oo .' '

- 16 -

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POLK SCHOOL DISTRICT BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2000

--- - ---

----- -

EXHIBIT "D"

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 1998 General Government - Series 2000

3.85% - 4.00% $ 9,320,000.00

5.00% - 5.25%

7,010,000.00

$ 16,330,000.00

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

follows:



General Obligation
Bonds

Balance July 1, 1999

$ 12,160,000.00

Additions G. 0. Bonds

7,010,000.00

Deductions Debt Retired

2,840,000.00

Balance June 30, 2000

$ 16.330.000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004 2005 2006 - 2010
Total Principal and Interest

$ 3,634,792.92 3,719,460.00 3,741,812.50 2,551,812.50 2,581,837.50 2,609,250.00
$18,838,965.42

- 17 -

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POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOT-ES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: ON-BEHALF PAYMENTS

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. '

. . .

The Board has recognized revenues and expenditures in the amount of.$474,211.50,for.health insurance and retirement contributions paid on the Board's ~ehalfby,the foll.owing State Agencies.

Georgia Department of Education

__ _

Paid to the Georgia Department of Community Health

For Health Insur.ance of Non-Certified Personnel ..

' '

In the amount of,$371;711.50

- ~ - - - .

- J . . J., .

Office of Treasury and Fiscal Services

Paid to the Public School Employees Retirement System

. . For Public School Employees Retirement (!'SERS) Employei:'s C9s\.i ....

In the amount of$102,500.00

' .

Note 7: SIGNIFICANT COMMITMENTS
...

The

f

ol-lo-w

i

ng
.

is

an

analysis

of

significant

outstanding

construction

or

renovation .

contracts

executed

by the Board as of June 30, 2000, together with funding available:

. .f ,

, .

' J

Unearned

Funding

, "-: Project

Executed Contracts

....Available ' From State

GSFIC 99-715-087 :.: , GSFI.C 00/99S-715-105
r ! , ,,.. I,-, .. ,....

$ 6,473,210.85 - .. . 9,246,722.70 $5.564,648.75
$15,719,933.55 .. $ 5,564,648.75

:, 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

re_view by grantor agencies. This could result in requests for reimbursement to the grantor agency

for any expenditures which are disallowed under grant terms. The Board believes that such

disallowances, if any, will be immaterial to its overall financial position.



'

- i, .
. . . I:_.

The Board is a defendant in a legal proceeding pertaining to matter.s incidental to the pormance of

routine Board operations. The ultimate disposition ofthis proceeding is not presentlydeterminable,

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



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,t. :

POLK SCHOOL DISTRICT BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: ACCUMULATED EMPLOYEES' LEAVE

All twelve-month employees are eligible for annual vacation earned at the rate of .833 days for each full calendar month employed up to a maximum often days. Twelve-month employees \\'.ith fifteen or more years of service with the school district are eligible for five additional vacation days annually. Upon approval of the employee's supervisor, all unused vacation days may be carried forward into the next employment year. Upon retirement or termination ofemployment, employees will be paid at the current rate ofpay for unused earned vacation up to the maximum which maybe earned during a single year. 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 of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 2,882,770.59 $2,868,183.04 $ 2,608,764.60

- 19 -

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POLK SCHOOL DISTRICT BOARD OF EDUCATION

-- _._

COMBINING BALANCE SHEET .

SPECIAL REVENUE FUND

JUNE 30, 2000



"

. .
. _,'
ASSETS'

.. ..

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,

' . .'

.
'







. Cash' and Cash Equivalents

,- . 1

. .

r .'

1 , Ac~ounts Receivable , .

. '

Inventories

Food

Donated Commodities

Purchased Food





..

l




, .
'

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. '



SCHOOL

FOOD .

' '

SERVICES

FUND

LOTTERY PROGRAMS

' '

. ,

. .. $
, .. , '





..,Ji 1'491-,.51.5,..25

' , '',15,716.58

$



.. . '

44,202.91
'
13,946.21

"
. I '

1
50,648.06 32,959.29

. .-

, , Total Assets :, .. ..
'

.. ' .' . ,..' .
. ' .' ' '

-590,839:18 $ ===5=8..1.4.9==12..

. .

,
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" .

.LIABILITIES AND FUND EQUITY

. ' '

' -
'

.- -
-

. . .. ,

-'

LIABILITIES

: -- . . ,~ t

Cash Overdraft

,,.,,



,1'

.\ .. - ~ - .

. Accounts Payable .. -

, , Salaries Payable. , "

.- Expired Grant Balances Payable ..

.

' ,

'/ , 1', 'I(
.' ' .

, . .. .
. .' " I


$ .: ,: - 19,256.31 $
88,719.00
"

. ' \ '
12,179.08 45,970.04

. Total Liabilities....

. '

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.. $

107 975.31 $ _ __,5,,,8.t.!1.::;;49::.:,,.:.,12._

FUND EQUITY

'

. .

... '

Fund Balances

Reserved

"' ~ ...

For Continuation of Federal Programs

, For Inventories Food

. ,.
.. ~'---'

Donated Commodities

Purchased Food

Unreserved

Un designated

. Total Fund Equity

$

50,648.06

32,959.29

399,256.52 $ _ _ ___.:0::.:,,0,e,O'-

.

$

482,863.87 $ _ _ ___;0::.:,,0,e,O'-

Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
20


590,839.18 $ ===5=8..1.4.9==12..

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

535,718.16 $

400,188.33

$

322,974.22

352,637.01

361,507.44

50,648.06 32,959.29

68,201.91 28,084.32

$

322,974.22 $

971,962.52 $ ====8=5;;.7'=,9=82=.o=o=

$

51,514.39 $

51,514.39 $

340,834.17

56,947.15

88,382.54

16,860.79

208,474.48

343,163.52

5 675.26

$

316,936.02 $

483,060.45 $ 363,370.22

$

6,038.20 $

6,038.20

50,648.06 $ 32,959.29

68,201.91 28,084.32

0.00

399,256.52

398,325.55

$

6 038.20 $

488,902.07 $ _ _4.:.:9:..:4L::6.:.11.:.:.-7,_,8:....

$

322,974.22 $

971,962.52 $ ==8=5=7=,9=82=.o=o=

- 21 -

POLK SCHOOL DISTRICT 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

..' '
. , r
. ,I
.
'

SCHOOL FOOD
- SERVICES '' '
- FUND -
.... ,. '. '

. .
L01;TERY
--'-P-R'-O'=G=R=AM=S---

' $

190,388.00 $

1,381,281.89

610,755.63
. .

~-- $
.
.

- 2,182,425.52 $
. --- . . --

612,31'9.82
612,319.82
--

Current



Instruction

Support Services

.. . .

r;



$

515.164.42

Pupil Services Improvement of Instructional Services Educational Media Services

44,809.62 850.33

General Administration School Administration

17.332.92

Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation


- -.-.-.- -

13,316.48

. . .

.

(' I

.,

14.370.43 798.09

- $ _ .. 2, ~81 ,494.55 _-----"5"'6:.:.7,:.a7,""53=-

Total Expenditures

' $ 2;181 ,494,55 $ --"-61:..::2,,.,3,:..:,1,:;9.""82=....

Excess of Revenues over (under) Expenditures

$

930.97 $

0.00

FUND BALANCE JULY 1

494,611.78

0.00

Food Inventory Net Change in Period Donated Commodities Purchased Food

I .


-17,553.85 4 874.97
.,

FUND BALANCE JUNE 30

$

482,863.87 $'=====0-;;;,00;;,.

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

. .
POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS.
YEAR ENDED JUNE 30 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7151-00-01 The Polk School District Board ofEducation 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 of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should ir:iclude inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS N'o matters were reported.
-2 -

POLK SCHOOL DISTRICT BOARD OF EDUCATION -TABLE OF CONTENTS-
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 AUDI I ING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND .ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORD.ANCE WITH 0MB CIRCULAR A-133
SECTION ill
AUDI'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30,'2000

I SUMMARY OF AUDITOR'S RESULTS



1. Type of Report Issued on the Financial Statements

.' .

The auditor's opinion on the Polk School District 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 Polk School District Board of Education disclosed a financial statement reportable condition related to the following control category.
. J .
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 Polk School District 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 Polk School District Board of Education 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 Po.lk School District 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 Polk School District Board ofEducation's audit did not disclose auditfindings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as folloVl'.s: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.558 Food and Nutrition Program - Summer Food Service Program for Children

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee
The Polk School District Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.

. .- 1 -


SECTION IV FINDINGS AND QUESTIONED COSTS


POLK SCHOOL DISTRICT 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-7151-98-01 FS-7151-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS
' Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7151-99-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board .has decided not to pursue the recording of general fixed assets on the financial statements.

SECTION III AUDIIEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


In our opinion, the Polk School District Board ofEducation 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 Polk School District 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 Polk School District 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 cons_ideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the 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 of management, members of the Polk School District Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.,
Respectfully submitted,

RWH:jb 2000SA-10

sell W. Hinton

. '

St te Auditor

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

.9-!f,(

:-:.,n,_.

frlJit~' .)...:-

' '
j

"':;',.,.... --

IJ ,.,

DEPARTMENT OF AUDITS AND ACCOUNTS :254 \VashingLon S1n:cl. S.W.. Suite 214 Atlanta. Georgia 30334-8400
March 26, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

and



Superintendent and Members ofthe

Polk School District 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 Polk School District 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, 2000. Polk School District Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings 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 Polk School District Board of Education's management. Our responsibility is to express an opinion on Polk School District Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Polk School District Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Polk School District Board of Education's compliance with those requirements.

2000SA-10

-----------

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Polle School District Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Polle School District Board ofEducation's ability to record, process, summarize and report finaricial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7151-0001.
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 cons'idered to be material weaknesses. However, the reportable condition noted above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Polle School District Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

.
. RWH:jb 2000YB-40

ell W. Hinton
State Auditor

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 \.Vashington Street. S.W.. Suite 214
Atlanta. Georgia 30334-8400
March 26, 2001

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

2000YB-40

' .

SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS


SCHEDULE 5

EDUCATION
TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,494,819.00 $

s 1,586,007.12

s 51,190.65

1,637,197.77

4,118,568.30

4,590,280.29

158,838.40

4,749,118.69

$ 5,613,387.30 $ 6,176,287.41 $

210,029.05 $ 6,386,316.46 $

0.00

2,038,843.80

2,533,450.64

116,742.55

2,650, 193. 19

0.00

3,229,713.00

4,623,329.93

174,692.08

4,798,022.01

0.00

1,905,247.80

2,518,390.33

161,124.85

2,679,515.18

0.00

618,605.10

918,200.37

21,530.17

939,730.54

0.00

1,118,899.80

1,194,644.05

147,202.59

1,341,846.64

0.00

s s 14,524,696.80 s 17,964,302.73

s 831,321.29

18,795,624.02

s 2,697,096.10 s

18,022.70 s
448,517.32 2,249,343.04
409,829.63
88,192.13

1,241.30 s
3,266.11 . 38,775.65
6,941.44

19,264.00
451,783.43
2,288,118.69 416,771.07 88,192.13

$ 2,697,096.10 $ 3,213,904.82 $

s 50,224.50

3,264,129.32

0.00.

216,631.80

306,212.89

3,937.28

310 150.17

0.00

$ 2,913,727.90 $ 3,520,117.71 $

s 54 161.78

3,574,279.49

$

541,642.50 s

606,053.72 $

6,463.38 s

612,517.10

0.00

s s 17,980,067.20 s 22,090,474.16

s 891,946.45

22,982,420.61

s

500,510.70 S

850,145.14

$

850,145.14

0.00

130,488.00 - - - - - - $ _---'1'-'4'-'7'"-34'-'4-"7.-'--7

147,344.77

0.00

$

630,998.70 $

850,145.14 $

s 147,344.n -~9~9"'7,~48~9~.9-'--1

s $ 18,611,065.90 $ 22,940,619.30 $ 1,039,291.22

23,979,910.52 s==----==o=.o=o

$

58,209.00

121,098.00

s-==17,.9,.,3.,o.,7.,o,.,o

$

146,978.00 S

146,978.00

32,853.28

32,853.28

$

179,831.28 $

179,831.28 $ ========0.0=0

35

SECTION I FINANCIAL

.. .
POLK SCHOOL DISTRICT BOARD OE EDUCATION -
ANALYSIS OF MINIMUM EXP,ENDITURE REQUIREMENTS BY PROGRAM GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 2000

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten ()

Grades 1 - 3 (') Sub--Total K-3
Grades 4 - 5 (*)

Grades 6 B (")

Grades 9- 12 rl



High School Laboratories C-)
r> Vocational Education Laboratories

Total General and Career Education Programs

SPECIAL EDUCATION PROGRAMS
Regular Programs Category I (*)
Ca1egory 11 r)
Category 111 (') Category IV (') Category V (")
Sub-Total Regular
Category VI (Gifted) rl
Total Special Education Programs

REMEDIAL EDUCATION PROGRAM ('l Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries

Operations



Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

s 1,660,910.00

s 1,494,819.00 $

4,576,187.00

4, 118,568.30

s s s 6,237,097.00 90

5,613,387.30

2,265,382.00 90

2,038,843.80

3,588,570.00 90

3,229,713.00

2,118,942.00 90

1,905,247.80

687,339.00 90

618,605.10

1,243,222.00
s 16,138,552.00

90

1,118,899.80

s s 14,524,696.80

0.00 0.00
0.00

s 2,832,619.00

s s 2,549,357.10

147,739.00

s s s 2,832,819.00 90

2,549,357.10

240,702.00

s 3,073,321.00

s

601,825.00

s 19,813,698.00

90

216,631.80

s s 2,765,988.90

90 s

541,642.50 $

s s 17,832,328.20

147,739.00
147 739.00 0.00
147,739.00

s

s 558,123.00 90

s 500,510.70

0.00

130,488.00 100

130,488.00

s

686,611.00

s

s 630,998.70

0.00

Total Fourteen Weighted and Media Center Programs $ 20,500,309.00

$ 18,463,326.90 $ =-1;.4;;,,7,.,73;;;9;;;.0;;:,0

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

s

58,209.00

121,098.00

S

58,209.00 S

121,098.00

0.00 0.00

s

179,307.00 100 S

179,307.00 $ ===,..;0;;;.0;;:,0

34

POLK SCHOOL DISTRICT BOARD OF'EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

r. .,.


Minimum Expenditure Requirements (Total Allotment)

Expenditures on Combined Program Basis , Salaries

Operations

'

'

Less: . , , -



Expenditures for Media Center Programs

in Exces.s of Total M.edia Allotment

' '

,

Expenditures per Audit

- .. .

.. .. .

I"

. ~

.

Amount of Underexpenditure for Total Allotment

-- -

'







-, '

.. .

C l

..



, .,

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS ., PORTION OF
FOURTEEN WEIGHTED PROGRAMS

20,648,048.00 $ ' 594,692.00

'

$

22,940,619.30

1,039,291.22 $ _ _--"'89'-'1"-',9'-'4-"-6'--'.4-=-5

$

23,979,910.52

-310 878.91

'

... . , '

,

,

.' .

$

o.oo $=====0=.00..

, ,


'

.


'

<- . -

,

..

'


..
See notes to the general purpose financial statements.
33

,

..

' '

. - ,

.-

-------

------- - . -------------------
POLK SCHOOL DISTRICT 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) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

Acquisition, construction and equipping

of a new Rockmart High School

$

14,443,000.00 $

18,836,702.00 $

7,720,109.09 $

1,579,159.86

Acquisition, construction and equipping
of a new Cedartown Middle School

10,501,000.00

12,186,450.00

401,284.80

205,226.00

Renovations and additions to existing schools, including the acquisition of all property, real or personal, necessary therefore

653,182.00

653,182.00

16,871.00

38,858.00

$ 25,597,182.00 $ 31,676,334.00 $ 8,138,264.89 $ ====1"",8"'23:;,,2;;.4;;:3;;,:.B;;;,,6

(1) The Board's origlnal cost estimate as specified In the resolution calling for the impcsition 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) )"he voters of Polk County approved the imposition of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these projects may lndude sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board ~as incurred interest to provide advance funding
for the above projects as follows:

Prior Years

$

676,896.05



Current Year

492 442.50

Total

s _,,...1,61s=9'",3=3=s..s..5.

See notes to the general purpose financial statements.

31

POLK SCHOOL-DISTRICT BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

'
AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS 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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Education Counselors Technology Specialist Local Five MUI Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Lottery Programs Asslstive Technology Computers in the Classroom

Exceptional Growth-Capital Outlay

$ 16,138,552.00 3,073,321.00 601,825.00 686,611.00 179,307.00 4,072,245.00

724,126.00



224,140.00

235,234.00

576,469.00

348,797.00

179,620.00

147,739.00

2.051.00

76.013.00

86,527.00

2.384,994.00

2,410,925.00

$ . 190.388.00 15,000.00

123.722.00 29.556.19
371,711.50 5,000.00 3,402.00 79.039.21 9.597.39

27,892.21 154,262.00
$

$ 16, 138.552.00 3.073.321.00 601,825.00 686,611.00 179,307.00 4,072,245.00

724,126.00 224,140.00 235,234.00 576.469.00 348,797.00 179,620.00 147.739.00
2,051.00 76,013.00 86,527.00 2,384,994.00 2,410,925.00 190.388.00 15.000.00

123.722.00 29.556.19 371,711.50
5,000.00 3.402.00 79,039.21 9,597.39

209.005.37

27,892.21 154,262.00 209,005.31

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

4.093,465.25

4,093.465.25

Office of School Readiness
Pre-Kindergarten Program

430,165.61

430.165.61

Office of Treasury and Fiscal Services
Public School Employees Retirement

102,500.00

102,500.00

$ 28,118,036.29 $

802 707.82 $ 4,302,470.62 $ 33,223,214.73

See notes to the general purpose financial statements.

30.

PQLK SCHOOL PISTRICT-BQARO OF EDUCAT1QN
SCHEOULEOF EXPENDITURES.OF FEDERAL AWARDS

SCHEDULE 1~

I

. ' ' ~ YEAR ENDED JUNE 30, 2000

I

... . .

.. Notes to the Schedyle Qf Exoenditures Qf Federal Awards

h''



' , .

'

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary



-11 ,. '

'

'

'

- - -1'2)

assistance '

for

donated .

commodities

received

'and/or

consumed

by,.,th.e.,system

during

the

current

fiscal

year.

Expenditures for.the Summer. Food Service Pl"Ogram for Children Eind the School Breakfast Program were not maintained

separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State. and/or Other Funds.
Expenditures are not maintained by fund source.

.' '

. Major Programs are identified by an asterisk(*) in front of the CFOA number..

-'



'

The Board did not provide Federal Assistance to any Subrecipient.. . -.'

"

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the : -

. - Polk

School
' .

District

Board

of

Education

and

is

presented '

on

the

modifie"d-a.ccr' ual

basis

of

accounting

which

is

the basis of accounting used in the presentation of the general purpose financial statements.

"

I ,

't. t
J
'

I
'
....

. '
-' I ' ' '
"
' -
' '
,
I ' ' ' T_

' '



. '

'

' -
,'

.' "' ,.





- ---, ,'~. _, -' -

'
'

' '

" '

"

See notes to the general purpose financial statements.

. - 29 -

I , .., ~ .1

POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE -1-

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U. $. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part 8 - Special Education Capacity Building Improvement Grant Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Tille I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VJ Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Total U. S. Department of Education
Labor, U. S. Department of Pass-Through From Coosa Valley Regional Development Center
Job Training Partnership Act

CFDA NUMBER


PASSTHROUGH
ENTITY
ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555
10.558

NIA $ NIA

320,640.84 936,646.99 $

(2)
2,058,778.87 (3)

NIA

1,278.38

2

$

1,258,566.21 $

2,058,778.87

10.550
84.173 84.027 84.173

NIA

122.715.68

122,715.68

$

1,381,281.89 $

2,181,494.55



NIA $ NIA NIA
$

17,179.01 $ 518,257.02
94,995.84
630,431.87 $

17,179.01 518,257.02
94,995.84
630,431.87

84.010

NIA

84.281

NIA

84.298

NIA

64.340

NIA

84.276

NIA

84.186

NIA

84.048

NIA

1,124,220.79 33,097.00 42,878.00
153,897.00 110,955.00
27,177.00
64,984.00

1,124,220.79 28,893.76 42,878.00
153,897.00 109,120.04
27,177.00
64,964.00

84.011

NIA

18,116.94

18116.94

$

2,205,757.60 $

2,199,719.40

17.250

NIA $

13,382.75 $

13,382.75

Total Federal Financial Assistance
NIA =Not Available

- 28 -

$ 3,600,422.24 s _ _._.3_9__.s_9_s_.1_0


EXHIBIT "H"

SPECIAL .PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

209,005.37 $

.' . 4,302,470.62 $

136,782.75 . :

994 777.26

1,136,397.62 .

. .

$


0.00 $

209,005.37 $


5,297,247.88 $


1~273,180.37

.. ...

, .

,.


.' ..

$

0.00 $

175,250.00



$

16,871.00

1,552.00 $

1,363.36

..

22.51

39.90

.,

505,310.04

. 717,090.60

8,300,866.32

1,098,790.77

59,253.48

2 790.00

$

16871.00 $

0.00 $ 9,042,254.35 $ 1,820,074.63

'

$

-16871.00 $

209,005.37 $ -3,745,006.47 $

-546,894.26



'
. '

.



/

$ 7,010,000.00

99,931.50

$

16,871.00

3,987,974.09 $ 1,769,313.89

$

-209,005.37

-4,906,376.18

-1,769,313.89

$

16 871.00 $

-209,005.37 $ 6,191,529.41 $

0.00



' .

$

0.00 . $

0.00 $ 2,446,522.94 $

-546,894.26

.,



0.00

0.00

14,621,816.46

15,168,710.72

$

o.oo. s _____o_.o_o_s 1110681339.40 $ 141621 1816.46

'


27

. ,. ,
POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2000

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

REVENUES

State Funds Other Funds
Total Revenues

$ 4,093,465.25 $ 175,351.33 $ _ _,,8~19~~42~5~.9~3~

s

175,351.33 $

819,425.93 $ _ _:,4:.,O,e:c93:,,,::;46e,5"'.2""5'--

EXPENDITURES

Current
Support Services
Business Administration
Capital Outlay Salaries Employee Benefits Land.and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures

$

$

1,552.00

22.51

644,911.47 59,253.48

$ 705,739.46 $

$ -530,388.13 $

175,250.00

$

505,310.04

7,639,083.85

175,250.00 $ 644 175.93 $

8,144,393.89 -4,050,928.64

OTHER FINANCING SOURCES (USES)

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

$ 7,010,000.00

99,931.50

$ 3,971,103.09

$

-23,000.00

-4,674,370.81

$

-23,000.00 $ 2,435,560.69 $

3,971,103.09

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

-553,388.13 $ 3,079,736.62 $ 742,241.09 13,377,509.37

-79,825.55 502,066.00

FUND BALANCE JUNE 30

$

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

"

,

-I I

EXHIBIT "G"

. .

. SPECIAL ' , , . PURPOSE
LOCAL OPTION i
SALES TAX

LOTTERY, PROJECT

. .

'

'

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

0.00 $ 1,684,700.22 $ 1,242,964.09

-------'

$

0.00 $

-', -,-. -'

. '
-

/

18,173,323.12 "377,200.60

14,192,900.33
., '
'

" ~
0.00 $ 20,235,223.94 $ 15,435,864.42 -

" .

'

' '

-.
. '

"

,-

.

' ' '

-. ,


. .

. - ' \
' ' ,
. '

$ 1,295,389.93 $

313,324.96

311,41

1;214,045.80,,

'443,099.00

657 137.40

57,624.00

' .'

$

... 3,166,884.54 $ _ _8""1'"'4""0-'-47"-'.9"-'6'-



$

16,457,245.99 $

1

3

,

3. '

7 '

7

,

5

0

9

.

3

7

"

422,240.45

502,066.00

$

0'.00 $

. :0.00

. '
'

188;852.96

742,241.09

' . ,
$

0.00 , $ - ' :''0.00 $ 17,068,339.40 $ 14,621,816.46

,

,,

, '

'

' 1

o.oo $ =====o=.o=o= s 201235,223.94 $ 15,435,864.42

-25-

POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

GEORGIA STATE

FINANCING AND

BOND

INVESTMENT



REGULAR

PROCEEDS

COMMISSION

$

189,164.37

$

1,495,535.85

$ 17,752,635.92

420,687.20

377,200.60

Total Assets

$

189 164.37 $ 17,752,635.92 $ =====2=,2=9=3=,4=23==65=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

$

Contracts Payable

Retainages Payable

Total Liabilities

$

FUND EQUITY

Fund Balances

Reserved

For Purposes of Bond Issue

For State Capital Outlay Projects

Unreserved

U ndesignated

$

Total Fund Equity

$

$ 311.41

1,295,389.93 $

311.41 $
. .
. .

1,295,389.93 $

$ 16,457,245.99 $

188,852.96

0.00

188,852.96 $ 16,457,245.99 $

1,214,045.80 657 137.40
1,871,183.20

422,240.45 0.00
422,240.45



Total Liabilities and Fund Equity $

189 164.37 $ 17,752,635.92 $ ==2'=,2=93='=42=3=.6=5=

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

RusSELI. \V. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street S.W.. Suite 214 Atlanta. Georgia 311334-841111
March 26, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Polk School District Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Polk School District Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Polk School District 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 ,;onducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Thos_e standards;require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating . the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2000ARL-13
'

. '

EXHIBIT "F"

"


'

TOTALS

FEDERAL

YEAR ENDED

PROGRAMS ~2.:. JUNE 30, 2000- Jl:JNE.30, 1999

..
'



' .

$

802,707.82 $

747,975.34

2,219,140.35

3,600,422.24

3,241,349.13

'

61 o,755:53 .. _ _5:.,9c:2""1,-=-30""'_""'59'-

' '

$ 2,219,140.35 $ 5,013,885.69 $ 4,582,055.06



$ 1,808,255.13 $ 2,323,419.55 $ 1,971,171.62

152,700.43

197,510.05

72,563.39

73,413.72

9,084.3.8 . -
129,187.66

9,084.38 ' 146,520.58



. : 6,705.33

. .
--'- - - 21,147.32-- ..

6,705.33 13,316.48 35,517.75

- ~ ..

.

1

3

,

4

5.8

.5

1
.

-

.

--

. .

. 14,256.60 2,187,172.08

175,349.39 113,771.60
14,025.41 118,058.02
1,500.58 16,136.74 28,036.29 14,746.36 2;106,265.72

' '

'.'


'

,

...' '
'

1

. -' "

$ 2,213,102.15 $ 5,006,916.52 $ 4,559;061.73

$

6,038.20 $

. ..

,,

0.00 '

6,969.17 $ 494,611.78

22,993.33 483,239.60

. '
'' "

' '
-
l

-- . - .. -

. '



-- .-'--

' -
--c17,553,85

'

. 4,874.97

-19' ,080.44 7 459.29

:~:1 '
I

' '

'

..
'

'

' . .$ ' ' 6,038.20 $ . 488,902.07, ,.$

494 611.78

.,,-.

-

' '

' '
-23-

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
The general purpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions . have not been determined, but are believed to be material.
In our opinion, except for the effects 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 fmancial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the fmancial position of the Polle School District Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2001, on our consideration of the Polle School District 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.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Polle School District Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5),
2000ARL-13

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 ofadjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pe1111anent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
L-0.
Ru sell W. Hinton Sta e Auditor
RWH:jb 2000ARL-13


POLK SCHOOL DISTRICT BOARD OF EDUCATION

-
I


PO'LK SCHOOL DISTRICT BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2.462.758.72 $ 484,203.77 $

389,310.29

'18,173,323.12

473,682.07

352,637.01

377,200.60

50,648.06 32,959.29

Total Assets

$ 2,936,440.79 $ 920,448.13 $ 18,939,834.01

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

$

51,029.92 $

88,382.54 $

15,078.98

343,163.52

311.41

1,214,045.80 657,137.40

$

66,108.90 $ 431,546.06 $



$

6,038.20

$ 2,870,331.89 $ 2,870,331.89 $

50,648.06 32,959.29
$
399,256.52
488,902.07 $

16,457,245.99 422,240.45
188,852.96
17,068,339.40

Total Liabilities and Fund Equity

$ 2,936,440.79 $ 920 448.13 $

.

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

-2-

18,939,834.01