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 WHITFIELD COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET - 
 
ALL FUND TYPES 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDmJRES AND 
 
CHANGES IN FUND BALANCES 
 
. ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDmJRES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
6 
 
D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
7 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDmJRES 
 
AND CHANGES IN FUND BALANCES 
 
22- 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
24 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDmJRES 
 
AND CHANGES IN FUND BALANCES 
 
26 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
28 
 
2 SCHEDULE OF STATE REVENUE 
 
30 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
33 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BY PROGRAM 
 
34 
 
S 
 
BY SITE 
 
3S 
 
 WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTIONll 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 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Wa,hmglOn Stree!, S W. SUIlC 214 Allanta. Georgia ~<l:'34-X40() 
March 14,2002 
 
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 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON 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, 200 I, 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. 
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 plan and perform the audit to obtain reasonable assurance about whether the fmancial 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 aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Whitfield County Board of Education as oOune 30, 200 I, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 
In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2002, on our consideration of the Whitfield County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 
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 I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. 
2001ARL-13 
 
 A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
Respectfully SUb~:dJ.. 
 
RWH:as 200IARL-13 
 
R sell W. Hinton State Auditor 
 
 ~ffiLDCOUNTYBOARDOFEDUCATION 
 
 WHITFIELD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated CommodilJes Purchased Food 
 
GOVERNMENTAL FUND 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
$ 6,753,460.22 
 
1,055,215.94 
 
8,140,032.87 $ 2,256,344.11 
 
64,539.47 22,880.32 
 
Total Assets 
 
$ 15,948,709.03 $ 2,343,763.90 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue 
Totaillabilities 
FUND EQUITY 
Fund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Self-Insurance Undeslgnated 
Total Fund Equity 
 
$ , 934,237.61 
 
$ 2,489,n8.68 
 
113,723.96 
 
6,990,631 ,78 
 
414,807.74 
 
40,729.98 
 
363.44 
 
279.89 $ 9,521,140.44 $ 1,463,412.64 
 
$ 
 
1,491.35 
 
$ 
 
64,539.47 
 
22,880.32 
 
1,289,593.39 5,136,483.85 
$ 6,427,568.59 $ 
 
792,931.47 880,351.26 
 
Total liabilities and Fund Equity 
 
$ 15,948,709.03 $ 2,343,763.90 
 
The notes to the general-purpose finanCIal statements are an Integral part of thIS statement - 2- 
 
 EXHIBIT "A" 
 
TYPES CAPITAL 
PROJECTS FUND 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 2.789,426.19 $ 9,542.886.41 $ 7,149.665.05 
 
24.281.003.26 
 
25.336,219.20 
 
24.515.031.72 
 
1.915,402.78 
 
12.311,n9.76 
 
10,133,907.31 
 
64.539.47 22.880.32 
 
78.910.89 34.191.56 
 
$ 28,985.832.23 $ 47,278.305.16 $ 41.911.706.53 
 
$ 
 
934.237.61 
 
2,603.502.64 $ 2,114.730..11 
 
7,405,439.52 
 
6.903.822.49 
 
40.729.98 
 
7.500.000.00 
 
363.44 
 
n2.65 
 
~ 
 
118.079.09 
 
967,072.43 
 
118,079.09 967,072.43 
 
611,466.35 627,950.46 
 
279.89 
 
$ 1.085.151.52 $ 12.069,704.60 $ 17.758,742.06 
 
$ 
 
1,491.35 $ 
 
1,491.35 
 
$ 27,900.680.71 
 
64.539.47 22.880.32 27.900,680.71 
 
78.910.89 34.191.56 21,426.055.33 
 
1,289,593.39 
 
901,769.05 
 
0.00 
 
5,929.415.32 
 
1,710,546.29 
 
$ 27,900.680.71 $ 35.208,600.56 $ 24,152,964.47 
 
$ 28.985,832.23 $ 47,278,30516 $ 41,911,706.53 
 
-3- 
 
 WHITFIELD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administrallon Maintenance and Operallon of Plant Student Transportallon 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 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 50,682,077.84 $ 277.37 
23,964,993,08 2,219,648.38 
$ 76,866,996,67 $ 
 
610,147,82 4,446,407,82 
1,592,31216 
6,648,867,80 
 
$ 50,532,828,15 $ 
1,868,532.44 1,676,513,92 2,175,268,74 
597,161.85 4,893,460,57 
954,596,69 4,767,239,08 3,273,743,88 
487,411.28 
5,469.00 
756,776.98 39,667,77 
$ 72,028,670.35 $ 
$ 4,838,326,32 $ 
1,589,242,27 
 
2,251,360,82 116,327,44 92,317,11 49,618,09 96,518,12 2,809.45 
740,81 18,477.11 4,252,331,80 
6,880,500.75 -231,632.95 1,137,666,87 
 
-14,371.42 -11,311,24 
 
$ 6,427,568.59 $ ====8=80..,3=:5=1';,;:26= 
 
The notes to the general-purpose finanCial statements are an integral part Of, thiS statement. -4- 
 
 EXHIBIT "B" 
 
CAPITAL PROJECTS 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 51,292,225.66 $ 48,994,589.10 
 
4,446,685.19 
 
4,041,259.97 
 
$ 11,499,653.52 
 
35,464,646.60 
 
33,047,123.80 
 
1,374,751.16 
 
5,186,711.70 
 
4,927,300.94 
 
$ 12,874,404.68 $ 96,390,269.15 $ 91,010,273.81 
 
$ 52,784,188.97 $ 48,148,463.12 
 
$ 6,399,779.30 
 
1,984,859.88 1,768,831.03 2,224,886.83 
693,679.97 4,896,270.02 
954,596.69 4,767,239.08 3,274,484.69 
487,411.28 18,4n.11 
4,257,800.80 
756,776.98 6,439,447.07 
 
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 
 
$ 6,399,779.30 $ 85,308,950.40 $ 83,137,898.39 
 
$ 6,474,625.38 $ 11,081,318.75 $ 7,872,375.42 
 
21,426,055.33 
 
24,152,964.47 
 
16,260,325.61 
 
-14,371.42 -11,311.24 
 
10,611.04 9,652.40 
 
$ 27,900,680.71 $ 35,208,600.56 $ 24,152,964.47 
 
-5- 
 
 WHITFIELD COUNTY BOARp OF EDUCATION COMBINEP STATEMENT Of REVENUES, EXPENPITURES ANp CHANGES IN FUNP BALANCES 
BUDGET ANP ACTUAL - (NON-GAAP BASIS) GENERAL ANP SPECIAL REVENUE fUNDS 
YEAR ENpED JUNE 30 2001 
 
EXHIBIT C 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 48.442.694 00 $ 49.802,460 76 
 
277 37 
 
22,214.897.00 
 
23.964.99308 
 
998,98500 
 
2.219.64838 
 
Total Rellenues 
 
$ 71.656.57600 $ 75,987,37959 
 
EXPENPITURES 
 
Current InstructIOn Support Serl/lces Pupil Serl/lCes Improllement of InstruclJonal SeNlCes Educational Media Serl/lCes General Administration School AdminIstration BUSiness AdministratIOn Maintenance and Operation of Plant Student Transportation Serl/lees Central Support Serl/lees Other Support Sari/ices Food SeNlCes Operation Enterpnse OperatIOns Community Serl/lces Operations 
Capital Outlay 
 
$ 48.626,647,00 $ 49.860.43548 
 
3,620.440 00 2.340.76700 2.238.84700 
604.78800 4,769.559 00 
873,96400 5.027.836 00 2,632.799 00 
522.75800 
 
1,849,183 17 1.657.47408 2,150.31663 
590.20067 4.829.961 09 
950.113,24 4.735,270.37 3,250.985.93 
482,55517 
 
6.00000 2,50000 75.49300 35.00000 
 
5.46900 
747.420 67 39.66777 
 
Total expenditures 
 
$ 71.597,39800 $ 71.149,05327 
 
Excess of Rellenues oller (under) expenditures 
 
$ 
 
59.17800 $ 4,838.326,32 
 
OTHER FINANCING SOURCES (USES) 
 
Other Sources Other Uses 
 
$ 
 
849.38700 
 
-649.36700 
 
Total Other Financing Sources (Uses) 
 
$ 
 
000 
 
Excess of Rellenues and Other Flnancmg Sources oller (under) expenditures and Other Financing Uses $ 
 
59.17800 $ 4.838.326 32 
 
FUND BALANCE JULY 1, 2Q00 
 
3,409,055 11 
 
1.589,24227 
 
FUND BALANCE JUNE 30, 2001 
 
$ 3.468.233 11 $ 6,427.56859 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 560,19200 $ 610.147,82 
 
3.404.022 00 
 
4,446.407 62 
 
1,492.00000 
 
1.592.31216 
 
$ 5,476.21400 $ 6,648,867 80 
 
$ 1,507,568.00 $ 2,251,360,82 
 
191.05200 57.620.00 
117.32800 
 
116,32744 92.317 11 49.618.09 96,51812 
2,80945 
 
4.32500 
66.321.00 3.596,200 00 
 
74081 
18,477 11 4,252.331 80 
 
$ 5.540.41400 $ 6.680,500 75 
 
$ 
 
-64,200 00 $ -231,63295 
 
$ 
 
29.00000 
 
-29,000 00 
 
$ 
 
000 
 
$ 
 
-64.20000 $ -231,63295 
 
1.159.945 17 
 
1.024.564 42 
 
$ 1.095.74517 $ 792.93147 
 
The notes to the general-purpose finanaal statemen1s are an mtegral part of this statemenl -6- 
 
 WHITFIELD COUNTY BOARD OF EDUCAnON 
 
EXHmIT liD" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Whitfield County Board of Education (School District) 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 School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity, 
FUND ACCOUNTING 
The School District uses funds 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 School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-pwpose financial statements. 
The general-pwpose 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 presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities,' Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified pwposes. 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 EDUCAnON 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note I: 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 ~ds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is 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 substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 200 I. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. 
 
-8- 
 
 WHITFIELD COUNTY BOARD OF EDUCAnON 
 
EXHIDIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
BUDGET 
 
The Whitfield County Board of Education'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 tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 
 
presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the 
 
budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis 
 
report: 
 
. 
 
Special Revenue 
Fund 
 
FUND BALANCE JULY 1, 2000 
 
$ 1,137,666.87 
 
Adjustments Inventories - July 1,2000 Food Donated Commodities Purchased Foods 
 
-78,910.89 -34,191.56 
 
Fund Balance July 1,2000 (Budget Basis) 
 
$ 1,024,564.42 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
-231,632.95 
 
FUND BALANCE JUNE 30, 2001 (Budget Basis) 
 
$ 792,931.47 
 
- 9- 
 
 -------------------------- 
 
WHITFIELD COUNTY BOARD OF EDUCATION 
 
EXHffiIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds, In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
(4) Obligations of any corporation of the United States government, 
(5) Prime banker's acceptances, 
(6) The Local Government Investment Pool administered by the State 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 of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables 
- 10- 
 
 WHITFIELD COUNTY BOARD OF EDUCAnON 
 
EXHffiIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Whitfield County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 25, 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 Whitfield 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 $23,807,995.53. 
 
The tax millage rate levied for the 2000 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 
 
18.583 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 $11,499,653.52 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $5,540,872.68 has been collected or on June 30, 2002, whichever occurs first. 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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 ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation 
 
- 11 - 
 
 - - - - - - - - - - - - - - - - - - - - , ' - - - ~-----~--- - - - 
 
WHITFIELD COUNTY BOARD OF EDUCAnON 
 
EXHffiIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. 
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. 
INTERFUND TRANSACTIONS 
The School District has the following type of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions ofexpenditures 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 45-8-12 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 of insurance, 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 
11 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, 
- 12- 
 
 WHITFIELD COUNTY BOARD OF EDUCATION 
 
EXHIDIT liD" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30,2001 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
 
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws 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 $14,953,588.92. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e,g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) 
 
The School District's deposits are classified by risk category at June 30, 2001, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 200,093.88 
 
2 
 
14,753,495.04 
 
3 
 
0.00 
 
Total 
 
$14.953.588.92 
 
- 13 - 
 
 WHITFIELD COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
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 $25,336,219.20 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primaiy 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 SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. 
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury. obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. 
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: 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 School District at June 30, 2001: 
- 14- 
 
 WHITFIELD COUNTY BOARD OF EDUCATION 
 
EXHffiIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 4: INTERFUND ASSETS AND LIABILITIES 
 
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 
 
$ 209,100.00 431,365.00 
 
$ 640,465.00 
 
$ 640.465.00 $ 640.465.00 
 
NoteS: RISKMANAGEMENT 
 
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 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 School District 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 $225,000.00 loss per occurrence, up to the statutory limit. 
 
Changes in the workers' compensation claims liability during the last two fiscal years are as follows: 
 
2000 2001 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liabihty 
 
$ 
 
0.00 $ 94,189.61 $ 94,189.61 $ 
 
0.00 
 
$ 
 
0.00 $ 129,520.25 $ 129,520.25 $ 
 
0.00 
 
- 15 - 
 
 WHITFIELD COUNTY BOARD OF EDUCATION 
 
EXHffiIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 5: RISK MANAGEMENT 
 
The School District is self-insured 'Yith regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District 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: 
 
BegInning of Year LIability 
 
Claims and Changes In Esttmates 
 
Claims Paid 
 
End of Year Liability 
 
2000 2001 
 
$ 
 
0.00 $ 
 
866.00 $ 
 
866.00 $ 
 
0.00 
 
$ 
 
0.00 $ 22,738.00 $ 22,738.00 $ 
 
0.00 
 
The School District 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, 2001, amounted to $353,846.61. Future minimum lease payments for these leases are as follows: 
 
Year Ending 
 
Amount 
 
2002 2003 2004 2005 2006 
 
$ 398,563.08 351,343.12 106,606.90 76,209.21 34,521.48 
 
Total 
 
$ 967.243.79 
 
- 16- 
 
 WHITFIELD COUNTY BOARD OF EDUCAnON 
 
EXHffiIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 200 I 
 
Note 7: SHORT-TERM DEBT 
 
The School District issues tax anticipation notes and obtains temporary loans in advance ofproperty tax collections depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred. 
 
Tax AntiCIpatIOn Notes Temporary Loans 
 
Begmning Balance 
 
AddItions 
 
Payments 
 
Ending Balance 
 
$7,500,000.00 $_ _--'0=.0=0 $7.500,000.00 $_ _--'0::.:.;.0"-"'-0 
 
$_ _--'0=.0=0 $ 40,729.98 $._ _--'0::.:.;.0"-"'-0 $ 40,729.98 
 
Note 8: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of $879,617.08 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$719,810.08 
 
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$159,807.00 
 
Note 9: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: 
 
- 17 - 
 
 --------------------- ------------- 
 
WHITFIELD COUNTY BOARD OF EDUCATION 
 
EXHffiIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 9: SIGNIFICANT COMMITMENTS 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
99-755-090 99G/98S-755-068 Dawnville Elementary School Additions Northwest Whitfield High School Fine Arts 
Addition Northwest Whitfield MidOle School Gymnasium 
Roof Pleasant Grove Elementary School Southeast Whitfield High School Fine Arts 
Addition Valley Point Middle School Additions 
 
$ 19,378.27 112,636.94 570,753.14 
 
$ 291,308.40 
 
319,041.38 
 
103,987.99 522,574.00 
 
341,594.00 2,305,710.00 
 
$ 4,295,675,72 $ 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 School District 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 districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple 
 
- 18 - 
 
 WHITFIELD COUNTY BOARD OF EDUCAnON 
 
EXHffiIT "0" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2001 
 
Note 12: RETIREMENT PLANS 
 
employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The 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 of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2001 2000 1999 
 
100% 100% 100% 
 
$ 5,110,380.58 $ 4,843,982.04 $ 4,470,113.91 
 
- 19- 
 
 -------------- -----,--------- ---- -- - - ----------- --- 
WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET 
SPEC~LREVENUEFUND 
JUNE 30, 2001 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated CommoditIes Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTIERY PROGRAMS 
 
$ 
 
992,799.61 
 
52,473.19 $ 
 
240,192.00 
 
64,539.47 22,880.32 
 
Total Assets 
 
$ 1,132,692.59 $ =====2=4=0=,1.9.2.=:.=00=. 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated 
Total Fund Equity 
Total liabilities and Fund Equity 
 
$ 
 
228,634.12 
 
$ 
 
51,574.23 
 
2,690.38 
 
200,767.10 
 
8,867.50 
 
$ 
 
252,341.33 $ 
 
240,192.00 
 
$ 
 
64,539.47 
 
22,880.32 
 
792,93147 $ 
 
$ 
 
880,351.26 $ 
 
0.00 0.00 
 
$ 1,132,692.59 $ -=:===oi2i:i::4=0=1:,:=92.=:0.0... 
 
See notes to the general-purpose financial statements. - 20 
 
 EXHIBIT"E" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
992,799.61 $ 1,291,756.17 
 
$ 1,963,678.92 
 
2,256,344.11 
 
1,128,323.41 
 
64,539.47 22,880.32 
 
78,910.89 34,191.56 
 
$ 1,963,678.92 $ 3,336,563.51 $ 2,533,182.03 
 
$ 1,698,403.10 $ 1,927,037.22 $ 
 
59,459.35 
 
113,723.96 
 
205,173.14 
 
414,807.74 
 
363.44 
 
363.44 
 
279.89 
 
279.89 
 
897,213.15 125,197.65 372,331.71 
n2.65 
 
$ 1,963,678.92 $ 2,456,212.25 $ 1,395,515.16 
 
$ 
 
64,539.47 $ 
 
78,910.89 
 
22,880.32 
 
34,191.56 
 
$ 
 
0.00 
 
792,931.47 
 
1,024,564.42 
 
$ 
 
0.00 $ 
 
880,351.26 $ 1,137,666.87 
 
$ 1,963,678.92 $ 3,336,563.51 $ 2,533,182.03 
 
- 21 - 
 
 -------------------- ----- ---- - 
WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 3D, 2001 
 
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 School Admimstration Student Transportation Services Other Support Services Food Services Operation 
Total Expenditures 
Excess of Revenues over (under) Expend~ures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
289,528,00 $ 
 
2,138,628,19 
 
1,592.312.16 
 
$ 4,020,468,35 $ 
 
320,619,82 320,619,82 
 
$ 
 
308,093,74 
 
9,520,07 
 
$ 4,252,101,30 $ 4,252,101,30 $ $ -231,632,95 $ 
1,137,666,87 
 
2,711.45 64,06 230,50 
320,619,82 0,00 0,00 
 
-14,371,42 -11,311,24 
 
$ 
 
880,351.26 $ = = = = 0....,=00= 
 
See notes to the general-purpose financial statements, - 22- 
 
 EXHIBIT "F" 
 
FEDERAL 
PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
610,147.82 $ 
 
625,747.66 
 
$ 2,307,779.63 
 
4,446,407.82 
 
4,040,321.58 
 
1,592,312.16 
 
1,534,566.73 
 
$ 2,307,779.63 $ 6,648,867.80 $ 6,200,635.97 
 
$ 1,943,267.08 $ 2,251,360.82 $ 1,999,224.58 
 
106,807.37 92,317.11 49,618.09 96,518.12 
98.00 676.75 18,477.11 
 
116,327.44 92,317.11 49,618.09 96,518.12 
2,809.45 740.81 
18,477.11 4,252,331.80 
 
216,477.67 102,066.40 49,090.67 80,815.63 
1,678.25 11,998.82 3,654,906.88 
 
$ 2,307,779.63 $ 6,880,500.75 $ 6,116,258.90 
 
$ 
 
0.00 $ -231,632.95 $ 
 
84,377.07 
 
0.00 
 
1,137,666.87 
 
1,033,026.36 
 
-14,371.42 -11,311.24 
 
10,611.04 9,652.40 
 
$ 
 
0.00 $ 
 
880,351.26 $ 1,137,666.87 
 
- 23- 
 
 - - - - - - - - - - - - - - - - - - - - -- ---------- 
WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
$ 2,789,426.19 
 
24,281,003.26 
 
1,915,402.78 
 
$ 
 
209,100.00 
 
Total Assets 
 
$ 
 
209,100.00 $ 28,985,832.23 
 
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 Unreserved Undeslgnated 
Total Fund EqUity 
Total Liabilities and Fund Equity 
 
$ 
 
118,079.09 
 
$ 
 
209,100.00 
 
326,607.43 
 
640,465.00 
 
$ 
 
209,100.00 $ 1,085,151.52 
 
$ 27,900.680,71 
 
$ 
 
0.00 
 
000 
 
$ 
 
0.00 $ 27,900,680.71 
 
$ 
 
209,100.00 $ 28,985,832.23 
 
See notes to the general-purpose financial statements. - 24- 
 
 EXHIBIT"G" 
 
LOTIERY PROJECT 
 
TOTALS 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 2,789,42619 $ 6,185,141.69 
 
24,281,003.26 
 
14,655,205.73 
 
1,915,402.78 
 
1,947,916.72 
 
$ 
 
431,365.00 
 
640,465.00 
 
1,200,488.82 
 
$ 
 
431,365.00 $ 29,626,297.23 $ 23,988,752.96 
 
$ 
 
122,792.00 
 
$ 
 
118,079.09 
 
611,466.35 
 
$ 
 
431.365.00 
 
967,072.43 
 
627.950.46 
 
640,465.00 
 
1,200,488.82 
 
$ 
 
431,365.00 $ 1,725,616.52 $ 2,562,697.63 
 
$ 27,900,680.71 $ 21,426,055.33 
 
$ 
 
0.00 
 
0.00 
 
0.00 
 
$ 
 
0.00 $ 27,900,680.71 $ 21,426,055.33 
 
$ 
 
431,365.00 $ 29,626,297.23 $ 23,988,752.96 
 
- 25- 
 
 - ------ ------- -------- 
WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION . 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
REVENUES 
 
State Funds Taxes Other Funds 
 
$ 
 
0.00 $ 11,499,653.52 
 
1,374,751.16 
 
Total Revenues 
 
I 
 
" 
 
EXPENDITURES 
 
$ 
 
0.00 $ 12,874,404.68 
 
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment 
 
$ 
 
1,405.00 $ 
 
672,227.55 
 
258,564.31 
 
4,211,438.95 
 
70,036.32 
 
145,622.20 
 
Total Expenditures 
 
$ 
 
330,005.63 $ 5,029,288.70 
 
Excess of Revenues over (under) Expenditures 
 
$ 
 
-330,005.63 $ 7,845,115.98 
 
OTHER FINANCING SOURCES (USES) 
 
Operating Transfers In Operating Transfers Out 
 
$ 
 
330,005.63 
 
$ -1,370,490.60 
 
Total Other Financing Sources (Uses) 
 
$ 
 
330,005.63 $ -1,370,490.60 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
$ 
 
0.00 $ 6,474,625.38 
 
FUND BALANCE JULY 1 
 
0.00 
 
21,426,055.33 
 
FUND BALANCE JUNE 30 
 
$====O~.=OO;;". $ 27,900,680.71 
 
See notes to the general-purpose financial statements. - 26- 
 
 EXHIBIT -H" 
 
LOTTERY PROJECT 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 3,585,041.98 
 
$ 
 
0.00 $ 11,499,653.52 
 
11,732,920.98 
 
1,374,751.16 
 
936,421.83 
 
$ 
 
0.00 $ 12,874,404.68 $ 16,254,384.79 
 
$ 
 
$ 
 
926,550.23 
 
113,934.74 
 
$ 1,040,484.97 $ 
 
$ -1,040,484.97 $ 
 
673,632.55 $ 5,396,553.49 
329,593.26 
 
9,385.78 10,041,362.02 
658,172.75 
 
6,399,779.30 $ 10,708,920.55 
 
6,474,625.38 $ 5,545,464.24 
 
$ 1,040,484.97 $ 1,370,490.60 $ 5,168,662.30 
 
-1 ,370,490.60 
 
-5,168,662.30 
 
$ 1,040,484.97 $ 
 
0.00 $ 
 
0.00 
 
$ 
 
0.00 $ 6,474,625.38 $ 5,545,464.24 
 
0.00 
 
21,426,055.33 
 
15,880,591.09 
 
$==:0=====,0=.0=0= $ 27,900,680.71 $ 21,426,055.33 
 
- 27- 
 
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---- ------~ 
WHITFIELD COUNT' -',\;;<0 OF EDUCATION SCHEDULE OF EXPENDIl u:.JES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
Agnculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program Nabonal 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 10665 
 
Total U S Department of Agnculture 
 
Education, U. S Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Speclal Education AowThrough capaclty Building Improvement Preschool 
 
84 027 84.027 84173 
 
Total Special Education Cluster 
 
Other Programs Pass-Through From Georgia Department of Educallon Elementary and Secondary Education Act Title I Grants to Local Educational Agencles Tille II Eisenhower Professional Development Tille VI Innovative Educallon Program Strategies Class Size Reduction Tille VII Immigrant Education 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 Agency Title I MlQrant Education 
 
84.010 84.281 84.298 84.340 84.162 
84.048 
84.011 
 
Total U. S. Department of Education 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
N/A 
 
$ 398,711.25 
 
(2) 
 
NlA 
 
1,566,72349 $ 4,080,211.18 (3) 
 
$ 1,965,434.74 $ 4,080,211 18 
 
NlA 
 
173,193.45 
 
171,890 12 
 
NlA 
 
277.37 
 
(4) 
 
$ 2,138,905.56 $ 4,252,101.30 
 
NlA $ 878,675.25 $ 
 
NlA 
 
2,133.62 
 
NJA 
 
79,113.46 
 
$ 959,922 33 $ 
 
878,675.25 2,133.62 
79,11346 
959,922.33 
 
NlA 
 
907,910.80 
 
907,910.80 
 
NJA 
 
38,113.64 
 
38,113.64 
 
NlA 
 
49,697.81 
 
49,69781 
 
NlA 
 
180,57664 
 
180,57664 
 
NlA 
 
58,66511 
 
58,66511 
 
NlA 
 
64,259.08 
 
64,259.08 
 
NJA 
 
48,634.22 
 
48,634.22 
 
$ 2,307,77963 $ 2,307,779.63 
 
Total Federal Fmanclal Assistance 
NlA =Not Available 
 
- 28- 
 
$ 4,446,685.19 $ 6,559,880.93 
 
 WHITFIELD COUNTY BOARP OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENpED JUNE 30, 2001 
 
SCHEDULE "1" 
 
Notes to the Schedule of Expenditures of Federal Awards 
(1) The amounts shown for the Food DistributJon Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng 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 malOtalOed by fund source, 
(4) Funds earned on this program do not reqUire reportlOg of expenditures, 
Major Programs are Identified by an asterisk (*) 10 front of the CFDA number, 
The School District did not provide Federal AsSistance to any SUbreaplent 
The accompanying schedule of expenditures of Federal awards Indudes 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 finandal statements, 
 
see notes to the general-purpose financial statements, 
 
- 29 
 
 WHITFIELP 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 KJndergarten Program KJndergarten Program - Earty Intervention Program Pnmary Grades (1-3) Program Primary Grades - Earty 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 Special Education Itinerant Special Education Supplemental Speech Alternative Education Program English Speakers of Other Languages (ESOL) Deferred Summer Salaries - (Prior Year) Deferred Summer Salartes - (Current Year) Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing services PnnClpal Supplements Vocational Supervisors Education Equalization Funding Grant Food services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Foreign Language In Elementary School (FLES) Health Insurance Innovative Programs Mentor Teachers Outdoor Classrooms Preschool Handicapped Program Remedial Summer School Lottery Programs Computers In the Classroom 
Office of School Readiness Pre-KIndergarten Program 
Office of Treasury and Fiscal Sel'l(ices Public SChool Employees Retirement 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 2,819,357.00 423,050.00 
7,648,586.00 1,073,706.00 3,894,202.00 6,393,308.00 4,903.507.00 1,742,024.00 
42,193.00 932,682.00 2,439,770.00 788,347.00 1,267,020.00 392,387.00 
132.00 9,301.00 474,606.00 927,532.00 -5,853,740.00 6,414,011.93 1,140,753,00 295,151.00 6,642,407.00 
 
$ 2,819,357.00 423,050.00 
7,648,586.00 1.073,706.00 3,894,202.00 6,393,308.00 4,903.507.00 1.742,024,00 
42,193.00 932,682.00 2,439,770,00 788.347.00 1.267,020.00 392,387.00 
132.00 9,301.00 474,606,00 927,532.00 -5,853,740.00 6,414.011.93 1,140.753.00 295.151.00 6.642,407.00 
 
1,161,328.00 345,756.00 239,464.00 49,658.00 64.865.00 
2,591.658.00 $ 
63,582.65 
 
289,528.00 
 
40,000.00 16,550.28 49,199.23 719.810.08 
5,000.00 1,830.00 
750.00 1n.073.98 
11,107.50 
 
240,192.00 
 
1,161.328.00 345,756.00 239,464.00 49,658.00 64,865.00 
2,591,658.00 289.528.00 63.582.65 
40,000.00 16,550.28 49,199.23 719,810.08 
5,000.00 1,830.00 
750.00 177,073.98 
11,107.50 
240,192.00 
 
80,427.82 
 
80,427.82 
 
159,807.00 
 
159,807.00 
 
- 30- 
 
 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 
 
SCHEDULE "2" 
 
AGENCYIFUNDING 
CONTRACTS Community Affairs, Georgia Department of Local Assistance Grant 
Education, Georgia Department of Georgia's Reading Challenge Reading First Program 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 
 
15.253.19 
 
87.860.00 71,232.00 
 
$ 
 
15,253.19 
 
87,860.00 71,232.00 
 
$ 50,682,077.84 $ 610,147.82 $ 51,292,225.66 
 
See notes to the general-purpose financial statements. 
 
- 31 - 
 
 WHITFIELD COUNTY BOARD OF EDUCATION ~ ,ILE OF APPROVED LOCAL OPTION SALES TAX pROJECTS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "3" 
 
pROJECT 
 
ORIGINAL 
ESTIMATED 
COST P) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) 
 
PROJECT STATUS 
 
Construction of a new elementary school, parking areas and grounds and proViding furnishings, equipment and fixtures therefor $ 
 
2,153.000 00 $ 
 
5.919,868 18 $ 
 
330,00563 $ 5,919,86818 Ongoing 
 
Construction of addlbonal classrooms, InstruetJonal space at nine elementary 
schools, four middle schools and two high 
schools, as well as remodeling and renovebng eXlsbng classrooms, media centers, offices, kitchens, cafetenas. gymnasiums, audltonums, restrooms, roofs. parking areas and grounds at these schools and proVIding furnishings. equipment and fixtures therefor 
 
46,153,159 00 
 
46,258,049 00 
 
6,069,11361 
 
10,356,08844 OngOing 
 
$ 481906,15900 $ 52,117,911 18 $ 6,399,17930 $ 16.215,95662 
(1) The School Dlstnct's onglnal cost esbmate as spBCIfied In the resolutlon calling tor the Imposrtlon of the Local Opbon Sales Tax 
(2) The School Dlstnet's current esbmate of total cost for the projBcls Includes all cost from projBCt Incepbon to completion 
(3) The voters of Whitfield County approved the Imposrnon 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 projBets 
 
See notes to the general-purpose finanCIal statements 
 
- 33 
 
 WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (aBE) 
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 
 
Pnmary 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 wlIh Disabilities 
 
Category I 
 
Category II 
 
category III 
 
category IV 
 
Gifted Student - Category VI 
 
Remedial Educabon Program 
 
Altema~e EducalJon Program 
 
English Speakers of Other Languages (ESOL) 
 
3,193,493,00 $ 479,191,00 
8,663,575,00 1,216,189.00 4,410,973,00 7,241,718.00 5,554,216.00 1,973,196.00 4,771,429,00 
1,435,157.00 444,458.00 537.587.00 
1,050,61900 
 
5,241,83214 $ 606,175,22 
7,419,780,02 761,985.01 
4,115,891,21 7,692,114,07 7,188,72191 1,840,859,93 
719.352.79 1,124,586.94 1,988,043.01 
370,547,09 1,141,71669 
435,094.87 723.435,96 734,718.62 
 
96,31310 $ 13,793,62 219,461,84 24,20628 183,356.77 256,960.84 397,656.04 407,444,15 
38,53990 28.734 96 
8,000 00 31,442.26 
6,354 42 16,739,70 6,83186 
 
5,338,145,24 619,968.84 
7,639,241,86 786,191.29 
4,299,247.98 7,949,074,91 7,586.3n.95 2.248,304.08 
757,892,69 1,153.321 90 1,988.043.01 
378,547.09 1,173,15895 
441,44929 740.17566 741,550.48 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 40.971,801,00 $ 42,104,855,48 $ 1,735,835.74 $ 43.840,691.22 
 
Media center Program Slaff and Professional Development 
 
1,292,134.00 334,320,00 
 
1,768,86367 265,317.54 
 
340,381,92 92,345.26 
 
2.109,245,59 357,662,80 
 
TOTAL aBE FORMULA FUNDS 
 
$ 42,598,255.00 S 44,139,036,69 $ 2,168,562,92 $ 46,307,599.61 
 
(1) Compnsed of State Funds plus Local Five Mill Share 
 
See notes to the general-purpose finanCIal statements 
 
- 34- 
 
 WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "5" 
 
Northwest Whitfield County High School Phoenix High School New Hope Elementary School Southeast Whitfield County High School Eastbrook Middle School North Whitfield Middle School Valley Point Middle School Westside Middle School Antioch Elementary School Eastside Elementary School Varnell Elementary School Cohutta Elementary School Pleasant Grove Elementary School Westside Elementary School Dawnville Elementary School Tunnel Hill Elementary School Dug Gap Elementary School Valley Point Elementary School WhitfieldlDalton Alternative (Gateway) Whitfield Special Education Center Whitfield CountylDalton CrossRoads Academy Central Office (Alternative Education Program) 
TOTAL 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
5,230,143.00 $ 
 
6,043,443.61 
 
170,624.00 
 
387,597,72 
 
1,929,410,00 
 
1,668,580.73 
 
4,152,489.00 
 
4,912,110.07 
 
2,834,724.00 
 
2,613,774.26 
 
3,316,492.00 
 
3,216,349.19 
 
1,546,665.00 
 
1,729,493.38 
 
1,969,854.00 
 
2,101,002,59 
 
1,842,091.00 
 
1,929,061.66 
 
2,592,363.00 
 
2,505,992.66 
 
1,924,398.00 
 
2,025,866,93 
 
1,308,725.00 
 
1,498,862.74 
 
1,980,540.00 
 
2,037,804.81 
 
2,555,028.00 
 
2,641,444.48 
 
1,894,131.00 
 
2,034,773.44 
 
1,385,806.00 
 
1,534,538,91 
 
1,625,608,00 
 
1,959,221.18 
 
2,175,123.00 
 
2,132,198.33 
 
395,413.44 
 
348,760.65 
 
69,955.94 
 
537,587.00 
 
54,444.50 
 
$ 
 
40,971,801.00 $ 43,840,691.22 
 
See notes to the general-purpose financial statements. - 35- 
 
 SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUS1>Ell W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 Wa!>hmgton Street. S. Suite 214 
Atlanta. Georgia 30334-8400 
March 14, 2002 
 
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 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements of Whitfield County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated March 14, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose fmancial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 
Compliance 
As part of obtaining reasonable assurance about whether 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered Whitfield County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 
2001YB-40 
 
 control over financial reporting. flowever, we noted a certain matter involving the internal control over financial reporting and its cperation 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 condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7551-0 102. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. 
This report is intended solely for the information and use of the management, members of the Whitfield County Board of Education, 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 2001YB-40 
 
Ru ell W. Hinton State Auditor 
 
 RUSSELL \\'. HINTON 
STATE AUDITOR (404) 6562174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S w.. SUite 214 
Atlanta. Georgia 30334-8400 
March 14,2002 
 
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 
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 
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular 
A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Whitfield County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofWhitfield 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 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 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. 
200ISA-IO 
 
 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, 2001. 
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-l33. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use of the management, members of the Whitfield County Board of Education, 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, 
~\.O~ 
R ell W. Hinton State Auditor 
RWH:as 2001SA-1O 
 
 SECTIONm 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, 2001 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-7551-98-01 FS-7551-99-01 FS-755 1-00-01 
 
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 will be returned to the Georgia Department ofEducation through an increase in the School District's Local Five Mill Share for the QBE programs in a subsequerit fiscal period. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7551-00-01 
 
Due to current staffing limitations and budgetary considerations, the School District had decided not to pursue the recording of fixed assets on the accounting statements. 
 
 SECTIONN FINDINGS AND QUESTIONED COSTS 
 
 WHITFIELD 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 Whitfield County Board ofEducation'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 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 fmancial 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 of Education's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-133 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-I33. 
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" Program Dollar Threshold The dollar threshold for type "A" program's was $300,000.00. 
9. Low Risk Auditee The Whitfield 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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WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-7551-01-01 
On December 31,2000, the General Fund ofthe Whitfield County Board ofEducation had an unpaid loan outstanding in the amount of $17,023.35. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows: 
"The governing authority of any county, municipality or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses... Such loans shall be payable on or before December 31 ofthe calendar year in which such loan is made ... " 
This condition occurred because the Board did not realize the loan should be retired on December 31, 2000, as required. Repayment of loans should be made in conformity with constitutional limitations. 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7551-01-02 
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 ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. 
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
No matters were reported. 
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