A'S,oo .Ri E33 
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AUDIT REPORT CITY OF BUFORD BOARD OF EDUCATION 
A COMPONENT UNIT OF THE CITY OF BUFORD, GEORGIA YEAR ENDED JUNE 30, 1998 
 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
3 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
6 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
14 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
15 
 
SCHEDULES 
 
1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
16 
 
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
17 
 
3 SCHEDULE OF STATE REVENUE 
 
19 
 
4 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
20 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
5 
 
OVERALL 
 
21 
 
6 
 
BYPROGRAM 
 
. 22 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY - 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 INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
SECTION IV FINDJNGS AND QUESTIONED COSTS SCHEDULE OF FINDJNGS 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 
May 20, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education 
and Superintendent and Members ofthe City of Buford 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 City of Buford Board of Education, a component unit of the City of Buford, Georgia, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Buford Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
W conducted our audit in accordance with generally accepted auditing standards and the standards applicable 
to financial audits contained in Government Auditin~ Standards, issued by the Comptroller General 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. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
98ARL-13B 
 
 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects 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 City of Buford Board of Education as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. 
In accordance with Government Auditin" Standards, we have also issued our report dated May 20, 1999, on our consideration ofthe City ofBuford Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. 
The year 2000 supplementary information on Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that City of Buford Board of Education is or will become year 2000 compliant, that th~.Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which City of Buford Board of Education does business are or will become year 2000 compliant. 
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Buford Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 2 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
98ARL-13B 
 
 A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
q~.tt w.4!~ ~:ell W. Hinton State Auditor 
RWH:gp 
98ARL-13B 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETI COUNTY 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINED BALANCE SHEET ALL FUND TYPES 
JUNE 30. 1998 
 
EXHIBIT"A" 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Prepaid Items 
Inventories Food Donated Commodities Purchased Food 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTALS (Memorandum Only) 
JUNE 301 1998 JUNE 301 1997 
 
$ 938,757.32 $ 92,436.79 $ 
 
0.00 $ 1,031,194.11 $ 861,208.94 
 
833,819.85 117,488.15 
 
951,308.00 
 
820,125.12 
 
880.69 
 
880.69 
 
1,640.00 
 
16,434.29 4,422.15 
 
16,434.29 4,422.15 
 
4,707.88 3,622.01 
 
Total Assets 
 
$ 1,m:457.86 $ 230,781.38 $ _ _ _0_._00_ $ 210041239.24 $ 11691 1303.95 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
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 
 
$ 10,481.00 $ 12,322.12 55,296.49 
no.1s 21,368.59 $ 11,251.16 $ 88,987.20 
$ 16,434.29 4,422.15 
$ 1,762,206.70 120,937.74 $ $ 1,762,206.70 $ 141,794.18 $ 
 
$ 
 
22,803.12 $ 
 
31,109.29 
 
55,296.49 
 
81,576.07 
 
22,138.75 
 
9,922.97 
 
$ 100,238.36 $ 122,608.33 
 
$ 
 
16,434.29 $ 
 
4,422.15 
 
4,707.88 
3,622.01 
 
0.00 
 
1,883,144.44 
 
1,560,365.73 
 
0.00 $ 1,904,000.88 $ 1,568,695.62 
 
Total Liabilities and Fund Equity 
 
$ 1,m,457.86 $ 230,781.38 $ ____0_.00_ $ 210041239.24 $ 11691 1303.95 
 
The notes to the general purpose financial statements are an integral part of this statement. 
-2- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 1998 
 
EXHIBIT"B" 
 
REVENUES 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
TOTALS 
!Memorandum Onl:} YEAR ENDED 
JUNE 301 1998 JUNE 301 1997 
 
State Funds Federal Funds Taxes other Funds 
 
$ 6,451.249.06 $ 
4,915,924.58 180,610.45 
 
103.549.41 $ 467.279.28 $ 800,288.01 
245,777.04 
 
7.022.077.75 $ 800,288.01 
4,915,924.58 426,387.49 
 
5.892.636.45 713,329.84 
4,496,144.66 344,668.93 
 
Total Revenues 
 
$ 11,547,784.09 $ t149,614.46 $ 467,279.28 $ 13,164,677.83 $ 11,446,779.88 
 
EXPENPJIURES 
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 Community Services Operations 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
 
$ 7,486,319.19 $ 436,821.59 $ 
 
0.00 $ 7.923.140.78 $ 7,013,611.17 
 
621,339.24 324,216.49 290,414.71 289,471.72 889,500.53 62,922.97 900,101.89 275,689.70 
4,896.46 
48,402.69 
 
71,136.29 9,559.01 9,004.97 
632.63 
4,182.74 
7,721.13 
481.37 641,804.52 
 
692,475.53 333,775.50 299,419.68 290,104.35 889,500.53 
67.105.71 900.101.89 283,410.83 
4,896.46 481.37 
641,804.52 48,402.69 
 
556,142.73 314.176.06 280,271.88 282,332.39 825,723.49 57,011.98 707,378.37 292,899.73 
2,093.92 547,165.19 
41 941.76 
 
$ 11,193,275.59 $ 1I181 1344.25 $ 
 
0.00 $ 12,374,619.84 $ 10192oi748.67 
 
$ 354,508.50 $ -3t729.79 $ 467,279.28 $ 790,057.99 $ 526,031.21 
 
OTHER FINANCING SOURCES <USES) 
Operating Transfen1 In Operating Transfen1 Out 
Total other Financing Sources (Uses) 
 
$ 42,682.80 
 
$ 
 
42,682.80 $ 
 
18,266.58 
 
$ -42,682.80 
 
$ -467,279.28 
 
-509,962.08 
 
-227,046.30 
 
$ -42,682.80 $ 42,682.80 $ -467,279.28 $ -467,279.28 $ -208,779.72 
 
Excess of Revenues and other Financing Sources over (under) Expenditures and other Financing Uses $ 311,825.70 $ 10,953.01 $ 
 
FUND BALANCE JULY l 
 
1,450,381.00 118,314.62 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
11.n6.41 800.14 
 
0.00 $ 322,778.71 $ 317,251.49 
 
0.00 
 
1,568,695.62 
 
1,263,191.47 
 
11,726.41 800.14 
 
-6,172.39 -5,574.95 
 
FUND BALANCE JUNE 30 
 
$ 1?621206.70 $ 141i794,18 $ 
 
0.00 $ 119041000.88 $ 115681695.62 
 
The notes to the general purpose financial statements are an integral part of this statement. -3- 
 
  CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1998 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 5,887,309.00 $ 6,451,249.06 
 
4,453,736.00 803,067.00 
 
4,915,924.58 180,610.45 
 
Total Revenues 
 
$ 11,144,112.00 $ 11,547,784.09 
 
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 Community Services Operations 
 
$ 7,405,835.00 $ 7,486,319.19 
 
721,802.00 375,107.00 307,759.00 302,521.00 912,445.00 62,200.00 760,860.00 295,583.00 
 
621,339.24 324,216.49 290,414.71 289,471.72 889,500.53 
62,922.97 900,101.89 275,689.70 
4,896.46 
 
481402.69 
 
Total Expenditures 
 
$ 1111441112.00 $ 11,193,275.59 
 
Excess of Revenues over (under) Expenditures 
 
$ 
 
0.00 $ 354,508.50 
 
OTHER Fl~ANQING SQ!JRQE (!,.!!;} 
 
Other Sources Other Uses 
 
$ 
 
-42,682.80 
 
Total Other Financing Sources (Uses) 
 
$ 
 
-421682.80 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 
 
0.00 $ 311,825.70 
 
F!JND BALANQE J!JLY 1, 19~7 
 
1,097,502.92 
 
1,450,381.00 
 
Adjustments Food Inventory - Net Change in Period 
Donated Commodities Purchased Food 
 
-18,802.47 
 
FUND BALANQE J!.!NE 30, 199a 
 
$ 1,078,700.45 $ 1,7621206.70 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS} 
 
$ 
 
94,290.00 $ 103,549.41 
 
725,858.00 
 
800,288.01 
 
264,805.00 
 
245,777.04 
 
$ 1,084,953.00 $ 1,149,614.46 
 
$ 415,257.00 $ 436,821.59 
 
80,119.00 5,692.00 9,000.00 772.00 
 
71,136.29 9,559.01 9,004.97 632.63 
 
6,000.00 
 
4,182.74 
 
16,167.00 
 
7,721.13 
 
500.00 640,745.00 
 
481.37 641,804.52 
 
$ 1,174,252.00 $ 1,181,344.25 
 
$ 
 
-891299.00 $ 
 
-31,729.79 
 
$ 
 
42,682.80 
 
$ 
 
421682.80 
 
$ 
 
-89,299.00 $ 
 
10,953.01 
 
139,622.97 
 
118,314.62 
 
-8,781.81 
 
11,726.41 800.14 
 
$ 
 
41,542.16 $ 141,794.18 
 
The notes to the general purpose financial statements are an Integral part of this statement -5- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 1998 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The City ofBuford Board of Education (Board) was established under the laws ofthe State of Georgia and operates under the guidance ofa school board ofwhich four members are elected by the public and the fifth member is elected as the Chairman of the City Commission and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Buford, Georgia. Accordingly, the City ofBuford Board of Education is determined to be a component unit of the City of Buford, Georgia, which is the primary government. 
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 ofaccounts. 
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the 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 ofthese 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 ofthe 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 ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives. 
-6- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 
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 of these 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 of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
-7- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BUDGET 
The City of Buford Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level 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 Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in 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, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws 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. 
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. 
PROPERTY TAXES 
The City of Buford fixed the property tax levy for the 1997 tax year (calendar year) on October 1, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The City of Buford City Clerk bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board. 
-8- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
The tax millage rate levied for the 1997 tax year (calendar year) for the City of Buford Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
10.72 mills 
 
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. 
 
PREPAID ITEMS 
 
Payments made to vendors for services that will benefit periods subsequent to June 30, 1998, are recorded as prepaid items. 
 
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 ofthis 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-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following types 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 of expenditures in the fund that is reimbursed. 
 
-9- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations 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 
COLLATERALIZATION OF DEPOSITS. Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one 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 ofindebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, 
(5) Bonds ofany public authority created by the laws ofthe 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 
- 10- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 
 
Note 2: DEPOSITS 
 
(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 and 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, 1998, the bank balances were $1,616,289.59. The amounts of the 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, 1998, as follows: 
 
Risk Cate~ozy 
 
Bank Balance 
 
1 
 
$ 100,000.00 
 
2 
 
0.00 
 
3 
 
1,516,289.59 
 
Total 
 
$ 1.616.289.59 
 
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 
 
Note 4: RISK MANAGEMENT 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
- 11 - 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998 
 
Note 4: RISK MANAGEMENT 
 
The Board has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for 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. The Board has not experienced any unemployment compensation claims during the last two years. 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent Each Principal 
 
$ 50,000.00 $ 3,000.00 
 
Note 5: ON-BEHALF PAYMENTS 
The Board has recognized revenues and expenditures in the amount of$132,832.97 for health insurance and 
retirement contributions paid on the Board's behalf by the following State Agencies. 
 
Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel 
In the amount of $114,900.97 
 
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$17,932.00 
 
Note 6: 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. 
 
- 12- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30. 1998 
 
Note 6: CONTINGENT LIABILITIES 
 
The Board is a defendant in a legal proceeding pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of this proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements. 
 
Note 7: ACCUMULATED EMPLOYEES' LEAVE 
 
The Board has provisions for both termination and retirement payments. The termination policy provides that twelve month employees will be paid for their accumulated vacation leave at their existing pay rate at the end of their employment. The retirement payments will be made to those retirees with an accumulation of a minimum of 100 sick leave days not to exceed 125 sick leave days at a rate of $20.00 per day. See Note I,Compensated Absences 
 
Note 8: 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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage 
Contributed 
 
Required 
Contribution 
 
1998 1997 1996 
 
100% 100% 100% 
 
$ 857,261.12 $ 760,250.37 $ 686,774.97 
 
- 13 - 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1998 
 
EXHIBIT"E" 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS JUNE 30, 1998 JUNE 30, 1997 
 
$ 128,655.44 $ 
 
0.00 
 
$ 128,655.44 $ 158,852.60 
 
18,671.15 
 
$ 98,817.00 
 
117,488.15 
 
73,740.46 
 
16,434.29 4,422.15 
 
16,434.29 4,422.15 
 
4,707.88 3,622.01 
 
Total Assets 
 
$ 168,183.03 $ _ _--o_.oo_ $ 981817.oo $ 267,000.03 $ 240,922.95 
 
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 
 
$ 2,727.62 23,661.23 
$ 26,388.85 
$ 16,434.29 
4,422.15 
120,937.74 $ $ 141,794.18 $ 
 
$ 36,218.65 $ 9,594.50 
31,635.26 21,368.59 
$ 98,817.00 $ 
 
36,218.65 12,322.12 $ 55,296.49 21,368.59 
125,205.85 $ 
 
31,109.29 81,576.07 
9,922.97 
122,608.33 
 
0.00 $ 0.00 $ 
 
$ 
0.00 0.00 $ 
 
16,434.29 $ 4,422.15 
120,937.74 
141,794.18 $ 
 
4,707.88 3,622.01 
109,984.73 
118,314.62 
 
Total Liabilities and Fund Equity 
 
$ 168.183.03 $ _ _ _ _0_.00_ $ 98.817.00 $ 267.000.03 $ 240.922.95 
 
See notes to the general purpose financial statements. 
 
-14- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1998 
 
EXHIBIT"F" 
 
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 Business Administration Student Transportation Services Other Support Services Food Services Operation 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OT!::ll;B EINANCING SOUBQES 
Operating Transfers In 
Excess of Revenues and Other Financing Sources over (under) Expenditures 
EUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS YEAR ENDED JUNE 3011998 JUNE 3011997 
 
$ 43,910.00 $ 363,070.49 2451m.04 
$ 652?57.53 $ 
 
58.435.00 $ 1,204.41 $ 437,217.52 
 
103,549.41 $ 800,288.01 245,m.04 
 
94,956.00 713,329.84 226?08.76 
 
581435.00 $ 4381421.93 $ 111491614.46 $ 110341994.60 
 
$ 58,435.00 $ 378,386.59 $ 436,821.59 $ 332,326.58 
 
$ 641,804.52 
 
71.136.29 9,559.01 9,004.97 632.63 4,182.74 7,721.13 481.37 
 
71,136.29 9,559.01 9,004.97 ,632.63 4,182.74 7,721.13 481.37 
641,804.52 
 
95,248.68 8,203.94 7,940.47 3,444.83 
4,452.50 1,356.35 547,165.19 
 
$ 641,804.52 $ 58,435.00 $ 4811104.73 $ 1,1811344.25 $ 1,000,138.54 
 
$ 10,953.01 $ 
 
0.00 $ -42,682.80 $ -31,729.79 $ 34,856.06 
 
$ 10,953.01 $ 118,314.62 
11,726.41 800.14 
 
42,682.80 
 
42,682.80 
 
181266.58 
 
0.00 $ 0.00 
 
0.00 $ 0.00 
 
10,953.01 $ 118,314.62 
 
53,122.64 76,939.32 
 
11,726.41 800.14 
 
-6,172.39 -5,574.95 
 
EUNQ BAl.6NCE ~UNE ~o 
 
$ 141?94,18 $ 
 
0.00 $ 
 
0.00 $ 141?94,18 $ 1181314.62 
 
See notes to the general purpose financial statements. 
 
-15- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY 
SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION YEAR 2000 DISCLOSURES 
YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "I" 
 
At June 30, 1998, the City of Buford Board of Education had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. 
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. 
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. 
Remediation Stage - When changes are made to systems and equipment. 
Validation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. 
It will be necessary for the Board to progress through all four of these stages for each computer and/or 
electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely 
affected. As of June 30, 1998, the financial accounting system was determined to be at the Awareness Stage. 
The Board's financial accounting software (GENESIS) and hardware (Wang VS) are owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards of education currently utilizing the GENESIS accounting software. 
 
See notes to the general purpose financial statements. 
- 16- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 1998 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAM/GRANT 
Agriculture, U.S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) 
Total U. S. Department of Agria.1lture 
Education,U.S.Departmentof Pass-Through From Georgia Department of Education Safe and Drug-Free Schools 1998 Grant Elementary and Secondary Education Act TiUel Grants to Local Educational Agencies 1998 Grant TiUe II Eisenhower Professional Development 1998 Grant TiUeVI Innovative Education Program Strategies 1998 Grant TiUeVII Immigrant Education 1998 Grant Goals2000 State and Local Education Systemic Improvement Grants 1998 Grant Individuals with Disabilities Education Ad Part B - Special Education Flow Through 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1997 Grant 1998 Grant 
Total U. S. Department of Education 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
 10.553 
 10.555 
10.550 
 
NIA $ 
NIA NIA 
$ 
 
77,952.74 
239,481.02 $ 
45,636.73 
363,070.49 $ 
 
(2) 
596,167.79 (3) 45,636.73 
641,804.52 
 
84.186 
 
NIA $ 
 
6,671.14 $ 
 
6,671.14 
 
84.010 
 
NIA 
 
84.281 
 
NIA 
 
84.298 
 
NIA 
 
84.162 
 
NIA 
 
242,488.81 17,500.00 9,022.00 6,669.00 
 
242,488.81 17,500.00 9,022.00 6,669.00 
 
84.276 
 
NIA 
 
40,333.00 
 
70,713.74 (3) 
 
84.027 
 
NIA 
 
94,330.30 
 
94,330.30 
 
84.048 
84.243 84.243 
 
NIA 
NIA NIA 
$ 
 
16,294.00 
-554.84 4464.11 
437,217.52 $ 
 
28,764.58 (3) 
4,945.16 (3) 481,104.73 
 
Total Federal Financial Assistance NIA= Not Available 
 
-17- 
 
$ 
 
800,288.01 $ 
 
1,122,909.25 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "2" 
 
Notes to the Schedule of Expenditures of Federal Awards 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1998 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
The Board did not provide Federal Assistance to any Subrecipient. 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Buford Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of general purpose financial statements. 
 
See notes to the general purpose financial statements. 
 
-18- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF STATE REVENUE 
YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "3" 
 
AGENCY/FUNDING 
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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment 
Counselors Grades 4 and 5 
Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Ad Valorem Tax Adjustment Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teacher Program Pay for Performance Program Remedial Summer School Program Lottery Programs Instructional Technology 
Assistive Technology Classroom Technology 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
Office of Treasury and Fiscal Services 
Public School Employees Retirement 
Northeast Georgia Regional Educational Service Agency 
Consortium for the Restoration of Secondary Schools 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 3,740,531.00 768,721.00 278,639.00 163,835.00 50,007.00 
1,078,665.00 
 
103,194.00 23,767.00 134,575.00 159,544.00 84,201.00 156,087.00 15,571.00 28,842.00 -840,241.00 148,m.oo 
$ 2,355.00 
 
43,910.00 
 
48,787.00 50,000.00 
4,214.70 114,900.97 
4,229.84 1,128.00 110,000.00 2,096.55 
 
53,000.00 5,435.00 
 
$ 3,740,531.00 768,721.00 278,639.00 163,835.00 50,007.00 
1,078,665.00 
103,194.00 23,767.00 134,575.00 159,544.00 84,201.00 156,087.00 15,571.00 28,842.00 -840,241.00 148,m.oo 43,910.00 2,355.00 
48,787.00 50,000.00 4,214.70 114,900.97 4,229.84 
1,128.00 110,000.00 
2,096.55 
53,000.00 5,435.00 
 
17,932.00 890.00 
 
$ 467,279.28 1,204.41 
 
467,279.28 17,932.00 2,094.41 
 
See notes to the general purpose financial statements. 
 
$ 6,451,249.06 $ 103,549.41 $ 467,279.28 $ 7,022,077.75 -19- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "4" 
 
EXPENDITURES 
Current Instruction 
 
INSTRUCTIONAL TECHNOLOGY 
 
ASSISTIVE 
 
CLASSROOM 
 
TECHNOLOGY 
 
TECHNOLOGY 
 
TOTAL 
 
$ 
 
5,435.00 $ 
 
53,000.00 $ =====5=8=,4=3=5.=00= 
 
See notes to the general purpose financial statements. -20- 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "5" 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
5,107,813.00 $ 
 
132,655.00 
 
$ 
 
6,784,024.36 
 
446,402.45 $ _ _ _4..;...0..;...9.:.;.,3_9..;...0._65_ 
 
$ 
 
7,230,426.81 
 
-120,458.16 $ _ _..;...7._,1_0.9..,.9. _6_8_.6_5 
 
$ 
 
0.00 $ ====-==-=--=0-.-0=0- 
 
See notes to the general purpose financial statements. - 21 - 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1998 
 
GENERAL AND CAREER EQUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (") Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (j Grades 9-12 (") High School Laboratories (") Vocational Education Laboratories (") Total General and Career Education Programs 
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (") Category II(") Category Ill(") Category IV (") Sub-Total - Regular Category VI (Gifted) (") Total Special Education Programs 
REMED!&, EDUCAIJON PRQGRAM Cl 
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS 
Salaries Operations 
Total Media Center Programs 
Total Fourteen Weighted and Madia Center Programs 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL 
 
% 
 
ORIGINAL 
 
MID-TERM 
 
$ 
 
480,719.00 
 
$ 
 
432,647.10 $ 
 
1,212,476.00 
 
1,091,228.40 
 
$ 1,693,195.00 90 $ 1,523,875.50 $ 
 
464,055.00 90 
 
417,649.50 
 
791,795.00 90 
 
712,615.50 
 
327,034.00 90 
 
294,330.60 
 
246,387.00 90 
 
221,748.30 
 
218,065.00 90 
 
196,258.50 
 
$ 3,740,531.00 
 
$ 3,366,477.90 $ 
 
0.00 0.00 156,087.00 156,087.00 
 
$ 
 
693,449.00 
 
$ 
 
624,104.10 $ 
 
0.00 
 
$ 
 
693,449.00 90 $ 
 
624,104.10 $ 
 
75,272.00 90 
 
67,744.80 
 
$ 
 
768,721.00 
 
$ 
 
691,848.90 $ 
 
$ 
 
278,639.00 90 $ 
 
250,775.10 $ 
 
$ 4,787,891.00 
 
$ 4,309,101.90 $ 
 
0.00 
0.00 0.00 156,087.00 
 
$ 
 
134,564.00 90 $ 
 
121,107.60 $ 
 
29,271.00 90 
 
26,343.90 
 
$ 
 
163,835.00 
 
$ 
 
147,451.50 $ 
 
0.00 0.00 
 
$ 4,951,726.00 
 
$ 4,456,553.40 $ 
 
156,087.00 
 
STAFF DEVELOPMENT PRQGRAMS 
Cost of Instruction 
Professional Development 
Total Staff Development Programs (") Identifies Fourteen Weighted Programs. 
See notes to 1he general purpose financial statements. 
 
14,499.00 35,508.00 
 
$ 
 
14,499.00 $ 
 
35,508.00 
 
0.00 0.00 
 
$ 
 
50,007.00 100 $ 
 
----- 50,007.00 $ 
 
0.00 
 
- 22 - 
 
 SCHEDULE "6" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
432,647.10 $ 
 
496,895.94 $ 
 
19,338.85 $ 
 
516,234.79 
 
1,091,228.40 
 
1,184,217.75 
 
81,985.66 
 
1,266,203.41 
 
$ 1,523,875.50 $ 1,681,113.69 $ 
 
101,324.51 $ 1,782,438.20 $ 
 
0.00 
 
417,649.50 
 
461,200.23 
 
54,246.37 
 
515,446.60 
 
0.00 
 
712,615.50 
 
1,390,049.35 
 
62,617.21 
 
1,452,666.56 
 
0.00 
 
450,417.60 
 
611,425.43 
 
52,400.33 
 
663,825.76 
 
0.00 
 
221,748.30 
 
526,369.85 
 
10,437.80 
 
536,807.65 
 
0.00 
 
196,258.50 
 
341,766.90 
 
28,351.37 
 
370,118.27 
 
0.00 
 
$ 3,522,564.90 $ 5,011,925.45 $ 
 
309,377.59 $ 5,321,303.04 
 
$ 
 
624,104.10 
 
$ 
 
347,31026 $ 174,912.07 394,441.04 
341.46 
 
96,878.42 $ 358.77 
1,419.86 
 
444,188.68 175,270.84 395,860.90 
341.46 
 
$ 
 
624,104.10 $ 
 
917,004.83 $ 
 
98,657.05 $ 1,015,661.88 
 
0.00 
 
67,744.80 
 
89,329.08 
 
773.57 
 
90,102.65 
 
0.00 
 
$ 
 
691,848.90 $ 1,006,333.91 $ 
 
99,430.62 $ 1,105,764.53 
 
$ 
 
250,775.10 $ 
 
518,483.64 $ 
 
582.44 $ 
 
519,066.08 
 
0.00 
 
$ 4,465,188.90 $ 6,536,743.00 $ 
 
409,390.65 $ 6,946,133.65 
 
$ 
 
121,107.60 $ 
 
247,281.36 
 
$ 
 
247,281.36 
 
0.00 
 
26,343.90 
 
$ 
 
37,011.80 
 
37,011.80 
 
0.00 
 
$ 
 
147,451.50 $ 
 
247,281.36 $ 
 
37,011.80 $ 
 
284,293.16 
 
$ 4,612,640.40 $ 6,784,024.36 $ 
 
446,402.45 $ 7,230,426.81 $ 
 
0.00 
 
$ 
 
14,499.00 
 
35,508.00 
 
s_ _.50.,,001.00 11111111111111111111 
 
$ 
 
34,181.77 $ 
 
34,181.77 
 
15,83226 
 
15,832.26 
 
------- $ 
 
50,014.03 $ 
 
50,014.03 $ 
 
0.00 
 
 23  
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 w. RUSSELL HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 20, 1999 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the City of Buford 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 City of Buford Board of Education as of and for the year ended June 30, 1998, and have issued our report thereon dated May 20, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing 
standards and the standards applicable to :financial audits contained in Government Auditin2 Standards, issued 
by the Comptroller General of the United States. 
Compliance 
As part of obtaining reasonable assurance about whether City of Buford Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of:financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results 
of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditin~ Standards. 
Internal Control Oyer Financial Reportin~ 
In planning and performing our audit, we considered City ofBuford 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 control over financial reportig. However, we noted a certain matter involving the internal control over financial reporting and its operation 
98YB-40 
 
 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 of the internal control over financial reporting that, in our judgement, could adversely affect City of Buford Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7641-98-01. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe 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 noted above is considered to be a material weakness. 
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
~--132 /JJ. ~ Russell W. Hinton State Auditor 
RWH:gp 98YB-40 
 
 RussELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 20, 1999 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the City of Buford Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of City of Buford Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. City of Buford Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Buford Board of Education's management. Our responsibility is to express an opinion on City ofBuford Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the 
standards applicable to financial audits contained in Government AuditinK Standards, issued by the . 
Comptroller General of the United States; and 0MB Circular A-133,Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Buford 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 reasonabl<' ~asis for our opinion. Our audit does not provide a legal determination on City of Buford Board of Education's compliance with those requirements. 
 
98SA-10 
 
 In our opinion, the City of Buford Board of Education complied, in all material respects, with the 
requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1998. 
Internal Control Over Compliance 
The management of City of Buford 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 City of Buford Board 
ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine 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 0MB Circular A-13 3. 
Our consideration of the 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 ofrisk 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 of performing 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 for the information ofmanagement, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record. 
Respectfully submitted, 
~ ... Oi ~-~ Russell W. Hinton State Auditor 
RWH:gp 98SA-10 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
7641-93-01 FS-7641-97-01 
 
Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7641-97-01 
 
Due to current staffing limitations and budgetary considerations, the Board has decided not to pursue the recording of general fixed assets on the financial statements. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998 
I SUMMARY OF AUDITOR'S RESULTS 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Buford Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements 
The audit report for the City of Buford Board of Education disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements 
The audit of the City of Buford 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 ProlWJllls 
The audit report for the City of Buford Board of Education did not disclose any reportable conditions in internal control over major programs. 
5. me of}port Issued on Compliance for Major ProfWlllls 
The auditor's opinion on the City of Buford Board of Education's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findinis Required to be &ported by Section ,5 IO(a) of 0MB Circular A-133 
The City of Buford Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
7. MajorProlWUJls 
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. T}!J)e "A" ProfWllll Dollar Threshold 
The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee 
The City of Buford Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. 
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 CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 1998 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Wealmess Repeated From Prior Year Finding Control Number: FS-7641-98-01 The City ofBuford Board ofEducation 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 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 of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, 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. Management's Response: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff the Board has decided not to pursue the recording of general fixed assets on the financial statements. 
m FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
No matters were reported. 
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