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'J WARE 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 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 11 ADDmONAL FINANCIAL INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET 26 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 28 CAPITAL PROJECTS FUND I COMBINING BALANCE SHEET 30 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 32 DEBT SERVICE FUND K COMBINING BALANCE SHEET 34 L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 35 WARE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION EXHIBITS COMBINING AND INDNIDUAL FUND STATEMENTS FIDUCIARY FUND TYPES M COMBINING BALANCE SHEET . 36 N STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND 37 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 38 2 SCHEDULE OF STATE REVENUE 40 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 43 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM ~ 5 BY SITE 45 SECTIONll COl\fPLIANCE 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 COl\fPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COl\fPLIANCE 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 WARE COUNTY BOARD OF EDUCATION - TABLE OF CONfENTS- SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS WARE COUNTY BOARD OF EPUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2001 ASSETS 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 $ 412.55984 $ 3.551.61059 $ 3.666,688 65 524,75371 5,513,04672 507.377 77 753,50740 846.38379 52,708.23 34.73509 Total Assets LIABILITIES AND FUNp EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligabon Bonds Payable Total Llabihbes 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 Inventones Food Donated Commodlbes Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Caprtal Outlay Projects Unreserved Designated for Self-Insurance Undeslgnated Total Fund Equity $ 4,174,066 42 $ 1,778,264.27 $ 91911,04110 $ 537.666.14 50.31231 $ 172,18952 $ 139.00060 207,26638 585.62838 132.97678 298,96891 126,45697 21,59391 $ 795.244 83 $ 912.38859 $ 564,42848 $ 576.200.70 $ 10000 11,38363 2,791,25726 $ 3,378,821.59 $ 52.708.23 34,73509 $ 1.894,432 30 6.170.80749 1,248.663 48 778.33236 865.87568 $ 32,709.35 9,346,61262 Total Llabilltres and Fund Equity $ 41174,06642 $ 1,778,264 27 $ 9,911,04110 The notes to the general-purpose financial statements are an integral part of this statement. -2- EXHIBITA DEBT SERVICE FUND FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS $ 5,47673 $ 6,649,90353 4,13607 1,18443 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only> JUNE 30, 2001 JUNE 30, 2000 $ 3,969,64716 $ 3,700,59075 16,354,39261 15,263,113.99 4,13607 3,850.89 2,108,45339 1,885,082 27 $ 3,811,548.42 52,70823 34,73509 3,811,54842 58,121.29 34,144.91 3,405,031.80 13,108,451 58 535,38658 13,108,45158 535,36656 16,084,96820 675,55578 $ 6,651,08796 $ 9,61280 $ 17,455,38658 $ 39,979,459.13 $ 41,090,45988 $ 2,839,539 54 $ $ 2,839,539 54 $ 5,433.70 $ $ 535,38658 16,920,000 00 3,3n,20568 $ 361,50243 792,89476 132,97678 298,966.91 126,45897 21,59391 5,43370 535,38658 16,920,00000 1,869,08525 511,384 07 520,847.49 4,32016 6,58487 148,67000 7,50365 675,55578 19,470,00000 5,43370 $ 17,455,38658 $ 22,572,421 72 $ 23,213,751 27 $ 3,811,548 42 $ 000 $ 3,811,548 42 $ $ 6,651,08796 $ 3,00000 1,17910 4,17910 $ 576,200.70 $ 584,98000 8,917 52 10000 100.00 3,811,548 42 3,405,031 80 3,000.00 3,00000 52,708.23 34,73509 1,894,432 30 6,170,807 49 1,248,663 48 58,12129 34,144 91 4,205,492 89 4,659,642 45 1,248,663 48 11,36363 3,603,478 07 70,84567 3,617,96860 $ 17,407,03741 $ 17,876,70861 9,61280 $ 17,455,38658 $ 39,979,459 13 $ 41,090,45988 -3- WARE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 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 PnnClpal Interest PaYJng Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 29,899,303,05 $ 8,333,132.11 1,082,506.82 $ 39,314,941.98 $ 1,481,201.75 5,020,018.31 772,477.06 7,273,697,12 $ 27,617,370.23 $ 1,451,220.52 787,924.92 989,356.69 296,410.52 2,614,361,68 266,728.74 2,686,651.49 1,721,555.20 412,077.09 484,523.97 1,619.62 81,518.75 140,169.20 43,394.82 3,550,314.04 386,874,55 266,282.81 200,862.07 19,770.94 12,858.64 35,485.14 45,575.91 2,700,922.45 $ 39,594,883.44 $ $ -279,941.46 $ 7,218,946.55 54,750.57 $ 168,436.32 $ $ 168,436.32 $ -15,000.00 -15,000.00 $ -111,505,14 $ 3,490,326.73 39,750.57 830,947.99 -5,413.06 590.18 FUND BALANCE JUNE 30 $ The notes to the general-purpose financial statements are an integral part of this statement -4- 3,378,821.59 $ ====8=65==,8=7=5.6=8== EXHIBIT "B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 31,380,504.80 $ 28,974,261.16 5,020,018.31 4,722,471.79 $ 1,511,165.04 $ 3,473,031.52 13,317,328.67 13,347,674.81 263,532.13 402,835.94 2,521,351.95 2,488,670.10 $ 1,774,697.17 $ 3,875,867.46 $ 52,239,203.73 $ 49,533,077.86 $ 31,167,684.27 $ 28,680,315.32 $ 2,421,156.40 1,838,095.07 1,054,207.73 989,356.69 497,272.59 2,634,132.62 266,728.74 2,699,510.13 1,757,040.34 412,077.09 530,099.88 2,702,542.07 2,502,675.15 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 1,612,553.95 354,541.65 480,730.89 2,644,124.61 3,391,832.56 $ 2,550,000.00 918,185.00 1,165.84 2,690,169.20 961,579.82 1,165.84 2,068,231.76 1,062,765.64 1,344.85 $ 2,421,156.40 $ 3,469,350.84 $ 52,704,337.23 $ 50,269,511.56 $ -646,459.23 $ 406,516.62 $ -465,133.50 $ -736,433.70 $ -153,436.32 $ -153,436.32 $ $ 168,436.32 -168,436.32 $ 0.00 $ 29,435.62 7,959.68 -7,959.68 29,435.62 $ -799,895.55 $ 10,146,508.17 406,516.62 $ -465,133.50 $ -706,998.08 3,405,031.80 17,872,814.69 18,577,331.69 -5,413.06 590.18 -5,003.81 7,484.89 $ 9,346,612.62 $ 3,811,548.42 $ 17,402,85831 $ 17,872,814.69 -5- WARE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT"C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds $ 29,298.013.71 $ 29,899.303,05 8,112,000,00 288,925.00 8.333.132.11 1,082.506,82 Total Revenues EXPENDITURES $ 37,698.938,71 $ 39,314,941.98 Current Instruction Support Services Pupil SeMceS Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services central Support Services Other Support Services Food Services Operation Capital OuUay Debt Service $ 27,271.325,59 $ 27.617.370,23 1,311,567.31 758,260.79 995,791,58 279,303,29 2,569.296.52 270,982.84 2,825.009.58 1.755,762,47 445.353.73 2.360.30 10.000,00 1,451.220.52 787.924.92 989.356.69 296,410.52 2,614,361,68 266.728,74 2,686.651,49 1.721,55520 412,On,09 484.523.97 1,619.62 81.518.75 183,564.02 Total Expenditures Excess of Revenues over (under) Expenditures $ 38.495,014.00 $ 39.594.883 44 $ -796,075,29 $ -279,941.46 OTHER FINANCING SOURCES (USES) Other Sources Other Uses $ 358,600.00 $ 168,436.32 Total Other Financing Sources (Uses) $ 358.60000 $ 168,436,32 Excess of Revenues and Other FInanCIng Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 2000 Adjustments Food Inventory - Net Change in Period Purchased Food $ -437.475,29 $ -111.505.14 2,957.833.65 3.490,326,73 -4,785,02 FUND BALANCE JUNE 30. 2001 $ 2.515.57334 $ 3.378,821 59 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 1,309.440 00 $ 1,481,201,75 5.307,413,29 5.020,01831 694.378.00 n2.4n.06 $ 7.311,231.29 $ 7.273.697 12 $ 3,631.098,32 $ 3.550,31404 427.823.n 320,939.00 386,874.55 266.28281 221.680,25 7,100.00 200.862,07 19,nO.94 1,45000 6.740.00 12.858.64 35,485.14 81,087,00 2,499,592 00 45,575.91 2,700,922.45 $ 7.197.510.34 $ 7.218.94655 $ 113.720.95 $ 54,750 57 $ -115,800.00 $ $ -115,800.00 $ -15,00000 -15.000.00 $ -2.07905 $ 39,750,57 n2.348.26 n2.826.70 67,078,53 590 18 $ 837.347.74 $ 813,167.45 The notes to the general-purpose financial statements are an integral part of this statement. -7- WARE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001 EXHIBIT "0" OPERATING REVENUES None Recorded OPERATING EXPENSES None Recorded Operating Income NONOPERATING REVENUES Interest Earned Net Income FUND BALANCE JULY 1 FUND BALANCE JUNE 30 ENDOWMENT FUND GILCHRIST FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 3D, 2001 JUNE 3D, 2000 $ 0.00 $ 0.00 $ 0.00 $ 0,00 $ 0,00 $ 0.00 $ 0,00 $ 0.00 $ 0,00 285.18 285,18 166.43 $ 285.18 $ 285,18 $ 166.43 3,893,92 3,893,92 3,727.49 $ 4,179.10 $ 4,179.10 $ ====35,8=93;:,;.9;:,;2= J The notes to the general-purpose financial statements are an integral part of this statement. - 8- WARE COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2001 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 Cash and Cash Equivalents: June 30 ENDOWMENT FUND GILCHRIST FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 3D, 2001 JUNE 3D, 2000 $ -285.18 $ -285.18 $ -166.43 285.18 285.18 166.43 $ 0.00 $ 0.00 $ 0.00 $ 43.03 $ 43.03 $ 43.03 $ 43.03 $ 43.03 $ =======4=3.=03:=. The notes to the general-purpose financial statements are an integral part of this statement. - 9- WARE COUNTY BOARD OF EDUCATION EXHffiIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30,2001 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Ware 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 legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the 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. 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 School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose fmancial 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 used 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. 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 - 11 - WARE COUNTY BOARD OF EDUCAnON EXHffiIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 behalfof 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 fmanced 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. All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. - 12- WARE COUNTY BOARD OF EDUCAnON EXHmIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 200 I Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount 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 exchange, 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 recognize<;! in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 w~ received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. - 13 - WARE COUNTY BOARD OF EDUCAnON EXHffiIT "F" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUDGET The Ware County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the function level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 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. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund, To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report: Special Revenue Fund FUND BALANCE JULY 1, 2000 $ 830,947.99 Adjustments Inventories - July 1, 2000 Food Donated Commodities -58,121.29 Fund Balance July 1, 2000 (Budget Basis) $ 772,826.70 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 39,750,57 Adjustments 590.18 FUND BALANCE JUNE 30, 2001 (Budget Basis) $ 813,167.45 - 14- WARE COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations, INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnation available. Receivables - 15 - WARE COUNTY BOARD OF EDUCATION EXHmIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES are recorded when either the asset or revenue recognition criteria has been met. Receiva1?les 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 2000 tax year (calendar year) on October 2,2000 (levy date). Taxes were due on December 20, 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 Ware 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 $8,200,449.20 and for school bonds amounted to $3,680.68. The tax millage rate levied for the 2000 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 15.75 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 $4,980,515.88 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $14,636,922.92 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. - 16- WARE COUNTY BOARD OF EDUCAnON EXHmIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL OBLIGATION BONDS D 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 ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The School District has the following types of interfund transactions: Reimbursements ofexpenditures/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. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present fmancial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. 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: - 17- WARE COUNTY BOARD OF EDUCATION EXHffiIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS (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 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 ofthe 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, 2001, the bank balances were $2,560,048.52. 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: - 18- WARE COUNTY BOARD OF EDUCAnON EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS Risk Category Bank Balance I $ 56,328.52 2 0.00 3 2,503,720.00 Total $ 2.560.048.52 CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $16,354,392.61 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe . Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists 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. The pool 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 Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. - 19- WARE COUNTY BOARD OF EDUCATION EXHffiIT "F" NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation and dental claims. The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and earthquake. 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 has elected to self-insure for all losses related to flood. The School District has not experienced any losses related to this risk in 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: Beginning of Year Liability Claims and Changes in Estimates Claims PaId End of Year Liability 2000 2001 $ 1,884.00 $ 1.711.46 $ 3.595.46 $ 0.00 $ 0.00 $ 6.562.00 $ 6.562.00 $ 0.00 Additionally, the School District is self-insured with regard to employee and dependent dental claims. The School District 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 ofemployer and employee contributions. Changes in the dental claims liability during the past two fiscal years are as follows: - 20- WARE COUNTY BOARD OF EDUCATION EXHffiIT "F" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT Begtnning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability 2000 2001 $ 0.00 $ 405,930.80 $ 405,930.80 $ 0.00 $ 0.00 $ 467,152.92 $ 467,152.92 $ 0.00 The School District 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 ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit. The School District has purchased surety bonds and commercial insurance to provide additional insurance coverage as follows: Position Covered Amount Superintendent Each Employee $ 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 value of the future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1995 General Government - Series 1998 4.35% - 5.85% 4.00% - 4.30% $10,790,000.00 6,130,000.00 $16.920.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: - 21 - WARE COUNTY BOARD OF EDUCAnON EXHffiIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 5: GENERAL LONG-TERM DEBT Capital Leases General Obligation Bonds Total Balance July 1,2000 $ 669,461.65 $19,470,000.00 $20,139,461.65 Retroactive Restatement of Prior Year Balances 6,094.13 6,094.13 Balance July 1,2000 Restated $ 675,555.78 $19,470,000.00 $20,145,555.78 Deductions Debt Retired 140,169.20 2.550,000.00 2,690,169.20 Balance June 30, 2001 $ 535.386.58 $16,920,000.00 $17.455.386.58 At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 Capital Leases General Obligation Bonds Total Debt 2002 2003 2004 2005 2006 2007 - 2011 2012 - 2015 $ 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 1,132,525.00 1,132,525.00 5,846,840.00 5,846,840.00 4,992,832.50 4,992,832.50 Total Principal and Interest $ 614,732.45 $22.616.360.00 $23,231.092.45 Deduct: Imputed Interest 79,345.87 Net Present Value ofFuture Minimum Lease Payments $ 535,386.58 - 22- WARE COUNTY BOARD OF EDUCAnON EXHffiIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE30,2001 Note 6: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $543,506.11 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $398,089. 10 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$38,164.01 Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$107,253,00 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: Project Unearned Executed Contracts Memorial Drive Elementary Renovations Wacona Elementary Renovations Ware Middle School Renovations $ 2,617.00 733,938.40 397,370.34 $ 1.133,925,74 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, - 23- WARE COUNTY BOARD OF EDUCAnON EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 8: CONTINGENT LIABILITIES The School District is a defendant in various legal proceedings pertaining to matters incidental to the perfonnance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently detenninable, but is not believed to be material to the general-purpose financial statements. Note 9: SUBSEOUENT EVENTS In the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $12,900,000.00. The proceeds from these bonds will be used-for capital outlay purposes. On September 18, 2001, the voters ofWare County voted in favor ofa Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Ware County, is as follows: "Shall a one percent sales and use tax be imposed in the Ware County School District for a period of time not to exceed twenty consecutive calendar quarters and for the raising of not more than $27,500,000 for the purposes of (a) retiring previously incurred general obligation debt of the school district in a maximum amount of $1,985,000; and (b) acquiring, constructing, and equipping the following capital outlay projects at schools and educational facilities throughout the County at a maximum cost of $25,515,000: the making of renovations and improvements at Memorial Stadium; construction of a fine arts center and improvements to other fine arts facilities; acquisition and installation of computers and new technology; construction of classrooms; construction of a JROTC building; the making of interior and exterior improvements to existing educational facilities; the acquisition and installation offurnishings and equipment, including copiers, HVAC, electrical, energy control systems, and other equipment and facilities; the acquisition of buses and renovations and improvements at the bus shop?" Note 10: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) '- TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. - 24- WARE COUNTY BOARD OF EDUCAnON EXHmIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 10: RETIREMENT PLANS 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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 3,045,506.58 $ 2,908,545.63 $ 2,898,775,55 - 25- ---------------------~---~---- - - - - - - - - - - - - - - - - - WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general-purpose financial statements. - 26- SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 321,025.12 $ 144,398.70 524,753.71 102,790.51 52,708.23 34,735.09 $ 1,036,012.66 $ ==1=4;;;.4~,3~98~.,;,,;70~ $ 30,415.37 $ 30,840.95 139,821.61 113,557.75 $ 170,236.98 $ 144,398.70 $ 52,708.23 34,735.09 778.332.36 $ 0.00 $ 865,775.68 $ 0.00 $ 1,036,012.66 $ ==1=4;;;.4~,3~98~.,;,,;70~ EXHIBIT "G" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 3,483.46 $ 468,907.28 $ 933,925.30 524,753.71 $ 645,466.89 5,250.00 753,507.40 543,829.13 52,708.23 34,735.09 58,121.29 34,144.91 $ 645,466.89 $ 8,733.46 $ 1,834,611.71 $ 1,570,020.63 $ 56,347.44 102,299.74 $ 332,249.02 132,976.78 21,593.91 $ 645,466.89 $ $ 8,633.46 8,633.46 $ 56,347.44 $ 172,189.52 585,628.38 132,976.78 21,593.91 968,736.03 $ 60,825.11 157,841.39 516,097.49 4,308.65 739,072.64 $ 8,917.52 $ 100.00 $ 100.00 100.00 52,708.23 34,735.09 58,121.29 34,144.91 $ 0.00 0.00 778,332.36 729,664.27 $ 0.00 $ 100.00 $ 865,875.68 $ 830,947.99 $ 645,466.89 $ 8,733.46 $ 1,834,611.71 $ 1,570,020.63 - 27- WARE 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 (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general-purpose financial statements, - 28- SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 196,208,00 $ 1,093,026.75 1,810,905.48 742.477.06 $ 2,749,590.54 $ 1,093,026.75 $ 915,907.94 127,117.34 18,226,16 11,375.31 20.400,00 $ 2,700,922.45 $ 2,700,922.45 $ 1,093,026,75 $ 48,668.09 $ 0.00 $ 48,668,09 $ 0.00 821,930.47 0.00 -5,413.06 590.18 $ 865,775.68 $ ====0=',;;,;00= EXHIBIT"H" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ $ 3,209,112.83 30,000.00 $ 3,239,112.83 $ 191,967.00 $ 191,967.00 $ 1,481,201.75 $ 5,020,018.31 772,477.06 7,273,697.12 $ 1,512,600.55 4,719,958.97 742,275.27 6,974,834.79 $ 2,509,223.27 $ 224,757.21 249,498.64 200,862.07 1,544.78 1,483.33 15,085.14 45,575.91 $ 3,248,030.35 $ $ -8,917.52 $ 125,182.83 $ 35,000.00 16,784.17 176,967.00 $ 15,000.00 $ 3,550,314.04 $ 386,874.55 266,282.81 200,862.07 19,770.94 12,858.64 35,485.14 45,575.91 2,700,922.45 7,218,946.55 $ 54,750.57 $ 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 $ 7,040.32 $ -15,000.00 $ -15,000.00 -15.000.00 $ -15,000.00 $ -15,000.00 $ -7,959.68 $ -8,917.52 $ 8,917.52 0.00 $ 100.00 39,750.57 $ 830,947.99 83.976.15 744,490.76 -5,413.06 590.18 -5,003.81 7,484.89 $ 0.00 $ 100.00 $ 865,875.68 $ ====8;;;;;3:=0!i;,9=47=.9~9;.. - 29- WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 3D. 2001 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity TotalUabilities and Fund Equity REGULAR $ 32,709.35 BOND PROCEEDS $ 3,070,038.41 $ 32,709.35 $' 3,070,038.41 $ 611,177.63 139,000.60 298,968.91 126,458.97 $ 1,175,606.11 $ 1,894,432.30 $ 32,709.35 0.00 $ 32,709.35 $ 1,894,432.30 $ 32,709.35 $ 3,070,038.41 See notes to the general-purpose financial statements. - 30- EXHIBIT "I" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 1,248,663.48 $ 2,881,415.39 $ 4,162,788.22 $ 3,213,588.39 2,443,008.31 5,513,046.72 6,819,209.79 846,383.79 846,383.79 791,116.05 $ 1,248,663.48 $ 6,170,807.49 $ 10,522,218.73 $ 10,823,914.23 $ 611,177.63 $ 139,000.60 298,968.91 126,458.97 $ 1,175,606.11 $ 504,226.71 17,924.48 6,584.87 148,670.00 677,406.06 $ 1,894,432.30 $ 4,205,492.89 $ 6,170,807.49 6,170,807.49 4,659,642.45 $ 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 $ 6,170,807.49 $ 9,346,612.62 $ 10,146,508.17 $ 1,248,663.48 $ 6,170,807.49 $ 10,522,218.73 $ 10,823,914.23 - 31 - ----------------------------- WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 FUND BALANCE JUNE 30 $ 32,709.35 $ 1,894.432,30 See notes to the general-purpose financial statements. - 32- EXHIBIT"J" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 1,511.165.04 $ 1,511,165.04 $ 1,947,064.98 $ o~.O=.:O:... 263,532.13 353,521.06 $ 0.00 $ 1,511,165.04 $ 1l74,697.17 $ 2,300,586.04 $ 1,284.10 $ 0.00 $ 0.00 $ 2,385,185.81 2,758,742.60 35,970.59 530,561.19 $ 0.00 $ 0.00 $ 2,421.156.40 $ 3,290,587.89 $ 0.00 $ 1,511,165.04 $ -646,459.23 $ -990,001.85 -153,436.32 $ 0.00 $ 1,511,165.04 $ -799,895.55 $ -990,001.85 1,248,663.48 4,659,642.45 10,146,508.17 11,136,510.02 $ 1,248,663.48 $ 6,170,807.49 $ 9,346,612.62 $ 10,146,508.17 - 33 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2001 EXHIBIT"K" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 1,121,912.75 $ 1,121,912.75 $ 3,960,267.86 2,689,635.67 6,649,903.53 $ 5,272,780.68 1,184.43 1,184.43 1,336.37 $ 3,961,452.29 $ 3,811,548.42 $ 7,773,000.71 $ 5,274,117.05 Total liabilities and Fund Equity $ 3,961.452.29 $ 3,811,548.42 $ 7,773,000.71 $ 5,274,117.05 See notes to the general-purpose financial statements. - 34- WARE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001 EXHIBIT"L" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 REVENUES Taxes Other Funds Total Revenues EXPENDITURES $ 3,68068 $ 3,469,350.84 $ 3,473,031,52 $ 2,988,288.56 266,643.93 136,192.01 402,835.94 293,202,29 $ 270,32461 $ 3,605,542 85 $ 3,875,867 46 $ 3,281,490.85 Debt Service Pnncipal Interest Paying Agent Fees Total Expenditures $ 330,000,00 $ 2,220,000,00 $ 2,550,000 00 $ 1,930,000.00 615,865.00 302,320.00 918,185.00 1,009,855.00 1,165.84 1.165.84 1,344 85 $ 947,03084 $ 2,522,320.00 $ 3,469,350 84 $ 2,941,199.85 Excess of Revenues over (under) Expenditures $ -676,70623 $ 1,083,222.85 $ 406,516.62 $ 340,291.00 OTHER FINANCING SOURCES (USES) Operating Transfers In OperatIng Transfers Out $ 676,706,23 $ $ 676,706.23 $ 685,47414 -676,706.23 -676,706.23 -685,474.14 Total Other Financing Sources (Uses) $ 676,706.23 $ -676,706.23 $ 000 $ 000 Excess of Revenues and Other FInancing Sources over (under) Expenditures and Other FinanCIng Uses $ 000 $ 406,516.62 $ 406,51662 $ 340,291.00 FUND BALANCE JULY 1 000 3,405,031 80 3,405,031.80 3,064,740.80 FUND BALANCE JUNE 30 $ ,;;;,O.;o;,OO~ $ 3,811,548.42 $ 3,811,54842 $ 3,405,031.80 See notes to the general-purpose financial statements. - 35- WARE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001 EXHIBIT"M" Cash and Cash Equivalents Investments Held by Trustee NONEXPENDABLE TRUST FUND ENDOWMENT FUND GILCHRIST FUND AGENCY FUND TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 43,03 $ 5,433.70 $ 5,476,73 $ 7,546,68 4,136.07 4,136,07 3,850.89 Total Assets $ 4,179.10 $ 5,433.70 $ 9,612,80 $ ..-==-.;1,,;,1;,3=97=.5=7= LIABILITIES AND FUND EQUITY LIABILITIES Funds Held for Others FUND EQUITY Fund Balances Reserved For Endowment Corpus $ Unreserved Undesignated Total Fund Equity $ Total Liabllitles and Fund Equity $ $ 5,433,70 $ 5,43370 $ 7,503,65 3,000,00 1,179,10 $ 4,179.10 $ $ 000 0.00 $ 3,000,00 $ 1,179,10 4,179.10 $ 3,000.00 893,92 3,893,92 5,433.70 $ 9,612,80 $ .......""",;1.;.1;;,3,;;,:97:.;;.5.7_ See notes to the general-purpose financial statements, - 36- WARE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001 EXHIBIT"N" SPECIAL NEEDS FUND ASSETS Cash and Cash Equivalents LIABILITIES Funds Held for Others BALANCE JULY 1, 2000 ADDITIONS DEDUCTIONS BALANCE JUNE 30. 2001 $ 7,503.65 $ 16.420.45 $ 18.490.40 $ 5.433.70 $ 7,503.65 $ 16.420.45 $ 18.490.40 $===5=.4=3=3..7..0= See notes to the general-purpose financial statements. - 37- WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 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 . 10.553 . 10.555 N/A $ 436,039.41 (2) NlA 1,226,526.48 $ 2,552,582.86 (3) Total Child Nutrition Cluster $ 1,662,565.89 $ 2,552.582.86 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Food Distribution Program (1) 10.550 N/A 148,339.59 148,339.59 Total U. S. Department of Agriculture $ 1,810,905.48 $ 2.700,922.45 Corporation for National and Community Services Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs 94.004 N/A $ 17.765.87 $ 17,765.87 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education IndiViduals with Disabilities Education Ad Part B - Special Education Flow Through Preschool Capacity Building Improvement 84.027 84.173 84.173 N/A $ 687,476.73 $ N/A 96,018.24 NlA 17,190.01 717,476.73 (3) 96.018.24 17,190.01 Total SpeCIal Education Cluster $ 800,684.98 $ 830,684.98 Other Programs Pass-Through From Berrien County Board of Education d/b/a Southem Pine Migrant Education Agency Elementary and Secondary Education Ad Title I Migrant Education Pass-Through From Georgia Department of Education Elementary and Secondary Education Ad Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduetlon Goals 2000 State and Local Education Systemic Improvement Grants 84.011 84.010 84.281 84.318 84.298 84.340 84.276 N/A 72,559.06 NlA 1,619,061.79 NlA 35,660.52 NlA 125.000.00 NlA 44,185.65 NlA 229.126.00 NlA 132,233.57 72,559.06 1,619,061.79 35,833.32 125.000.00 44,185.65 229,126.00 140,978.29 - 38- WARE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Educabon, U. S. Department of Other Programs Pass-Through From Georgia Department of Education VocabOnal Educabon - Basic Grants to States High School Program Basic Grant Pass-Through From Okefenokee Regional Educational Service Agency Safe and Drug-Free Schools Total U. S. Department of Education Defense. U. S. Department of Direct Department of the Anny R.O.T.C. Program CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.048 84.186 N1A $ 73,231.39 $ 73,231.39 N/A 17.748.49 17.748.49 $ 3,149,491.45 $ 3.188,408.97 $ 41.855.51 $ _ _...;4.:.11.;:.:85;.:;5.:.;:.5..;..1 Total Federal Financial Assistance $ 5.020.018.31 $ 5.948.952.80 N1A = Not Available Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) expenditures for the School Breakfast Program were not maintained separately and are induded in the 2001 National School Lunch Program. (3) Expenditures for this program indude State. and/or Other Funds. expenditures are not maintained by fund source. Major Programs are identified by an asterisk (*) in front of the CFDA number. The School District did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards indudes the Federal grant actiVity of the Ware County Board of Education and is presented on the modified aeaual 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. - 39- WARE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 SCHEDULE "2" AGENCY/FUNDING GRANTS Community Affairs, Georgia Department of Govemor's Emergency Funds (1) Educabon, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervenbon (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) 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 Category V Gifted StUdent - Category VI Remedial Education Program Alternative Educabon Program ' English Speakers of Other Languages (ESOL) Media Center Program Staff and ProfeSSional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocabonal Supel'lllsors Migrant Education Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services VocabonalEducabon Other State Programs At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teachers Preschool Handicapped Program Remedial Summer School Special Educabon Low Incidence Grant Teachers'Retirement Lottery Programs Computers in the Classroom GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 25,000,00 $ 25,000,00 1,240,089,00 396,992,00 3,209,480,00 1,174,675,00 1,887,451,00 289,720,00 3,042,175,00 2,573,014.00 838,441,00 78,776,00 990,636,00 2,036,850,00 450,302,00 25,014.00 1,423,166,00 247,012,00 243,803.00 25,963,00 599,252,00 168,048.00 3,867,883,00 736,206,00 198,655.00 134,728,00 27,289.00 31,148.00 3,077.00 308,101,00 2,758,153,00 $ 72,21400 196,208.00 7,509,33 398,089,10 5,426.23 3,912,00 81,667.00 8,646.38 29,638.00 38,164,01 131,807.00 1,240,089,00 396,992.00 3,209,480,00 1,174,675,00 1,887,451,00 289,720,00 3,042,175,00 2,573,014,00 838,441,00 78,776,00 990,636,00 2,036,850,00 450,302,00 25,014,00 1,423,166,00 247,012,00 243,803,00 25,963,00 599,252,00 168,048.00 3,867,883.00 736,206,00 198,655.00 134,728,00 27,289,00 31,148,00 3,077.00 308,101,00 2,758,153.00 196,208,00 72,214,00 7,509,33 398,089,10 5,426,23 3,912.00 81,667.00 8,646.38 29,638,00 38,164,01 131,807.00 - 40- WARE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 SCHEDULE "2" AGENCY/FUNDING GRANTS Human Resources, Georgia Department of Family Connection 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 GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 50,000,00 $ 50,000.00 961,219.75 961,219.75 $ 107,253,00 107,253.00 115,685.00 141,967.00 115,685.00 141,967.00 $ 29,899,303.05 $ 1,481,201.75 $ 31,380,504.80 (1) The purpose of the funds is to provide funds for repairs to the Memorial Stadium at Ware County High School. See notes to the general-purpose financial statements. - 41 - WARE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2001 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3)(4) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS Retiring previously incurred general obligation debt of the School District $ 15,100,000.00 $ 15,100,000.00 $ 947,030.84 $ 1,780,267.05 Ongoing 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 DIStnct, 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 distnct administrative offices and purchasing school buses 15,900,000.00 15,900,000.00 2,574,592.72 7,256,641.81 Ongoing $ 31,000,000.00 $ 31,000,000.00 $ 3,521,623.56 $ 9,036,908.86 (1) The School District's onginal 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 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 projects. (4) In addition to the expenditures shown above, the School District has incurred interest to prOVide advance funding for the above projects as follows: Current Year $ 302,320.00 See notes to the general-purpose financial statements. - 43- WARE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM