Ware County Board of Education, Waycross, Georgia, report on audit for the financial year ended June 30, 2000

... ,

.-

'" .'
~

" .-
"''\' , ..~

WARE COUNTY BOARD OF EritrCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

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

STATEMENT OF REVENUES, EXPENSES AND .

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

10

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS SPECIAL REVENUE FUND ..

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

f f, j

,

C'.'

.'. ,

. ,I

'])

!,

," C:.

,r

,,

I'.

;~-~H

.. ,.

'".

;',u/;,\. l1l.

, "

,,'

.1

,.
:.r " r .,-. ".( ,j

, .. f. .. ,

')

,.

,.~ :),'.f.""".,r

..... "', ,"

:)

I;

l

, .:i

".

, ,'

" ,J >1

,.. : I

.'

,.1

. )
," ,'L '\.

.-'

"ll"' .-

,U

I '", ,.,,n

,

,',', I

"

i:/ I

/',

J

,j.",

; ''1.'

"
' I ; r I ' J',
.:.... '

):-,'

. :5l "

',.'

,J

iI',
" -::

,

[\.-'.

~ '~,'

'" J

..J

WARE COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

EXHffiITS

COMBINING AND INDNIDUAL FUND STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

34

N

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

35

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

36 .

2 SCHEDULE OF STATE REVENUE

38

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

39

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

41

5

BY PROGRAM

42

SECTION IT
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT 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

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

----

-----

,,

"
I r, "I
,.r-

'.',

"

:~ ':',U )

I.

-I

"

<,

'.

l: /
,,
1

"
. ..,
,r.,; t

"
.,:

., f

'-

"
,~-:" ,. .'

"
,,
..
T"

WARE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

,'
."

SECTION I FINANCIAL

~ , - - -_ _

~ c _ c__

, - '-'.

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

'DEPARTMENT OF AUDITS AND ACCOUNTS
254 \VashinglOll Street. S.W.. Suite 214 Atbnta. Georgia ~0334-X4()()
March 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Ware County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Ware County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2000ARL-13

"
' I ';1"
.,

.,. "

"
: /,
.,'

, ,I' '.
,'

"

.,
,
'

'. j

"

"

!','J:- ]
"

.~ j
."

,"

..

"

"
."
.. ~

r-; "oj,

. ~l:

r~ C'

-,.j'
"

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

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.

* School activity accounts maintained at the individual schools are not included in the

general purpose financial statements. To conform to generally accepted accounting

principles, these accounts should be included in the general purpose financial

)

statements.

* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these umecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.

The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.

In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose fmancial statements referred to above present fairly, in all material respects, the financial position ofthe Ware County Board ofEducation as ofJune 30, 2000, and the results ofits operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated March 8, 200I, on our consideration of the Ware County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

2000ARL-13

"
.., ,,
1,. :, ~.! :..
....,.1 d.

r.r< "

, .,

.' -' 1

'.J , i'

Jr: .'.

';' )jj!

',.i

{",r

' ....

,.

.

_i

",-. C~

' .. 1

..

'J

"
- .,~.;.

','
[.

,.
,j
)',

" -'.I

j"

',.

"

"

,.

,.

' j

.,,
:'.-

Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Ware County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits G through N) 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-l33, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 506-24.
Respectfully submitted,

RWH:jb 2000ARL-13

Rus ell W. Hinton State Auditor

.'
. ' J.'

. '
'.:

"""

',I .. ".
.,

.. ~

.' ,

.1.

.t,.

..,'

,,

~.

,,

WARE COUNTY BOARD OF EDUCATION

WARE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2000

~ Cash and Cash Equivalents
Investments
Investments Held by Trustee
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 Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND'

$

110,562,20 $ 873,100.19 $ 2,709.361.68

3,171,123.52

6,819,209.79

546,600,72

543,629,13

791,116.05

56,121,29 34,144.91

Total Assets

$ 3.830.506.44 $ 1,509, 195.52 $ 10,319.687.52

LIABILITIES ANp FUND EQUITY

LIABILITIES

/['

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable

Total LIabilities

FUND EQUITY

Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undeslgnated

Total Fund Equity

$

335,616,20 $

157,641.39 $

17,924.48

4,550,00

516,097,49

11.51

4,306,65

6,564,67

146,670,00

$

340,179,71 $ 678,247.53 $

173,179.35

$

564,960,00

$

8,917.52 100,00

70,645,67 2,654,701,06
$ 3,490,326,73 $

58,121.29 34,144.91
$

4,205,492.89 4,659,642,45 1,246,663,46

729.664.27 630,947,99 $

32,709,35 10,146,506,17

Total LIabilities and Fund Equity

$ 3.830.506.44 $

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

1,509,195.52 $

10,319,687.52

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

7.546.68

$ 5.272.780.68

3.850.89

1,336.37

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 3D, 2000

JUNE 30, 1999

$ 3,700,590,75 $ 4,414,598,97

15,263,113.99

13.861.363.98

3.860.89

3.684.46

1.885.082.27

1.745.818.66

$ 3.405.031.80

58.121.29 34.144.91
3.405.031.80

63.125.10 26.660.02
3.064.740.80

16.064.968.20 669.461.65

16.064.968.20 669,461.65

18.335.259.20 778.859.79

$ 5,274.117.05 $

11,397.57 $ 20,139.461.65 $ 41:084.365.75 $ 42.294.110.98

$ 1.869.085.25 $
$ 1.869.085.25 $

7.503.65 $

$
669.461.65 19.470.000.00

1.869.085.25 511.384.07 $ 520.647.49 4.320.16 6.584.87 148.670.00 7.503.65 669.461.65
19470.000.00

382.230.02 463.580.34
3.078.09 513.825.58 164.850.70
6.627.28 778.859.79
21 ,400.000,00

7.503.65 $ 20.139.461.65 $ 23.207.657.14 $ 23.713.051.80

$ 3.405.031.80 $

3.000.00

0.00 $ 3.405.031.80 $

893.92 3.893.92

$

564.980.00 $

393.885.00

8.917.52

18.549.05

100.00

650.00

3.405.031.80

3.064.740.80

3.000.00

3.000.00

58.121.29 34.144.91 4.205.492.89 4,659,642.45 1.248.663.48

63.125.10 26.660.02 7.142.559.72 2.712.577.47 1.248.663.48

70.645.67 3.617.968.60

13.971.36 3.892.677. 18

$ 17,876.708.61 $ 18.581.059.18

$ 5,274,117.05 $

11,397.57 $ 20,139.461.65 $ 41 ,084,365.75 $ 42.294,110.98 -3-

.'

WARE COUNTY BOARD OF EDUCATION

COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30. 2000

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues

EXPENDITURES

Current

Instruction

Support Services

Pupil Services

_

Improvement of Instructional Services

Educational Media Services

General Administration.

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Food Services Operation

Capital Outlay

Debt Service

'., .

Principal

Interest

Paying Agent Fees

. GENERAL FUND

SPECIAL REVENUE
FUND

OTHER FINANCING SOURCES (USES)
Capital Leases Operatin9 Transfers In Operating Transfers Oyt
. ' . Total Other Financing Sources (U.s" es) f
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

$

29.435.62

7,959.68

_ _ _ _ _ $ _ _.:!-7~,9!:<5;?c.9.~68!...

37.395.30 $ _._._....:.-:!o7,C!9~59~.6~8!...

$

-141.263.38 $

3.631,590.11

83,976.15 744,490.76

-5.003.81 7.484.89

FUND BALANCE JUNE 30

$

3.490.326.73 $ _ _:;:83~0:.;.9~4:.:.7..:.9~9:.

The notes to the general purpose financial statements are an inte9ral part of this statement. - ! - 4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Onlyf YEAR ENDED.

JUNE 30, 2000

JUNE 30, 1999

$ 28,974,261.16 $ 28,612,250.58

4,722,471.79

4,168,379.24

$ 1,947,064.98 $ 2,988,288.56

13,347,674.81

12,663,818.16

353,521.06

293,202.29

2,488,670.10

2,228,991.69

$ 2,300,586.04 $ 3,281,490.85 $ 49,533,077.86 $ 47,673,439.67

$ 28,680,315.32 $ 26,641,594.74

$ 3,290,587.89

2,191,988.97 1,070,220.37
934,043.65 453,872.31 2,558,686.48 237,534.20 2,526,724.35 1,612,553.95 364,541.65 480,730.89 2,644,124.61 3,391,832.56

1,993,288.33 1,228,758.95
929,303.68 403,925.82 2,422,945.51 236,421.67 2,532,279.39 1,421,837.74 327,486.82 500,270.33 2,513,666.85 3,644,889.25

$ 1,930,000.00 1,009,855.00 1,344.85

2,068,231.76 1,062,765.64
1,344.85

365,668.91 1,181,029.09
1,908.00

$ 3,290,587.89 $ 2,941,199.85 $ 50,269,511.56 $ 46,545,275.08

$

-990,001.85 $

340,291.00 $

-736,433.70 $ 1,128,164.59

$

29,435.62

7,959.68 $

48,550.91

-7,959.68

-48,550.91

$

'29,435.62 $

0.00

$' -990,001.85 $ 11,136,510.02

340,291.00 $ 3,064,740.80

-706,998.08 $ 18,577,331.69

1,128,164.59 17,453,015.13

-5,003.81 7,484.89

-800.43 -3,047.60

$ 10,146,508.17 $ 3,405,031.80 $ 17,872,814.69 $ 18,577,331.69

- 5-

,-

,
"

,.

. -'.,

'.

, r .,

.:r

.','.

,

--

WARE COUNTY BOARD OF EDUCATlo'N COMBINED STATEMENTOF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NONGAAP BASIS> GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2000

EXHIBIT MC"

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

h .

WARE COUNTY BOARD OF EDUCATION .

EXHIBIT "0"

STATEMEN'T OF REVENUES. EXPENSESAND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUND

- YEAR ENDED JUNE 30. 2000

". f :
. OPERATING REVENUES
.-' '-.,,' -None Recorded
~.~~..: ,-. . ; .j? ;:. OPERATING EXPENSES

.. .' '!

... ~ -~~_

ENDOWMENT

FUND - GILCHRIST

FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,2000

JUNE 30,1999

r" "

. , ....." $':':'

0.00 $

0.00 $ __' _'_"_--"-0.,,,00,,-

~._-

:"

None Recorded .r ~

Operating Income

,

'>0

'H

; '. 'Interest E1lrned

", , ""

Net Income

:.

,

j"r --

FUND BALANCE JULY 1

$

0.00 $

. 0.00

,,'. '
. .. :;;"'.,'
.J~, :n.. ,
, i . ' ,..
';..' "

$" ,

0.00 $

0.00

.. '

~.

".~. 166.43

166.43

"t}.--.:
'or

208.55

$

'co,'

166.43 $

.?

, 1;

, -"; ,

, '166.43 .$ .c

." ' . _ ' I..

208.55

3,727.49 _ _ _",-3l.!.,7-"27!...:~-,,,49,,-,:.' L." ~ ,518.94

,'.il . ;

-.'

f 1 ,',. \; ,.,

$

'3,893.92 $ ===;===::3~,8~9~3:;,;;.9~2 $

3,727.49

,'I'll _ ,., I :.. '.; -' .. ' l : '

: , : ~""

-'.,'f

, . -.-

"

.,

. ."")

j .J',

.'j,,;

, .~..; "

'.
r
- -,,'"

The

notes

to.

the

general

purpose

financ'.ia, l

s

t.a"

t

e

m

e
,

n,

t

s

'

a

re.

an

integral

p

artof. thi ,~,.

s''

-s''t''a'

teme ',

nt. ,

,. - 8-

, .'
WARE COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
. FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2000

EXHIBIT "E"

Cash Flows from Investing Activities: Purchase/Sale of Investments (Net) Interest Received on Investments
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
GILCHRIST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

-166.43 $

-166.43 $

-3,684.46

166.43

166.43

208.55

$

0.00 $

0.00 $

-3,475.91

$

43.03 $

43.03 $

3,518.94

Cash and Cash Equivalents - June 30

$

43.03 $

43.03 $ ====~4~3;;,:;.0~3

The notes to the general purpose financial statements are an integral part of this statement. -9-

WARE COUNTY BOARDOFEDUO\nON

EXHIBIT "F"

NOTES TO THE'GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE'30,2000 ,-

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
.~ "

REPORTING ENTITY._
'- .

The Ware County Board 'of Education (Board) was established under the laws of the State of

Georgia and operates under the guidance of a school board elected by the voters and a

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

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

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

its legal entity, ;.,

~

'. ".'

...

. " FUND ACCOUNTING

The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management b);'segregating-transactions related to certain government,al 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 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 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.

::; .
. ~--1O-

WARE COUNTY BOARD OF EOUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes, These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives,
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities,
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees,
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLETRUSTFUND Gilchrist Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used for expenditures on behalf of any needy children who reside in the Gilchrist Park Community,
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals,
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus, All governmental funds are accounted for using a current financial resources measurement focus, With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e" revenues and other financing sources) and decreases (i.e" expenditures and other financing uses) in net current assets, Their reported fund balance is considered a measure of available spendable resources,
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds, Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group,

- 11 -

, WARE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES,

All nopexpendable trust funds are ac~ounted for on a flow of economic resources measurement

focus. With this measurement focus, all assets and liabilities associated with the operation of these
f~ds are in~lud~d on'the balance sheet Operating statements preseq.t increases (e.g:"revenues) and

decreas~s (e.g., expenses) in ~et total a!,sets,

" '. ,,,'

Agency fi.mds are purely custodi:l1 in nature and do not invqlv~ measureIl}el)t ofresults ofoperations.

.

,. :

.

; . f"

.'

Governmental funds are accounted for using the modified'accrual basis of accounting under which:

' .. ,

l'

."

,

~r

Revenues are recognized when susceptible to"accrual (i.e., when they become both measurable and

available). "Measurable" means the amount bfthe transaction can' be determined and "available"

means collectible within the current period or soon enough tl1ereafter to,be used to pay liabilities of

'the current period. Those r~~enues considered susceptible to accrual are property taxes, local option

~

'

, .,.

_.

J

.'..



sales taxes, intergovernmental grants and investment income.

.

....

Expenditures are generally recognized when the relate? ~d li,a,bility5s in,curred.

~! .

_"

I

.

__

_.

'I

.

A departure from the above definitions is the accounting treatment afforded the final two payments
" on General Fund teachers' and bu~'drivers' contracts, and the resources availa,ble from the'Georgia

Department of Education for the State's share of these contracts. During fiscal year 2000, a

substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in early August 1999 and ending in'iate May 2000,' Pe~sonn~l contracts for this

employment period specify that compensation be paid in twelve equal monthly payments beginning

in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia D~artment ofEducation to the Board in the same twelve

months. As ofJune 30, 2000, compensation under these employplent contracts had been earned, but two of the tw~lve monthly payments, due.for July and August 200b"had not been made. Payments

for these two nionths were made and recorded as expenditures by the Board subsequent to June 30,

2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and

recorded as revenue in the fiscal year subsequent to June 30,' 2000. Conversely, the similar

,. expenditures and related'revenues for contractual services completed prior to June 30, 1999"were

'"

recorded

in

th~

year

.
ended

J1,Jl1e

30,

2000.

.-
Generally

acc~ted

".

'. j

accounting principles require

that

revenues be recorded when, available and'measurable and that. expenditures be recorded when

incurred,. rather tpan wh.en funds are ,received or disbursed:
,

,:,' ' "

. -,.,

,

The accrual basis of accounting, as required by genenilly accepted 'accounting principles, is utilized

'by nonexpendable trust funds. Under the accruil1 basis of accounting, revenues are recorded when

,earned and expens,=s are recorded at the time liabilities are incurred.,

.

)~

'. !}

':

.;! -; '.: :: , -

" '.

.

Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets

I.

~

..



__ _ ' ,

,



and liabilities.

- 12 -
I'

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30,2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BUDGET

The Ware 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 all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the function 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 anewspaper of general circulation in the locality, At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education, The Board may increase or decrease the budget at any time during the , year, All unexpended budget authority lapses at fiscal year-end,

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund, To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report:

Special Revenue
Fund

FUND BALANCE JULY 1,.1999

$ 744,490,76

Adjustments Inventories - July 1, 1999 Food Donated Commodities

-63.125,10

Fund Baiance July 1,1999 (Budget Basis)

$ 681,365,66

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

83,976,15

Adjustments

7.484,89

FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 772,826,70

- 13-

, .'. (jl.J ;

, WARE COUNTYBOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES

CASH AND CASH EQUIVALENTS

'COMPOSITION OF DEPOSITS ,ii""

, :",

,Cash. and ,cash equivalents'consist of deposits in authorized' financial institutions, 'Georgia Laws

'.:, OCGAA5-8-14 authorize the Board to. deposit its funds in one or more solvent banks, insured

.. Federalsavingsand loan associations, or insured State chartered'b\lilding and loan associations.

~',:.

,;'.

~ 4 . ' . , ; '

./,'

f

,"i""J

J..:

'.

INVESTMENTS

COMPOSITION OF INVESTMENTS

..'" "

,. '

Investmeritsl1)ade by the Board in nonparticipating interest-earning contracts (such as certificates of

deposit) and.i'epurchase agreements are reported at cost. Participating interest-earning contracts and
money marketinvestments with a: maturity at purchase of one year'or less are reported at amortized

cost. Both pariicipating.interest-earning contracts and money market investments with a maturity at

purchase greatefthan one, year are reported at fair value; The Officiill Code of Georgia Annotated

, 'section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment

or among institutional bids for deposits, the highest rate of retuqi shall be, the objective, given

.equivalent conditions of safety and liquidity, Funds may be invested in the following:

.. ,

,.

.
-',

,. ,

(I) Obligations issued by the State of Georgia or by other states,

)..:

1.

, .., . ,.

(2) Obligations issued by the United States government,

. (3) .Obligations fully insured or guaranteed by the United States government or a United :';1: - States government agency,

'(4) Obligations of any corporation ofthe United States government,

I.','

. ; ,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
. ~\
(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia,

RECEIVABLES

~, 1,'

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'

f , - 14 -

WARE COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
.JUNE 30. 2000

EXHIBIT "F"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

PROPERTY TAXES

The Ware County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 27,1999 (levy date). Taxes were due on December 20,1999. The lien date for property taxes was January I, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Ware County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Ware County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.28 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $4,888,264.83 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $19,617,438.80 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 food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

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

- 15 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL 'STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES '.

; I ./.

,- r' ,obligations and pledge the full faith arid credit of the government. _The outstanding amount ofthese

bonds is recorded in the General Long-Term Debt Account Group,

' '"

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:-

,I

,

,i

, . "Reimbursements ofexpimditures/expenses initially made from a fund that are properly applicable

" to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of

expenditures/expenses in the fund that-is reimbursed:

' ..

"

",

"

. , ... ',-

.' (, l '

, .'

Operating transfers are recorded for all interfund transactions other than reimbursements,

'j;

,".

.I

';'/ ,

-)

-~,.:'

MEMORANDUM ONLy " TOTAL COLUMNS.' ;. ,J:

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, results ofoperations or cash flows in conformity with generally accepted

accountingprinciples, Neither are such data comparable to a consolidation, Interfund eliminations

, > have not been made in the aggregation of this data,

1 i,." '

I~

, ' . '

,,

Note 2: DEPOSITS AND INVESTMENTS "

",u.J ' .',

t" Ii

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 of money 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 lessthan

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insllI'lince, . Ifa depository eleqts the pooled method (OCGA 45-8-13, I) the aggregate ofthe market value ofthe

securities pledged to secure a pool ofpublic funds shall be not less than I 10 percent ofthe daily pool

balance, OCGA Section 45-8-1 I (b) provides an officer holding public funds may, in his discretion,

c,waive the requirelTIent for security in the case ofoperating funds placed in demand deposit checking

accounts,

;..' , '

',_, , '

,..

",

t" .. '

c

".

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

(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

., '

"h "

.:.. i;"

"

"') I

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

,r

"I

::. I

. - 16 -

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

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

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $3,357,875,54, The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e,g" Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name,
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name,
Category 3 - Uncollateralized deposits, (This includes any bank balance that is collateralized with securities held by the pledging fmancial institution, or by its trust department or agent but,not in the Board's name,)

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

Risk Category

Bank Balance.

1

$ 64,465,54

2

0,00

3

3,293>410,00

Total

$ 3.357,875 54

- 17 -

,WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

'NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

,

Note 2: DEPOSITS AND INVESTMENTS

,

CATEGORIZATION OF INVESTMENTS

',,_

"",,[ "I

At June 30, 2000, the carrying value of the Board's total investments was $15,263,113.99 which is

'materially the same as fair value. This investment consisted entirely of funds invested in the Local

Government Investment,Pool administeiedby the State of Georgia, Office of Treasury, and Fiscal

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

identifiable securities in the pool. The investment policy ofthe State of Georgia, 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 .. Thepool is not

registered with the SEC;as an investment company but'does operate Georgia,Fund 1 in a manner

consistent'with Rule 2a-7 ofthe Investment CompanyAct of 1940 and is considered to be a Rule 2a-

'. 7 like pool. 'The pool's primary objectives are safety ofcapital, 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 earmngs,(netof management fees)' on a monthly

basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and

cash equivalents and investments are reported at cost which approximates fair value. The pool does

, not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool

is voluntary and deposits consist of funds from local governments; operating and trust funds of

Georgia's state agencies, colleges and universities; and current operating funds of the State of

" Georgia's GeneralEund. ,,'

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

j 'C C ' )

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term inst~ents 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 FundI may not exceed 60 days. The

weighted average maturity for Georgia Fund'Ie on June 30, 2000, was 23 days. The average

investment duration for Fund 6 on June 30, 2000, was .80 year.

Note 3: NON-MONETARY TRANSACTIONS

-

-

- ~ --

.

The Board receives food commodities from the United States Department ofAgriculture (USDA) for

school breakfast and lunch programs. These commodities are recorded at their Federally assigned

value. See Note 1 7 Inventories

,.
Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissiOIis; job related illness or injuries to employees; natural disaster, unemployment compensation, and dental claims.

, - 18 -

WARE COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions, However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. 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 has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in 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:

.

1999 2000

Beginning of Year Liability

Claims and Changes in Estimates

$

4,622.00 $

3,984,00 $

$

1.884.00 $

1.711.46 $

Claims Paid

End of Year Liability

6,722.00 $ 3,595.46 $

1.884.00 0.00

Additionally, the Board is self-insured with regard to employee and dependent dental claims, The Board accounts for claims within the General Fund with expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. This' program is funded through a combination of employer and employee contributions,

Changes in the dental claims liability during the past two fiscal years are as follow:

1999 2000

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 428.504,51 $ 428,504.51 $

0.00

$

0.00 $ 405,930.80 $ 405,930.80 $

0.00

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

- 19 -

.------~----------_. - - - - - - -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATE!\1ENTS

. JUNE 30. 2000

Note 4: RISK MANAGEMENT

.' ...

.,'

. 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. .

..

....

. --

I~

, . , \ ' .' ': -. , '.

'I'

.. J' ,:. -;\

: .. ) f' _ .. )l

The Board has purchased surety bonds and commercial insurance to provide additional insurance

coverage as follows: ,'"

.. '.; , , ,'.'

.. '. r ::.' ~ .. ',
j. : . '

If ,:. ' j
.i '

Position Covered

.....

. t. .

.'

Amount
I.

Superintendent All Employees.

.'."

1 ;.

: k.... ..

I [,$ 100,000.00 . $: 100,000.00

,. Note 5: GENERAL LONG-TERM DEBT

,.

CAPITAL LEASES

The Ware County Board of Education has' entered ,into various lease agreements as lessee for

security systems, building energy management systems and equipment. These lease agreements

qualify as capital leases for accounting purposes and, therefore, have been recorded at the present

valu~pf_th::~~ture .J11il1i~u~ lease payments as of.t~edatF of their inception.

"

~

1

.t

GENERAL OBLIGATION DEBT OUTSTANDING

General Obligation Bonds currently outstanding are as follows:

.... " 0.. 'I ."

.

'...



"f . . -

."

Puroose'

Interest Rates

.

..

. General G~v~iriment - Series 1995 - '

r
4.35% - 5.85%

General Government - Series 1998

. '.

"

4.00% - 4.30% .J I ' ,

" Amount
$11,120;000.00 8,?50,000.00

$19.470000.00

, {)



t" i

.'. )

"'

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

follows:"

--..

. --

,.. '

.' ,

.' ,

. ;;
. ' . '. '

J.

'r

L

,;" ,

';j.

'J

.l

."

."

.

- 20-

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Balance July I, 1999

Capital Leases

General Obligation
Bonds

Total

$ 778,859.79 $2 I,400,000.00 $22,178,859,79

Additions Capital Leases
Deductions Debt Retired Cancellations
Balance June 30, 2000

29,435.62

29,435.62

138,231.76 1,930,000.00 2,068,23 1.76

602.00

602.00

$ 669.461.65 $19.470,000.00 $20.139.461.65

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

T.otal Debt

2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015

$ 177,256.36 $ 3,468,185.00 $ 3,645,441.36 164,607.40 3,719,337.50 3,883,944.90 164,607.40 4,105,290.00 4,269,897.40 164,607.38 1,701,882,50 1,866,489.88 120,910.27 1,117,652,50 1,238,562,77 5,778,410,00 5,778,410.00 6.193,787,50 6.193,787,50

Total Principal and Interest $ 791,988,81 $26,084,545.00 $26,876,533,81

Deduct: Imputed Interest

122,527.16

Net Present Value of Future Minimum Lease Payments $ 669.461.65

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $497,815,88 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $352,969.74,

- 21 -

WARE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

'NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.2000

Note 6: ON-BEHALF PAYMENTS

".

Paid to the Teachers Retirement System of Georgia For Teache~s Retirement System (TRS) Employer's Cost
In the amount of$36,3I7,I4

,

I' II

'

'. ,

Office of Treasury and Fiscal Services

Paid to the Public School Employees Retirement System

For Public School Employees Retirement (PSERS) Employer\ Cost ,.

In the amount of$108,529.00

Note 7: SIGNIFICANT COMMITMENTS.' r

" ,I

The following is an analysis ofsignificant outstanding construction or renovation contracts executed



,

I

.

I~

, .,

'. -

.,

by the Board as of June 30, 2000:

' ', . .'. . . .

. " } r r '; ,r., ,

,,1.' ,to"

. '.t,\' ~':~._,

Project

' . :

i;' 'H.J' . .

T

(l-

W!lresboro Elementary Renovations.

Memorial Drive Elementary Renovatiims--

J"

.,
".

, .,.

"

., \ ~ I

"

.

'.,~ - T

.Unearned "Executed' Contracts

.., "$' . " 845.00
45.159.00

$ 46.004,00

The arnounts described in this note ate porit ref).ectedin the general purpose financial statements.

"

. ,',.

'I',

'

Note 8: CONTINGENT LIABILITIES

I
',; r L
'I ,

Amounts received or receivable principally fromhe Federa), gov,ernment 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 Board believes that such

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

Note 9: RETIREMENT PLANS

" :. '1. - ~ :. '
..

TEACHERS RETIREMENT SYSTEM OF GEORGIA'(IRS)"

.')

TRS PLAN DESCRIPTION' ,

".

'

Substantially'all t~achers, administrative and 'cH:ricalpersonrtel 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 ~lonefiriaIiCial audjt report arid a copy can be obtained

from the Georgia Department of Audits and Accounts:!" , ; ,

"

_ ,- 22-

WARE COUNTY HOARn OF EDlkAnON

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS, The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary, The required employer contribution rate is I I .29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 2,908,545,63 $ 2,898,775,55 $ 2,665,903,07

- 23-

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

.,1 ,

.....

,.' I
',Cash and Cash Equivalents

Accou nts Receivable l,
Inventories Food Donated Commodities' Purchased Food

"\ .' ..... r; I,'.
Total Assets

SCHOOL

'r

, FOOD SERVICES'

LOTTERY

FUND
,

,

','

" PROGRAMS

)' .,; , .' $ ,

796,092,53 $':

137,832,77

, .J

76,961.41

j 9,369,14

58,121,29, 34,144,91

-. ,

$

965,320,14 $ ==,;,,14;,;,7,.;,2;,;;0,;,;1,~91==

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 Pr09rams . For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Un designated
Total Fund Equity

$

9,109.45 $

34,033,33

134,280.22

113,168,58

$

143,389.67 $

147,201,91

$

58,121,29

34,144,91

729,664,27 $

$

821,930,47 $

0.00 0,00

Total Liabilities and Fund Equity . See notes to the general purpose financial statements.
-,24 -

$

965,320.14 $===14;,;,7,.;,2;,;;0=1,~91==

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

933,925.30 $

858,155.66

$

438,748.58 $

18,750.00

543,829.13

556,261.05

58,121.29 34,144.91

63,125.10 26,660.02

$

438,748.58 $

18,750.00 $

1,570,020.63 $ =~1,;;;;50;;;;4~,2~0.;,;1.;;;;83~

$

46,179.49 $

111,244.23

268,648.69

3,758.65

$

429.831.06 $

14,645.62 $ 3,454.38
550.00
18.650.00 $

60,825.11 $ 157,841.39 516,097.49
4,308.65
739,072.64 $

188,262.30 104,959.97 463,419.60
3,069.20
759,711.07

$

8,917.52

$

0.00

$

8.917.52 $

$ 100.00
0.00 100.00 $

8,917.52 $ 100.00
58,121.29 34,144.91 729,664.27 830,947.99 $

18,549.05 650.00
63,125.10 26,660.02 635.506.59 744,490.76

$

438,748.58 $

18,750.00 $

1.570,020.63 $ ==1.:..,~50;;;;4;;,:,2;;;:0,;,;1.~83~

25

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

REVENUES
State Funds Federal Funds Other Funds

SCHOOL FOOD
, . ~ERVICES
FUND

LOTTERY PROGRAMS

,
'.'

$

192,630.'00 $ 1,128,553,55

1,785,208,27

742,275,27

Total Revenues
,, EXPENDITURES

$ 2,720,113.54 $ 1,128,553,55

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

Capital Outlay

Total Expenditures

; ,.

Excess of Revenues over (under) ~xpenditures

$

913,900.10

..

131,881,50

,.$

2,625,955,86 '
c-

- -. $' $

2,625,955,86 $' 94,157.68 $

17,256,73 45,481.87 23;850.00
1,132,370.20 3,816,65

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

3,816.65

Total Other Financing SourcesJUses)

$

3,816,65

Excess of Revenues and Other Financing Sources over (under) Exp~mditures and Other Financing Uses

$

94,157.68 $

0,00

," FUND BALANCE JULY 1
Food Inventory Net Change in Period Donated Commodities Purchased Food

725,291.71

0,00

-_,.

-5,003,81 7,484,89

30 . FUND BALANCE JUNE
See notes to the general purpose financial statements, . - 26-

$' 821,930.47 $ ===~O~.O~O~

EXHIBIT"H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ $ 2,934,750.70
$ 2,934,750.70 $

191,417.00 $ 191,417.00 $

1,512,600.55 $ 4,719,958.97
742,275.27

1,481,598.45 4,168,379.24
708,947.63

6,974,834.79 $ _...;6""3",5""8"",9::::2,,,5.,,,,32=-

$ 2,342,258.41 . $
209,108.86 171,405.33 161,357.88
8,885.34 54,590.08

$ 2,947,605.90 $

$

-12,855.20 $

135,452.86 $ 33,000.00 6,514.14 1,000.00
1,000.00
176,967.00 $ 14,450.00 $

3,391,611.37 $
373,990.36 177,919.47 162,357.88
17,256.73 45,481.87 32,735.34 55,590.08 2,625,955.86
6,882,898.96 $
91,935.83 $

2,807,576.92
310,328.26 244,272.52 149,111.78 49,934.91 31,756.54 20,719.26 47,824.57 2,494,839.66
7,236.00
6,163,600.42
195,324.90

$

3,223.67

$

7,040.32

$

-15,000.00

-15,000.00 $

-48,550.91

$

3,223.67 $

-15,000.00 $

-7,959.68 $

-48,550.91

$

-9,631.53 $

18,549.05

-550.00 $ 650.00

83,976.15 $ 744,490.76

146,773.99 601,564.80

-5,003.81 7,484.89

-800.43 -3,047.60

$

8,917.52 $

100.00 $

830,947.99 $ ==7:,;4;;:4~,4~90~.g76.:..

- 27-

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

ASSETS
Cash and Cash Equivalents
,"
Investments
Accounts Receivable

Total Assets

-,. '.

"

LIABILITIES AND FUND EQUITY'
.,_ I.
LIABILITIES
Cash Overdraft Accounts Payable, Contracts Payable " Retainages Payable' '
Total Liabilities
FUND EQUITY .
Fund Balances Reserved For Purpose of Bqnd Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated ,,_
Total Fund Equity

Total Liabilities and Fund Equity

REGULAR

$

32,709,35

,;

~- .~ -
BOND PROCEEDS
,4,882,898,95

, - - - - " . ,,""".

$
r
,,

32,709,35 $ =~4~,8~8~2~,8:g,98~.~95;",
,~ , -

,$ _. _. -

504,226.71 17,924.48 6,584,87
148,670,00

$':..._~67~7..:,4~0~6,~06~

$ ._ ~,295,~92.89

,~(, $ ..,.-_"",3",2J..C,7""09"",3,,,5<..

0.00

$

32,709.35 $ ""_""....:4""2",0",5",,4,,,,92,,,,,,,89,,,,,

$

32,709.35 $ =,,;4;,,;,8~8;;;2~,8~98~,;;;95~

See notes to the general purpose financial statements. . 28-

EXHIBIT "I"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

1,248,663.48 $

1,932,215.56 $

3,213,588.39 $

2,633,036.38

1,936,310.84

6,819,209.79

8,476,663.11

791,116.05

791,116.05

735,565.21

$

1,248,663.48 $

4,659,642.45 $ 10,823,914.23 $ 11,845,264.70

$

504,226.71

17,924.48 $

30,078.40

6,584.87

513,825.58

148,670.00

164,850.70

$

677,406.06 $

708,754.68

$ 4,205,492.89 $ 7,142,559.72

$ . 4,659,642.45

4,659,642.45

2,712,577.47

$ 1,248,663.48

1,248,663.48

1,248,663.48

0.00

0.00

32,709.35

32,709.35

$

1,248,663.48 $

4,659,642.45 $ 10,146,508.17 $ 11,136,510.02

$

1,248,663.48 $

4,659,642.45 $ 10,823,914.23 $ 11,845,264.70

29

, ; , ',,' WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000

._~ ~:.'.

REVENUES

"

Taxes

Other Funds

.' :.,

Total Revenues

. -...

-!"

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

Total Expenditures

Excess of Revenues over (under) Expenditures,
."
,. OTHER FINANCING SOURCES (USES), ,1," Operating Transfers'ln' .. Operating Transfers_9~) ''' ._"
Total Other Financing Sources (Uses)

Excess of Revenues and Other Financing Sources

. over (under) Expenditures and Other Financing Uses

.- . ,- ~ . '

.....
'-., \

'

FUND BALANCE ~ULY b.',, ...\

.; ,

f

.. -~.Jo
FUND BALANCE'JUNE 30
._~_1:. (" .".-~

- - - , ' --.

;'), "0.;:'; -;'~:
" -', REGULAR "

f", ' ....

,

" BqND

,PROCEEDS

, , " ,r

,'
$
";
$

0, 00 $ _ _3:<:5""3",,,5!:.2.!.,,1.~06=-

'.(

$

0.00 $

1,284,10

2,758,742,60

530,561,19

$

0.00 $ _-,3~,2::9~0~,5~87!...:,~89=-

$

0.00 $ -2,937,066,83

$

0.00 $ -2,937,066.83

" \ ,32,709.35

.. . ,~

-

7,142,559,72

32,709.35.' '$ -4;205,492,89

,"

',

See notes to the general purpose financial statements. "._-30-

EXHIBIT "J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

1,94.7,064.98 $

1,947,064.98 $

780,728.95

$

-,-"0",,.0,,--0

353,521.06

622,280.34

$

0.00 $

1,947,064.98 $

2,300,586.04 $

1,403,009.29

$

0.00 $

0.00 $

1,284.10 $

35,723.33

2,758,742.60

3,288,641.20

530,561.19

424,683.50

$

0.00 $

0.00 $ 3,290,587.89 $ 3,749,048.03

$

0.00 $

1,947,064.98 $

-990,001.85 $ -2,346,038.74

$

112,447.72

-112,447.72

$

0.00

$

0.00 $ 1,947,064.98 $

-990,001.85 $ -2,346,038.74

1,248,663.48

2,712,577.47

11,136,510.02

13,482,548.76

$

1,248,663.48 $

4,659,642.45 $ 10,146,508.17 $ 11,136,510.02

- 31 -

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

EXHIBIT "K"

.'.1- '

See notes to the general purpose financial statements.

"32 "

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

EXHIBIT"L"

See notes to the general purpose financial statements.

,,33 "

WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 2000

EXHIBIT "M"

ASSETS Cash ~n.d Cash Equivalents
Inve~tments Held by Trustee.;

NONEXPENDABLE TRUST FUND ENDOWMENT FUND GILCHRIST FUND

AGENCY FUND

TOTALS JUNE 30, 2000 JUNE 30, 1999

43.03 $

7,503.65 $

7,546.68 $,

6,670.31

. 3,850.89

3,850.89

3,684.46

Total Assets

$

c.

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances ~~served '

_~ , ,

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

._. $

3,893,92 $

7,503.65 $

11,397.57 $ t 10,354.77

$

7,503.65 $

7,503.65 $

6,627.28

3,000.00 893.92 $
3,893,92 $

$ 0.00 ",
0.00 $

3,000,00 $ ,893.92
,3;893.92 .$

3,000.00 727.49
3,727,49

Total Liabilities and Fund Equity ~ " $

3,893.92 $

7,503.65 $

11,397,57 $

10,354.77

See notes to the general purpose financial statements.

34

WARE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE AGENCY FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "N"

BALANCE JUNE 30,1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

SPECIAL NEEDS FUND

ASSETS Cash and Cash Equivalents $

6,627,28 $

16,745,70 $

15,869,33 $

7,503,65

LIABILITIES Funds Held for Others

$

6,627,28 $

16,745,70 $

15,869,33 $ ==~7,~50~3~,6:,;;;,5

See notes to the general purpose financial statements, 35

..

';",-

WARE COUNTY BOARD OF EDUCATION

SCHEDULE "1"

~ SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

YEAR ENDED JUNE 30 2000

FUNDING AGENCY PROGRAM/GRANT

CEOA NUMBER

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Througti From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program
,~
National S,chool Lunch Prowam

10.553 10.555

Total Child Nutrition Cluster

Other Programs

Pass-Through From Georgia Departmenlof Education

Food and Nutrition Program

Food Services '_

. '.

Food Distribution Program (1)

10.550

Total U. S. Department of Agriculture

Corporation for National and Community Services Pass-Through From Georgia Department of Educ~tion Learn and Serve America School and Community Based Programs Pass-Through From Okefenokee Regional Educational Service Agency Learn and Serve America School and Community Based Programs

94.004 94.004

Total Corporation for National and Community Services

Education, U. S. Department of Special Education Cluster PassThrough From Georgia Department of Education Individuals with Disabilities Education Act Part B Special Education Flow Through Preschool Capacity Improvement Building Grant

84.027 '84.173 84.173

Total Special Education Cluster

Other Programs Pass-Through From Berrien County Board of Education' d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Tille I Migrant Education Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants t~ Local Educational Agencies Title II Eisenhower Professional Development Teacher Quality Enhancement Tille V! Innovative Education Program Strategies Class Size Reduction Goals 2000 Slate and local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Okefenokee Regional Educational Service Agency Safe and Drug-Free Schools

84.011
84.010 84.281 84.336 84.298 84.340 84.276
84.048
84.186

Total U. S. Department of Education

"
- 36-

PASS-
THROUGH ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA $ N/A'
$

406,320.91 1,222,783.85 $
1,629,104.76 $

(2) 2.469,852.35 (3)
2,469,852.35

1!
,0' "

NIA

156,103.51

156,103.51

$ 1,785,208.27 $

2,625,955.86

NIA $

16,000.00 $

18,000.00

NIA $

2,512.82 20,512.82 $

2,512.82 20,512.82

NIA $ NIA NIA
$

606,960.18 $ 145,293.29 20,840.00
773,093.47 $

607,511.61 (3) 145,293.29
20,840.00
773,644.90

N/A

35,280.00

35,280.00

NIA

1,575,884.43

1,575,894.51

NIA

39,078.00

38,905.20

NIA

18,630.00

18,968.44 (3)

NIA

55,919.80

55,919.80

NIA

112,607.00

114,243.89 (3)

NIA

148,338.53

158,132.78

NIA

92,982.00

93,678.91 (3)

NIA $
"

25,534.46 2,877,347.69 $
Ie

25.534.46 2,890,202.89

WARE COUNTY BOARp OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDEp JUNE 30 2000

SCHEDULE M1 M

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

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

$

39,403.01 $ _ _--'3"90.;,.,0"'3,,.0"-'

Total Federal Financial Assistance
= N/A Not Available

$ 4.722,471.79 $ .......5...;;:5.::76~.::07:.:4:;:.5~8

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received andlor consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

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

The Board did not provide Federal Assistance to any Subrecipient.

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

.-------------------~---~----
WARE'COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

WARE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS

Retiring Previously Incurred General Obligation Debt of the School District

$ 15,100,000.00 $ 15,100,000.00 $

909,574.85 $

870,692.20

Acquiring, Constructing, and Equipping the Following Capital Outlay Projects: adding to, remodeling, renovating, improving and equipping existing educational buildings, properties and facilities of the School District, acquiring any necessary personal property and equipment, including computers and related technology, copiers. energy management, HVAC. lighting and similar equipment, relocating or expanding, remodeling and renovating the existing transportation and bus garage and remodeling and renovation necessary to convert Center Junior High School into school district administrative offices, ~nd purchasing school buses.

15,900,000.00

15,900,000.00

3,290,587.89

3,966,053.92

$ 31,000,000.00 $ 31.000,000.00 $

4,200,162.74 $ ==4;;,,;;;83~6~,7:;;4;;;6';;,12:=

(1) The Board's original cost estimate as specified in the resolution calling fo~ the imposition of the Local Option Sales Tax.

(2) The Board's current estimate of total cost for each project. Includes all cost from project inception to completion.

(3) The voters of Ware County approved the imposition of a 1%sales tax to fund the above projects and retire associated debt: Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

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

Current Year

$ ===,3",8~0,~83~0",,0~0

See notes to the general purpose financial statements.

- 39-

',.
, .',

"

I

.,.

'.'
, :'
".

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

19,861 ,372,00 $ _ _~56",7-",9",5",3""0,,,-0

$

21,807,807,88

962,699,97 $ _ _~84:!-1~,4~3~9",,0~7

$

22,770,507,85

-286,051,62 $ _--,2=2",,4,,,,84::.z;,4~5,,,6,,,,2,,,-3

$

0,00 $====,;;;0;,;;'0;;;,,0

See notes to the general purpose financial statements, - 41

,-

WARE COUNTY BOARD OF EDUCATION

ANALYSIS'OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM

GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS

. YEAR ENDED JUNE 30 2000"

,,

GENERAL AND CAREER EDUCATION PROGRAMS

.!<indergarten CO)

- I:

Grades 1- 3 (0)

, ""

- Sub-Total - K"3

n Grades 4 - 5 -,

Grades 6 - 8 (")

Grades 9 - 12 (0)

-" , - ,

High Sc_h~ol Laboratories (0)

Vocational Education Lab?ratories (0)

Tolal General and Career Education Programs

SPECIAL EDUCATION PROGRAMS

Regular Programs
n Category I

Category II (0)

Category III C")

"

Category IV (")

Category V(")

Sub-Total - Regular
n Category VI (Gifted)

Total Special Education Programs

REMEDIAL EDUCATION PROGRAM 'OJ

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations

Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$ 1,454,909,00

$ 1,309,418,10 $

4,193,006,00

3,773,705,40

$ 5,647,915.00 90 $ 5,083.123.50 $

:", 1,632,467.00 90

1,469,220.30

2,917,250.00 90

2,625,525.00

1,851,289,00 90

1,666,160,10

919,802,00 90

827,821.80

1,005,001.00 90

904,500,90

$ 13,973,724.00
, 'c I -

$ 12,576,351.60 $

$ 3,705,222,00

$ 3,334,699,80 $
,

0,00 0,00 9,992,00
19,992.00 0,00

.. $ 3,705,222.00 90 ,$ 3,334,699,80 $ "

1,190,953,00 90

1,071,857.70

$ 4,896,175,00

$ 4,406,557,50 $

$

360,544,00 90 $

324,489,60 $

$ 19,230,443,00

$ 17,307,398.70 $

0.00
0,00 0,00 9,992,00

$

500,258,00 90 $

450,232.20 $

0,00

120,679.0'0 100

120,679.00

$

620,937.00

$

570,911,20 $

0,00

Total Fourteen Weighted and Media Center Programs $ 19,851,380.00

$ 17,878,309,90 $

9,992.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

57,252,00

$

57,252.00 $

0,00

119,402.00

119,402.00

0,00

Total Staff Development Programs (") Identifies Fourteen Weighted Programs. See notes to the general pUfpose financial statements.

$

176,654.00 100 $

176,654.00 $

0,00

''

,' "

- 42 -

SCHEDULE ~5~

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,309,418.10 $ 1,636,183.81 $

26,062.91 $ 1,662,246.72

3,773.705.40

4.059.284.89

123.802.39

4.183.087.28

$ 5,083,123.50 $ 5,695.468.70 $

149.865.30 $ 5,845.334.00 $

0.00

1.479,212.30

2,130,215.72

114,015.05

2,244,230.77

0.00

2,625,525.00

2,800.221.44

163,574.12

2,963.795.56

0.00

1.666,160.10

2,605.196.28

219,465.08

2;824,661.36

0.00

827,821.80

1,005,015.72

12.036.42

1.017,052.14

0.00

904,500.90

1,559,437.55

72,188.86

1.631,626.41

0.00

$ 12.586,343.60 $ 15,795.555.41 $

731,144.83 $ 16,526,700.24

$ 3.334,699.80 $

372,842.36 $ 1,520,722.07 1.670.213.61
184,574.98 20.136.42

4,263.98 $ 16,683.69 7,072.51
1.517.80 1,068.39

377,106.34 1,537,405.76 1.677,286.12
186,092.78 21,204.81

$ 3.334,699.80 $ 3,768.489.44 $

30,606.37 $ 3,799,095.81

0.00

1,071,857.70

1,032,166.48

79.687.87

1,111.854.35

0.00

$ 4.406.557.50 $ 4,800,655.92 $

110.294.24 $ 4.910,950.16

$

324,489.60 $

425.868.83 $

0.00 $

425,868.83

0.00

$ 17,317.390.70 $ 21.022,080.16 $

841,439.07 $ 21,863,519.23

$

450,232.20 $

785,727.72

$

785,727.72

0.00

120.679.00

$

121,260.90

121,260.90

0.00

$

570.911.20 $

785,727.72 $

121,260.90 $

906,988.62

$ 17.888.301.90 $ 21,807,807.88 $

962,699.97 $ 22,770.507.85 $

0.00

$

57,252.00

119.402.00

$ =..,;1~7;;:,6.~65~4~.0~0

$

111,661.68 S

111.661.68

65.106.66

65.106.66

$

176,768.34 $

176,768.34 $======~O~.O~O

- 43 -

O~

OJ

~

.,

..
- I'"
,.

.' ".

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSEU. \\'. HINTON
STATE AUDITOR (404)656-2174

/:fJtc.
,\.:<~'.lf:u~~~~>/f
DEPARTMENT OF AUDITS AND ACCOUNTS
254 \Vashingtol1 Slr~cL. S.W.. Suite 214 At bnla. Georgia l()334~X4{)()
March 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware 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 Ware County Board ofEducation as of and for the year ended June 30, 2000, and have issued our report thereon dated March 8, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking of either the Federal donated commodities inventory or the purchased . foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Ware CountyBoard ofEducation'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 ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

2000YB-40


."'
,. 1
)
I,' "

,

:J



.': ...: .

..

I
:,'

-.
;,
(;:.,

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Ware 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 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 Ware County Board of Education'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 of Findings and Questioned Costs as item FS-748 1-00-02.
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 Ware 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;
? . QQ.~.~ ~ellW. Hinton State Auditor
RWH:jb 2000YB-40

- ',' r"
.;i .', j J
!'
'1

'J
"
"

/'
~,
,"

:1' "\

"

,'- ~

,"

,'
.- \,~
,r.
,~

~ -'.'

RUSSELL "'. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2)4 Washington Stn:t:l. S.W.. Suitt: 21-1 Atlanta. Georgia 30:n4H400
. March 8, 200 I

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Ware County Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33
Ladies and Gentlemen:
Compliance
We have audited the compliance of Ware 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 of its major Federal programs for the year ended June 30, 2000. Ware County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofWare County Board ofEducation's management. Our responsibility is to express an opinion on Ware County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 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 arid material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Ware 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 Ware County Board of Education's compliance with those requirements.
2000SA-IO

,

"

, 'J

,_-.\",,I-

"

.{ "\

"

C'.

"

I"~, "

J.J .'

:.;:

'.
.. "
"
" ,1
.;'

.,
ro \..
,"

In our opinion, the Ware 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, 2000.
Internal Control Over Compliance
The management of Ware County Board ofEducation 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 Ware 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-133.
Our consideration ofthe interiml 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 oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Ware 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:jb 2000SA-IO

R sell W. Hinton State Auditor

"
" "'
,i ,"
}:, ! I

, .'

i rJ

,-

.

'"

T

I'

_,It

/ IL

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

'.,

WARE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7481-98-0 I FS-7481-99-01

Further Action Not Warranted Unresolved- See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportab Ie Condition - Material Weakness Finding Control Number: FS-7481-99-0 I

The Ware County Board of Education does not maintain a system-wide General Fixed Assets Account Group. The Board is aware of new regulations, which requires a General Fixed Assets Account Group and recording of such on financial statements by June 30, 2002. Board has begun the process of implementing, recording, and maintaining general fixed assets accounting system in order to meet requirements set by GASB 34.

(
n
" .' .. .'.'.
1

r
.'-j " - " .... ',

,,
. -..:;;"

,.
'. ,.~ '-.J .:'
,. l.

.,.I' ..
."
">

,'~ 1
"

" rr.

'I

,

~ 1: 'J' ,"

')

1

;j:

.oJ

"

""

" 'f.
<)2,,"N

. >. I ...

"

'.I L :

r

;"

~ :... ' ~ll

? :,

L'.1

" ~ t f

,J;"':

: ~J i

h

SECTIONN FINDINGS AND QUESTIONED COSTS

' ."
!,

WARE COUNTY BOARD OF EDUCATION .SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS.
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Ware County Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Ware County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Ware County Board of Education disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Ware County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Ware County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 Ola) of OMB Circular A-133 The Ware County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through 84. I 73 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84. I 73 Individuals with Disabilities Education Act - Part B - Special Education Capacity Improvement Building Grant
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
-I -

WARE COUNTY BOARDOF EDUCAfION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS ,'_,'

9. Low Risk Auditee

..

-' The Ware County Board of Education'was audited as a low'fisk auditee based on a waiver

granted by the U.S. Department of Education:' .

-;
. : '-

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

,EMPLQYEE CQMPENSATION

Salary Overpayment

.c

,.

Nonmaterial Noncompliance

Amount: $516.96

Finding Control Number: FS-7481-00-01

,,

"

c~_,

i'

For the year under review, a sample of28 employees was selected to test the accuracy of employee compensation. The results ofthis sample'revealed one instance where an employee was overpaid in ,- the amount of$516.96. This overpayment was the result ofmiscalculating the increase in salary due to a change in teaching certification. The Board should seek reimbursement ofthis overpayment for deposit into the Board's General Fund.

, .' GENERAL FIXEDiASSETS

' ,,-

Failure to Maintain General Fixed Assets AccountGroup

Reportable Condition - Material Weakness

Repeated From Prior Year

Finding Control Number: FS-7481-00-02 '.

J~ ' .

,,
"

The Ware County Board ofEducation did not maintain a system-wide General Fixed Assets Account
as Group within the fornial accounting records required by generally accepted accounting principles.
This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted and accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include ali 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 Ass~ts Account Group.

"
ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

No matters were reported.

".

-"

-,
-2-