Walton County Board of Education, Monroe, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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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

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

28

2 SCHEDULEOFSTATEREVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35'

WALTON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION ill 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

RlJSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S. w., Suite 2 I4
Atlanta, Georgia 30334-8400
May 24,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Walton County Board ofEducation
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 Walton County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Walton County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our oplmon.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment oWIied by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 24, 2002, on our consideration ofthe Walton County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of"the Walton County 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 of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
2001ARL-13

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 506-24.
Respectfully submitted,
~----.
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Ru ell W. Hinton State Auditor
RWH:gp 2001ARL-13

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WALTON COUNTY BOARD OF EDUCATION

WALTON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 4,355,942.85

$ 3,191,083.47

14,000,000.00

9,000,000.00

5,992,536.38 $ 977,737.15

887,038.57

.44,963.01 26,137.41

Total Assets

$ 24,348,479.23 $ 1,048,837.57 $ 13,078,122.04

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contrads Payable Retainages Payable General Obligation Bonds Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Debt Service For Encumbrances For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projeds For State Capital Outlay Projeds Unreserved Designated for Self-Insurance Designated for Land Purchases Undesignated
Total Fund Equity

$ $ 4,394,527.82
5,150,321.64 824.38

40,844.78 312,593.64 $ 519,941.95

305,461.94
842,362,00 371,899.66

$ 9,545,673.84 $ 873,380.37 $ 1,519,723.60

$

81,168.84 $

1,254.67 $ 8,442,516.31

31,328.57

100,000,00 6,745,152.00 7,845,155.98
$ 14,802,805.39 $

44,963.01 26,137.41

2,563,519.78 407,310.00

103,102.11

145,052.35

175A57.20 $ 11 ,558,398.44

Total Liabilities and Fund Equity

$ 24,348A79.23 $ 1,048,837.57 $ 13,078,122.04

The notes to the general-purpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

381,415.04

$ 7,928,441.36 $ 20,295,223.29

23,000,000.00

46,145.44

54,104.55

7,911,416.65

8,321,172.90

$

435,519.59

11 ,044,480.41

44,963.01 26,137.41 435,519.59
11 ,044,480.41

39,758.78 31,387.87 446,997.46
11,848,002.54

$

435,519.59 $

11,480,000.00 $ 50,390,958.43 $ 41,028,688.28

$

40,844.78 $

20,592.23

5,012,583.40

913,892.81

5,670,263.59

5,030,411.96

824.38

842,362.00

419.348.62

371,899.66

60,402.23

$

11,480,000.00

11,480,000.00

12,295,000.00

$

11,480,000.00 $ 23,418,777.81 $ 18,739,647.85

$

435,519.59

0.00

$

435,519.59

$

435,519.59 $

8,524,939.82

31,328.57

446,997.46 31,328.57

44,963.01 26,137.41
2,563,519.78 407,310.00

39,758.78 31,387.87 117,806.44 9,792,625.71 404,291.16

100,000.00 6,745,152.00 8,093,310.44

11,424,844.44

$ 26,972,180.62 $ 22.289,040.43

$

435,519.59 $

11,480,000.00 $ 50.390,958.43 $ 41p28,688.28

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WALTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

FUND BALANCE JUNE 30

$ 14,802,805,39 $ ==1=7,,;;,5=.4=57=,2;:0,=

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

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EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 3,410,272.59

$ 42,319,106.50 $ 34,840,749.29

4,516,797.73

4,347,025.47

5,358,530.65 $ 1,383,285.25

29,628,758.87

25,864,276.49

654,097.89

30,804.28

3,328,982.85

2,519,212.44

$ 9.422,901.13 $ 1.414,089.53 $ 79,793,645.95 $ 67,571,263.69

$ 42,599,741.83 $ 36,560,930.79

$ 9,197,265.66

1,904,409.82 1,414,640.73 1,169,357.77 1,532,105.04 3,411,863.90
483,498.26 4,897,083.79 2,609.420.62
364,414.25 895,073.21 3,205,767.25
250.00 9,197,265:66

2,594,097.13 1,032,940.85 1,093,141.99 1,387,141.99 3,282,553.21
510,495.75 3,666,572.55 2,398,279.30
849,654.24 116,296.70 2,994,452.26
1,412,458.66

$

815,000.00

609,770.00

797.40

815,000.00 609,770.00
797.40

770,000.00 646,180.00
801.65

$ 9,197,265.66 $ 1,425,567.40 $ 75,110,459.53 $ 59,315,997.07

$

225,635.47 $

-11.477.87 $ 4,683,186.42 $ 8,255,266.62

$

872,987.31

$

872,987.31

$ 1,019,162.98 $ -1,019,162.98

$

0.00 $

147,499.43, -147,499.43
0.00

$ 1,098,622.78 $ 10,459,775.66

-11.477.87 $ 4,683,186.42 $ 8,255,266.62

446,997.46

22,289,040.43

14,019,317.75

5,204.23 -5,250.46

6,138.09 8,317.97

$ 11,558,398.44 $

435,519.59 $ 26,972,180.62 $ 22,289,040.43

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WALTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
. BUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

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

WALTON COUNTY BOARD OF EDUCATION

EXHmIT liD"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

. JUNE 30. 2001 .

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Walton County 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 leg~l entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other . entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results 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. Ail 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 AssetsAccount Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual. schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles; these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units; unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund u~ed to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

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WALTON COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 i

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other fiDancing 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 ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exch"ange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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WALTON COUNTY BOARD.OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

.

.

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

. A substantial n"QIIlber of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically 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 are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements:

BUDGET

The Walton County Board of Education's budget is a complete financial plan for th~ 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.

-

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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 circulation in the locality. At the next regular meeting ofthe

Board after advertisement, the Board receives comments on the tentatIve'budget, makes revisions as

necessary and adopts a final school budget. This final budget is then submitted, in accordance with

provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia

-Department of Education. The Board may increase or decrease the budget at any time during the

year. All unexpended budget authority lapses at fiscal year-end.

.

-CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investrnents with original maturities of three months or less from the date of acquisition in authorized financial institutions. 'Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

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

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WALTON COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

recorded on the general-purpose financial statements do' not include any amounts. which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Walton County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on August 14,2000 (levy date). Taxes were due on November 15, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Walton County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $21,925,512.82 and for school bonds amounted to $1,333,345.99.

Tax millage rates levied for the 2000 tax year (calendar year) for the Walton County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

18.04 mills 1.05 mills

19.09 mills

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 $5,358,530.65 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $14,569,860.70 has been collected or on December 31, 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 ofpurchase. The inventories reported on the balance sheet for donated Iood commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

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WALTON COUNTY BOARD OF EDUCATION

EXHffiIT"D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated, No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Teim Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
I
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 and credit <?fthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
FUND BALANCES RESERVED
For Encumbrances - This reserve constitutes the unperformed portion ofpurchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year ,because the commitments will be honored during the subsequent year.
UNRESERVED - DESIGNATED Designated fund balances represent tentative plans for future use of financial resources.
INTERFUND TRANSACTIONS
The School District.has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed..
Operating transfers are recorded for all interfund transactions other than reimbursements.

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WALTON COUNTY BOARD OF EDUCATION

EXHIDIT "0"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

.JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose fmancial 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
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not . been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and

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WALTON COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

" (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. "

CATEGORIZAnON OF DEPOSITS At June 30, 2001, the bank balances were $24,112,770.13. The amounts ofthe total.bank balances are classified into three categories of credit risk:

Category,1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging"financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with 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

$ 912,455.68

2

23,200,314.45

3

0.00

Total

$24.112.770.13

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities frorri the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related.illness or injuries to employees; natural disaster and unemployment compensation.

- 14-

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WALTON COUNTY BOARD OF EDUCATIONEXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 200i

Note 4: RISK MANAGEMENT

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.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $

9,894.00 $

9,894.00 $

0.00

$

0.00 $ 16.483.58. $ 16.483.58 $

0.00

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

Position Covered

Amount

Superintendent All Other Employees

$ 100,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1995

4.20% - 6.00% $11.480,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

- 15 -

- ~----------------~="...----------~-~-----

WALTON COUN:r, BOARD OF EDUCATION

EXHIDIT "0"

,NOTES TOlliE GENERAGPURP0SEEINANCIAL STATEMENTS

;JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1,2000 ," Deductions
Debt Retired

$12,295,000.00 815,000.00

Balance June 30, 2001

$11.480,000.00

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
2002 2003 2004 2005 2006 , 2007 - 2011
Total Principal and Interest
Note 6: ON-BEHALF PAYMENTS

General Obligation
Bonds
$ 1,160,920.00. 1 1,467,915.00 ' 1,478,080.00 1,485~550.00 1,489,050.00 7,652,650.00
$14.734.165.00

The School District has recognized revenues and expenditures in the amount of $670,021.25 for

health insurapce and retirement contributions paid on the School District's behalf by the following

State A:genbi'es.

..

Georgia Department of Education Paid to the Georgia Department ofCo~unity Health For He~ith Insurance of Non-Certified Personnel In the amount of$523,202.81
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $13,288.44

- 16-

WALTON COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL~PURPOSE FINANCIAL STATEMENTS

JUNE 30, 20d I

Note 6: ON-BEHALF PAYMENTS

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 $133,530.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

GSFIC 98/97S-747-100 Monroe Primary Addition Lottery 02G-01S-747-038

$ 196,907.64 41,898.33 31,648.08

$ 461,238.30 3,665,793.00

$ 270.454.05 $ 4.127,031.30

The amounts described in this note are not reflected in the general-purpose financial statements.

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by 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.

Note 9: SUBSEOUENT EVENTS

On September 18, 2001, the voters of Walton County voted in favor of a Special Purpose Local Option Sales Tax Referendum (commencing upon expiration ofthe current 1 percent sales and use tax). The imposition of the tax approved by the voters, as stated on the Official Ballot Walton County, is as follows:

- 17 -

,-----------------------------------~~~~~------

."

.

WALTON COUNTY BOARD OF EDUCATION

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

EXHffiIT "D"

Note 9: SUBSEQUENT EVENTS
"Shall a one percent (1 %) sales and use tax for educational purposes be imposed, levied and collected in Walton County, Georgia by Walton County School District ... for a period of time not to exceed five .years (20 calendar quarters), beginning immediately upon the expiration of the one percent sales and use tax for educational purposes which was approved by a majority ofthe voters ofWalton County, Georgia in September, 1997, and for the raising ofnot more than $46,410,000 ($40,390,000), for the purpose in Walton County School District of providing funds" to pay the costs ~of acquiring, constructing and equipping two new elementary schools and a new high school, acquiring land for future school sites, and adding to, renovating, repairing, improving, furnishing and equipping existing educational buildings, properties and facilities of the Walton County School District and paying expenses incident thereto?
If the imposition of the tax is approved by the voters of Walton County, Georgia, such vote shall also constitute approval of the issuance of general obligation debt of Walton County School District in the aggregate principal amount of$15,000,000 for the "above purpose."
Note 10: ACCUMULATED EMPLOYEES' LEAVE
Personnel employed on a twelve-month basis shall be entitled to two weeks vacation at the end of the first through fourth years of employment and three weeks of vacation at the end ofthe fifth and subsequent years ofemployment. Vacation time shall be earned on a monthly basis. No more than five weeks of accumulated vacation may be carried over to the following fiscal years.
The School District's professional personnel, administrative staff, bus drivers and certain other fulltime employees earn one and one-quarter days of sick leave each month with a maximum accumulation of 180 days. The School District has also implemented a buy back of sick leave policy. Upon retirement, an employee with a minimum of five years of full-time service in the school system will be eligible to sell unused sick leave. Days will be bought back at half of the current substitute pay for the position held by the employee at the time of retirement or the closest equivalent position. In addition, ifan employee chooses to leave the school system before retirement for other employment after being employed full-time for a minimum often consecutive years, they will be eligible to sell unused sick leave athalfthe current substitute rate for the position held by the employee at the time they leave employment or the closest equivalent position. Teachers and bus drivers, however, may only sell down to 45 days of sick leave if they leave for employment with another school district.
Note 11: RETIREMENT PLANS

- 18 -

", .....
;:', ' .~ , ", ,.L;

WALTON COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 20tn

Note 11: RETIREMENT PLANS

employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teac~ers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 3,935,583.57 $ 3,614,934.50 $ 3,501,886.15

- 19-

WALTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated' Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Encumbrances For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

325,421.55 $

158,834.36

23,881.42

20,635.81

44,963.01 26,137.41

$

420,403.39 $ ===17:.;;9"",.4;,;.7=:0.:=17==

$

58,336.38 $

51,586.69

187,864.48

127,883.48

$

246,200.86 $

179,470.17

$

44,963.01

26,137.41

103,102.11 $

$

174,202.53 $

0.00 0.00

$

420,403.39 $ ==1,;,,;7.;;;,9.4;,;,,70;';';,;,,17~

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

EXHIBIT"E"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

484,255.91 $

327,924.67

$

933.219.92

977,737.15

636.555.77

44,963.01 26,137.41

39,758.78 31,387.87

$

933,219.92 $ 1,533,093.48 $ 1,035,627.09

$

525,100.69 $

525,100.69 $

348,516.90

202,670.57

312,593.64

69,184.66

204,193.99

519,941.95

411 ,311.70

$

931,965.25 $ 1,357,636.28 $

829,013.26

$

1.254.67 $

1,254.67

44,963.01 $ 26,137.41

39.758.78 31.387.87

0.00

103,102.11

135,467.18

$

1,254.67 $

175,457.20 $

206,613.83

$

933,219.92 $ 1,533,093.48 $ 1,035,627.09

- 21 -

WALTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services 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
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ .-. 225,230,00 $ 1,536,932.32 1,411 ,239.86
'$ 3,173,402.18 $

1,171,959.67 1,171 ,959.67

$ 1,138,305.05

$ 3,205,767,25

111,921.99 1,188,20 635.78 5,284.30 1,239.89 1,367.25 487.17

$ 3,205,767,25 $ 1,260,429,63

$

-32,365.07 $

-88,469.96

$

-32,365.07 $

206,613,83

5,204.23 -5,250.46

88,469.96
0.00 0.00

$

174,202.53 $====0=.=00=

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

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,397.189.67 $ 1.394.250.29

$ 2.928.687.67

4,465.619.99

4,305.849.00

1,411,239.86

1.343,436.49

$ 2.928.687.67 $ 7,274.049.52 $ 7.043,535.78

$ 2.370,033.05 $
77,159.52 357.753.82
83.017.26 3.950.00

93,225.06

$ 2.985.138.71 $

$

-56.451.04 $

3.508,338.10 $
189,081.51 358.942.02 83.653.04
9,234.30 1.239.89 1.367.25 93.712.23 3.205,767.25
7.451.335.59 $
-177.286.07 $

3.461.252.73
155.532.78 270,373.86 143,858.52
10,598.25
2.197.76 55,534.20 2.994,452.26
7.093.800.36
-50.264.58

57.705.71

146.175.67

147,499.43

$

1.254.67 $

-31.110.40 $

97,234.85

0.00

206.613.83

94.922.92

5.204.23 -5.250.46

6,138.09 8.317.97

$

1,254.67 $

175,457.20 $ =====2=0.6..=:,6=13=.8=3=

- 23-

,~

~_~

--~_-----c----------

-

WALTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

145,052.35 $

0.00 $

1,302,444.17

Total Assets

$

145,052.35 $

0.00 $ ==,=1",,=,30=2===,444;"";"':;',;,,;17=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Encumbrances For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ . 145,052.35 $

$

145,052.35 $

Total Liabilities and Fund Equity

$

145,052.35 $

$

1,700.00

805,129.62

371,899.66

$

1,178,729.28

$

123,714.89

0.00 0.00 $

0.00 123,714.89

0.00 $==1=,3=0;;;;2=,444===:;.=17=

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX
$ 1,336,276.95 $
9,000,000.00
887,038.57

LOTIERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

407,310.00 $ 3,191,083.47 $ 8,764,623.89

9,000,000.00

46,145.44

887,038.57

2,393,665.58

$ 11,223,315.52 $

407,310.00 $ 13,078,122.04 $ 11,204,434.91

$

303,761.94

37,232.38

$

340,994.32

$

$

305,461.94

842,362.00

371,899.66

$ 1,519,723.60 $

264,908.40
419,348.62 60,402.23
744,659.25

$ 8,318,801.42 2,563,519.78 $
0.00 $ 10,882,321.20 $

$ 407,310.00

8,442,516.31 $
2,563,519.78 407,310.00

117,806.44 9,792,625.71
404,291.16

0.00

145,052.35

145,052.35

407,310.00 $ 11,558,398.44 $ 10,459,775.66

$ 11,223,315.52 $

407,310.00 $ 13,078,122.04 $ 11,204,434.91

- 25-

WALTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 3D. 2001

FUND BALANCE JUNE 30

$

145,052.35 $

0.00 $===1=2=3=?..1.4=,=c89=.

See notes to the general-purpose financial statements,

- 26-

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

.YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ $ 5,358,530.65
653.437.52
$ 6,011,968.17 $

0.00 $ 0.00 $

3,410,272.59 $ 5,358,530.65
654,097.89
9.422,901.13 $

740,872.11 5,013,650.57
288,541.16
6,043,063.84

$

16,124.00

3,169,512.89

73,821.40

$ 3,259.458.29

$ 2,752,509.88

$

848,571.50 $

3,091.15

8,274,872.76

1,283,587.33

73,821.40

$ 9,197,265.66 $ 1,286,678.48

$

225,635.47 $ 4,756,385.36

$ $ -1 ,662,814.39
$ -1,662,814.39 $

407,310.00 $ 2,535,801.70 $ -1 ,662,814.39

407,310.00 $

872,987.31 $

245,607.04 -245,607.04
0.00

$ 1,089,695.49 $ 9,792,625.71

407,310.00 $ 1,098,622.78 $

0.00

10,459,775.66

4,756,385.36 5,703,390.30

$ 10,882,321.20 $

407,310.00 $ 11,558,398.44 $ 10,459,775.66

- 27-

,---------------------------------------------~"- - - - -

WALTON COUNTY 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 Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Footl Distribution Program (1) Fresh Produce Program (1)
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 Act Part B - Special Education Capacity Building Improvement Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From DeKaib County Board of Education Elementary and Secondary Education Act Title III Technology Literacy Challenge Fund Grants Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant
Total U, S. Department of Education

CFDA NUMBER
10.553 10,555 10.559
10.550 10,550
84.027 84,027 84,173
84.318 84.332 84,010 84.281 84,298 84,340 84,276 84,186 84,048

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NlA

$ 280,352.90

(2)

N/A

1,047!966.21 $ 3,137,077.87 (3)

NlA

22,755.33

(2)

$ 1,351,074.44 $

3,137,077.87

NlA

159,857.88

159,857.88

N/A

26,000.00

26,000.00

$ 1,536,932.32 $

3,322,935.75

N/A

$ 40,478.00 $

NlA

819,063.00

NlA

44,223.00

.$ 903,764,00 $

41,017.95 (3) 835,008.69 (3)
44,223.00
920,249,64

N/A

135,000.00

135,309,77 (3)

NlA

110,000.00

112,809,06 (3)

N/A

1,297,785.00

N/A

66,905,51

NlA

86,574.89

N/A

209,434.00

1,314,445.55 (3)
66,905,51
99,263,91 (3) 210,641.49 (3)

NlA

17,536,27

N/A

42,135.00

22,313,96 (3) 42,142,62 (3)

NlA

59,553.00

61,057,20 (3)

$ 2,928,687.67 $

2,985,138.71

- 28-

WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense, U. S. Department of Direct Department of the Air Force R.O.T,C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY .ID .'NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$ 51,177.74

(4)

Total Federal Financial Assistance

$ 4,516;797,73 $=-~6.:;;3;;,;08a1..,.07.,.;4,;,;.4.;;.6

NlA = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program and the Fresh Produce Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current .fiscal year,
(2) Expenditures for the School Breakfast Program and the Summer Food Service Program for Children were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source,
(4) Expenditures on this program were not maintained by fund source.

Major Programs are identified by an asterisk (0) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the 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.

See notes to the general-purpose financial statements.

- 29-

WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNDING

GRANTS Community Affairs, Georgia Department of Community Service Activities

Education; Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

Kindergarten Program. Early Intervention Program

Primary Grades (1-3) Program

Primary Grades Early Intervention (13) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational laboratory (912) Program

Students with Disabilities

.

Category I

Category II

Category !II

Category IV

Category V

Gifted Student Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other languages (ESOl)

Special Education Supplemental Speech

Media Center Program

Staff and Professional Development

Indirect Cost

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Principal Supplements

Vocational Supervisors

Deferred Summer Salaries (Prior Year)

Deferred Summer Salaries (Current Year)

Education Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

Apprenticeship Program

AtRisk Summer School Program

Charter Schools

Health Insurance

Mentoring Program

Menior Teachers

Preschool Handicapped Program

Remedial Summer School

Teachers' Retirement

Lottery Programs

Computers in the Classroom

Board of Regents of the University System of Georgia Schools Mentoring Schools Grant

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

16,000.00

$

16,000.00

1,652,442.00 598,812.00
5,575,807.00 731,895.00
2,965,998.00 4,651,360.00 3,291,725.00 1,283,161.00
525,833.00
934,79~.00
2,736,075.00 483,548.00 10,855.00 435,139.00 236,477.00 333,709.00 116,129.00 24,147.00 832,667.00 236,138.00
4,863,113.00

1,652,442.00 598,812.00
5,575,807.00 731,895.00
2,965,998.00 4,651,360.00 3,291,725.00 1,283,161.00
525,833.00 934,795.00 2,736,075.00 483;548.00
10,855.00 435,139.00 236,477.00 333,709.00 116,129.00 24,147.00 832,667.00 236,138.00 4,863,113.00

1,128,329.00 301,016.00 196,348.00 40,892.00 53,412.00
-4,415,557.00 4,957,878.01 1,479,675.00
$ 69,752.44

225,230.00

45,000.00 16,532.77
175.62 523,202.81
3,946.29 11,410.00 135,128.00 7,481.58 13,288.44

191,845.00

1,128,329.00 301,016.00 196,348.00 40,892.00 53,412.00
-4,415,557.00 4,957,878.01 1,479,675.00
225,230.00 69,752.44
45,000.00 16,532.77
175.62 523,202.81
3,946.29 11,410.00 135,126.00 7,481.58 13,288.44
191,845.00

50,000.00

50,000.00

$ 3,410,272.59

3,410,272.59

- 30

WALTON COUNTY BOARp OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNpING
GRANTS Georgia Slate University School-Wide Discipline Initiative
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program
Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

10,000.00

$ 980,114.67

133,530.00

$

10,000.00

980,114.67

133,530.00

73,155.00 121,760.00
19,465.28

73,155.00 121,760.00
19,465.28

$ 37,511,844.24 $ 1,397,189.67 $ 3,410,272.59 $ 42,319,106.50

See notes to the general purpose financial statements.

31 -

WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT
To pay the costs of adding to, renovating, repairing, improving and equipping existing educational buildings, properties and facilities of Walton County School District, induding, but not limited to, alXluirin9, constructing and equipping two new elementary schools and a new middle school, alXluiring any necessary real property, alXluiring school buses and alXluirin9 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 (3)

PROJECT STATUS

$ 31,000,000.00 $ 32,282,537.00 $ 8,205,811.54 $ 2,491,608.13 Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax,
(2) The School District's current estimate of total cost for the project. Indudes 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 indude 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.

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WALTON COUNTY BOARD OF EDUCATION GENERAL FUND - gUALITY BASIC EDUCATION PROGRAM CgBEl
. ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCAnON (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category III

Category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English SpeakerS of Other Languages (ESOL)

1.922.654.00 $ 696,731,00
6.487.581,00 851.578.00
3.451.009.00 5,411,966.00 3,829.998,00 1,492.987.00 5.486,338,00
506.258.00 275,145.00 388,278,00 135,121,00

1.963.384.11 $ 1,135,362.08 6,334,403,75
889.240,02 3.667.856.23 5,837,350.51 4.843.266,20 1.339.883.84
385,703,15 984.539.15 3,637,962.79 130,593.16 465.866.63 422,983.44 563.266.14 204.197.32

163.230;32 $ 11.293,95
370.236.94 14.117,25
270,502.7;4 ,312,716,08
292,833,44 247,466,33
11,105.46 13,898.61 276.588,16
7,768.81 13.727.84 4,925.53
7.024,08 7,745.43

2.126.614.43 1,146,656.03 6.704.640.69
903.357.27 3.938.358.97 6.150.066.59 5,136,099.64 1.587.350.17
396.808.61 998,437,76 3,914.550.95 138,361.97 479.594.47 427,908.97 570.290.22 211,942.75

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

30.935.644.00 $ 32,805.858,52 $ 2.025.180,97 $ 34.831.039.49

Media Center Program Staff and Professional Development

968,829,00 274,752.00

949,458.71 53,823.63

206.466.76 244,612.81

1,155,925.47 298.436.44

TOTAL aBE FORMULA FUNDS

$

32,179,225.00 $ 33,809.140.86 $ 2.476,260.54 $ 36,285.401.40

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

,- 34-

WALTON COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Atha Road Elementary School' Loganville Primary School Loganville Elementary School Carver Middle School Walnut Grove Elementary School Loganville High School Loganville Middle School Monroe Primary School Walker Park Elementary School Monroe High School Monroe Elementary School CrossRoads Alternative Facility Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

262,866.13

$

3,160,738.00

3,297,822.92

2,811,370.00

2,864,924.55

3,363,921,00

3,706,731.71

2,464,009.00

2,819,471.43

3,805,872.00

4,236,415.11

3,782,940.00

4,301,046.73

2,590,312.00

2,726,495.13

2,699,746.00

3,191,553.55

3,438,396.00

4,445,196.03

2,430,062.00

2,520,715.07

457,801.13

388,278.00

$

30,935,644.00 $ 34,831,039.49

See notes to the general-purpose final')cial statements.. - 35-

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 30j34-8400
May 24, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Walton County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED' ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN . ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Walton County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 24,2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Walton County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance t~at 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 statements and not to provide assurance on the internal
2001YB-41

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 Walton County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7471-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-747l-0l-0l to be a material weakness.
This report is intended solely for the information and use of the 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,
~.~nW'~ State Auditor
RWH:gp 2001YB-4l

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS w., 254 Washington Street. S. Suite 214
Atlanta. Georgia 303'34-8400
May 24, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the . Walton County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofWalton County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Walton County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Walton County Board of Education's management. Our responsibility is to express an opinion on Walton County Board of Education's compliance based on our audit. .
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, 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 ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An auditincludes 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.
2001SA-1O

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 ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over 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 ofEducation'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 compliahce and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the 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,

RWH:gp 2001SA-1O

Rus 11 W. Hinton State Auditor

SECTIONllI 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, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7471-99-01 FS-7471-99-02 FS-7471-00-01 FS-7471-00-02

Unresolved - See Corrective Action/Responses Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $31,328.57 Finding Control Number: FS-7471-99-01

The finding will be resolved by the Georgia Department of Education through a future increase in the School District's local five mill share portion of the QBE allotments.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7471-00-02

Due to current budgetary restraints, the School District is unable to hire additional staff required to clear this finding. The School District 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 fmding cannot be fully resolved.

SECTION IV FINDINGS AND QUESTIONED COSTS

WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Walton County Board of Education'S financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the 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 Major Programs The audit report for the Walton County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Walton County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51Ofa) 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-B3.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Food Services - Summer Food Service Program for Children 84.027 Individuals with Disabilities Education Act - Part B - Special EducationCapacity Building Improvement 84.027 Individuals with Disabilities Education Act - PartB - Special EducationFlow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool
- 1-

WALTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS 8. Type "A" Program Dollar Threshold
The dollar threshold for type "A" programs was $300,000.00 9. Low Risk Auditee
.The Walton County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. IT FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year . Finding Control Number: FS-7471-01-01 The Walton County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken. by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description.. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND.OUESTIONED COSTS No matters were reported.
.:. 2 - .