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

WHITE 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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

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

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

. FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

E

COMBINED STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

10

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

13

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

31

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

WHITE 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

34

N

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

36

o

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

. AGENCYFUND

. 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

41

ALLOTMENTS AND EXPENDITURES .

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

42

5

BY SITE

43

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133

WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-X400
January 15,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the White County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe White Couuty Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe White County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 pIan 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.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

200lARL-13

* The general-purpose financial statements of the Board of Education did not contain a '
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.

* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services. completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and e?,penditures 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 on the 'general-purpose financial-statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe White County Board ofEducation as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated January 15, 2002, on our consideration of the White County Board of Education's internal c<;mtrol 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. .

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe White County Board ofEducation taken as a whole. The accompanying combining and individual fund statements (Exhibits G through 0)' and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office ofManagement and Budg~t Circular A-133, 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

200lARL-13

procedure~ applied in the audit ofthe general-purpose financial statements and in our opinion, except
for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:as 2001ARL-13

Ru ell W. Hinton State Auditor

WHITE COUNTY BOARD OF EDUCATION

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE PROJECTS

FUND

FUND

$ 2,548,029,96 $ 456,878,10 $ 701,632,05

352,762,16

84,085,38

16.659,30 13.389.11

Total Assets

$ 2.900,792,12 $ 571,011.89 $ 701,632.05

LIABILITIES AND FUND EqUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others General Obligation Bonds Payable.
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service
ForEndo~entCo~us
For Inventories Food Donated Commodities Purchased Food
For Pu~ose of Bond Issue Unreserved
Designated for Scholarships Undesignated
Total Fund Equity

$ 11,954.54 $ 32,615.97 42,219.54 122,285.99 558,85
$ 54,174.08 $ 155,460,81
$ 29.040.32
16.659,30 13.389.11
$ 2,846.618,04 356,462.35 $ 701,632.05 $ 2,846,618.04 $ 415,551.08 $ 701,632.05

Total Liabilities and Fund Equity

$ 2,900,792,12 $ 571,011.89 $ 701,632.05

The notes to the general-pu~osefinancialstatements are an integral part of this statement -2-

EXHIBIT ';A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND' AGENCY FUNDS

$

5;845.66 $

10,226.16

2,984,838.41

23,541.85

453,557.28

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000

$ 3,722,611.93 $ 5,440,210.89

3,008,380.26

2,238,174.57

890,404.82

844,565.95

$ 3,444,231.45

16,659.30 13,389.11
3,444,231.45

17,125.79 14;920.55
3,177,404.83

8,260,768.55

8,260,768.55 10,517,595.17

$ 3,444.241.35 $

33,768.01 $ 11.705,000.00 $ 19,356,445.42 $ 22,249,997.75

$

44,570.51 $

49,434.65

164,505.53

168,896.94

558.85

7,756.17

547,528.00 .

302,555.80

$

497.83

497.83

825.32

$ 11,705,000.00

11,705,000.00

13,695,000.00

$

497.83 $ 11,705,000.00 $ 11,915,132.72 $ 14,771,996.88

$ 3,444,241.35 $

23,500.00

0.00 $ 3.444.241.35 $

9,770.18 0.00
33.270.18

$

29,040.32 $

3,699.24

3,444,241.35

3,177,404.83

23,500.00

23,500.00

16,659.30 13,389.11

17,125.79 14,920.55 775,291.94

9,770.18 3.904,712.44

8,404.35 3,457,654.17

$ 7.441,31~.70 $ 7,478,000.87

$ 3,444,241.35 $

33,768.01 $ 11 ,705.000.00 $ 19,356,445.42 $ 22.249,997.75 -3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instrudional 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
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 .

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 12,840,097,83 $ 192,260,00

976,90 1,523,207,04

7,621,081,62

610,508,57

579,032.45 $

$ 21 ,072,664.92 $ 2,294,499.49 $

44,149.69 44,149.69

$ 14,447,867.12 $ 832,492.47

346,582.83 658,123.68 567,151.65 416,821.17 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12
84,879.50 33,937.41
524.75 16,466.40

114,052.76 41,139.59 27,044.99
1,236,799.61 $

794,990.27

$ 20,667,687.00 $ 2,251,529.42 $ 794,990.27 $ 404,9n.92 $ 42,970.07 $ -750,840.58

$

74,855.68 $

6,699.85

-6,699.85

-1,555.68 $ -73,300.00

$

68,155.83 $

5,144.17 $ -73,300.00

$ 473,133.75 $ 48,114.24 $ -824,140.58

2,373,484.29

369,434.n

1,525,n2.63

-466.49 -1,531.44

FUND BALANCE JUNE 30

$ 2,846,618.04 $ 415,551.08 $

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

-4-

701,632.05

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 13,032,357.83

. 1,524,183.94

$ 2,743,553.83 10,364,635.45

104,681.94

1,338,372.65 $

$ 2,848,235.77 $ 26,259,549.87 $

$ 13,032,357.83 $ 11,610,~17.31

1,524,183.94

1,568,730.01

10,364,635.45

9,928,824.79

1,356.56

1,339,729.21

1,410,224.09

1,356.56 $ 26,260,906.43 $ 24,518,596.20 .

$ 15,280,359.59

460,635.59 699,263.27 567,151.65 443,866.16 $ ,1,312,739.00 212,108.50 1,529,008.87 1,041,476.12
84,879.50 33,937.41 1,237,324.36 811,456.67

$ 1,990,000.00 586,841.25 4,558.00

1,990,000.00 586,841.25 4,558.00

$ 2,581,399.25 $ 26,295,605.94 $

$ 266,836.52 $' -36,056.07 $

$ 15,280,359.59 $ 13,329,406.80

1,500.00

460,635.59 699,263.27 567,151.65 445,366.16 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12
84,879.50 33,937.41 1,237,324.36 811,456.67

784,444.35 818,208.25 557,443.79 354,574.12 1,166,467.96 156,024.01 1,348,897.94 958,474.57 23,487.62 128,630.66 1,068,828.06 5,277,995.29

1,990,000.00 586,841.25 4,558.00

1,705,000.00 661,167.50

1,500.00 $ 26,297,105.94 $ 28,339,050.92

-143.44 $ . -36,199.51 $ -3,820,454.72

$

81,555.53

-81,555.53

$

0.00

$

81,555.53 $ 175,025.78

-81,555.53

-175,025.78

$

0.00 $

0.00

$ 266,836.52 $ -36,056.07 $

3,177,404.83

7,446,096.52

-143.44 $ -36,199.51 $ -3,820,454.72

2,265.06

7,448,361.58 11,278,547.44

-466.49

-466.49

-12,409.93

-1,531.44

-1,531.44

2,678.79

\-~

$ 3,444,241.35 $ 7,408,042.52 $

2,121.62 $ 7,410,164.14 $ 7,448,361.58

-5-

",

~,

WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUr.m BALANCES
BUDGET ANpACTUAL - INON-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

$ 11,599,771.00 $ 12,840,097,83

200,000,00

976,90

7,206,674,00

7,621,081.62

338,000.00

610,508,57

Total Revenues

$ 19,344,445.00 $ 21,072,664.92

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

$ 14,091;053,97 $ 14,447,867,12

408,227.00 728,886.00 558,161.00 465,363.00 1,373,999,00 207,991,00 1,694,456.00 1,076,125.00
27,150.00 20,000.00

346,582.83 658,123,68 567,151.65 416,821.17 1,312,739.00 212,108.50 1,529,008.87 1,041,476.12
84,879.50 33,937.41
524.75 16,466.40

Total Expend!~ures

$ 20,651,411.97 $ 20.667.687.00

Excess of Revenues over (under) Expenditures

S -1,306,966,97 S 404.977.92

OTHER FINANCING SOURCES IUSES)

Other Sources Other Uses

S

74,855,68

-6,699.85

Total Other Financing Sources (Uses)

S

68,155.83

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses S -1,306,966.97 S

473,133.75

FUNp BALANCE JULY 1. 2000

2,154,326,70

2,373,484.29 .

. Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 143,413,00 $ 192,260.00

1,408.068.00

1.523,207,04

562,315.00

579,032.45

$ 2,113,796.00 $ 2.294,499.49

$ 768,695.00 $ 832,492.47

101,902.00 44,390.00

114,052.76 41,139.59

32,260.00

27,044.99

631.00

1,146,305.00

1,236,799,61

$ 2.094.183.00 $ 2,251,529,42 $ 19,613.00 $ 42,970.07

$

6,699.85

-1,555.68

$

5,144.17

$ 19,613.00 $ 48,114,24

402,678.36

369,434.77

-2,817,86

-466.49 -1,531.44

FUND BALANCE JUNE 30. 2001

S 847,359.73 $ 2,846,618.04

$ >419,473.50 $ 415,551.08

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

WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENSESA~D C!"lANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 3D, 2001

OPERATING REVENUES Donations
OPERATING EXPENSES Current Support Services General Administration Operating Income
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1

FIDUCIARY FUND

NONEXPENDABLE TRUST

INDA YVONNE

JULIA AND

ALLEN

HARWELL

MINORITY

WESTMORELAND

SCHOLARSHIP

CITIZENSHIP

.$

561.54 $

0.00

$

0:00 $

$

561,54 $

867.29

$

1,428.83 $

19,469,81

0.00 0.00
0.00 0.00 1,041.85

FUND BALANCE JUNE 30

$

20,898.64 .$ ====1:!::,O4===.1.8..5. =

The notes to the general-purpose financial statements are an integral part of this statement. -8-

EXHIBIT"D"

TYPE FUNDS
VERA WESTMORELAND
SCHOLARSHIP

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

0.00 $

561.54 $ _ _---"5~94""'".=25;;...

$

300.00 $

300.00 $ _ .........~1J.::,5:.:::.08::.:..;..:75=-

$

-300.00 $

261.54 $

-914.50

380.44

1,247.73

1,256.70

$

80.44 $

1,509.27 $

342.20

9,127.63

29,639.29

29,297.09

$

9,208.07 $

31,148.56 $===29...,.6:=3=9.=2.9..

-9-

WHITE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2001

Cash "Flows from Operating Activities: Cash Received from Donations Cash Paid for Scholarships
Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments
Net Cash Provided by Investment Activities
Net Increase (Decrease) in Cash
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

FIDUCIARY FUND

NONEXPENDABLE TRUST

INDA YVONNE

JULIA AND

ALLEN

HARWELL

MINORITY

WESTMORELAND

SCHOLARSHIP

CITIZENSHIP

$

561.54 $"

0.00

$

561.54 $

-0= .00~

-;"::"'l

$

'"S
867.29 $,_,_ ,/1-;::/ -_-0=.0=0-

L,.

$

867.29 $,_~...."......0_-.0=0=-

v'/\;.

$

1,428.83 $ 4.969.81

1/-1\ 6 i
U ' 1,)

0.00 0.00

'-,, ~.P

1ifr;.

$

otA \!;)

0.00

The notes to the general-purpose financial statements are an integral part of this statement. - 10-

'1J~ () ;6<1\)
'1,) 1 ,(
"b 1v
V :;. I\.-(\)/ '1 J
0 \''-}V~II
'-)0, I
'J r I
\-t{ i>
\)0\'? D
'1,1, ill ~
'tl J ''GJ ~

EXHIBIT"E"

TYPE FUNDS
VERA
WESTMORELAND SCHOLARSHIP

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

561.54 $

594.25

$

-300.00

-300.00

-1,508.75

$

-300.00 $

261.54 $

-914.50

$

380.44 $

1,247.73 $

1,256.70

$

380.44 $

1,247.73 $

1,256.70

$

80.44 $

1,509.27 $

342.20

1,127.63

6,097.44

5,755.24

$

1,208.07 $

7,606.71 $ ======,,;6=,0=97=.44==

-11 -

WHITE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The White 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 subj ect to approval by any other entity. Accordingly, the School District is a primary government arid 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial state~ents. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.

The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:

GOVERNMENTAL FUND TYPES - are used to account for all or most of a School Oistrict'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.

.

-13 -

WHITE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 inajor 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 o~jectives.

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 governrnent unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:

NONEXPENDABLE TRUST FUNDS Inda Yvonne Allen Minority Scholarship 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 to provide scholarship aid to minority graduating seniors of the White County High School.

Julia and Harwell Westmoreland Citizenship Fund - the fund, used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide an award to a male and female student selected by the senior class each year,

Vera Westmoreland Scholarship Fund-the fund used to account for an endowment ofwhicb the CQrpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid each year, to a deserving senior who has been accepted to college.

EXPENDABLE TRUST FuNDS Libby Alexander Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a deserving student.

Lion's Club Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarship aid to a graduating senior who has been accepted by a post secondary institution.

AGENCY FUNDS - the funds 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, .
- 14-

WHITE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resour~es 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.

. 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,

Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.

Governmental and expendable trust 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 iIi 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 recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Expenditures are generally recognized when the related fund liability is 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

- 15 -

WHITE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 200 I\.was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when 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. .
I.
BUDGET

The White 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 aggregate 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 tentatjve budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education' Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

CASH AND CASH E~UIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash onh3nd, demand deposits and short-tenn investments with original maturities of three months or" less from the date of acquisition in authorized financial

- 16-

\"

1 -;

WHITE COUNTY BOARD OF EDUCAnON

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or iQ.Sured 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 ,?orporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist ofgrant reimburSements due on Federal, State or other grants for expenditures

made but not reimburs~and other receivables disclosed from information available. Receivables

are recorded when either the asset or revenue recognition criteria has been met. Receivables

recorded on the general-purpose financial statements do not include any amounts which would

necessitate the need for an allowance for uncollectible receivables.

.

- 17 -

WHITE COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The White County Board of Commissioners fixed the property taX levy for the 2000 tax year (calendar year) on October 13, 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 White 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 $7,497,538.08 and for school bonds amounted to $263,068.05.

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

School Operations School Bonds

14.470 mills .488 mills

14.958 mills

SALES TAXES

Special Purpose Local Option Sales Tax isto be used for capital outlay for educational purposes and debt service, Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,478,664,19 and was recorded in the Debt Service Fund. The State will terminate collection of this taX once an additional $9,356,633,58 has been collected or on December 31, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories ofdonated 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 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 cos~, are

- 18-

I l l ' .'

WHITE COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
recognized in the financial statements during the ye'ar 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 facili.tate fm~cial analysis. Data in these columns do not present financial 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 of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such ,surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
-19 -

WHITE COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 ofthe 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, 2001, the bank balances were $4,361,623.78. 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 ~y bank balance that is collateraliZed with securities held by the pledging financial institution, or by its trust dep~ent or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category'

Bank Balance

1

$ 136,376,26

2

4,225,247.52 .

3

0.00

Total

$ 4.361.623,78

- 20-

WHITE COUNTY BOARD OF EDUCAnON

EXHIBIT"F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments waS $2,984,838.41 which is materially the same as fair value.

Type of Investment

CaiTying Amount

Fair Value

Investments not Subject to Categorization:

Local Government

'.

Investment Pools

Mutual Funds

Money Market Account .

$ 2,984,837,62 $ 2,984,837,62

.79

.79

Total Investments

$ 2,984,838.41 $ 2,984,838.41

The carrying amounts shown above includes amounts maintained in an investment pool by the State

ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable

securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for

. the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for

investment in derivatives or similar investments, A description ofthe Primary Liquidity Portfolio is

as follows:

'

.

, The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6, Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds, The pool is not registered with the Securities and Exchange Commission 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 2a-7likepool. 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 of the shares, Participation in the pool is voluntary and deposits consist of funds from local governments; , operating and trust funds ofGeorgia'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.

- 21 -

WHITE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

'NOTES TO THE 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 ofassets; errors or omissions; job related illness or injUries to employees; natural disaster and unemployment compensation.

The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by . the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes iIi 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

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

2,832.00 $

2,832.00 $

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
an pays an annual premium to the Fund for its general insurance coverage. Additional insurance
coverage is provided through 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.

- 22-

.. ,

WHITE COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent Employee Blanket Bond

$ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1993 General Government - Series 1997

3.10% - 5.55% . $ 5,890,000.00 3.80% - 4.30% 5,815,000.00

$ 11.705.000.00

On June 19,2001; voters authorized $9,230,000.00 in general obligation debt for the purpose of(i) acquiring, constructing and equipping one new elementary school, (ii) adding to, renovating, repairing, improving, and equipping existing school buildings, (iii) acquiring computers and computer technology equipment for the school system, and (iv) acquisition of land for additional schools. These general obligation bonds were issued on August 23, 2001.

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

General Obligation
Bonds

Balance July 1, 2000

$ 13,695,000.00

Deductions Debt Retired

1,990,000.00

Balance June 30, 2001

$ 11.705,000.00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

- 23-

WHITE COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT
Fiscal Year Ended June 30
2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016
Total Principal and Interest

General Obligation
Bonds
$ 2,725,213.75 2,896,308.75 2,432,500.00 . 622,532.50 624,141.25 3,150,540.00 1,893,878.75
$14.345,115.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $335,867.50 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
mthe amount of $272,975.38

Paid to the Teachers Retirement System or"Georgia For Teachers Retirement System. (TRS) Employer's Cost In the amount of$21,600.12

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 $41,292.00

Note 7: 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.

- 24-

WHITE COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 7: CONTINGENT LIABILITIES

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable. but is not believed to be material to the general-purpose financial statements.

Note 8: RETIREMENT PLANS .

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers. administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS). which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement. disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained ,from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board 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 pscal year and the preceding two fiscal years are as follows:

Fiscal Year '

Percentage Contributed

Required Contribution

2001 2000 1999'

100% 100% 100%

$ 1,429.726.47 $ 1.278.955.59 $ 1,248,249.35

- 25-

WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$ 439,677.45. $

0.00

16,659.30 13,389.11

Total Assets

$ 469,725,86 $===0=:.=00...

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories FoodDonated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$ 16,569.24 66,645.86
$ 83,215.10

$ 16,659.30 13,389.11

356,462.35 $

0.00

$ 386,510.76 $

0.00

$ 469,725.86 $====0'=00=

See notes to the general-purpose financial statements. - 26-

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS JUNE 3D, 2001 JUNE 3D, 2000

$ 17,200.65 $

0.00 $ 456:878.10 $ 400,810.99

84,085.38

84,085.38

138,518.81

16,659.30 13,389.11

17,125.79 14,920.55

$ 101,286.03 $====0.=00= $ 571,011.89 $ 571,376.14

$ 16,046.73 55,640.13 558.85
$ 72,245.71

$

33,373.17

$

32,615.97

36,648.95

122,285.99 ..

126,598.84

558.85

5,320.41

$ 155,460.81 $ 201,941.37

$ 29,040.32
0.00 $ $ 29,040.32 $

$

29,040.32 $

3,69g,24

0.00 0.00 $

16,659.30 13,389.11
356,462.35
415,551.08 $

17,125.79 14,920.55
333,689.19
369,434.77

$ 101,286.03 $ ====0'=00= $ 571,011.89 $ ======57...1.,,3=76=..1.4. =

- 27-

WHITE 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 Student Transportation 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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

89;298.00 $. 65,413.00

. 591 ;242.32

579,032.45

$ 1.259,572.77 $ 65,413.00

$ 65,430.91

$ 1,236,799.61

$ 1,236,799.61 $

$

22,773.16 $

65,430.91 -17.91

'$

'17.91

$

17.91

<'

$

22.773.16 $

0.00

365.735.53

0.00

-466.49 -1,531.44

$ 386,510.76 $===0=:.0=0....

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

EXHIBIT"H"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30. 2001 JUNE 30. 2000

$ $ 931.964.72
$ 931,964.72 $

37,549.00 $

192,260.00 $ 1.523.207.04
579,032.45

217,309.91 1,565,419.52
548.549.95

37.549.00 $ 2.294.499.49 $ 2,331.279.38

$ 733.975.65 $
114,052.76 36.668.23 27,044.99

$ 911.741.63 $

$

20,223.09 $

33,085.91 $ 832.492.47 $ 937,232.85

4,471.36

114.052.76 41,139.59 27,044.99
1.236.799.61

162.015.51 42,440.25 27.201.76
30.06 1,057.611.51

37,557.27 $ 2,251 ,529.42 $ 2,226,531.94

-8.27 $

42,970.07 $ 104.747.44

$

6,673.67 $

-1.555.68

$

5,117.99 $

$

25,341.08 $

3,699.24

8.27 $ 8.27 $

6,699.85 $ -1.555.68
5.144.17 $

37,425.78 37.425.78

0.00 $ 0.00

48,114.24 $ 369,434.77

142,173.22 236,992.69

-466.49 -1.531.44

-12,409.93 2.678.79

$

29.040.32 $

0.00 $ 415.551.08 $ ====36=9=:,4=34,;,;,.7=7=

. - 29-

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents

REGULAR

BOND PROCEEDS

TOTALS JUNE 30, 2001 JUNE 30, 2000

$ 701,632.05 $

0.00 $ 701,632.05 $ 2,375,856.43

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated
Total Fund Equity

$ 701,632.05 $ $ 701,632.05 $

$ 547,528.00 302,555.80
$ 850,083.80

0.00 $ 0.00 $

$

775~291.94

701,632.05

750,480.69

701,632.05 $ . 1,525,772.63

Total Liabilities and Fund Equity

$ 701,632.05 $

0.00 $ 701,632.05 $ 2,375,856.43

See notes to the general-purpose financial statements.

-30-

WHITE COUNTY BOARD OF EDUCATION

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

.

,

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30, 2001

EXHIBIT "J"

REGULAR

BOND PROCEEDS

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

Other Funds

$ 24,451.36 $ 19,698.33 .$

44,149.69 $ 230,135.88

EXPENDITURES

Current Support Services Business Administration
. Capital Outlay Building and Building Improvements Equipment

$

3,175.00

$

0.00 $ 659,990.27 $ 659,990.27

5,264,453.03

135,000.00

135,000.00

Total Expenditures

$

0.00 $ 794,990.27 $ 794,990.27 $ 5,267,628.03

Excess of Revenues over (under) Expenditures

$ 24,451.36' $ -775,291.94 $ -750,840.58 $ -5,037,492.15

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transrers Out

$ -73,300.00

$ 137,600.00 $ -73,300.00

Total Other Financing Sources (Uses)

$ -73,300.00

$ -73,300.00 $ 137,600.00

Excess of Revenues and Other Financing Sources over (iJnder) Expenditures and Other Financing Uses $ -48,848.64 $ ~775,291.94 $

-824,140,58 $ -4,899,892.15

FUND BALANCE JULY 1

750,480.69

775,291.94

1,525,772.63

6,425,664.78

FUND BALANCE JUNE 30

$ 701,632.05 $

0.00 $ 701,632.05 $ 1,525,772.63

See notes to the general-purpose financial statements.

- 31 -

ASSETS Cash and Cash Equivalents Investments' Accounts Receivable
Total Assets

WHITE 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 .

$ 1,222,965.25

$ 1,222,965.25 $

706,042.96

$

2,984,838.41

2,984,838.41

2,214,632.72

10,470.30

443,086.98

453,557.28

421,515.00

$ 1,233,435.55 $

3,427,925.39 $ 4,661,360.94 $ 3,342,190.68

Totai Liabilities and Fund Equity $ 1,233,435.55 $

3,427,925.39 $ 4,661,360.94 $ 3,342,190.68 .

See notes to the general-purpose financial statements.

~32-

WHITE COUNTY BOARD OF EpUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001

EXHIBIT "L"

FUND BALANCE JUNE 30

$ 1,233.435.55 $ 2,210,805,80 $ 3.444,241.35 $ 3,177.404.83

. see notes to the general-purpose financial statements.

- 33-

WHITE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES
JUNE 30. 2001

ASSETS Cash and Cash Equivalents Investm.e, nts

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

INDA YVONNE

JULIA AND

ALLEN

HARWELL

VERA

MINORITY

WESTMORELAND WESTMORELAND

SCHOLARSHIP

CITIZENSHIP

SCHOLARSHIP

$

6,398.64

$

1,208.07..

14,500.00 $ _ _-.:.1J..l::,O~4.:..:.1.:::::85::..

8,000.00

. Total Assets

$

20,898.64 $

1,041.85 $ =====95,2;;:;08=.0::.;7=

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances Reserved
ForEndovwnentCo~us
Unreserved Designated for Scholarships Undesignated

$

14,500.00 $

6,398.64 0.00

Total Fund Equity

$

20,898.64 $

1,000.00 $

8,000.00

41.85 0.00

1,208.07 0.00

1,041.85 $ _ _---=:9.c,2~08::.:..0;:;.:7~

Total Liabilities and Fund Equity

$

20,898.64 $

1,041.85 $ =====9:5,2=0=:8..0.7. ;...

See notes to the general-pu~ose financial statements. - 34-

EXHIBIT"M"

EXPENDABLE TRUST FUNDS

LIBBY ALEXANDER

LION'S CLUB

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

AGENCY FUNDS

TOTALS

JUNE 30, 2001

JUNE 30. 2000

$

2.070.62 $

51.00 $

497.83 $

10,226.16 $

9.187.82

23,541.85

23,541.85

$

2.070.62 $

51.00 $

497.83 $

33,768.01 $ ==3=2=.7=2=:9.=67=

$

497.83 $

497.83 $ _ _~8:.=2::.:.5.::32=-

$

2.070.62 $

51.00

0.00

0.00

$

2.070.62 $.

.:::.51.:.:.:.0:;:0:...

$

23.500.00 $

23.500.00

9,770.18 0.00

8,404.35 0.00

$

33.270.18 $ _---'3;:;..;1""".9=04..:.;.=35:;,..

$

2,070.62 $

51.00 $

497.83 $

33.768.01 $==3=2=,7=2=:9.=67=

- 35-.

WHITE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001

EXHIBIT "N"

FUND BALANCE JUNE 30

$

2,070,62 $

51.00 $

2,121,62 $==.::2~,2=65=,O~6=

see notes to the general-purpose financial statements.

36-

WHITE COUNTY BOARD OF EDUCATION STATEMENTOF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2001

EXHIBIT "0"

BUS DRIVERS' ASSOCIATION ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

825.32 $

420.00 $

747.49 $

497.83

$

825.32 $

420.00 $

747.49 $ ====4.9.7.;,,;;.8;:;;3=

See notes to the general-purpose financial statements.

- 37-

WHITE 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 10
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 $ NlA

119,225.58 403,925.90 $

(2) 1,168,708.77 (3)

Total Child Nutrition Cluster

$

523,151.48 $ 1,168,708.77

Other Programs

Pass-Through From Georgia Department of Education',

Food and Nutrition Program.

Food Distribution Program (1)

10,550

NlA

Pass-Through From Office of Treasury and Fiscal services

National Forest Reserve Funds

10,665

NlA

68,090,84 976.90

68,090,84 (4)

Total U, S, Department of Agriculture

$

592,219,22 $ 1,236,799.61

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B Special Education Flow Through Preschool

84,027 84.173

NlA $ NlA

260,299.65 $ 19,681.00

260.299,65 19,681.00

Total Special Education Cluster

$

279,980.65 $

279,980,65

Other Programs

Pass-Through From Georgia Department of Education

Elementary and secondary Education Act

Title I

Delinquent Children

84,010

NlA

Grants to Local Educational Agencies

84,010

NlA

Title II

Eisenhower Professional Development

84,281

NlA

Title VI

Class Size Reduction ,

84,340

NlA

Innovative Education Program Slrategles

84.298

NlA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84,048

N1A

83,576.28 296,533,41
16,000,00 52,474,00 15,420,85
22,980,00

83,576.28 296,533.41
12,787,17 59,131.20 (3) 15,420,85
22,996.47 (3)

Total U. S, Department of Education

$

766,965.19 $

770,426.03

Health and Human services, U. S, Department of Pass-Through From Ninth District Opportunity. Incorporated Head Start

93,600

NlA $

164,999.53 $

141,315.60

. Total Federal Financial Assistance
NlA = Not Available

$ 1,524,183.94 $ 2,148,541.24

38

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

SCHEDULE "1"

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.
(4) Funds earned on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The School Distrid did not provide Federal Assistance to any Subrecipient.
J
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White 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.

- 39-

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

SCHEDULE "2"

AGENCY/FUNDING

GRANTS

Education, Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

Kindergarten Program - Early Intervention Program

Primary Grades (1-3) Program

Primary Grades - Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

category II

category III

Category IV

Gifted Student - Category VI

Remedial Education Program

A1temative Education Program

Media Genter Program

Staff and Professional Development

. Indirect Cost

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Principal Supplements

Vocational Supervisors

Education Equalization Funding Grant

Food Services

.

Vocational Education

Other State Programs

Apprenticeship Program

At-Risk Summer School Program

Environmental Science Program

Health Insurance

Innovative Programs

Mentoring Program

Mentor Teachers

Next Generation Schools

Preschooll:iandicapPed Program

Remedial Summer School

Teachers'Retirement

Lottery Programs

Computers In the Classroom

Office of Treasury afld 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

$ 659,999.00 134,374.00
1,621,957.00 426,732.00
1,029,034.00 1,599,613.00 1,158,67!;i.00
499,439.00
94,636.00 213,831.00 832,845.00 205,303.00 437,618,00 167,916,00 116,680,00 287,298,00
79,514.00 1,824,762.00

$ 659,999.00 134,374.00
1,621,957.00 426,732.00
1,029,034.00 1,599,613.00 1,158,675.00
499,439.00
94,636.00 213,831.00 832,845.00 205,303.00 437,618.00 167,916.00 116,680.00 287,298.00
79,514.00 1,824,762.00

485,634.00 150,696.00
82,212,00 14,352.00 21,943.00 125,465,00
$ 34,181.23

89,298.00

35,000.00 3,019.48 750.00
272,975.38 5,000.00 4,000.00 2,934.00
75,000.00 39,206.67
3,122.95 21,600,12

65,413.00

485,634.00 150,696.00
82,212,00 14,352,00 21,943.00 125,465.00 89,298.00 34,181.23
35,000.00 3,019.48 750,00
. 272,975.38 5,000.00 4,000.00 2,934.00
75,000.00 39,206.67
3,122.95 21,600.12
65,413,00

41,292.00

41.292.00

31,488.00

37,549.00

31,488.00 37,549.00

See notes to the general-purpose financial statements,

$ 12,840,097.83 $ 192,260.00 $ 13.032.357.83 -40-

WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVEP LOCAL OPTION SALES TAX pROJECTS
YEAR ENDED JUNE 30 2001

SCHEDULE "3"

PROJECT
Payments of Prinelpal and Interest on the 1993 Bonds from February 1, 1999 to August 1,2003
Acquisition, construction and equipping of a new elementary school and necessary fumishings and equipment, ineluding the acquisition of all necessary real or personal property and equipment, ineluding computers and related technology, adding to, renovating, repairing, improving and equipping existing educational buildings, properties and faellities of the school district and expenses Ineldent thereto

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED: IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 3,160,000.00 $ 3,160,000.00 $ 622,870.00 $ 784,956.35 Ongoing

14,040,000.00 14,040,000.00 1,073,961.52

9,968,294.86

Ongoing

$ 17,200,000.00 $ 17,200,000.00 $ 1,696,831.52 $ 10,753,251.21

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of White 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.

See notes to the general-purpose finanelal statements.

41

WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (qBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS . FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

.Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

category I

category II

Category III

category IV Gifted Student ~category VI

Remedial Education Program

Alternative Education Program

799,248,00 $
162,725,00 1,964,164.00
516,766.00 1,246,144.00 1,937,106.00 1,403,137.00
604,813.00 1,630,731.00
529,950.00 203,343.00 141,298.00

697,244.20 $
211,105.56 1,764,411.17
555,554.01 1,123,239.77 1,560,825.42 1,656,305.78
420,422.35
115,311.50 281,912.30 1,051,720.20 221,009.94 641,986.06 . 381,125.41
65,253.28

19,533.09 $
3,697.38 90,414.37
5,133.56 38,687.45 120,952.92 69,096.32 144,322.62
2,449,40 6,275.18 32,380.41 6,273.64 19,193.23
710.00 74,694.14

716,777.29 214,802.94 1,854,825.54 560,687.57 1,161,927.22 1,681,778.34 1,725,402.10 564,744.97
117,760,90 288,187.48 1,084,100.61 227,283.58 661,179.29 381,835.41 139,947.42

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$ 11,139,425,00 $ 10,747,426.95 $ 633,813.71 $ 11,381.240.66

Media center Program Staff and Professional Development

347,912.00 96.291.00

425,722.90 21,818.29

123,116.23 74,605.19

548,839.13 96,423.48

TOTAL aBE FORMULA FUNDS

$

11,583,628.00 $ 11,194,968.14 $ 831,535.13 $ 12,026,503.27

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

see notes to the general-purpose financial statements.

42 -

WHITE COUNTY BOARD OF EDUCATION

GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (OBE)

ALLOTMENTS AND EXPENDITURES - BY SITE

.

YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

White County Intermediate School White County Middle School White County High School Jack P Nix Primary School White County Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE OBE PROGRAM COSTS

$

1,781,926.00 $

1,787,547.65

2,635,940.00

2,482,783.84

2,738,312.00

3,061,419.90

1,947,845.00

2,135,221.30

1,894,104.00

1,762,522.45

141,298.00

151,745.52

$

11,139,425.00 $

11,381,240.66

See notes to the general-purpose financial statements. -43 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Allanta, Georgia 30334-H400
January 15,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the White 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 ofWhite County Board ofEducation as of and for the year ended June 30,2001, and have issued our report thereon dated January 15, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the .auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards gerierally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaimng reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial 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.
Internal Control Over Financial Reporting
In planning ~d performing our audit, we considered White 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 fmancial statements and not to provide assurance on the internal
2001YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect White County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is .described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7541-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts . that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in th~ internal control that might be reportable conditions-and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-754I-OI-OI to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe White 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:as 200IYB-4I

Rus 11 W. Hinton_ State Auditor

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Allanta. Georgia 30334-X400
January 15; 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the White County Board of Education
REPORT ON COMPLIANCE WITH REOUlREMENTS APPLICABLE TO EACH MAJOR PRO. GRAM AND ON INTERNAL CONTROL OV. ER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofWhite CountyBoard ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit.
We conducted out audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White 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 White County Board of Education's compliance with those requirements.
200lSA-1O

In our opinion, the White 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, 2001.
Internal Control Over Compliance
The management of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine oui auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low'level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe White 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,
LO~
R sell W. Hinton State Auditor
RWH:as 2001SA-1O

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7541-99-02 FS-7541-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS -Failure to Maintain General Fixed Assets Account Group . Finding Control Number: FS-7541-00-01

White County Board ofEducation concurs with this deficiency. Purchase order 10-08419 to American Appraisal Associates dated August 28, 2001, has been let to address this deficiency. Purchase order 10-08419 is for services to complete an appraisal of all fixed assets at the $5,000.00 capitalization level. A meeting has been scheduled with Mr. David Greenwalt of American Appraisal Associates for January 22, 2002, to begin the process. The plan is to have the deficiency corrected prior to completion of Fiscal Year 2002.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

SECTION IV FINDINGS AND QUESTIONED COSTS

WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED'JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the White County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the White County Board of Education disclosed a fmancial 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 White County Board ofEducation 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 White 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 White County Board ofEducation'S report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51O(a) orOMB Circular A-I 33 The White County Board ofEducation's audit did not disclose audit findings required to be reported by section .5l0(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A'i Program Dollar Threshold The dollar threshold for.type "A" programs was $300,000.00.
9. Low Risk Auditee The White County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education..
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WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

Reportable Condition - Material Weakness

Repeated from Prior Year

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Finding Control Number: FS-7541 ..01-01

The White County School District did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
. ill FEDERAL AWAim FINDINGS AND OUESTIONED COSTS

No matters were reported.

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