POLK SCHOOL DISTRICT BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
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SECTION I 
 
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FINANCIAL 
 
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INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE 
 
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - 
 
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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS-OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
AND EXPENDABLE 1RUST FUND 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
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(NON-GAAP BASIS) 
 
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GENERAL AND SPECIAL REVENUE FUNDS 
 
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D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
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ADDffiONAL FINANCIAL INFORMATION 
 
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COMBINING STATEMENTS 
 
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SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
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F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
 
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CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
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H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
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AND CHANGES IN FUND BALANCES 
 
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SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
28 
 
2 SCHEDULE OF STATE REVENUE 
 
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3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
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ALLOTMENTS AND EXPENDITURES 
 
.GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
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BYPROGRAM 
 
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BYSITE 
 
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 POLK SCHOOL DISTRICT BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION II 
 
COMPLIANCE AND INTERNAL CON1ROL REPORTS 
 
REPORT ON COMPLIANCE AND ON INTERNAL CON1ROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR 
 
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PROGRAM AND ON INTERNAL CON1ROL OVER COMPLIANCE IN ACCORDANCE WITH 
 
0MB CIRCULARA-133 
 
 1 
 
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 SECTIONm 
 
AUDITEE'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 
 
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. SECI10NI 
 
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FINANCIAL 
 
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1 RussELL W. H1NTON 
STATE AUOITO~ (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 3, 2002 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Polle 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 Polle School District Board of Education, as of and for the year ended June 30, 200 I, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Polle School District Board of Education's management. Our responsibility is to express an opinion on these general-pwpose financial statements based on our audit. 
Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe \ that our audit provides a reasonable basis for our opinion. 
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We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures. 
 
2001ARL-13 
 
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As described in the notes to the general-pwpose financial statements, the Board of Education's 
 
financial statements have been prepared using certain accounting practices and policies which, in our 
 
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opinion, vary in some respects fr<?m generally accepted accounting principles. These variances are 
 
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described as follows: 
 
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* The general-pwpose financial statements of the Board of Education did not contain a 
 
General Fixed Assets Account Group to account for property and equipment owned by 
 
the Board of'Education which should be included to conform to generally accepted 
 
accounting principles. 
 
 School activity accounts maintained at the individual schools are not included in the general-pwpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-pwpose financial statements. 
 
 The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
 
The aggregate effects on the general-pwpose financial statements ofthese 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 ofthe food service inventories as discussed in the third paragraph, and except for the.effects on the general-pwpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Polle School District Board ofEducation as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformitywith accounting principles generally accepted in the United States of America. 
 
In accordance with Government Auditing Standards, we have also issued our report dated May 3, 2002, 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 ofour audit. 
 
2001ARL-13 
 
 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), 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 ofthe 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 ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 
 
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made 
 
available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- 
 
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6-24. 
 
- -Respectfully submitted, 
 
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~~W. - 
 
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RWH:as 
 
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2001ARL-13 
 
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 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
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 POLK SCHOOL PJSTRICT BOARD OF EDUCATION 
COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001 
 
~ 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of: Bond Debt CapHal Lease Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 3,464,127.96 $ 391,891.16 $ 
 
265,522.23 
 
7,859,157.62 
 
453,721.45 
 
494,218.50 
 
3n,200.eo 
 
41,188.80 38,143.90 
 
Total Assets 
LIABIL(!IES AND FUND EQU!D'. 
LIABILITJES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retalnages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable 
Total Liabilities 
FUND EQU!D'. 
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 
 
$ 3,917,849.41 $ 
 
963,442.38 $ a 1so1 1aao.45 
 
$ 
 
94,661.48 $ 116,521.72 $ 
 
2,644.96 
 
17,462.50 
 
313,793.61 . 
 
798.59 
 
7,559.83 
 
1,055,739.44 
 
1,168,874.30 
 
31,922.71 
 
$ 
 
112,922.57 $ 469,797.87 $ 2,227~58.70 
 
$ 
$ 3,804,926.84 $ 3,804,926.84 $ 
 
41,188.80 38,143.90 
$ 
416,311.79 
493,644.49 $ 
 
5,915,665.70 306,808.72 
52,147.33 
6,274,621.75 
 
Total Uabillties and Fund Equity 
 
$ 3,917,849.41 $ 
 
The notes to the general-purpose financial statements are an integral part of this statement. -2- 
 
963,442.36 $ 
 
a 1so1 ,aao.45 
 
 \ 
 
EXHIBIT"A" 
 
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DEBT 
 
FIDUCIARY FUND TYPE 
 
ACCOUNT GROUP GENERAL 
 
TOTALS 
 
1 
 
SERVICE 
 
EXPENDABLE 
 
LONG-TERM 
 
(Memorandum Onl~ 
 
II 
 
FUND 
 
TRUST FUND 
 
DEBT 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
12,114.34 $ 
 
15,217.35 
 
$ 4,148,873.04 $ 3,379,885.50 
 
1,665,881.56 
 
9,525,039.18 
 
19,828,169.74 
 
598,725.69 
 
1,923,866.24 
 
1,786,442.73 
 
41,188.80 
 
50,648.06 
 
36,143.90 
 
32,959.29 
 
I 
 
I 
 
$ 
 
2,276,721.59 
 
2,276,721.59 
 
2,266,281.35 
 
I I 
 
11,088,278.41 . 
 
11,088,278.41 
 
14,063,718.65 
 
2,671,475.n 
 
2,&11,415.n 
 
$ 2121ai721.59 $ 
 
151217.35 $ 
 
1610361475.n $ 31i7111586.93 $ 41.4081105.32 
 
$ 
 
213,828.16 $ 
 
139,723.87 
 
331,256.11 
 
358,242.50 
 
8,358.42 
 
1,055,739.44 
 
1,214,045.80 
 
1,168,874.30 
 
657,137.40 
 
31,922.71 
 
$ 
 
2,671,475.n 
 
2,671,475.n 
 
13;3651000.00 
 
13,365,000.00 
 
16,330,000.00 
 
$ 
 
16,036,475.n $ 18,846,454.91 $ 18,699,149.57 
 
$ 2,276,721.59 
 
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0.00 $ 
 
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$ 2,276,721.59 $ 
 
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I 
 
I 
 
$ 2121si721.59 $ 
 
I 
 
! I 
 
15,217.35 15,217.35 
 
$ 
 
6,038.20 
 
$ 2,276,721.59 
 
2,266,281.35 
 
41,188.80 36,143.90 5,915,665.70 306,808.72 
 
50,648.06 32,959.29 16,457,245.99 422,240.45 
 
4,288,603.31 
 
3,473,542.41 
 
$ 12,865,132.02 $ 22,708,955.75 
 
151217.35 $ 
 
1610361475.n $ 31i7111586.93 $ 4114081105.32 
 
-3- 
 
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 eQLIS SCl:IQQL C!ISIBIGI DQABQ QE EDL!GAIIQt:I CQMDlt:IEQ SIAIEM!it:II QE B~t:11.!liS, i;;~Plit:IQIIL!Bi;S At:IC! Gl:!At:l!:zi;S II'!! EL!t:112 DALAt:ICES 
ALb G~Bt:IMlit:II&. EL!t:ICI MES Atill ~l;;t:IC!A~LI;; IBl.!SI EL!HQ 
YEAB EtiPEP JUt:fE 30 2001 
 
BEYENL!ES 
State Funds Federal Funds Texas Other Funds 
Total Revenues 
E~eEH12II1.!BES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Madie Services  General Administration School Administration Business Administration Maintenance end 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 
TotalExpendttures 
Excess of Revenues over (under) Expendttures 
Qil:lt;B EIHAHGIHSz SQUBCl;;S !USl;Sl 
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Premium on Bonds Sold 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 
E!.!t:IQ BAlAt:fCE Jl,11.::.( 1 
Food Inventory Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
GOVERNMENTAL FUND 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND. 
 
$ 31,257,787.40 $ 
8,632,352.12 386,200.71 
$ 40,276,340.23 $ 
 
841,639.81 $ 3,730,444.60 
622,113.15 
5,194,197.66 $ 
 
5,331,240.29 
810446.68 6,141,686.87 
 
$ 28,374,832.91 $ 
885,500.26 627,021.88 1,012,168.72 , 488,676.06 2,606,106.01 372,582.77 5,550,752.64 1,685,666.16 68,618.39 
96,304.20 129,515.26 
141,551.23 105,475.79 
 
2,402,752.37 
156,511.37 140,740.73 
17,359.19 173,426.79 
7,026.70 
13,466.48 32,822.51 
54,556.42 2,184,518.03 
$ 16,935,404.62 
 
$ 42,154,772.28 $ $ 1,878,432.05 $ 
 
5,183,180.59 $ 16,935,404.62 11 017.07 $ -10,793,717.65 
 
$ 2,813,027.00 
 
$ 2,813,027.00 
 
$ 
 
934,594.95 $ 
 
2,870,331.89 
 
11,017.07 $ -10,793,717.65 
 
488,902.07 
 
17,068,339.40 
 
-8,459.26; 3 184.61 
 
EVNl2 ftALANCE JUNE 30 
 
$ 3,804,926.84 $ 
 
The notes to the general-purpose financial statements are an integral part of this statement .4. 
 
493,644.49 $ 612741621.75 
 
 EXHIBIT"B" 
 
TYPES DEBT 
SERVICE FUND 
 
TOTAL 
 
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND 
 
TOTALS 
 
(Memorandum Onllfl YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 37,430,667.60 
 
3,730,444.60 
 
$ 3,540,085.71 
 
12,172,437.83 
 
109,809.95 
 
1,928,570.49 $ 
 
$ 5,563.36 
 
37,430,667.60 $ 3,730,444.60 
12,172,437.83 1,934,133.85 
 
33,223,214.73 3,600,422.24 
11,455,626.59 2,089,235.95 
 
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$ 3,649,895.66 $ 55,262,120.52 $ 
 
5 563.36 $ 55,267,683.88 $ 50,368,499.51 
 
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$ 3o,m,5B5.28 
 
$ 30,777,585.28 $ 27,662.170.74 
 
1,052,011.63 $ 
 
5,447.05 
 
1,057,458.68 
 
1,723,791.74 
 
767,762.61 
 
767,762.61 
 
757,037.99 
 
I 
 
1,029,527.91 662,102.85 
 
1,029,527.91 662,102.85 
 
1,039,898.37 551,921.72 
 
l 
 
2,613,132.71 372,582.77 
 
2,613,132.71 372,582.77 
 
2,409,967.49 . 577,725.79 
 
I. 
 
5,564,219.12 1,718,488.67 
 
5,564.219.12 1,718,488.67 
 
2,452,952.12 1,442,775.14 
 
I 
 
68,618.39 
 
68,618.39 
 
69,180.41 
 
54,556.42 
 
54,556.42 
 
16,556.88 
 
2,184,518.03 
 
2,184,518.03 
 
2,187,172.08 
 
96,304.20 
 
96,304.20 
 
78,025.70 
 
17,064,919.88 
 
17,064,919.88 
 
8,~67,004.35 
 
$ 2,965,000.00 669,792.92 4,662.50 
 
3,106,551.23 775,268.71 4,662.50 
 
3,106,551.23 775,268.71 4 662.50 
 
2,840,000.00 492,442.50 3,175.00 
 
$ 3,639,455.42 $. 67,912,812.91 $ 
 
5,447.05 $ 67,918,259.96 $ 53,171,798.02 
 
$ 
 
10440.24 $ -12,650,692.39 $ 
 
116.31 $ -12,650,576.08 $ -2,803,298.51 
 
$ 2,813,027.00 $ 2,813,027.00 
 
$ 
 
19,095.66 
 
$ 2,813,027.00 
 
7,010,000.00 99,931'.50 
918,402.09 -918,402.09 
 
$ 2,813,027.00 $ 7,129,027.16 
 
$ 
 
10,440.24 $ -9,837,665.39 $ 
 
116.31 s -9,837,549.08 $ 4,325,728.65 
 
2,266,281.35 
 
22,693,854.71 
 
15,101.04 
 
22,708,955.75 
 
18,395,905.98 
 
,1 
 
-9,459.26 
 
-9,459.26 
 
-17,553.85 
 
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3184.61 
 
3 184.61 
 
4 874.97 
 
'II 
 
i 
 
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$ 21216-721.59 $ 12.849.914.67 $ 
 
15 217.35 $ 1218651132.02 $ 22-7081955.75 
 
-5- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINED SWEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL CNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30. 2001 
 
EXHIBIT"C" 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Servloes 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 Servloes Operations 
Capital Outlay Debt Service 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTH!;R FINANCING SOURCES 
Other Sources 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUNQ BALANCE JUHE 30. 2000 
Adjustments Food Inventory  Net Change In Period. 
Donated Commodities Purchased Food 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 30.533,411.00 $ 31,257,787.40 
 
7,739,762.00 199,395.00 
 
. 8,632,352.12 386,200.71 
 
$ 38,472,568.00 $ 40,276,340.23 
 
$ 28,443,133.00 $ 28,374,832.91 
 
931,020.00 845,266.00 '1,060,826.00 487,191.00 2,570,719.00 430,409.00 3,180,051.00 1,695,323.00 
70,543.00 
 
895,500.26 627,021.88 1,012,188.72 488,678.06 2;606, 106.01 312,se2.n 5,550,752.84 1,685,666.16 
68,618.39 
 
135,000.00 
 
96,304.20 129,515.26 247,027.02 
 
 s 39,649,481.00 $ 42,154,TT2.28 
 
$ -1,176,913.00 $ -1,878,432.05 
 
2,813,027.00 
 
$ -1, 176,913.00 $ 934,594.95 
 
2,508,563.93 
 
2,870,331.89 
 
-963.50 
 
FUNQ B&,ANCI; JUNE aQ, 2001 
 
$ 1,330,687.43 $ 31804,926.84 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 727,174.00 $ 841,639.91 3,845,607.35  3,730,444.60 
 
597,500.00 
 
622,113.15 
 
$ 5,170,281.35 $ 5,194,197.66 
 
$ 2,442,317.55 $ 2,402,752.37 
 
195,528.00 116,484.00 
17,268.55 172,201.55 
7,026.70 
 
156,511.37 140,740.73 
17,359.19 173,426.79 
7,026.70 
 
13,430.00 32,585.00 
 
13,466.48 32,822.51 
 
40,804.00 1;102,soo.oo 
 
54,556.42 2,184,518.03 
 
$ 4,140,145.35 $ 5,183,180.59 $ 1,030,136.00 $ 11,017.07 
 
$ 1,030,136.00 $ 473,185.49 
 
11,017.07 488,902.07 
 
-9,459.26 3,184.61 
 
$ 11503,321.49 $ 4931644.49 
 
The notes to the general-purpose financial statements are an Integral part of this statement. -6- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
. 
 
JUNE 30, 200 i 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
REPORTING ENTITY 
 
The Polk School District Board ofEducation (School District) was established under the laws ofthe 
 
State of Georgia and operates under the guidance of a school board elected by the voters and a 
 
Superintendent appointed by the Board. The School District is organized as a separate legal entity 
 
and has the power to levy truces and issue bonds. Its budget is not subject to approval by any other 
 
entity. Accordingly, the School District i~ a primary government and consists of all the 
 
organizations that compose its legal entity. 
 
 
 
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FUND ACCOUNTING 
 
, 
 
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not .recorded in the funds because they do not directly .affect expendable available financial resources. 
 
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a.General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. 
 
The general-purpose financial statements account for all State, Federal, Truces and Other funds under 
 
control of the School District, in compliance with generally accepted accounting principles 
 
applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account 
 
group presented in this report are as follows: 
 
  
 
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include: 
 
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GENERAL FUND - the fund used to account for all financial resources of the School District 
 
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except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board ofeducation. 
 
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 . POLK SCHOOL DISTRICT BOARD OF EDUCATION . 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAVPURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor 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 ofclothing and medical needs for disadvantaged students at the superintendent's discretion. 
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 and expendable trust funds are accourtted for using a current financial resources ~easurement 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 pebt Account Group. 
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: 
 
- 8- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and . available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the cUITent period or soon enough thereafter to be used to pay liabilities of the cUITent period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmentalgrants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
Expenditures are generally recognized when the related fund liability is incUITed. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School. District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2001, had not been  made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incUITed, rather than when funds are received or disbursed. 
BUDGET 
The Polle School District Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
 
-9- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D"  
 
NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - 
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circu],ation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as . necessary and adopts a final schopl budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQU{VALENTS 
COMPOSITTON OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. -Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds 1n one or more solyent banks or. insured Federal savings and loan associations. 
-. INVESTMENTS 
COMPOSITION OF INVESTMENTS _Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money marketinvestments 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 pt"chase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among _options.for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(1) Obligations issued by theState 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) _Obligatio~ of any corporation ofthe 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, 
-10- 
 
 f,_<!: 
 
,,: 
 
I:' , 
 
.I .',1_:_;- 
 
l :,,;, l~' f..f1 ~ , . ~ft-'' :': 
 
POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30; 2001 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions ofthe State of Georgia. 
 
RECEIVABLES 
 
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Polle County Board ofCommissioners fixed the property tax levy for the 2000 tax year (calendar 
 
year) on September 12, 2000 (levy date). Taxes were due on December 1, 2000 (lien date). Taxes 
 
collected within the current fiscal year or within 60 days after year-end are reported as revenue in 
 
fiscal year 2001. The Polle County Tax Commissioner biUs and collects the property taxes for the 
 
School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance 
 
 oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 
 
2001 for maintenance and operations amounted to $8,566,688.89. 
 
 
 
The tax millage rate levied for the 2000 tax year (calendar year) for the Polle School District Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
14.654 mills 
 
I SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,540,085.71 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $6,518,141.00 has been collected or on December 31, 2002, whichever occurs first. 
 
On March 7, 2000, a new Special Purpose Local Option Sales Tax (SPLOST) referendum was authorized by the voters ofPolle County, Georgia. This tax will be imposed to raise not more than $7,940,475.00 and will be in effect upon the termination ofthe above SPLOST for a period not to exceed three years. 
 
- 11 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE30.2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
INVENTORIES 
 
FOOD INVENTORIES 
 
Inventories of donated food commodities used in the preparation of meals are reported on the 
 
Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported 
 
on the Combined Balance Sheet at cost (first-in, first-out). 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 ofnet current assets. 
 
  ..  
 
COMPENSATED ABSENCES 
 
Compensated absences represent obligations ofthe School Districtrelatingto 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 in:naterial to the general-purpose financial statements. . 
 
: Additionally, the dollar value of accumulated comp~ated 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 t~ ~e immaterial to the fair presentation ofthese financial statements. 
 
GENERAL OBLIGATION BONDS 
 
The School District issues general obligation bonds to provide funds for the acquisition and 
 
construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are 
 
recognized in the financial statements during the year bonds are issued. General obligation bonds 
 
are direct obligations and pledge the full faith ~d credit ofthe government. The outstanding amount 
 
 of these bonds is recorded in the Ge_neral Loni-TermDebt Account Group. 
 
 
 
,. 
INTERFUND TRANSACTIONS 
 
The School District has the following type 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. . 
 
. . 
 
. 
 
 .. , 
 
- 12 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
MEMORANDUM ONLY -TOTAL COLUMNS 
 
Total columns on the general-purpose financial statements are captioned "Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do 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. 
 
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 ofsecurities pledged shall be equal to not less than 
 
110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. 
 
I 
 
Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe 
 
, II 
 
securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool 
 
balance. OCGA Sec~ion 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 ofor any combination ofthe 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 ofthe State of Georgia, 
 
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and 
 
I I 
 
,t \ 
 
I 
 
- 13 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" . 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United 
. States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $5,992,019.87. The amounts ofthe total bank balances are classified into three categories ofcredit risk: 
 
.. Category 1 - _Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. 
Category 3 ,.. Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging .financial institution, or by its trust department or agent but not in the School District's name.) 
 
The School District's deposits are classified by risk category at June 30, 2001, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 200,000.00 
 
2 
 
275,019.87 
 
3 
 
5,517,000.00 
 
Total 
 
$_ 5.992.019.87 
 
CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $9,525,039.18 . 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 ofGeorgia, Office ofTreasury and . Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe . Primary Liquidity Portfolio is as follows: 
 
The Primary Liquidity Portfolio consists ofGeorgia 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 
 
-.14 - 
 
 , /\'. 
 
;1v:"""('~:::'.}~~, -. 
 
'1'. 
 
POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
EXHIBIT "D" 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner 
 
consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 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 
 
I 
 
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 
 
1  
 
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 1 may not exceed 60 days. The  weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and. lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
Note 4: RISK MANAGEMENT 
 
The School District is exposed to various risks of loss related to tort_s; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. 
 
i 
. I 
, I 
 
The School District has established a limited risk management program for workers' compensation claims. The School District accounts for claims within the General Fund and School Food Services 
 
,! II 
 
Funds with expenditures and liabilities being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy 
 
I! 
I 
 
covers individual claims in excess of $1,000,000.00 loss per occurrence, up to the statutory limit. 
 
I I 
 
The School District has not incurred any liabilities for workers' compensation claims liability during the past two fiscal years. 
 
i 
 
- 15 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 4: RISK MANAGEMENT 
 
The School District is self-insured with regard to unemployment compens~tion ~laims. The School 
 
District accounts for claims within the General' Fund and School Food Services Fund with 
 
expenditures and liabilities 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: 
 
2000 2001 
 
Beginning ofYear Liability 
 
.Claims and : Changesin Estimates 
 
Claims Paid 
 
EndofYear Liability . 
 
$ 
 
0.00 $ 
 
6,918.00 $ 
 
6,918.00 $ 
 
0.00 
 
.$ 
 
0.00 $ 
 
80.00 $ 
 
so.oo $ 
 
0.00 
 
The School District has purchased surety bonds to provide additi~nal insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent All Other Employees 
~ote 5: GENERAL LONG-TERM DEBT 
 
$ 50,000.00 $ 50,000.00 
 
CAPITAL LEASES  
 
The Polle School District Board ofEducation has entered into various lease agreements as lessee for 
 
heating and air conditioning equipment. These lease agreements qualify as capital leases for  
 
accounting pwposes and, therefore, have been recorded at the present value ofthe future minimum 
 
lease payments as of,the date of their inception. 
 
 
 
  
 
 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as foll~ws: 
 
Purpose 
General Government - Series 1998  GeneralGovemment-Series2000 
 
Interest Rates 
., 
3.85% - 4.00% 5.00% - 5.25% 
 
Amount 
$ 6,355,000.00 7,010,000.00 
 
$13.365.000,00 
 
Tiie changes in General Long-Term Debt during the fiscal year ended June 30, 2001,'were as 
 
follows: 
 
. 
 
. 
 
. 
 
. 
 
. 
 
- 16 - 
 
 POLK'SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "Dfl 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total 
 
Balance July 1, 2000 
 
$ 
 
0.00 $16,330,000.00 $16,330,000.00 
 
Additions Capital Leases 
 
2,813,027.00 
 
2,813,027.00 
 
Deductions Debt Retired 
 
141,551.23 2,965,000.00 3,106,551.23 
 
Balance June 30, 2001 
 
$ 2.611.415.11 $13.365,000,00 $16,036.425 .11 
 
At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total Debt 
 
2002 2003 2004 2005 2006 2007 -2011 
 
$ 370,540.54 370,540.54 370,540.54 370,540.54 370,540.54 
1,605,675.63 
 
$ 3,719,460.00 3,741,812.50 2,551,812.50 2,581,837.50 2,609,250.00 
 
$ 4,090,000.54 4,112,353.04 2,922,353.04 2,952,378.04 2,979,790.54 1,605,675.63 
 
Total Principal and Interest $ 3,458,378.33 $15.204.112.50 $18,662.550,83 
 
Deduct: Imputed Interest 
 
786,902.56 
 
Net Present Value ofFuture Minimum Lease Payments 
Note 6: ON-BEHALF PAYMENTS 
 
$ 21611,4'.25.'.ZZ 
 
The School District has recognized revenues and expenditures in the amount of $475,622.15 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. 
 
- 17 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE30,2001 
 
Note 6: ON-BEHALF PAYMENTS 
 
Georgia Department ofEducation Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$375,341.15 
 
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$100,281.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as ofJune 30, 2001, together with funding available: 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
GSFIC 99-715-087 GSFIC 00/99S-715-105 
 
$ 748,129.00 877,502.57 $ 383,408.46 
 
$ 1,625,631.57 $ 383.408.46 The amount_s described in ~~ note are not reflected in the general-purpose financial statements. 
 
Note 8: CONTINGENT LIABil.JTIES 
 
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 terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. 
9: Note 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 (10) days. Twelve-month employees with fifteen (15) or more years of service with the School District are eligible for five (5) additional 
 
7 18 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 9: ACCUMULATED EMPLOYEES' LEAVE 
 
vacation days annually. Upon approval ofthe 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 of pay for unused earned vacation up to the maximum which may be 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 districts 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 ofAudits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2001 2000 1999 
 
100% 100% 100% 
 
$ 3,029,663.80 $ 2,882,770.59 $2,868,183.04 
 
- 19- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION . COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 
 
. ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
.$ 
 
483,347.79 $ 
 
92,483.14 
 
34,275.57 
 
41,188.80 36,143.90 
 
Total Assets 
 
$ 
 
594,956.06 , $-======92_,4=8=3..1..4.=== 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable , Salaries Payable  Expired Grant Balances Payable Deferred Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
See notes to the general-purpose financial statements. 
-20- 
 
$ 
 
12,084.86 $ 
 
89,226.71 
 
$ 
 
101,311.57 $ 
 
15,018.63 53,904.68 
7,559.83 16,000.00 
92,483.14 
 
$ 
 
41,188.80 
 
 .36,143.90 
 
416,311.79 $ 
 
0.00 
 
$ 
 
493,644.49 $ 
 
0.00 
 
$ 
 
594,956.06 $-======9=2=,4=83==14== 
 
 EXHIBIT"E" 
 
FEDERAL 
PROGRAMS 
 
TOTALS 
 
JUNE 30, 2001 
 
JUNE 301 2000 
 
$ 
 
575,830.93 $ 
 
535,718.16 
 
$ 
 
459,942.93 
 
494,218.50 
 
352,637.01 
 
41,188.80 36,143.90 
 
50,648.06 32,959.29 
 
$ 
 
459,942.93 $ 1,147,382.13 $a=====9=71=,9=6=2..5..2= 
 
$ 
 
183,939.77 $ 
 
183,939.77 $ 
 
51,514.39 
 
89,418.23 
 
116,521.72 
 
88,382.54 
 
170,662.22 
 
313,793.61 
 
343,163.52 
 
7,559.83 
 
15,922.71 
 
31,922.71 
 
$ 
 
459,942.93 $ 
 
653,737.64 $ 
 
483,060.45 
 
$ 
 
6,038.20 
 
$ 
 
41,188.80 
 
36,143.90 
 
50,648.06 32,959.29 
 
$ 
 
0.00 
 
416,311.79 
 
399,256.52 
 
$ 
 
0.00 $ 
 
493,644.49 $ 
 
488,902.07 
 
 I 
 
I 
 
'i 
I 
 
$ 
 
459,942.93 $ 1,147,382.13 $ 
 
971,962.52 
 
! I 
i l 
 
! 
 
,'I 
 
- 21 - 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND 
YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services ,Food Services Operation 
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 
 
$ 
 
193,624.00 $ 
 
1,381,301.29 
 
622,113.15 
 
$ 2,197,038.44 $ 
 
648,015.91 648.015.91 . 
 
$ 
 
$ 2,179,983.17 
 
$ 2. 179,983.17 $ 
 
$ 
 
17,055.27 $ 
 
482,863.87 
 
575,100.25 
34,590.62 870.45 
18,326.81 
13,466.48 39.06 
1,087.38 4,534.86 
648,015.91 
o.oo 
0.00 
 
~9,459.26 3,184.61 
 
493,644.49 $==-====0==00= 
 
See notes to the general-purpose financial statements. 
-22- 
 
 EXHIBIT"F" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
841,639.91 $ 
 
802,707.82 
 
$ 2,349,14~.31 
 
3,730,444.60 
 
3,600,422.24 
 
622,113.15 
 
610,755.63 
 
$ 2,349,143.31 $ 5,194,197.66 $ 5,013,885.69 
 
$ 1,827,652.12 $ 2,402,752.37 $ 2,323,419.55 
 
121,920.75 139,870.28 
17,359.19 155,099.98 
7,026.70 
32,783.45 53,469.04 
 
156,511.37 140,740.73 
17,359.19 173,426.79 
7,026.70 13,466.48 32,822.51 54,556.42 2,184,518.03 
 
197,510.05 73,413.72 9,084.38 146,520.58 6,705.33 13,316.48 35,517.75 14,256.60 
2,187,172.0~ 
 
$ 2,355,181.51 $ 5,183,180.59 $ 5,006,916.52 
 
$ 
 
-6,038.20 $ 
 
11,017.07 $ 
 
6,969.17 
 
6,_038.20 
 
488,902.07 
 
494,611.78 
 
-9,459.26 3,184.61 
 
-17,553.85 4,874.97 
 
$ 
 
0.00 $ 
 
493,644.49 $ ====4=88=,9=0=2=07... 
 
'i I 
I 
I 
! 
-23- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Cash Overdraft Accounts Payabl~ Contracts Payable Retainages Payable 
Total Liabilities FUND EQUITY 
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity 
Total Liabilities and Fund Equity 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
52,147.33 
 
$ 6,445,887.32 
 
$ 
 
52,147.33 $ 6,445,887.32 
 
$ 
 
530,221.62 
 
$ 
 
530,221.62 
 
$ 5,915,665.70 
 
$ 
 
52,147.33 
 
0.00 
 
s 
 
52,147.33 $ 5,915.665.70 
 
$ 
 
6,445,887.32 
 
See notes to the general-purpose financial statements. -24- 
 
 EXHIBIT"G" 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
TOTALS 
 
JUNE 301 2001 
 
JUNE 301 2000 
 
$ 
 
743,596.52 $ 
 
795,743.85 $ 1,684,700.22 
 
1,413,270.30 
 
7,859,157.62 
 
18,173,323.12 
 
377,200.60 
 
377,200.60 
 
377,200.60 
 
$ 2,534,067.42 $ 9,032,102.07 $ 20,235,223.94 
 
$ 
 
530,221.62 $ 1,295,389.93 
 
$ 
 
2,644.96 
 
2,644.96 
 
311.41 
 
1,055,739.44 
 
1-,055, 739.44 
 
1,214,045.80 
 
1,168,874.30 
 
1,168,874.30 
 
657,137.40 
 
$ 2,227,258.70 $ 2,757,480.32 $ 3,166,884.54 
 
$ 5,915,665.70 $ 16,457,245.99 
 
$ 
 
306,808.72 
 
306,808.72 
 
422,240.45 
 
0.00 
 
52,147.33 
 
188,852.96 
 
$ 
 
306,808.72 $ 6,274,621.75 $ 17,068,339.40 
 
$ 2,534,067.42 $ 9,032,102.07 $ 20,235,223.94 
 
-25- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES. 
CAPITAL PROJECTS FUND 
YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Other Funds 
Total Revenues 
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 
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) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
FUND BALANCE JUNE 30 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
9,406.30 $ 
 
657,483.53 
 
$ 
 
9,406.30 $ 
 
657,483.53 
 
$ 
 
3,330.00 $ 
 
. i 
 
105,243.91 
 
37,538.02 
 
$ 
 
146,111.93 $ 
 
$ -136,705.63 $ 
 
0.00 
0.00 657,483;53 
 
$ -11.199,063.82 $ -11,199,063.82 
 
$ -136,705.63 $ -10,541,580.29 
 
188,852.96 
 
16,457,245.99 
 
$ 
 
52,147.33 $ 5,915,665.70 
 
See notes to the general-purpose financial statements. -26- 
 
 EXHIBIT"H" 
 
GEORGIA STATE . FINANCING AND 
INVESTMENT 
COMMISSION 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 301 2001 
 
JUNE 301 2000 
 
$ 5,331,240.29 $ 5,331,240.29 $ 4,302,470.62 
 
143,556.85 
 
810,446.68 
 
994,m.26 
 
$ 5,474,797.14 $ 6,141,686.97 $ 5,297.247.88 
 
$ 
 
175,250.00 
 
$ 
 
904,635.10 $ 907,965.10 
 
15,874,556.66 
 
15,979,800.57 
 
10,100.93 
 
47,638.95 
 
1,552.00 22.51 
505,310.04 8,300,866.32 
59,253.48 
 
$ 16,789,292.69 $ 16,935,404.62 $ 9,042,254.35 
 
$ -11,314,495.55 $ -10,793,717.65 $ -3.745,006.47 
 
$ 7,010,000.00 
 
99,931.50 
 
$ 11,199,063.82 $ 11,199,063.82 
 
3,987,974.09 
 
-11.199,063.82 
 
-4,906,376.18 
 
$ 11 1199,063.82 $ 
 
0.00 $ 6,191,529.41 
 
$ 
 
-115,431.73 $ -10,793,717.65 $ 2,446,522.94 
 
422,240.45 
 
17,068,339.40 
 
14,621,816.46 
 
I i 
 
$ 
 
306,808.72 $ 6,274,621.75 $ 17,068,339.40 
 
= I 
 
-.27- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "1"  
 
FUNDING AGENCY PROGRAM/GRANT 
Agriculture, U. S. Department of Chlld Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program 
Total Chlld Nutrition Cluster 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children 
Total U. S. Department of Agriculture 
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Ad Part B  Special Education Flow Through Preschool 
Total Special Education Cluster 
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Ad Title I Accountability Grants Grants to Local Educational Agencies Title II Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals2000 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 TiUel Migrant Education 
Total U. S. Department of Education  
 
CFDA NUMBER 
 
PASS- 
THROUGH ENTITY ID NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
10.553 10.555 
 
NIA $ 313,568.09 
 
(2) 
 
NIA 
 
941i083.50 $ 210531333.47 (3) 
 
$ 1,254,651.59 $ 2,053,333.47 
 
10.550 '10.559 
 
NIA 
 
106,768.37 
 
106,768.37 
 
NIA 
 
19.881.33 
 
19,881.33 
 
$ 11381.301.29 $ 2.179.983.17 
 
. 84.027 . 84.173 
 
NIA $ 533,750.74 $ 
 
NIA 
 
65,246.57 
 
$ 598,997.31 $ 
 
533,750.74 65.246.57 
598,997.31 
 
. , 8'4.348 84.010 84.281 
84.318 84.298 84.340 
 
NIA NIA 
. NIA 
NIA 
N/A NIA 
 
84.276  
 
NIA 
 
84.186 
 
NIA 
 
84.048 
 
NIA 
 
76,874.69 1,117,167.62 
26,651.60 
72,115.00 . 
43,489.00 166,264.00 
 
76,874.69 1,117,167.62 
30,854.84 
72,115.00 
43,489.00 166,264.00 
 
138,750.00 27,251.00 
 
140,584.96 27,251.00 
 
53,760.00 
 
53,760.00 
 
84.011 
 
NIA 
 
18,572.00 
 
18,572.00 
 
$ 2,339.892.22 $ 2.345,930.42 
 
-28- 
 
 PQLK SCHOOL DISTRICT BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY 
PROGRAM/GRANT 
Labor, U. S. Department of Pass-Through From Coosa Valley Regional Development Center Job Training Partnershlp Act 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
17.250 
 
NIA $ 
 
9,251.09 $ _ ___,;:9.,:,2:;::5""1.:,:a09;:a. 
 
Total Federal Financial Assistance 
NIA = Not Available 
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 ament fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included in the 2001 National School Lunch Program. 
(3) Expenditures for thls program include State, and/or Other Funds. Expenditures are not maintained by fund source. 
Major Programs are identified by an asterisk (*) In front of the CFDA number. 
The School District did not provide Federal Assistance to any Subredpient. 
The accompanying schedule of expenditures of Federal awards Includes the Federal grant adlvity of the Polk School District 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. 
 
4,535,164.68 
 
!11 
;, I 
 
See notes to the general-purpose financial statements. 
 
'i 
 
-29- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF STATE REVENUE . YEAR ENDED JUNE 30. 2001 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
 
r 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
. GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) Reimbursement on Construction Projects 
 
$ 
 
10,000.00 
 
$ $ 150,000.00 
 
10,000.00 150,000.00 
 
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program  Kindergarten Program - Earty Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplement Vocational Supervisors Migrant Education Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teachers Pay for Performance Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Lottery Programs Applied Technology Labs Computers in the Classroom 
 
1,434,261.00 313,398.00 
4,285,978.00 897,417.00 
2,198,789.00 4,204,106.00 2,728,634.00 1,237,864.00 
159,038.00 300,791.00 2,237,041.00 554,404.00 250,191.00 348,938.00  293,968.00 275,369.00 668,019.00 1TT,263.00 4,012,758.00 
 
TT1,489.00 235,042.00 145,553.00 
28,904.00 46,133.00 
2,051.00 2,641,486.00 
$ 33,102.00 
 
193,624.00 
 
11,842.88 701.41 
375,341.15 5,000.00 1,467.00 
72,000.00 .103,424.00 
8,589.96 29,638.00 
 
32,440.17 142,604.00 
 
1,434,261.00 313,398.00 
4,285,978.00 897,417.00 
2,198,789.00 4,204,106.00 2,728,634.00 1,237,864.00 
159,038.00 300,791.00 2,237,041.00 554,404.00 250,191.00 348,938.00 293,988.00 275,369.00 668,019.00 1TT,263.00 4,012,758.00 
TT1,489.00 235,042.00 145,553.00 
28,904.00 46,133.00 
2,051.00 2,641,486.00 
193,624.00 33,102.00 
11,842.88 701.41 
375,341.15 5,000.00 1,467.00 
72,000.00 103,424.00 
8,589.96 29,638.00 
32,440.17 142,604.00 
 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
 
5, 181,240.29 
 
5,181,240.29 
 
Office of School Readiness Pre-Kindergarten Program 
 
472,971.74 
 
472,971.74 
 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
100,281.00 
 
100,281.00 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 
 
SCHEDULE"2" 
 
AGENCYJFUNQING 
CONTRACT Education, Georgia Department of Georgia's Reading Challenge 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ _.....:5;..;.7,1.5.'""15""'.00-=- 
 
_ _ _ _ _ S _.....,:5:.:.7.e.:,5:.:.15:::.::::.:00::... 
 
s 31 12s111e1.4o s 84U3e.e1 s 5i331,24o.29 s 3114301ss1.so 
 
(1) Tha purpose of the funds is to provide Cedartown High School new band uniforms. 
 
See notes to the general-purpose financial statements. 
 
 31  
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION 
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2001 
 
SCHEDULE 3 
 
PROJECT 
 
ORIGINAL ESTIMATED. 
COST (1) 
 
CURRENT ESTIMATED COSTS(2l 
 
AMOUNT EXPENDED IN CURRENT YEAR (3)(4) 
 
AMOUNT EXPENDED IN PRIOR YEARS (3) (4) 
 
PROJECT STATUS 
 
Acquisition, construction and equipping of a new Rockmart High School 
 
$ 14,443,000.00 $ 16,691,154.68 $ 7,391,885.73 $ 9,299,268.95 Completed 
 
Acquisition, construction and equipping of a new Cedartown Middle School 
 
10,501,000.00 
 
9,463,075.33 
 
8,856,564.53 
 
606,510.80 Completed 
 
Renovations and additions to existing schools, lnduding the acquisition of all property, real or personal, necessary therefore 
 
653,182.00 
 
55,729.00 
 
55,729.00 Completed 
 
Funding the completion of the acquisition, construction and equipping of a new Rockmart High School arid a new Cedartown Middle School, and renovations and additions to existing schools, lnduding the acquisition of all necessary property 
 
71940.475.00 
 
71118.586.52 
 
540.842.43 
 
Ongoing 
 
$ 33,537,657.00 $ 33,328,545.53 $ 16,789,292.69 $ 9,961,508.75 
 
(1) The School District's original cost estimate as specified In the resolution calling for the imposition of the Local Option Sales Tax. 
 
(2) The School District's airrent estimate of total cost for the projects. lndudes all cost from project Inception to completion. 
 
(3) The 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 indude 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 School District has inairred Interest to provide advance funding for the above projects as follows: 
 
Prior Years 
 
$ 1,169,338.55 
 
Current Year 
 
669.792.92 
 
Total 
 
$ 1,839,131.47 
 
See notes to the general-purpose finandal statements. 
 
- 33- 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION GENERAL FUND QUAUTY BASIC EDUCATION PROGRAM {QBE> 
ALLOTMENTS AND EXPENDITURES  BY PROGRAM 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE 4 
 
DESCRIPTION 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF  EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
Direct lnstrudlonal Programs 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program-Early Intervention Program 
 
Primary Grades (1-3) Program 
 
Primary Grades-Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Mlddle School (6-8) Program 
 
High School General Education (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Disabilities 
 
Category I 
 
Cetegoryll 
 
category Ill 
 
category IV 
 
CategoryV 
 
. Gifted Student  Category VI 
 
Remedlal Education Program 
 
Alternative Education Program 
 
English Speakers of Other Languages (ESOL) 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 
 
1,568,175.00 $  1,520,468.22 $ 
 
342,660.00 
 
267,215.79 
 
4,666,152.00 4,474,580.22 
 
981,208.00 
 
761,364.62 
 
2,404,087.00 2,374,080.91 
 
4,596,635.00 4,585,150.50 
 
2,983,401.00 3,258,436.32 . 
 
1,353,441.00 
 
989,267.72 
 
3,554,838.00 
 
73,5n.75 
 
494,391.63 
 
2,599,936.68 
 
273,833.48 
 
1,036.26 
 
273,551.00 
 
259,661.n 
 
381,519.00 
 
3n,725.54 
 
321,415.00 
 
542;263.01 
 
301 101e.oo 
 
233.013.34 
 
23,748,161.00 $ 23,086,003.76 $ 
 
31,683.59 $ 6,694.01 178,720.80 2,351.19 61,681.14 101,698.18 99,641.41 290,886.03 
 
1,552,151.81 273,909.80 
4,653,301.02 763,715.81 
2,435,762.05 4,688,846.68 3,358.on.73 1,280,133.75 
 
1,075.45 6,0n.87 46,705:18 12,126.80 
2.8~.48 3,990.73 3,010.69 5,946.23 
 
74,653.20 500,469.50 2,646,641.86 285,960.28 
1,036.26 262,468.25 381,716.27 545,273.70 238,959.57 
 
855,075.78 $ 23,941,079.54 
 
Media Center Program Staff and Professional Development . 
 
730,391.00 193.814.00 
 
859,593.38 58.007.00 
 
140,458.04 135.901.34 
 
1,000,051.42 193.908.34 
 
TOTAL QBE FORMULA FUNDS 
 
$ 24,672,366.00 $ 24,003,604.14 $ 1,131,435.16 $ 25,135,039.30 
 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
See notes to the general-purpose financial statements. 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} 
ALLOTMENTS AND EXPENDITURES - BY SITE 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE a5" 
 
SITE 
Westside Elementary School Cherokee Elementary School Northside Elementary School Euharlee Kindergarten School Eastside Elementary School Cedar Hill Middle School Goodyear Elementary School Elm Street Middle School Purks Middle School Cedartown High School Rockmart High School Polk CrossRoads Academy Central Office (Alternative Education Program) Other Auxiliary Facility 
TOTAL 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF 
EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
2,505,177.00 $ 
 
2,599,046.42 
 
2,769,182.00 
 
2,695,768.65 
 
1,847,859.00 
 
1,780,439.58 
 
802,709.00 
 
822,858.33 
 
2,191,061.00 
 
2,194,155.79 
 
2,041,767.00 
 
1,945,939.19 
 
1,810,969.00 
 
1,826,923.78 
 
2,405,948.00 
 
2,344,425.14 
 
1,596,369.00 
 
1,597,655.66 
 
3,109,807.00 
 
3,151,662.18 
 
2,345,898.00 
 
2,576,002.12 
 
246,917.59 
 
321,415.00 
 
45,133.49 
 
1141151.62 
 
$ 23,748,161.00 $ 23,941,079.54 
 
See notes to the general-purpose financial statements. 
- 35- 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RussELL W. H1NmN 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 3, 2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe Polle 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 ofPolle School District Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 3, 2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-pwpose :financial statements. Except as discussed in the following paragraph, 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 of the United States. 
 
We did not observe the talcing ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures. 
 
Compliance 
 
As part ofobtaining reasonable assurance about whether Polle School District Board ofEducation's 
 
:financial statements are free of material misstatement, we performed tests of its compliance with 
 
I 
 
certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing 
 
I 
 
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. 
 
2001YB-41 
 
 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 detennine 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 financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7151-0102. 
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 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 ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-7151-01-02 to be a material weakness. 
This report is intended solely for the information and use ofthe management, members ofthe 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. 
.-. w.-0-k Respectfully submitted, 
ell W. Hinton State Auditor 
RWH:as 2001YB-41 
. 
 
 w. RUSSELL 
 
HINTON 
 
 STATE AUDITOR 
 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.W. Suite 214 Atlanta, Georgia 30334-8400 
May 3, 2002 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Polle 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 CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Polle 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"8Ie applicable to each ofits major Federal programs for the year ended June 30, 2001. Polle School District Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofPolle School District Board of Education's management. Our responsibility is to express an opinion on Polle School District 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 A133, 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 Polle School District Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. 
 
2001SA-10 
 
 We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Polle School District Board of Education's compliance with those requirements. 
 
In our opinion, the Polle 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, 2001. 
 
Internal Control Over Compliance 
 
The management of Polle 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 Polle 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 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 ofrisk 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 ofthe management, members ofthe 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. 
 
---Re ectfully submitted, 
 
 
 
LO 
 
ell W. Hinton State Auditor 
 
RWH:as 2001SA-IO 
 
 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
I 
 
 POLK SCHOOL DISTRICT BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7151-99-01 FS-7151-00-01 
 
Further Action Not Warranted Unresolved - No Corrective Action Implemented 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7151-00-01 
 
As a result ofGASB No. 34, the School District, along with selected School Districts in the Northwest Georgia Regional Educational Service Agency, is sending out an RFP for the implementation and valuing of fixed assets and inventory for Polle School District 
Board of Education. This RFP was sent out April 29, 2002, by the Northwest Georgia 
Regional Educational Agency office. Upon the selection ofa vendor, the School District will proceed to implement a fixed assets system on the accounting records. During the year being audited, no corrective action was taken by the School District to maintain a fixed assets account group. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
  POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The audltor's opinion on the Polle 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 Polle School District Board of Education disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit of the Polle 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 Polle 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 Polle School District Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Reguired to be Reported by Section .SlO(a) ofOMB Circular A-133 The Polle School District Board ofEducation's audit did not disclose audit findings required to be reported by section .Sl0(a) ofOMB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 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 
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 POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
 
I SUMMARY OF AUDITOR'S RESULTS 
 
9. Low Risk Auditee The Polk School District Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Contract Overpayment Nonmaterial Noncompliance Amount: $50,839.39 Finding Control Number: FS-7151-01-01 
 
Audit tests performed on Capital Projects Fund expenditures for architect contracts re':'ealed an overpayment. The following was determined to be in excess ofamounts specified in the contractual agre~ent: 
 
PROJECT 
 
ARCHITECT 
 
AMOUNT 
 
GSFIC 00/99S-715-105 
 
Southern A & E, LLC 
 
$50,839.39 
 
This overpayment occurred because ofmanagement's failure to monitor the disbursement offunds to ensure payments were made in accordance with contractual agreements. The School District should implement procedures to ensure that expenditures are reviewed for accuracy and compliance with contractual agreements prior to payment. Appropriate action should be taken by the School District to secure reimbursement of $50,839.39 for deposit to the School District's Capital Projects Fund. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated Jrom Prior Year Finding Control Number: FS-7151-01-02 
 
The Polk School District Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not iri accordance with generallyaccepted accounting principles. Appropriate action should be taken by the School District to establish accounting. controls and procedures to.provide for maintenance of a General Fixed Assets Account_ Group. 
 
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 POLK SCHOOL DISTRICT BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
GENERAL FIXED ASSETS 
 
Failure to Maintain General Fixed Assets Account Group 
 
Reportable Condition - Material Weakness 
 
 
 
Repeated from Prior Year 
 
Finding Control Number: FS-7151-01-02 
 
These subsidiary records should include inventory ofland, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. 
 
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
No matters were reported. 
 
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