AUDIT REPORT WALTON COUNTY BOARD OF EDUCATION 
MONROE, GEORGIA YEAR ENDED JUNE 30,1999 
 
 WALTON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHffiITS 
 
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 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
7 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
8 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
21 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
22 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
24 
 
SCHEDULES 
 
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
26 
 
2 SCHEDULE OF STATE REVENUE 
 
28 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
29 
 
4 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
30 
 
 WALTON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDmONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
5 
 
OVERALL 
 
31 
 
6 
 
BY PROGRAM 
 
32 
 
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 
GO\fERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPUCABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPUANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 
 
SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 15, 2000 
 
Honorable Roy E, Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe Walton County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE 
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - 
SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general purpose financial statements of the Walton County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents, These general purpose financial statements are the responsibility of the Walton County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditini Standards, issued by the Comptroller General ofthe 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. 
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 of the Board did not contain a General Fixed Assets 
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
 
99ARL-13X 
 
 .. School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
.. The financial statements reflect fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue from the State to fund these salaries. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been detennined, but are believed to be material. 
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Walton County Board of Education as of June 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. 
In accordance with Government Audjtini Standards, we have also issued our report dated May 15, 2000, on our consideration ofthe Walton County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. 
Our audit was perfonned for the purpose of forming an opinion on the general purpose financial statements of the Walton County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-l33, Audits ofStates. Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
~~l<l.~ 
State Auditor 
RWH:gp 99ARL-l3X 
 
 WALTON COUNTY BOARD OF EDUCATION 
 
 WALTON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1999 
 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available In Debt Service Fund 
Amount \0 be Provided in Future Vears For Payment ot. Bond Debt Compensated Absences 
 
GENERAL FUND 
7,821,176.36 
$ 5,063,317.55 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
5,092,860.34 
 
100,000.00 
 
43,612.14 
 
497,399.65 
 
1,056,562.30 
 
33,620.69 23,069.90 
 
TolalAssets 
 
$ 12,884.493.91 $ 
 
854,090.24 $ 6193.034.78 
 
LIABILITIES ANp FUND EQurry 
~ 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retalnagos Payable Compensated Absences General Obligation Bonds Payable 
Tolal liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federel Programs For Debt Service For Expired Grant BalanoesiQueslioned Costs For Inventories Food Donaled Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outiay Projects Unreserved Undosignated 
Total Fund Equity 
 
$ 785,811.75 
4,169,835.54 
 
65,082.39 62,212.46 421,180.17 10,712.30 
$ 
 
319,049.84 170,594.84 
 
$ 4.955,447.29 $ 
 
559,167.32 $ 
 
489.644.48 
 
$ 
 
$ 
 
31,328.57 
 
7.897.718.05 $ 7.929.046.62 $ 
 
9,750.91 
 
33,620.69 23,069.90 
$ 
28,461.42 94.922.92 $ 
 
115,272.93 4,676,245.98 
512,467.00 
399.384.39 
5.703,390.30 
 
Total Uabillties and Fund Equity 
 
12.884,493.91 $ 
 
654.090.24 $ 6.193.034.78 
 
The notas \0 1ha general purpose ftnanclal stetements are an integral part of Ulis statement. -2- 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
217,274.71 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
74,683.20 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30,1999 
 
JUNE 30, 1998 
 
13,131,311,41 
 
9,038,136.65 
 
143.612,14 
 
2.141.442,17 
 
6,691.962,70 
 
2.366.382,57 
 
291,957,91 
 
33.620,69 23.069,90 
291,957,91 
 
29.534.71 21.516,30 
137,278.30 
 
12,773,042.09 1,660,025.16 
 
12.773,042,09 1,660,025.16 
 
13.657.721.70 
 
$ 
 
291,957.91 
 
14,725.025,16 $ 34:748,602.00 $ 27,392,012.40 
 
$ 
 
65.062.39 
 
847.824.21 
 
4.590.995.71 
 
10.712.30 
 
319.049.84 
 
170.594,64 
 
$ 
 
1.660,025.16 
 
1,660.025.16 
 
13,065,000.00 
 
13,065,000.00 
 
14,725,025.16 
 
20.729,284.25 
 
100,776.56 392.181.44 
39.900,20 413,217.20 591,812.58 
13,795,000,00 
15,332,887.96 
 
$ 
 
291,957.91 
 
0.00 291,957.91 
291,957.91 
 
$ 
 
9,750.91 $ 
 
33.481.49 
 
291,957.91 
 
137,278.30 
 
31,328.57 
 
33.620.69 23.069.90 115,272.93 4,676,245.98 512.487.00 
8,325,583.96 
14.019,317.75 
 
29.534.71 21.518.30 198,253.50 646,088.03 1.549.175.76 
9,443,796.33 
12,059,124.42 
 
14,725025.16 $ 34,748,602.00 $ 27,392,012.40 
 
-3- 
 
 WALTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1999 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital OuUay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES IUSES) 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 33,533,519.57 $ 96,376.20 
14,939,996.46 1,018,947.63 
$ 49,588,839.86 $ 
 
1,274,535.78 3,089,463.67 
1,179.497.17 
5,543.496.62 
 
$ 34,365,453.98 $ 
2,505,433.92 1,143,611.94 1,068,038.30 1,009,891.01 3,194,111.98 
237,527.66 3,393,585.19 2,134,649.11 
532,453.20 101,292.18 
85,337.68 
 
1,595,494.64 
723,232.43 425,794.60 
6,311.28 12,481.79 17,015.44 
17,608.26 2,693.60 
2,139.39 2,946,931.96 
 
$ 49,771,386.15 S 
 
$ 
 
-182,546.29 $ 
 
5,749,703.39 -206,206.77 
 
$ 
 
$ 
 
-15,685,82 
 
$ 
 
-15,685.82 $ 
 
15,685.82 15,685.82 
 
S -198,232.11 $ 
8,127,278.73 
 
-190,520.95 279,804.29 
 
4,085.98 1,553.60 
 
FUND BALANCE JUNE 30 
 
$ 7,929,046.62 $ 
 
The notes to the general purpose financial statements are an Integral part of this statement. -4- 
 
94,922.92 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 1999 
 
JUNE 30, 1998 
 
$ 34,808,055.35 $ 30,828,008.93 
 
3,185,839.87 
 
3,102,089.03 
 
$ 4,366,051.16 $ 1,556,494.40 
 
20,862,542.02 
 
16,162,283.28 
 
80,157.22 
 
8,975.14 
 
2,287,577.16 
 
2,058,278.10 
 
$ 4,446,208.38 $ 1,565,469.54 $ 61,144,014.40 $ 52,150,659.34 
 
$ 35,960,948.62 $ 29,144,746.24 
 
$ 2,257,581.18 
 
3,228,666.35 1,569,406.54 1,074,349.58 1,022,372.80 3,211,127.42 
237,527.66 3,411,193.45 2,137,342.71 
532,453.20 103,431.57 2,946,931.96 2,342,918.86 
 
1,768,726.31 1,001,188.63 
846,761.15 722,210.65 2,867,453.48 216,016.68 3,243,852.38 1,823,363.23 490,329.62 372,654.33 2,583,403.55 9,425,993.43 
 
$ 
 
730,000.00 
 
679,990.00 
 
799.93 
 
730,000.00 679,990,00 
799.93 
 
695,000.00 712,000.00 
1,080.43 
 
$ 2.257,581.18 $ 1,410.789.93 $ 59,189,460.65 $ 55,914,780.11 
 
$ 2,188.627.20 $ 
 
154,679.61 $ 1.954,553.75 $ -3,764.120.77 
 
$ 2,188,627.20 $ 3,514,763.10 
 
$ 
 
15,685.82 $ 1,185,886.01 
 
-15,685.82 
 
-1,185,886.01 
 
$ 
 
0.00 $ 
 
0.00 
 
154,679.61 $ 1,954,553.75 $ -3,764,120.77 
 
137,278.30 
 
12,059,124.42 
 
15,814,175.76 
 
4.085.98 1,553.60 
 
6,384.67 2,684.76 
 
$ 5,703,390.30 $ 
 
291,957.91 $ 14,019,317.75 $ 12,059,124.42 
 
-5- 
 
  WALTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES ANp CHANGES IN FUND BAlANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30 1999 
 
EXHIBIT"C" 
 
REVENUES 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
 
$ 28,558,490.00 $ 33,533,519.57 
 
52,800.00 
 
96,376.20 
 
14,178,343.00 14,939,996.46 
 
733,700.00 
 
1,018,947.63 
 
$ 43,523,333.00 $ 49,588,639.86 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
 
$ 30,183,289.00 $ 34,365,453.98 
 
2,337,467.00 1,122,099.00 
926,297.00 1,030,721.00 2,855,500.00 
385,773.00 3,160,449.00 2,092,938.00 
513,426.00 149,793.00 
 
2,505,433.92 1,143,611.94 1,068,038.30 1,009,891.01 3,194,111.98 
237,527.66 3,393,585.19 2,134,649.11 
532,453.20 101,292.18 
 
208,682.00 
 
85,337.88 
 
$ 44,986,434.00 $ 49,771,386.15 
 
$ -1,463.101.00 
 
-182,548.29 
 
Other Sources Other Uses 
 
$ -190,891.00 $ -15,885.82 
 
Total Other Financing Sources (Uses) 
 
-190,891.00 $ -15,885.82 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -1,653,992.00 
 
-198,232.11 
 
FUND BALANCE JULY 1 1998 
 
8,127,279.00 
 
8,127,278.73 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
FUND BALANCE JUNE 30 1999 
 
$ 6,473,287.00 $ 7,929,046.62 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 1,308,603.00 $ 1,274,535.78 3,474,159.00 3,089,463.67 
1,325,745.00 1,179,497.17 
$ 6,108,507.00 5,543,496.62 
 
$ 2,534,871.00 $ 1,595,494.64 
 
117,55B.00 404,387.00 
13,487.00 29,028.00 6,707.00 9,760.00 16,822.00 
B50.00 
 
723,232.43 425,794.60 
6,311.28 12,481.79 17,015.44 
17,608.26 2,693.60 
 
10,990.00 2,985,592.00 
 
2,139.39 2,946,931.98 
 
$ 6,130,072.00 $ 5,749,703.39 $ -21,565.00 $ -206,206.77 
 
$ 15,685.82 
 
$ 15,685.82 
 
-21,565.00 $ -190,520.95 
 
279,804.00 
 
279,804.29 
 
4,085.98 1,553.60 
 
$ 258,239.00 $ 94,922.92 
 
The notes to the general purpose financial statements are an integral part of this statement. -7- 
 
 WALTON COUNTy BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE3Q 1999 
 
Note I; SUMMARy OF SIGNIFICANT ACCOl JNTING POUCIES 
REPORTING ENTITY 
The Walton County Board ofEducation (Board) was established under the laws of the State of Georgia and I operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists 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 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 of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. 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 ofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific 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 ofEducation and from the Federal government to accomplish specific educational objectives. 
- 8- 
 
 WALTON COUNTY BOARD OF EDUCATION 
 
EXHffiIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1999 
 
Note I: SUMMARY OF SIGNIfICANT ACCOUNTING POLICIES 
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, generallong-tenn principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and accrued compensated absences. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount ofthe transaction can be detennined and "available" means col1ectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. 
Expenditures are generally recognized when the related fund liability is incurred. 
For fiscal year 1999, the Board changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 1999 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 1999, (even though paid in July and August 1999) and the related revenue due from the State to fund these contracts. This change is in accordance with general1y accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 1998 but recorded in fiscal year 1999 as this infonnation was not readily available. 
-9- 
 
 WALTON COUNTY BOARD OF EDUCATION 
 
EXHmIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENfS 
 
nJNE30 1999 
 
Note l' Sl JMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
 
BUDGET 
 
The Walton County 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 overexpenditure of the budget at any level. The budget for aU govermnentaI funds is 
 
prepared by fund, function and object. The legal level ofbudget control was established by the Board at the 
 
aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted 
 
accounting principles. 
 
 
 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives cornments 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, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws 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 
 
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the 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: 
 
-10 - 
 
 WALTON COUNTy BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1999 
 
Note I SUMMARY OF SIGNIFICANT ACCOUNTING roUCJES 
 
(1) Obligations issued by the State of Georgia or by other states, 
 
(2) Obligations issued by the United States government, 
 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
 
(4) Obligations of any cOlporation of the United States government, 
 
(5) Prime banker's acceptances, 
 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
 
(7) Repurchase agreements, and 
 
(8) Obligations ofother political subdivisions of the State of Georgia. 
 
RECEIVABLES 
 
Receivables consist of grant reimbursements 'due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Walton County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on July 21, 1998 (levy date). Taxes were due on November 30,1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Walton County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. 
 
Tax millage rates levied for the 1998 tax year (calendar year) for the Walton County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
15.32 mills 
~mills 
~mills 
 
- 11 - 
 
 WALTON COUNTy BOARD OF EDUCATION 
 
EXHIBIT ''D'' 
 
NOTES TO lliE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE30 1999 
 
Note I: SUMMARY OF SIGNIFICANT ACCOlJNIING POLICIES 
SALES TAXES 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $4,366,05 I. 16 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $24,942,041.92 has been collected or on December 3I, 2002, whichever occurs first. 
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 of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
COMPENSATED ABSENCES 
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose 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 of the government. The outstanding amount of these 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. 
- 12- 
 
 WALTON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1999 
 
Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. 
Note 2' DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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 of money which has not 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 ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. 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 anyone ofor any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates ofindebtedness 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 ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and 
 
-13 - 
 
 WALTON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1999 
 
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, 1999, the bank balances were $14,620,400.69. The amounts of the 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 Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1999, as follows: 
 
Risk CategoQ' 
 
Bank Balance 
 
1 
 
$ 313,415.70 
 
2 
 
14,119,916.05 
 
3 
 
18706894 
 
Total 
 
$1462040069 
 
CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $43,612.14 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office ofTreasury 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 of the State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: 
 
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to 
 
- 14- 
 
 WALTON COUNTY BOARD OF EDlJCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
1UNE30 1999 
 
Note 2: DEPOSITS AND INVESTMENTS 
be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. 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 ofmanagement fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. 
Investments in Georgia Fund 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. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years. 
Nme3' NON-MONETARY TRANSACTIONS 
The Board receives food commodities from the United Stales Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
Note 4' RISK MANAGEMENT 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
The 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 any of the past three years. 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
-15 - 
 
 WALTON COl JNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JlJNE30 1999 
 
Note 4: RISK MANAGEMENT 
 
1998 1999 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
$ 
 
000 $ 
 
1013200 $ 
 
$ 
 
000 $ 
 
420900 $ 
 
Claims Paid 
 
End of Year Liability 
 
1013200 $ 
 
000 
 
420900 $ 
 
000 
 
The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1,1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses . sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit. 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered Surerintendent AI Other Employees 
Note 5' GENERAL LONG-TERM DEBT 
 
Amlllm1 
$ 100,000.00 $ 100,000.00 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose General Government - Series 1995 
 
Interest Rates 
4.20% - 6.00% 
 
Amount $13 065 000 00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows: 
 
Balance July 1, 1998 
Additions Annual Leave Earned and Utilized (Net) 
Deductions Payments 
Balance June 30, 1999 
 
Compensated Absences 
 
$ 
 
0.00 
 
General Obligation 
Bonds 
$13,795,000.00 
 
Total $13,795,000.00 
 
1,660,025.16 
 
1,660,025.16 
 
73000000 
 
73000000 
 
$ I 660025,16 $13065,000.00 $14 725 025 16 
 
- 16- 
 
 WAUON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1999 
 
Note 5' GENERAL LONG-TERM DEBT 
 
At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
2000 2001 2002 2003 2004 2005 - 2009 2010 - 2011 
Total Principal and Interest 
Note 6' ON-BEHALF PAYMENTS 
 
General Obligation 
Bonds 
$ 1,102,330.00 1,442,700.00 1,456,840.00 1,467,915.00 1,478,080.00 7,502,000.00 312525000 
$17.575 11500 
 
The Board has recognized revenues and expenditures in the amount of$590,574.78 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. 
Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$460,065.96 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (IRS) Employer's Cost In the amount of$12,751.82 
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$1l7,757.00 
Note 7' SIGNIFICANT COMMITMENTS 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 1999. 
 
-17 - 
 
 WAUON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE30 1999 
 
NQte 7: SIGNIFICANT COMMITMENTS 
 
Unearned Executed Contracts 
 
Lottery 98/978-747-049 
 
$ 47054.62 
 
The amQunt described in this nQte is nQt reflected in the general purpose financial statements. 
 
Note 8 CONTINGENT LIABILITIE8 
 
AmQunts received Qr receivable principally from the Federal gQvernment are subject tQ audit and review by grantor agencies. This could result in requests fQr reimbursement tQ the grantor agency for any expenditures which are disallowed under grant terms. The BQard believes that such disallowances, if any, will be immaterial to its overall financial positiQn. 
 
The BQard is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board Qperations. The ultimate dispositiQn of these proceedings is nQt presently determinable, but is not believed tQ be material to the general purpQse financial statements. 
 
Note 9 ACCUMULATED EMPWYEES' LEAVE 
 
For the year under review, the BQard implemented a new personnel vacatiQn pQlicy. Personnel employed on a twelve mQnth basis earn annual leave ranging from 10 to 15 days per year depending on the employees' length of continuQus service with a maximum accumulatiQn of 25 days. Upon termination or retirement, employees shall be paid, at the current rate of pay, fQr unused accrued annual leave up tQ the maximum accumulatiQn. 
 
The BQard's professiQnal persQnnel, administrative staff, bus drivers and certain other full-time employees earn one and one-quarter days of sick leave each month with a maximum accumulation Qf 180 days. For the year under review, the Board implemented a new buy back of sick leave policy. UpQn retirement, an 
emplQyee with a minimum of five years service in the schQol system, shall be paid, at half the current substitute pay fQr the pQsition held by the emplQyee, up tQ the maximum accumulation. In addition, employees that chQose to leave the school system before retirement after being employed fQr a minimum of ten consecutive years, shall be paid, at half the current substitute pay fQr the pQsition held by the employee, up to the maximum accumulation. Teachers and bus drivers, however, may only sell down to 45 days of sick 
leave if they leave for employment with anQther schQol district. 
 
- 18- 
 
 WALTON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30 1999 
 
Note 10; RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS) 
 
IRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
IRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by IRS are required by State statute to contribute 5% oftheir gross earnings to IRS. The Board makes monthly employer contributions to IRS at rates adopted by the IRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fjscal Year 
1999 1998 1997 
 
Percentage Contributed 
100% 100% 100% 
 
Required Contribution 
$ 3,501,886.15 $ 3,072,588.68 $ 2,663,505.32 
 
- 19- 
 
 WAlTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1999 
 
EXHIBIT"E" 
 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY 
 
FEDERAL 
 
TOTALS 
 
PROGRAMS PROGRAMS JUNE 30.1999 JUNE 30.1998 
 
98.505.30 $ 130.287.51 
 
$ 228.792.81 $ 353.915.59 
 
lQQ.OQQ.OO 
 
100.QQO.00 
 
100.000.00 
 
3.202.88 $ 494.196.77 
 
497.399.65 
 
577.261.46 
 
33.620.69 23.069.90 
 
33.620.69 23.069.90 
 
29.534.71 21.516.30 
 
Total Assets 
 
$ 255.195.89 $ 133,490.39 $ 494.196.77 $ 882.883.05 $ 1.082.228.06 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
 
$ 13,413.35 $ 158,610.53 
 
$ 20,849.55 112.640.84 
 
293.875.20 $ 27,949.58 151,906.80 10,712.30 
 
$ 170.023.88 $ 133,490.39 $ 484,445.86 $ 
 
293.875.20 $ 62.212.48 421,160.17 10.712.30 
787,960.13 $ 
 
277,649.01 100,776.58 385,081.44 
38.916.76 
602,423.77 
 
$ 33,620.89 23,089.90 
28,481.42 $ 
$ 85.172.01 $ 
 
$ 9,750.91 $ 
 
9,750.91 $ 33.481.49 
 
O.QQ O.QQ $ 
 
O.QQ 9,750.91 $ 
 
33,620.69 23.069.90 
28,481.42 
94,922.92 $ 
 
29,534.71 21,516.30 
195,271.79 
279.604.29 
 
Total liabilities and Fund Equity 
 
$ 255,195.89 $ 133,490.39 $ 494,196.77 $ 882,883.05 $ 1,082,228.06 
 
see notes to the general purpose financial statements. 
 
-20- 
 
 WALTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANp CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1999 
 
EXHIBIT"P' 
 
REVENUES 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTIERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS YEAR ENDED JUNE 30. 1999 JUNE 30, 1998 
 
State Funds Federal Funds Other Funds 
 
184.829.00 $ 1.089,706.78 1,415,815.42 
1,179,497.17 
 
1.673.848.25 
 
1,274,535.78 $ 1.356.950.40 
 
3,089,463.67 
 
3.054,508.89 
 
1,179.497.17 
 
963,069.14 
 
Total Revenues EXPENDITURES 
 
$ 2,780.141.59 $ 1.089.706.78 $ 1,673.848.25 
 
5,543.496.62 
 
5,374.528.43 
 
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 
OTHER FINANCING SOURCES 
 
873,156.19 
 
722,338.45 
 
1,595,494.64 $ 2.485,405.76 
 
2.946.931.96 
 
36.834.85 160.686.70 
9,719.13 17.608.26 1.513.56 
664.35 
 
686.397.58 265.107.90 
6,311.28 12,481.79 
7.296.31 
1.180.02 1.475.04 
 
723.232.43 425.794.60 
6.311.28 12.481.79 17,015.44 17,808.26 2,693.60 2,139.39 2.946,931.96 
 
72.165.21 217.831.53 
9.061.24 41.618.88 23,9n.43 14.768.02 4,269.61 6,336.53 2.583,403.55 
 
2.946,931.96 $ 1,100.183.06 $ 1.702.588.37 5,749,703.39 5,458.832.76 
 
-166.790.37 $ -10,476.28 
 
-28,940.12 $ -206,206.n $ -84.304.33 
 
Operating Transfers In 
 
Excess of Revenues and Other Financing Sources 
 
over (under) Expendilures 
 
$ -186.790.37 $ 
 
FUND BALANCE JULY 1 
 
246,322.80 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
4,085.98 1,553.60 
 
10.476.28 
 
5.209.54 
 
15,685.82 
 
5,886.01 
 
0.00 $ 0.00 
 
-23.730.58 $ -190,520.95 $ 
 
33,481.49 
 
279,804.29 
 
-78,418.32 349,153.18 
 
4.085.98 1.553.60 
 
6.384.67 2.684.76 
 
FUND BALANCE JUNE 30 
 
85.172.01 $ 
 
0.00 $ 
 
9,750.91 $ 
 
94,922.92 $ 279.804.29 
 
see notes to the general purpose financial statements. 
 
-21- 
 
 WALTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1999 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
 
REGULAR 
 
BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
$ 
 
399.384.39 $ 
 
71.660.79 $ 
 
512,487.00 
 
43.612.14 
 
Total Assets 
 
$ 
 
399,384.39 $ 
 
115,272.93 $ 
 
512,487.00 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Contracts Payable Retainages Payable 
Total Liabililies 
FUND EQUITY 
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For Stale Capital Outlay Projects Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 
 
115,272.93 
 
$ 
 
$ 
 
399,384.39 
 
0.00 
 
$ 
 
399,384,39 $ 
 
115,272.93 $ 
 
512,487.00 0.00 
512,487.00 
 
$ 
 
399,384.39 $ 
 
115.272.93 $ 
 
512,487.00 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 EXHIBIT"G" 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 3,884,592.08 $ 
791,653.90 
 
LOTIERY PROJECT 
 
TOTALS 
 
JUNE 30.1999 
 
JUNE 30, 1998 
 
224,736.08 $ 5,092,860.34 $ 3.567,354.28 
 
43,612.14 
 
41,442.17 
 
264,908.40 
 
1,056,562.30 
 
910.996.43 
 
$ 4,676.245.98 $ 
 
489,644.48 $ 6,193,034.78 $ 4.519,792.88 
 
$ 
 
319,049.84 $ 
 
319,049.84 $ 
 
413,217.20 
 
170,594.64 
 
170,594.64 
 
591,812.58 
 
$ 
 
489.644.48 $ 
 
489.644.48 $ 1.005.029.78 
 
$ 4.676,245.98 
0.00 $ $ 4,676,245.98 $ 
 
$ 
0.00 0.00 $ 
 
115,272.93 $ 4,676,245.98 
512,487.00 
399,384.39 
5,703,390.30 $ 
 
198,253.50 646,088.03 1,549,175.76 
1.121.245.81 
3.514,763.10 
 
$ 4,676,245.98 $ 
 
489,644.48 $ 6,193:034.78 $ 4,519.792.88 
 
-23- 
 
 WALTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES 
CAPITAl PROJECTS FUND YEAR ENDED JUNE 30 1999 
 
REVENUES 
State Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Capital OuUay Land and Land Improvements Building and Building Improvements Equipment 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES lUSES) 
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 
 
REGULAR 
 
BOND PROCEEDS 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
$ 
 
$ 
 
322.74 $ 
 
3,154.97 
 
$ 
 
322.74 $ 
 
3,154.97 $ 
 
0.00 0.00 
 
$ 
 
25,583.86 $ 
 
369,281.69 
 
178.431.57 
 
$ 
 
573,297.12 $ 
 
$ 
 
572,974.38 $ 
 
3,700.00 $ 81,472.60 
962.94 
86,135.54 $ 
-82.980.57 $ 
 
278,354,20 
278,354.20 -278,354.20 
 
$ 
 
148,887.04 
 
$ 
 
-148,887.04 
 
$ 
 
-758.334.56 
 
$ 
 
-758.334.56 
 
$ 
 
-721,861.42 $ 
 
1.121.245.81 
 
-82,980.57 $ -1,036,688.76 
 
198.253.50 
 
1.549,175.76 
 
FUND BALANCE JUNE 30 
 
$ 
 
399,384.39 $ 
 
115,272.93 $ 
 
512.487.00 
 
See notes to the general purpose financial statements. 
 
-24 
 
 EXHIBIT"H" 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
LOTTERY PROJECT 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 1999 
 
JUNE 30, 1998 
 
$ $ 4,366,051.16 
76.679.51 
$ 4.442.730.67 $ 
 
0.00 $ 
0.00 $ 
 
$ 4,366,051.16 
80,157.22 
4,446,208.38 $ 
 
2,649,084.00 1,691,906.92 
185,609.94 
4,526,600.86 
 
$ 
 
866,386.81 
 
304,520.47 $ 
 
$ 1.170.907.28 $ $ 3.271 ,823.39 $ 
 
$ 148,887.04 
148.887.04 $ -148,887.04 $ 
 
1,174,024.87 $ 904,161.80 179,394.51 
 
27,540.00 8,943,679.05 
374.003.18 
 
2.257.581.18 $ 9,345,222.23 
 
2,188.627.20 $ -4,818,621.37 
 
$ 
 
758,334.56 $ 
 
148,887.04 $ 
 
907,221.60 $ 8,118,141,28 
 
-907,221.60 
 
-6,938,141.28 
 
$ 
 
758,334.56 $ 
 
148,887.04 $ 
 
0.00 $ 1,180,000,00 
 
$ 4,030,157.95 $ 646,088.03 
 
0,00 $ 0,00 
 
2,188,627,20 $ -3,638,621.37 
 
3,514,763,10 
 
7,153,384.47 
 
$ 4,676,245.98 $ 
 
0.00 $ 5,703,390.30 $ 3,514,763.10 
 
-25- 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30 1999 
 
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 1999 Grant National School Lunch Program 1999 Grant 
Total Child 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 Child and Adull Care Food Program 1999 Contract 
Total U. S. Department of Agriculture 
Education, U. S. Department of Spedal Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B  Spedal Education AowThrough 1999 Grant Gapadly Building Improvement 1999 Grant Preschool 1999 Grant 
Total Spedal Education Cluster 
Other Programs Pass-Through From Georgia Department of Education Advanced Placement Incentive Program 1999 Grant Comprehensive School Relonn Demonstration 1999 Grant Elementary and Seoondary Education Act TItle I 
Granls to Local Educational Agendes 
1999 Grant TItien 
Eisenhower ProIessIonal Development 1998 Grant 1999 Grant 
T1tie III Technology Uleracy Chaltenge Fund Granls 1999 Grant 
TItle VI Innovative Education Program Strategies 1999 Grant 
Goals 2000 Stale and Local Education Syslemlc Improvement Granls 1998 Grant 
 
CFDA ~ 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
10.553 10.555 
 
N/A 
 
$ 
 
259,651.46 
 
N/A 
 
1,012,233.69 
 
$ 1,271,885.15 
 
(2) 2,812,223.13 (3) 2,812,223.13 
 
10.550 
 
N/A 
 
134,708.83 
 
134,708.83 
 
10.558 
 
NlA 
 
9,221.44 
 
(2) 
 
$ 1,415,815.42 $ 2,946,931.98 
 
84.027 84.173 84.173 
 
NlA 
 
$ 
 
NlA 
 
NlA 
 
$ 
 
531,166.61 $ 17,630.52 36.230.18 
585,027,31 $ 
 
531,210.58 (3) 17,830.52 36,230.18 
585,071.28 
 
84.330 
 
NlA 
 
84.332 
 
NlA 
 
84.010 
 
N/A 
 
84.281 
 
N/A 
 
84.281 
 
NlA 
 
84.318 
 
N/A 
 
84.298 
 
NlA 
 
84.276 
 
NlA 
 
-26- 
 
90.00 16,865.07 
827,253.77 8,530.00 
30,499.55 40,500.01 26,971.20 
100,984.00 
 
90.00 16,865.07 
827,253.77 9,750.91 
20,748.84 40,500.01 26,971.20 
133,244.58 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30 1999 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education Safe and Drug-Free Schools 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech.Prep Education 1999 Grant 
Total U. S, Department of Education 
Environmental Protection Agency Direct Environmental Education Grants 1999 Grant 
OTHER FEDERAL ASSISTANCE 
Defense. U. S, Department of Direct Department of the Air Faroe R.O.T,C. Program 1999 Grant Troops To Teachers 1998 Grant 1999 Grant 
Total U. S. Department of Defense 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
~ 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
84.186 
84.048 84.243 
 
N/A 
 
24.740.19 $ 
 
24,740.19 
 
N/A 
 
45,024.32 
 
NlA 
 
7,662.84 
 
S 1.714.146.26 
 
50,189.89 (3) 7,662.84 1,743.066.38 
 
66.951 
 
5,000.00 
 
(4) 
 
35.876,19 
 
(4) 
 
7,500.00 
 
(4) 
 
7.500.00 
 
(4) 
 
S 
 
50,876.19 
 
Total Federal Anandal Assistance 
NlA =Not Available 
 
S 3.185.839,87 $ 
 
Notes to the Schedule of ExoendillJres of Federal AwardS 
(1) The amounts shown for the Food Dlsbibution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the aJrrent fiscal year. 
(2) ExpendlllJres for the Child and Adult care Food Program and the School Breakfast Program were not maintained separately and are induded in the 1999 National School Lunch Program. 
(3) ExpendillJres for this program indude Slate. and/or Other Funds. ExpendillJres are not maintained by fund source. 
(4) ExpendillJres on this program were not maintained by fund source. 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
The Board did not provide Federal Assistance to any Subredplenl 
 
The accompanying schedule of expendlllJres of Federal awards indudes the Federal grant activity of the Walton County Board of Education and Is presented on the modified accrual basis of accounting which Is the basis of accounting used in the presentation of the general purpose financial statements. 
 
4,690.020.34 
 
See notes to the general purpose finandar statements. 
 
-27- 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1999 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Record Teachers' Retirement Lottery Programs Assistive Technology Computers In the Classroom 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Public School Employees Retirement 
CONTRACT Education, Georgia Department of Reading First Program 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 17,489,332.00 3,642,902.00 531,388.00 771,774.00 225,437.00 4,748,122.00 
999,990.00 230,817.00 616,578.00 584,653.00 163,749.00 888,469.00 
80,168.00 86,527.00 -4,325,530.00 3,952,904.00 1,551,979.00 
$ 336,161.58 
118,500.00 60,000.00 27,352.58 
500.00 460,065.96 
5,000.00 4,400.00 8,586.00 103,222.00 8,363.13 6,382.50 12,751.82 
 
$ 17,489,332.00 3,642,902.00 531,388.00 771,774.00 225,437.00 4,748,122.00 
 
184,829.00 
 
999,990.00 230,817.00 616,578.00 584,653.00 163,749.00 888,469.00 
80,168.00 86,527.00 -4,325,530.00 3,952,904.00 1,551,979.00 184,829.00 336,161.58 
 
118,500.00 60,000.00 27,352.58 500.00 
460,065.96 5,000.00 4,400.00 8,586.00 
103,222.00 8,363.13 6,382.50 
12,751.82 
 
13,103.37 169,643.00 
 
13,103.37 169,543.00 
 
907,060.41 
 
907,060.41 
 
117,757.00 
 
117,757.00 
 
25,218.00 
 
25,218.00 
 
See notes to the general purpose financial statements. 
 
$ 33,533,519.57 $ 1,274,535.78 $ 34,808,055.35 -28- 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30 1999 
 
SCHEDULE "3" 
 
To pay the costs of adding to. renovating. repairtng. improving and equipping existing educational buildings. properties and facilities of Walton County School Distrtct. including. but not limited to. acquirtng, constructing and equipping two new ' elementary schools and a new middle school. acquirtng any necessary real property, acquirtng schooi buses, and acquirtng and installing computer and other technology related equipment 
 
ORIGINAL ESTIMATED 
COST(1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS 
 
$ 31.000.000.00 $ 31,000.000.00 $ 1.449.261.48 $_....;.10;;:,.0;;;0_0_.00;;. 
 
(1) The Board's ortginal cost estimate as specified in the resolution calling for the imposition of the Locai Option Sales Tax. 
(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion. 
(3) The voters of Walton County approved the Imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds. state, local property taxes and/or other funds over the life of the project. 
 
See notes to the general purpose financial statements. 
 
-29- 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 30 1999 
 
SCHEDULE "4" 
 
EXPENDITURES 
 
ASSISTIVE TECHNOLOGY 
 
COMPUTERS IN THE 
CLASSROOM 
 
PRE-KINDERGARTEN PROGRAM 
 
TOTAL 
 
Current 
 
Instruction 
 
$ 
 
Support Services 
 
Pupil Services 
 
Improvement of Instructional Services 
 
School Administration 
 
Maintenance and Operation of Plant 
 
Student Transportation Services 
 
Other Support Services 
 
13,291.26 $ 
 
11,454.85 $ 
 
160,155.70 
 
848,410.08 $ 873.156.19 
 
36.834.85 531.00 
9,719.13 17,608.26 1.513.58 
684.35 
 
36.834.85 160,686.70 
9,719.13 17,608.26 1,513.58 
684.35 
 
Total Expenditures 
 
$ 
 
13,291.26 $ 171,610.55 $ 
 
915,281.25 $ 1,100.183.06 
 
RECAP: Salaries and Benefits Pre-Kindergarten Program Othar Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program 
 
$ 894,127.62 
13.291.26 171,610.55 21,153.63 
 
$ 1,100,183.06 
 
See notes to the general purpose financial statements. 
 
-30- 
 
 WALTON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999 
 
SCHEDULE "5" 
 
Minimum Expenditure Requirements (Total Allotment) 
Expenditures on Combined Program Basis Salaries (1) Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
23,323,865,00 $ 
 
801,265,90 
 
$ 
 
27,456,506,69 
 
1,134,539,13 $ 
 
1,001,279,70 
 
$ 
 
28,591,045.82 
 
-108,519,42 
 
$ 
 
28,482,526.40 
 
Amount of Underexpenditure for Total Allotment 
 
$ 
 
0,00 $ 
 
0,00 
 
Note: (1) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are 
not included on this analysis in order to comply with program 
guidelines, 
 
See notes to the general purpose financial statements, - 31 - 
 
 WALTON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND - QUALIty BASIC EDVCATlON PROGRAMS YEAR ENpED JVNE 30 1999 
 
GENERAL AND CAREER EDUCATION PROGRAMS 
Kindergarten r) 
Grades 1 - 3 (0) Sub-Total-K-3 
Grades 4 - 5 (*) Grades 6 - 8 (0) Grades 9 12 (oJ 
r> High School Laboratories 
Vocational Education Laboratories (*) Total GeneI1lI and Career Education Programs 
SPECIAL EDUCATION PROGRAMS Regular Programs Category I r) Category II rJ 
r> category III r) category IV 
Sub-Total- Regular 
r) category VI (Gifted) 
Total Special Education programs REMEDIAL epUCATlON PROGRAM M 
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS 
Salaries Operations 
Total Media Center Programs 
Total Fourteen Weighted end Media Center P!ognlms 
STAFF DEVELOPMENT PROGRAMS 
Cost of Instruction Professional Development 
Total Steff Development Pnlgrams 
r) Identifies Fourteen Weighted Programs. 
(1) Salery eccruals (July and August 1999 Deferred Salaries) reported 88 expenditures in 1he General Purpose Fmancial Statements are not Induded on this analysis in order to comply with program guidelines. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF 
 
REQUIRED 
 
ORIGINAL 
 
~ 
 
ORIGINAL 
 
MIDTERM 
 
1,968.812.00 5,387.243.00 7.358.055.00 90 2,396.054.00 90 3,669.785.00 90 2,481.837.00 90 
750.575.00 90 835.026.00 90 17,489.332.00 
 
1.771.930.80 4.848.518.70 8.620.449.50 2.156.448.60 3.302.806.50 2.233.653.30 
875.517.50 751.523.40 15.740.398.60 
 
888.469.00 888.469.00 
888.489.00 
 
3.440,209.00 
 
3,098.188.10 $ 
 
0.00 
 
3.440.209.00 90 202.893.00 90 
$ 3.842,902.00 531.388.00 90 
21.863.822.00 
 
3.096.188.10 182.423.70 
3.278.811.80 478,249.20 
19,497.259.80 
 
0.00 
0.00 0.00 888,489.00 
 
607.186.00 90 
 
546,487.40 
 
0.00 
 
164.588.00 100 
 
184,568.00 
 
771.n4.oo 
 
711.055.40 
 
0.00 
 
$ 22,435,396.00 
 
$ 20.208.315.20 $ 
 
888.489.00 
 
71.104.00 154.333.00 
 
71.104.00 154.333.00 
 
225.437.00 100 $ 
 
225.437.00 $ 
 
0,00 0.00 
..::0.;:;:00::, 
 
- 32  
 
 SCHEDULE "6" 
 
EDUCATION TOTAL 
REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES (1) 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
1,n1,930.80 5,736,987.70 7,508,918.50 2.156.448.60 3.302,806.50 2.233.653.30 
675.517.50 751,523.40 16,628.867.80 
 
2,236.963.32 6,026,030.23 8.262,993.55 3,333,895.90 4,525,656.26 2,892,900.44 1.374.756.35 1,248.338.49 21 .638.540.99 
 
45,408.27 147,747.52 193,155.79 64.194.48 115,783.21 193,096.66 33,166.88 90,263.50 689,660.52 
 
2.282,371.59 6,173,n7.75 8,456,149.34 3,398.090.38 4,641,439.47 3.085,997.10 1,407,923.23 1,338,601.99 22.328.201.51 
 
0.00 0.00 0.00 0.00 0.00 0.00 
 
3.096,166.10 
 
155.246.63 816.312.72 2,866,677.24 209.463.72 
 
8,23215 17.156.36 254,658.54 9,567.86 
 
163,460.78 833.469.08 3.123.735.76 219,051.60 
 
3,096.188.10 
 
4,049,922.31 
 
289,814.93 
 
4,339.737.24 
 
0.00 
 
182.423.70 
 
352.864.51 
 
13,878.02 
 
366.542.53 
 
0.00 
 
3.278,611.80 
 
4,402,786.82 
 
303,492.95 
 
4.706,279.77 
 
478,249.20 
 
668,144.89 
 
6.126.23 
 
676,271.12 
 
0.00 
 
20.385.726.60 
 
26.709,472.70 
 
1.001.279.70 
 
27,710,752.40 
 
546.467.40 $ 164.588.00 
711.055.40 $ 
 
747,033.99 747,033.99 
 
133.259.43 133,259.43 
 
747,033.99 133.259.43 
860.293.42 
 
0.00 31,328.57 
 
$ 21,096.784.20 $ 27,456.506.69 $ 1.134,539.13 $ 28,591.045.82 $ 
 
31,328.57 
 
71,104.00 154,333.00 
225.437.00 
 
296.636.31 19.728.74 
 
296,636.31 19.728.74 
 
316.365.05 $ 
 
316,365.05 $ 
 
~O:;:.OO:::. 
 
33 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR (404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 15, 2000 
 
Honorable Roy E, Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the Walton County Board of Education 
 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL O\TER 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 Walton County Board of Education as ofand for the year ended June 30, 1999, and have issued our report thereon dated May 15, 2000. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements, We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. 
 
Compliance 
 
As part of obtaining reasonable assurance about whether Walton County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government 
Auditing Standards. 
 
Internal Control Over Financial Reporting 
 
In planning and performing our audit, we considered Walton County 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 statemjlnts and not to provide assurance on the intemal control over financial 
 
certain reporting. However, we noted a 
 
matter involving the internal control over financial reporting and its 
 
99YB-40 
 
 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 of the internal control over financial reporting that, in our judgement, could adversely affect Walton County Board of Education's ability to record, process, summarize and report fmancial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-747l-99-02. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. 
This report is intended solely for the information and use of management, members of the Walton County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
~W.~~ Russell W. Hinton State Auditor 
RWH:gp 99YB-40 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.w.. Suite 214 Atlanta, Georgia 30334-8400 
May 15, 2000 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation 
and Superintendent and Members of the Walton County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MATOR PROGRAM 
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Walton County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30,1999. Walton County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requiremenfs of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Walton County Board of Education's management. Our responsibility is to express an opinion on Walton County Board ofEducation's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditinl: Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 Walton County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Walton County Board of Education's compliance with those requirements. 
 
99SA-IO 
 
 In our opinion, the Walton County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30,1999. 
Internal Control Oyer Compliance 
The management of Walton County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Walton County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33. 
Our consideration of the 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use ofmanagement, members of the Walton County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
~~.<th, 
State Auditor 
RWH:gp 99SA-I0 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 WALTON COUNTY BOARD OF EDUCATION 
AUDITEE'S RESPONSE 
SUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30 1999 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7471-97-01 FS-7471-98-01 FS-7471-98-02 
 
Further Action Not Warranted Previously Reported Corrective Action hnplemented Unresolved - See Corrective ActionlResponses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL FIXED ASSETS Failnre to Maintain General Fixed Assets Account Group Finding Control Number: FS-7471-98-02 
 
We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staffrequired to clear this finding. The Board feels it has provided for the most appropriate assigmnent of duties within the number of personnel available to perform the accounting functions. With staff and software limitations, this finding cannot be totally resolved. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30 1999 
SUMMARY OF AUDITOR'S RESULTS 
1. T~e of Report Issued on the Financial Statements The auditor's opinion on the Walton County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 
2. Reportable Conditions in Intema1 Control Disclosed by the Audit of the Financial Statements 
The audit report for the Walton County Board ofEducation disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit of the Walton County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 
4. Reportable Conditions in Internal Control Over Mlior Programs The audit report for the Walton County Board ofEducation did not disclose any reportable conditions in internal control over major programs. 
5. Type ofReport Issued on Compliance for Mlior Pro!WWs The auditor's opinion on the Walton County Board of Education's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Required to be Reported bv Section .510(a) ofOMB Circular A-133 The Walton County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
7. Mlior ProiUJllllS Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 
8. Type "A" Pro~ DOllar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Walton County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-l33. 
-I - 
 
 WALTON COUNTY BOARD OF EDUCATION SCHEDliLE OF FINDINGS AND QJJESTIONEP COSTS 
YEAR ENDED JUNE 30 1999 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $31,328.57 Finding Control Number: FS-7471-99-01 
The Walton County Board of Education reported to the Georgia Department of Education on DE Form 0420 underexpenditures of Quality Basic Education (QBE) funds of $31 ,328.57 for the Operations portion of the Media Centers Programs. This underexpenditure occurred because the Board expended less than the minimum expenditure requirement for this QBE program. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. 
Management's Response: 
Administrative procedures have been established to meet required expenditure control tests in the future. 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7471-99-02 
The Walton County 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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
Management's Response: 
We concur with this finding. Due to current budgetary restraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations, this finding cannot be fully resolved. 
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 WALTON COlJNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30 ! 999 
ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. 
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