STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS GrA A 800 RI :J.fa WSCf 19'1'1 --1000 00 00000 0 0 1776 I WHITFIELD COUNTY BOARD OF EDUCATION DALTON, GEORGIA - . REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2000 Russell W. Hinton state Auditor WHnrmLD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHffiITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) . GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ADDmONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET FCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ANALYSIS OF EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 5 BY PROGRAM Page 2 4 6 7 20 22 24 26 28 30 31 33 34 WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-B3 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS S Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL - RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 June 15,2001 Honorable Roy E, Barnes, Governor Members of the General Assembly . Members of the State Board of Education and Superintendent and Members ofthe Whitfield 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 of the Whitfield County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Whitfield County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following para~aph, we conducted our audit in accordance with auditing standards general)y accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller GeBeral of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures. 2000ARL-13A As described in the notes to the general pmpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general pmpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Whitfield County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 15, 2001, on our consideration of the Whitfield County Board of Education's internal control over finflIlcial 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 of the Whitfield County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-B3, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 2000ARL-13A A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- 6-24. Respectfully submitted, RWH:jb 2000ARL-13A - ~ .::::tt~".....:: Ru ell W. Hinton State Auditor i WHITFIELD COUNTY BOARD OF EDUCATION WHITFIELD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 569,980.34 $ 394,543.02 9,859,825.99 7,057,667.18 1,128,323.41 78,910.89 34,191.56 Total Assets $ 17,487,473.51 $ 1,635,968.88 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Self-Insurance Deficit Undesignated Total Fund Equity -- -- $ 1,866,740.46 $ 6,531,490.78 7,500,000.00 , $ 15,898,231.24 $ 125,197.65 372,331.71 772.65 498,302.01 $ 1,491.35 $ 78,910.89 34,191.56 901,769.05 685,981.87 1,024,564.42 $ 1,589,242.27 $ 1,137,666.87 Total Liabilities and Fund Equity $ 17,487,473.51 $ The notes to the general purpose financial statements are an integral part of this statement. -2- 1,635,968.88 EXHIBIT "A" TYPES CAPITAL PROJECTS FUND TOTALS (Memorandum OnIY~)~~_ JUNE 30, 2000 JUNE 30, 1999 $ 6,185,141.69 $ 7,149,665.05 $ 16,846,201.48 14,655,205.73 24,515,031.72 6,743,221.80 1,947,916.72 10,133,907.31 8,797,236.78 78,910.89 34,191.56 68,299.85 24,539.16 $ 22,788,264.14 $ 41,911,706.53 $ 32,479,499.07 $ 122,792.00 $ 2,114,730.11 $ 2,244,011.64 6,903,822.49 6,606,685.21 7,500,000.00 6,500,000.00 772.65 611,466.35 611,466.35 542,686.58 627,950.46 627,950.46 325,790.03 $ 1,362,208.81 $ 17,758,742.06 $ 16,219,173.46 $ 1,491.35 $ 1,491.35 $ 21,426,055.33 78,910.89 34,191.56 21,426,055.33 68,299.85 24,539.16 15,559,128.06 321,463.03 901,769.05 607,558.64 -1,262,341.83 0.00 1,710,546.29 940,187.35 $ 21,426,055.33 $ 24,152,964.47 $ 16,260,325.61 $ 22,788,264.14 $ 41,911,706.53 $ 32,479,499.07 -3- ------_._---- WHITFIELD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration . School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations Capital Outlay 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 SPECIAL REVENUE FUND $ 44,783,799.46 $ 938.39 21,314,202.82 2,456,312.38 $ 68,555,253.05 $ 625,747.66 4,040,321.58 1,534,566.73 6,200,635.97 $ 46,149,238.54 $ 1,999,224.58 2,636,448.21 1,809,063.10 1,975,739.77 599,140.60 4,320,858.70 538,616.36 4,626,843.51 2,452,135.06 507,386.61 730.10 6,037.42 2,013.10 615,723.74 72,744.12 216,477.67 102,066.40 49,090.67 80,815.63 1,678.25 11,998.82 3,654,906.88 $ 66,312,718.94 $ _....:6~,1.:..:1~6=,2::::.:58:::.:..9~9::- $ 2,242,534.11 $ _ _~84:..:.,c::3.:...:77:..:;.0~7_ $ 2,242,534.11 $ 84,377.07 -653,291.84 1,033,026.36 10,611.04 9,652.40 FUND BALANCE JUNE 30 $ 1,589,242.27 $ The notes to the general purpose financial statements are an integral part of this statement. -4- 1 EXHIBIT "B" CAPITAL PROJECTS FUND TOTALS _ _ _(Memorandum OnIX.L.) _ YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 3,585,041.98 $ 48,994,589.10 $ 43,060,577.97 4,041,259.97 3,741,206.60 11,732,920.98 33,047,123.80 29,538,325.14 936,421.83 4,927,300.94 3,871,202.61 $ 16,254,384.79 $ 91,010,273.81 $ 80,211,312.32 $ 48,148,463.12 $ 45,212,149.16 $ 10,708,920.55 2,852,925.88 1,911,129.50 2,024,830.44 679,956.23 4,320,858.70 538,616.36 4,626,843.51 2,453,813.31 507.386.61 12,728.92 3.660.944.30 2,013.10 615,723.74 10,781.664.67 2,961,632.84 2,123,413.29 1,919,381.83 672.601.77 4,334,011.93 452.348.33 4,519,268.26 2,497,223.35 519.653.95 37,425.04 3,296.992.60 3,138.32 636,549.62 5,296.037.89 $ 10,708,920.55 $ 83,137,898.39 $ 74,481,828.18 $ 5,545,464.24 $ 7,872,375.42 $ 5,729,484.14 $ 11,473.17 -11.473.17 $ 0.00 $ 5,545,464.24 $ 7.872.375.42 $ 5,729,484.14 15.880.591.09 16.260,325.61 10,537,217.63 10.611.04 9,652.40 -8.819.06 2.442.90 $ 21,426,055.33 $ 24,152,964.47 $ 161260,325.61 -5- WHITFIELD COUNTy BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BASI) GENERAL AND SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2000 EXHIBIT 'C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS)_ REVENUES State Funds Federal Funds Taxes Other Funds $ 43.412.084.00 $ 44,783,799.46 30,000.00 938.39 21,174,425.00 21,314,202.82 663,739.00 2.456,312.38 Total Revenues $ 65,280,248.00 $ 68,555,253.05 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 Enterprise Operations Community Services Operations Capital Outlay $ 45,234,410.17 $ 46,149,238.54 2,801,135.25 1,891,980.00 1,990,108.00 561,190.00 4,601,489.70 467,175.00 4,852,536.00 2.458,089.00 355,992.75 6,750.00 2,100.00 51,900.00 110,000.00 2,636,448.21 1,809,063.10 1,975,739.77 599,140.60 4,320,858.70 538,616.36 4,626,843.51 2.452,135.06 507,386.61 730.10 6,037.42 2,013.10 615,723.74 72,744.12 Total Expenditures $ 65,384,855.87 $ 66,312,718.94 Excess of Revenues over (under) Expenditures $ -104,607.87 $ 2,242,534.11 OTHER FINANCING SOURQI; (USES) Other Sources Other Uses $ 571,043.00 -571,043.00 Total Other Financing Sources (Uses) $ 0.00 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -104.607.87 $ 2,242,534.11 FUND BALANQE JL!LY 1. 1999 736,351.81 -653,291.84 Adjustments 77,679.23 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS),-- $ 658,789.50 $ 625,747.66 3,808,584.00 4,040,321.58 1,388,713.08 1,534,566.73 $ 5,856,086.58 $ 6,200,635.97 $ 2,066,832.09 $ 1,999,224.58 210,547.00 131,448.00 49,659.00 126,141.00 216,477.67 102,066.40 49,090.67 80,815.63 5,068.00 66,171.00 3,082,619.00 1,678.25 11,998.82 3,654,906.88 $ 5,738,485.09 $ 6,116,258.90 $ 117,601.49 $ _......::84"""",,3..:.;77:..:;.0::.:7_ $ 28,500.00 -28,500.00 $ ....l0~.0~0:.... $ 117.601.49 $ 1,041,232.42 3,346.98 84,377.07 940,187.35 FL!ND BALANC~ JL!NE 3D. 200Q $ _ _7..0.9.,423.17 $ 1,589,242.27 $ 1,162,180.89 $ 1,024,564.42 The notes to the general purpose financial statements are an integral part of this statement. -6- WHITFIELD COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Whitfield County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds 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. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. - The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that ar~ legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. -7- WHITFIELD COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A substantial number ofpersonnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. BUDGET The Whitfield County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. - 8- WHITFIELD COUNfY BOARD OF EDUCAnON EXHmIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budget process begins when the Board'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 of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: Special Revenue Fund FUND BALANCE JULY 1, 1999 $ 1,033,026.36 Adjustments Inventories - July 1, 1999 . Food. Donated Commodities Purchased Foods -68,299.85 -24,539.16 Fund Balance July 1, 1999 (Budget Basis) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 940,187.35 84,377.07 FUND BALANCE JUNE 30, 2000 (Budget Basis) CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. - 9- WHITFIELD COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) 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 of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return 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 ofthe State of Georgia. RECEIVABLES Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. -10 - WHITFIELD COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Whitfield County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 23, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Whitfield County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. The tax millage rate levied for the 1999 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 18.6 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $11,732,920.98 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $17,040,526,20 has been collected or on June 30, 2002, whichever occurs first. INVENTORIES FOOD INVENTORIES Inv~ntories 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 (weighted-average). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. COMPENSATED ABSENCES Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. - 11 - WHITFIELD COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. INTERFUND TRANSACTIONS The Board has the following type of interfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-R-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. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of anyone of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, - 12- WHITFIELD COUNTY BOARD OF EDUCATION EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS AND INVESTMENTS (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 ofdevelopment 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, 2000, the bank balances were $12,632,443.08. The amounts ofthe total bank balances are classified into three categories of credit risk: . Category 1 - Cash that is insured (e,g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2- Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name, Category 3- Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category Bank Balance 1 $ 200,000.00 2 12,432,443.08 3 0.00 Total $12.232,443.08 - 13 - WHITFIELD COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS AND INVESTMENTS CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value ofthe Board's total investments was $24,515,031.72 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. 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, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories - 14- ---------------~ WHITFIELD COUNTY BOARD OF EDUCATION EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 4: INTERFUND ASSETS AND LIABILITIES Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the Board at June 30, 2000: Due From Other Funds Due To Other Funds Capital Projects Fund Georgia State Financing and Investment Commission Special Purpose Local Option Sales Tax Lottery Project $ 540,992.00 659,496.82 $ 1,200,488.82 $ 1.200,488.82; $ 1,200,488.8~ Note 5: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board 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 of the system. The Board 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 Board has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $200,000.00 loss per occurrence, up to the statutory limit. Changes in the workers' compensation claims liability during the last two fiscal years are as follows: - 15 - - WHITFIELD COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: RISK MANAGEMENT Beginning of Year Liability_ Claims and Changes in Estimates Claims Paid End ofYear LiabilityJ-_ 1999 2000 $ 0.00 $ 116,504.51 $ 116,504.51 $, -"0:.:.::.0=0 $ 0.00 $ 94,189.61 $ 94, 189.61 $ -"'0.:. ::.0'=0 The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 1999 2000 Beginning of Year Liability_ Claims and Changes in Estimates Claims Paid End ofYear Liabi1ity_ $ 0.00 $ 2,542.00 $ 2,542.00 $, --"0. :. ::.0=0 $ 0.00 $ 866.00 $ 866.00 $,_ _-..>0::.:.:.0=0 The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent All Other Employees $ 50,000'.00' $ 100,000.00 Note 6: OPERATING LEASES Whitfield County Board of Education has entered into various leases as lessee for facilities and office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $332,509.74. Future minimum lease payments for these leases are as follows: - 16- WHITFIELD COUNTY BOARD OF EDUCAnON EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 6: OPERATING LEASES Year Ending Amount 2001 2002 2003 2004 $ 323,032.32 312,321.12 265,101.16 20,364.94 Total Note 7: NOTES PAYABLE AtJune 30, 2000, short-term debt (temporary loans) amount to $7,500,000.00 with interest accruing at 4.49 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe calendar year in which the loan was made. Note 8: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $876,872.30 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department ofEducation Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$707,501.30 - Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$169,371.00 Note 9: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: - 17 - WHITFIELD COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 9: SIGNIFICANT COMMITMENTS Project Unearned Executed Contracts Funding Available From State 99-755-090 99G/98S-755-068 Dawnville Elementary School Pleasant Grove Elementary School $ 105,384.23 613,733.64 2,210,071.40 1,783,210.00 $ 291,308.40 $ 4.71f,399.27 $ 291,308.40 The amounts described in this note are not reflected in the general purpose financial statements. Note 10: 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 Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 11: ACCUMULATED EMPLOYEES' LEAVE Individuals employed for a minimum of240 days ofwork within a fiscal year are eligible for annual leave. Leave is earned at a rate often days per year. Unused days may be accumulated and carried forward to the next fiscal year subject to a maximum of fifteen days. In the event of retirement, resignation or termination of employment, individuals employed for a minimum of twenty-four consecutive months are eligible for payment of earned but unused annual leave at their current rate of pay, limited to a maximum of twenty-five days. See Note 1 - Compensated Absences Note 12: RETIREMENT PLANS . TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems 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. - 18 - WHITFIELD COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 12: RETIREMENT PLANS TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 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 2000 1999 1998 100% 100% 100% $ 4,843,982.04 $ 4,470,113.91 $ 4,336,486.25 - 19- WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 1,286,498.89 $ 5,257.28 78,910.89 34,191.56 $ 1,399,601.34 $ ==~5*,2;;.;5=7=.2==8 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 70,660.93 $ 191,273.54 1,415.22 3,842.06 $ 261,934.47 . $ _ _---=5:.1.::,2::.=5..:.,;7.:=2=_8 $ 78,910.89 34,191.56 1,024,564.42 $ $ 1,137,666.87 $ .::.:O..::.;OO=_ ..::.;O.~OO=- Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 20- $ 1,399,601.34 $ ==~5*,2;;.;5=7.=28== EXHIBIT "E" FEDERAL PROGRAMS TOTALS JUNE 30, 2000 JUNE 30,1999 $ 1,291,756.17 $ 1,159,412.72 $ 1,128,323.41 1,128,323.41 273,307.91 78,910.89 34,191.56 68,299.85 24,539.16 $ 1,128,323.41 $ 2,533,182.03 $ 1,525,559.64 $ 897,213.15 $ 897,213.15 $ 78,45 3.95 53,121.50 125,197.65 100,745.73 177,216.11 372,331.71 313,333.60 772.65 772.65 $ 1,128,323.41 $ _......:.1,395,515.16 $ _ _;::;;49:::2:.L5:':.::3::.;3.:.=:28=.. $ 78,910.89 $ 68,299.85 34,191.56 24,539.16 $ ~O:::..:.'O::.:O:.- 1,024,564.42 940,187.35 $ 0.00 $ _---:..l1,....;.;13:;.;.7,666.87 $ 1,033,026.36 $ 1,128,323.41 $ 2,533,182.03 $ 1,525,559.64 - 21 - WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Tr.ansfers In Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 273,368.00 $ 1,930,899.32 1,534,566.73 352,379.66 $ 3,738,834.05 $ _ _=35=2=,3;.;.7=9.;.:;.66~ $ 341,822.97 8,379.72 1,251.47 $ 3,654,456.98 475.60 449.90 $ 3,654,456.98 $ _ _3;;.;;5=2=,3...;..79=.=66~ $ 84,377.07 $ 0.00 $ 84,377.07 $ 0.00 1,033,026.36 0.00 10,611.04 9,652.40 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 22- $ 1,137,666.87 $ =====0.=00= EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 625,747.66 $ 584,547.30 $ 2,109,422.26 4,040,321.58 . 3,739,050.11 1,534,566.73 1,322,647.51 $ 2,109,422.26 $ 6,200,635.97 $ 5,646,244.92 $ 1,657,401.61 $ 1,999,224.58 $ 1,746,124.76 208,097.95 102,066.40 49,090.67 79,564.16 1,678.25 11,523.22 216,477.67 102,066.40 49,090.67 80,815.63 1,678.25 11,998.82 3,654,906.88 162,739.85 119,240.39 50,788.28 91,185.46 4,590.19 21,265.28 3,292,3.11.35 $ 2,109,422.26 $ 6,116,258.90 $ 5,488,245.56 $ 0.00 $ 84,377.07 $" 157,999.36 11,473.17 $ 0.00 $ 84,377.07 $ 169,472.53 0.00 1,033,026.36 869,929.99 10,611.04 9,652.40 -8,819.06 2,442.90 $ 0.00 $ 1,137,666.87 $ 1,033,026.36 - 23- WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds Total Assets GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 6,185,141.69 14,655,205.73 1,947,916.72 $ _ _5=-4:.,::0.z9.:~,92::.:.=.:00=- $ 540,992.00 $ 22,788,264.14 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Contracts Payable Retainages Payable Due to Other Funds Total Liabilities - FUND EQUITY Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ $ $ $ $ 122,792.00 209,100.00 $ 209,100.00 127,195.53 34,524.46 1,200,488.82 540,992.00 $ _ _1.;.z.,3=6=2=,2:.:;.08;:;..:.=...81.:- $ 21,426,055.33 ----:0::..:..0:::.,:0:_ 0.00 ----:0::..:..0:::.,:0:_ $ 21 ,426,055.33 540,992.00 $ 22,788,264.14 See notes to the general purpose financial statements. - 24- EXHIBIT "G" LOTTERY PROJECT TOTALS JUNE 30, 2000 JUNE 30,1999 $ 6,185,141.69 $ 14,760,589.97 14,655,205.73 1,947,916.72 2,324,751.73 $ _ _=65::.;:9,",-,4=9=6.:.=,82=.- 1,200,488.82 $ 659,496.82 $ 23,988,752.96 $ 17,085,341.70 $ $ 275,170.82 384,326.00 $ 659,496.82 $ 122,792.00 $ 611,466.35 627,950.46 1,200,488.82 2,562,697.63 $ 336,274.00 542,686.58 325,790.03 1,204,750.61 $ 21,426,055.33 $ 15,559,128.06 321,463.03 $ =O.:.=,OO~ 0.00 0.00 $ 0.00 $ 21,426,055.33 $ 15,880,591.09 $ 659,496.82 $ 23,988,752.96 $ 17,085,341.70 - 25- WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES .Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) 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 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 2,046,100.98 $ 11,732,920.98 , 936,421.83 $ 2,046,100.98 $ 12,669,342.81 $ 7,375.74 $ 1,642.08 3,983,815.05 1,584,551.34 486,092.30 47,559.82 $ 4,477,283.09 $ _ _1"""6;;.:3;,.;;3.r.7;"..;;;.5;;;.:3'.;;.24,,- $ -2,431,182.11 $ 11,035,589.57 $ 2,268,936.41 ------$ $ 2,268,936.41 $ -5,168,662.30 -5,168,662.30 $ -162,245.70 $ 5,866,927.27 162,245.70 15,559,128.06 FUND BALANCE JUNE 30 $ ====0;;,;.=00.... $ 21,426,055.33 See notes to the general purpose financial statements. - 26- EXHIBIT "H" LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30,1999 $ 1,538,941.00 $ 3,585,041.98 $ 575,674.62 11,732,920.98 10,650,978.97 936,421.83 589,076.35 $ 1,538,941.00 $ 16,254,384.79 $ 11,815,729.94 $ 367.96 $ 9,385.78 $ 4,472,995.63 10,041,362.02 124,520.63 658,172.75 $ 4,597,884.22 $ 10,708,920.55 $ $ -3,058,943.22 $ 5,545,464.24 $ 33,000.60 5,052,519.48 83,700..00 5,169,220.08 6,646,509.86 $ 2,899,725.89 $ 5,168,662.30 $ -5,168,662.30 $ 2,899,725.89 $ 0.00 $ 820,121.99 -820,121.99 0::..:.::.;00::,.. $ -159,217.33 $ 5,545,464.24 $ 6,646,509.86 159,217.33 15,880,591.09 9,234,081.23 $ =====0=.0.0.... $ 21,426,055.33 $ 15,880;591.09 - 27- WHITFIE!.D COUNTY BOAR,D OF EDUCATION SCHEDULE OF EXPENDITU~ES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER 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 Total Child Nutrition Cluster , Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds 10.550 10,665 Total U.S. Department of Agriculture Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Capacity Building Improvement Preschool 84.027 84,173 84.173 Total Special Education Cluster Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development - Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Total U.S. Department of Education 84.010 84.281 84.298 84.340 84.276 84.048 84,011 Labor, U.S, Department of Pass-Through From Coosa Valley Regional Development Center Job Training Partnership Act 17.250 PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD N/A $ 338,860.45 N/A 1,377,231,08 $ $ 1,716,091.53 $ (2) 3,439,649.19 (3) 3,439,649.19 NlA 214,807,79 N/A 938,39 $ 1,931,837.71 $ 214,807.79 (4) 3,654,456.98 N/A $ 761,901.00 $ N/A 57,099,63 N/A 70,209.18 $ 889,209.81 $ 761,901,00 57,099.63 70,209.18 889,209.81 N/A 812,976.95 812,976.95 NlA 31,470,98 31,470.98. N/A 49,171,27 49,171.27 NlA 164,214,34 164,214.34 NlA 43,894.65 43,894,65 NlA 69,058.00 69,058.00 NlA 31,783.81 $ 2,091,779.81 $ 31,783.81 2,091,779.81 NlA $ 17,642.45 $ _ _......:.;17:...t:,64=2.:::.4~5 Total Federal Financial Assistance NlA = Not Available 28 $ 4,041,259.97 $ 5,763,879.24 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 Notes to the Sche,dyle of Expenditures of Flldliral Awards (1) . ,e amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary c~sistance 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 included in the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds eamed on this program do not require reporting of expenditures. Major Programs are identified by an asterisk (*) in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of FedeL': awards includes the Federal grant activity of the Whitfield 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. SCHEDULE "1" See notes to the general purpose financial statements. -29 - WHITFIELD COUNTY BOARD OF (;DUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs $ Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Altemative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teacher Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay 26,744,319.00 5,067,140.00 533,688.00 1,136,276.00 291,738.00 6,579,633.00 1,058,524.00 318,200.00 500.200,00 917.933.00 1.386,671,00 216,798,00 755,444.00 123,251.00 144,212,00 -5,534,970,00 -5,421,586,00 5,853,740.00 2,616,362.00 $ 16,451.23 127.111,00 40,000.00 32,255.77 707,501.30 5,000.00 11,988.00 82,000,00 182,088.00 11.289:32 273,368.00 37,217.80 251.929.00 $ $ 26,744,319.00 5,067,140.00 533,688.00 1,136,276.00 291,738.00 6,579,633.00 1,058,524.00 318,200.00 500.200,00 917,933.00 1,386,671.00 216,798,00 755,444.00 123.251.00 144.212.00 -5,534,970,00 -5,421,586.00 5,853,740.00 2,616,362.00 273,368.00 16,451.23 127,111.00 40.000.00 32,255.77 707.501,30 5,000.00 11,988.00 82,000.00 182,088.00 11.289.32 1,538,941.00 37,217.80 251,929.00 1,538,941.00 Georgia State Financing and Investment Commission Reimbursement on Construction Projects 2.046,100.98 2,046,100.98 Office of School Readiness Pre-Kindergarten Program 63.232.86 63,232.86 Office of Treasury and Fiscal Services Public School Employees Retirement 169,371.00 169,371.00 CONTRACT Education. Georgia Department of Georgia's Reading Challenge 111,170.84 111,170.84 $ 44,783,799.46 $ 625,747.66 $ 3.585,041.98 $ 48,994,589.10 See notes to the general purpose financial statements. 30 - WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" PROJECT Construction of a new elementary school, parking areas and grounds and providing furnishings, equipment and fixtures therefor Construction of additional classrooms, instructional space at nine elementary schools, four middle schools and two high schools, as well as remodeling and renovating existing classrooms, media centers, offices, kitchens, cafeterias, gymnasiums, auditoriums, restrooms, roofs, parking areas and grounds at these schools and providing furnishings, equipment and fixtures therefor ORIGINAL ESTIMATED COST (1),--_ $ 2,153,000.00 $ 46,753,759.00 CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS 5,919,868.18 $ 4,477,283.09 $ 1,442,585.09 46,258,049.00 6,231,637.46 4,124,450.98 $ 48,906,759.00 $ 52,177,917.18 $ 10,708,920.55 $ 5,567,036.07 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. 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 financial statements. - 31 - WHITFIELD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries (1) (2) Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 34,234,335.00 $ 9: :. :3:,: 4:. t. :1,:.::5.=.:2.~00:::.. $ 39,552,719.45 2,434,781.89 $ _~2:.l,~15~7..!.:,6::..;4:.=.2:.=.3.:::..9 $ 41,987,501.34 -781,273.53 $ _--=:4::..:.1l::,2~06~,2:::2~7.:.:::.8~1 Amount of Underexpenditure for Total Allotment $ 0.00 $ ====..,;;0;.;,;;.0;,;;;.0 t')Iote: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. (2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. See notes to the general purpose financial statements. - 33 - WHITFIELD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (0) Sub-Total- K-3 Grades 4 - 5 (0) Grades 6 - 8 (0) n Grades 9 - 12 High School Laboratories (0) Vocational Education Laboratories (0) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category I (0) Category II (0) Category III (0) Category IV (0) Category V (0) Sub-Total- RegUlar Category VI (Gifted) (0) Total Special Education Programs REMEDIAL EDUCATION PROGRAM t:\ Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 3,062,369.00 $ 2,756,132.10 $ 0.00 8,019,037.00 7,217,133.30 $ 11,081,406.00 90 $ 9,973,265.40 $ 0.00 3,672,657.00 90 3,305,391.30 360,478.00 5,594,468.00 90 5,035,021.20 60,365.00 3,392,530.00 90 3,053,277 .00 1,425,234.00 90 1,282,710.60 1,578,024.00 90 1,420,221.60 218,505.00 $ 26,744,319.00 $ 24,069,887.10 $ _......;6;.:3:.:;9.:.;:,3;.;.4;:;8'c::.00=.. $ 3,983,970.00 $ 3,585.573.90 $ 94.739.00 $ 3,983,970.00 90 $ 3.585,573.90 $ 94,739.00 1.083,170.00 90 974,853.00 $ 5.067,140.00 $ 4,560,426.90 $ _ _..:9;.;.4.<.:.,7c::.39;:;.c::.00=.. $ 533,688.00 90 $ 480.319.20 $ 0;:;.c::.00=.. $ 32,345,147.00 $ 29,110,633.20 $ _......;7..:3;.;.4.:.;:,0c::.87:..:.c::.00=.. $ 923.173.00 90 $ 830,855.70 $ 213,103.00 100 213,103.00 $ 1,136.276.00 $ 1,043,958.70 $ 18,824.00 1;.;;8.:.;.8;.::2..;.4.;.;:.00.;c. Total Fourteen Weighted and Media Center Programs $ 33,481,423.00 $ 30.154.591.90 $ ..........7.5;;2;;,;9,~1,;;1.=00= STAFF DEVEiLOPMENT PROGRA~ Cost of Instruction Professional Development Total Staff Development Programs (') Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. See notes to the general purpose financial statements. $ 94,730.00 197,008.00 $ 94,730.00 $ 197,008.00 8,380.92 -5,847.92 $ 291,738.00 100 $ 291,738.00 $ ==......=.2;;;;.5;;;;3,;;;,3.=00;;;, (2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are inclUded on this analysis as required by program gUidelines. - 34 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 2,756,132.10 $ 3,300,685.46 $ 123,754.67 $ 3,424,440.13 7,217,133.30 8,548,507.21 456,187.23 9,004,694.44 $ 9,973,265.40 $ 11,849,192.67 $ 579,941.90 $ 12,429,134.57 $ 0.00 3,665,869.30 4,507,267.93 302,448.50 4,809,716.43 0.00 5,095,386.20 7,006,569.57 484,930.58 7,491,500.15 0.00 3,053,277.00 4,548,654.87 331,773.16 4,880,428.03 0.00 1,282,710.60 1,919,573.68 66,526.57 1,986,100.25 0.00 1,638,726.60 1,685,589.98 242,131.69 1,927,721.67 0.00 . $ 24,709,235.10 $ 31,516,848.70 $ 2,007,752.40 $ 33,524,601.10 $ 3,680,312.90 $ 597,557.61 $ 951,908.43 2,663,712.45 392,793.63 163.00 34,264.25 $ 88,254.35 631,821.86 1,040,162.78 2,663,712.45 392,793.63 163.00 , $ 3,680,312.90 $ 4,606,135.12 $ 122,518.60 $ 4,728,653.72 0.00 974,853.00 1,111,344.76 17,628.22 1,128,972.98 0.00 $ 4,655,165.90 $ 5,717,479.88 $ 140,146.82 $ 5,857,626.70 $ 480,319.20 $ 659,156.84 $ 9,743.17 $ _ _6:;::6::,:;8:.!,:9,::,:;0:,::0,;0:;.:..:..,1 0.00 $ 29,844,720.20 $ 37,893,485.42 $ 2,157,642.39 $ 40,051,127.81 - $ 849,679.70 $ 1,659,234.03 $ 1,659,234.03 0.00 213,103.00 $ _ _2::.;7c:,7-,-1",-=3.::;9';=c50:::. 277,139.50 0.00 $ 1,062,782.70 $ 1,659,234.03 $ 277,139.50 $ 1,936,373.53 $ 30,907,502.90 $ 39,552,719.45 $ , 2,434,781.89 $ 41,987,501.34 $=.........................~O.;;;,OO;;, $ 103,110.92 191,160.08 $ =....:2;;;9;.;4,;;,2.7..1..;,;;0,;;,0 $ 191,257.90 $ 191,257.90 191,160.08 191,160.08 $ 382,417.98 $ 382,417.98 $=...............==~O.=O,;;,O - 35 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400 June 15,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Whitfield County Board of Education I 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 ofWhitfield County Board of Education as ofand for the year ended June 30, 2000, and have issued our report thereon dated June 15,2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issned by the Comptroller General of the United States. We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance As part of obtaining reasonable assurance about whether Whitfield County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an obj ective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 2000YB-40A Internal Control Over Financial Reporting In planning and perfonning our audit, we considered Whitfield County BoaT", ofEducation's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Whitfield County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable con<.,dion is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-755 1-0001. A material weakness is a condition in which the design or operation of one or more ofthe 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 nonnal course of perfonning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended solely for the infonnation and use ofmanagement, members ofthe Whitfield 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, - Rus ell W. Hinton. State Auditor RWH:jb 2000YB-40A RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 June 15,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members ofthe Whitfield County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Whitfield County Board ofEducation's major Federal programs are identified in 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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; 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 Whitfield 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 Whitfield County Board ofEducation's compliance with those requirements. 2000SA-lOA In our opinion, the Whitfield County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Internal Control Over Compliance The management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration ofthe 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 ofmanagement, members ofthe Whitfield 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, - Ru ell W. Hinton State Auditor RWH:jb 2000SA-IOA SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-7551-98-01 FS-7551-98-03 FS-7551-99-01 Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - No Corrective Action Implemented CORRECTIVE ACTIONIRESPONSES EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $1,491.35 Finding Control Number: FS-7551-98-01 The underexpenditure of Quality Basic Education (QBE) funds of $1,491.35 for the Remedial Education Program will be returned to the Georgia Department of Education through an increase in the Board's Local Five Mill Share for the QBE programs in a subsequent fiscal period. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7551-99-01 Due to current staffing limitations and budgetary considerations, the Board has decided not to pursue the recording offixed assets on the accounting statements. SECTION IV FINDINGS AND QUESTIONED COSTS - WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was , qualified for a scope limitation and for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement reportable condition related to the following control category. General Fixed Assets The reportable condition described above is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. 5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board ofEducation's report on compliance - with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .510(A) ofOMB Circular A-B3 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3. 7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool - 1- WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 8. TYPe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 9. Low Risk Auditee The Whitfield County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. /' IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7551-00-01 The Whitfield County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-