City of Buford Board of Education, a component unit of the City of Buford, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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A COMPONENT UNIT OF.'THE ,

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CITY OF BUFORD; .G. E., ORG IAI

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REPORf..ON AUDIT

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. .OFTHE"FINANCIAL STATEMENTS . ,:
:FOR..Ti-lE FISCAL' YEAR ENDED JUNE- 30. :2002 ,,.

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CITY OF BUrORD BOARD OF EDUCATION - GWINNETT COUNTY - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

INDl:PE1'DEN r AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSr ~INANCIAL STATEMENl SAND SL l'PLE\1[NTARY INFORMAl ION SCH[DULE OF EXPENDITURES OF FEDERAL A WARDS

l:XHIBITS

G[NERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS -OVERVll:W

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPEND! rURES AND

CHANGrs IN rUND BALANCES

ALL GOVFRNMENTAL FUND TYPES

4

C

COMBINED STATEMENT or REVENUES, [XPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND Sl'[CIAL REVE1'Uf FUNDS

5

[) NOTES TO THE GENl:RAL-PURPOSE FINANCIAL STATEMl:NTS

6

ADDITIONAL FINA1'CIAI INFORMATION

COMBINING STAl EMEN rs

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATFMENT OF REVENUES, EXPENDITURES

AND CHANGES IN rUND BALANCES

18

SCHEDULES

SCHEDULE OF FXP[NDITURFS OF FEDERAL A WARDS

20

2 SCHEDULE OF STAl [ REVENUE

23

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

3

BY PROGRAM

24

4

BY SITE

25

CITY or BUFORD BOARD 0~ rDUCATION - GWINNrTT COUNTY - TABLE OF CONTENl S -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORl S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPOR I ING BASED ON AN AUDIT OF rlNANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITII GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONLD COSTS SUMMARY SCHEDULE OF PRIOR YEAR rlNDINGS AND QUI:STIONED COSTS
SECTION IV FINDINGS AND QUFSTIONl::.D COSTS SCHEDuLI::. OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSShLL W. IIINTON
S lAl E AUOITOn
{404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJShmgtun ~trcct SW ~ullc 214 AIIJnlJ, Georg1J 303 -K41K)
June 6. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board ot Education
and Superintendent and Members of the Ctty of Buford Board of Education
!!\DEPENDENT AUDI I OR'S COMBll'sl:D Rl:PORT 01\ GENERAL-PURPOSE l'INANCIAL Sl ATCMENTS AND SUPPLEMENTARY INrORMATION SCHEDULE or [XP[NDITURES OF FEDERAL Aw A.RDS
Lad1e, and Gentlemen
We have audited the accompanymg general-purpose financial statements ofthe City of Buford Board of Education. a component unit of the City of Buford. Georgia. as of and for the year ended June 30. 2002. as listed in the table of contents 1 hesc general-purpose financial statements arc the respons1b1hty of the City of Bu lord Board of Lducatt0n', management Our rcspons1b1hty 1s to express an opinion on these general-purpo<;e financial statement, ba,ed on our audit
We conducted our audit in accordance with auditing standards generally accepted in the United States of Amcnca and the standard, applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General ol the l ln11ed State, Those standards require that we plan and perform the audit to obtain reasonable a,surance about whether the financial statement, arc free of material misstatement An audit includes e-...amining. on a lt:st basis. evidence supporting the amounts and disclosures in the financial ,tatcmcnt, An audit also include, assessing the accounting principles used and significant estimates made h) management. as well as evaluating the overall financial statement pre,entat1on We hehc\e that our audit provides a reasonable ba,1, for our opinion
As described in the notes to the general-purpose financial ,tatcments. the Board of Educallon', financial statements have heen prepared using certain accounting practices and pohc1es which, in our opinion. vary in some respects from generally accepted accounting pnnc1ples The,c variances are described as follows

2002ARL-13

The general-purpose financial statements of the Board of Educat10n did not contain a General Frl(ed AsseL~ Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting pnnc1ples
School act1v1ty accounts maintaincd at the individual schools are not included in the general-purpose financial statement, 1 o conform to generally accepted accounting principles. these accounts should be included in the general-purpo,e financial ,tatements
I he Board of Educat10n did not recognize as expenditures. in the year ended June 30. 2002. a portion of ~lanes and the corre,ponding employer's cost of related benefits earned for contractual services completed pnor to June 30. 2002 Also fund~ received. ,ubscquent to June 30. 2002. from the Georgia Department of l:.ducat10n for the State's share of these unrecorded salane, and related benefits were not recorded a, revenue in the year under re,1ew Convcr,cly. the s1m1lar expenditure, and related revenues for contractual services completed pnor to June 30. 200 I. were improper!} recorded in the year ended June 30. 2002 To conform to generally accepted accounting principles. revenues ,hould 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-purpo,c financial statements of these variances or om1ss10ns have not been determined. but are believed to be material
In our opinion. except for the effects on the general-purpo~ 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 posmon ofthe City of Buford Board of Education as of June 30. 2002. and the results of Its operations for the year then ended. in conformity with accounting principles generally accepted in the Umtcd States of Amenca
In accordance with Government Auditing Standards. we have also issued our report dated June 6. 2003. on our cons1derat1on of the City of Buford Board of Education', internal control over financial reporting and our test~ of its compliance with certain prov1s10ns of laws. regulation,. contracts and gmnts That report 1s an integral part of an audit performed in accordance with Government Auditing Standards and ,hould be read in conJunctlon with th1, report in considering th.: re,ults of our audit
Our audit wa, performed for the purpose of forming an opin10n on the general-purpose financial ,tatemcnt, of the City of Buford Board of Education taken as a whole. 1 he accompanying
combining statement, (Lxh1h11s r, and F) and the financial schedules (Schedules I through 4). which
indude, the Schedule of Fxpend1ture~ of Federal Awards as required by U S Office of\,lanagemcnt
and Budget Circular A-133. A ud1H of S1a1e~ Local Gowrnment.1 and Von-Pro/ii Orgamzalwm. are
presented for purposes of add1t1onal analy,is and arc not a required part of the general-purpose financial ,tatemcnts Such information has been subJected to the auditing procedure~ applied in the
2002ARL-13

audit of the general-purpose financial statements and m our opm1on, except for the effects of the mailers referred tom the third paragraph. such mforrnallon 1s fairly stated.mall matenal respect~, m relat10n to the general-purpose financial ~tatements taken as a whole

A copy ofth1s report has been filed a~ a perrnanent record m the office of the State Auditor and made available to the prc~s of the State. as provided for by Official Code of Georgia Annotated Section 50-
6-24

----Respectfully ~ubm1ttcd. l.J .

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RWH gp 2002ARI -13

State Audnor

Cl IY O~ HUI ORD BOARD OF EDUCATION - GWINJ':'.IETT COUNTI'

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Prepaid Items
Inventories Food
Donated Commocht1es Purchased Food
Amount to be Provided m Future Years
For Payment of Compensated Absences

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 2.410.512 82 $

406.169 61

1.719.089 91

6,316 20

7,921 00

9.577 37 7.19074

Total Assets

4 137 523 73 $ =._.4_29_.12'=5=3==9=-2-

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Compensated Absences
Total L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

169,916 44 $

29,956 06

4.237 86

112,164 90

64,255 43

7,896 67

$

174 156 30 $

234 273 06

$
s 3,963,367 43
$ 3,963,367 43 $

9,577 37 7,19074
178 212 75
194 980 86

Total L1ab1ltt1es and Fund Equity

$ 4137 523 73 $=_4_2_9_2=5=3'=92"=

The notes to the general-purpose financial statements are an integral part of this statement -2 -

EXHIBIT "A"

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30 2001

$ 2,81668243 $ 1 385,917 76

1,725,406 11

1,635,071 90

7,921 00

2,130 00

$ _ _..=66=.,4_,_14'-'6=--:7_

9 577 37 7,190 74
66 414 67

4,977 40 5,456 54
43 692 48

$

6641467 $ 463319232 $ 3077 24608

$

199,874 50 $

259,737 67

116,402 76

109,270 04

84,255 43

103,094 37

7,896 67

2,987 13

$

66 414 67

66 414 67

43 692 48

s

66 414 67 $

474 844 03 $

518 781 69

$

9,577 37 $

4,977 40

7,190 74

5,456 54

4 141 580 18

2,548,030 45

$ 4,158,348 29 $ 2 558 464 39

$

6641467 $ 4,633,192 32 $ 3077 246 08

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CITY QF BUFORD BOARD QF EDUCATION~ GWINNETT COUNTY COMBINED STATEMENT QF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GO\IERNMENTAL FUND TYPES
YEAR ENDED JUNE 30 2002

EXHIBIT "B"

REVENUES
Stale Funds Federal Funds Taxes Other Funds
Total Revenue~
EXPENDITURES

GENERAL FUND

SPECIAL REVENUE
FUND

TOTALS

!Memorandum Onl~}
YEAR ENDED

JUNE 30 2002

JUNE 3012001

s s 8 875 765 80
10 630 830 00 693 443 99
$ 20 200 039 79 s

s 195 916 33
1 391113 57
357 055 '13
1 944 085 33 s

s 9 071 682 13
139111357 10 630 830 00
1050499 42
s 22 144 125 12

8 429 205 22 118388447 8 376 166 00
903 824 90
181893,080 59

Current lnstruct10n Support Services Pupil Services lmprovemen1 of lnstruct1onal Servtces Educational Medra Services General Admm1strahon School Adm1n1strabon Business Aclmm1strahon Maintenance and OperabOn of Plant Student Transportation Serv1Ces Food Services Operatron Enterpnse Operations Community Services Operations
Total Expendrtures
Excess of Revenues over (under) Expenditures

s 12 000 206 29 $

643 009 55 232 809 04 47093218 945 031 95 1 552 454 55 134 551 82 1 812 790 45 464 093 64

33631114 91 09

s 18 592 281 70 $

$

s 1 607 758 09

s s 1 026 679 46

13 026 885 75

11,794 116 34

31 462 33 33 933 42
1,214 66
8,365 99 856 617 83

674 471 88 266 742 46 470 932 18 946 246 61 1 552 454 55 134 551 82 1 812 790 45 472 479 63 856 617 83 33631114
91 09

670 978 53 363 576 98 452 000 07 902 236 43 1 469 527 51 11244512 1 650 213 51 409 721 80 n4 51116
349 397 41

s s 1.9581293 69

20,550,575 39

18 948 724 86

-14 208 36 $

s 1.593 549 73

-55 644 27

OTHER FINANCING SOURCES (USES)
Operatrng Transfers In Operating Transfers Out
Total Other F1nanc1ng Sources (Usesl

s

$

-15 549 83

s

-1554983 s

15 549 83 $ 15 549 83 $

s 15 549 83
-15 549 83
0 00 $

122 391 37 -165.164 95
-42 773 58

Excess of Revenues and Other Financing Sources

over (under) Expendrtures and Other Financing Uses

$

1 592 208 26 $

FUND BALANCE JULY 1

2 371 159 17

Food Inventory Net Change m Penod
Donaled Commcxtities Purchased Food

1 341 47 $ 187 305 22

1 593 549 73 $ 2 558 464 39

-9841785 2 674 689 89

4 5gg 97 1 734 20

4 599 97 1 734 20

-16 503 65 -1 304 00

FUND BALANCE JUNE 30

3 963 367 43 $

s 194 980 86 $ 4 158.348 29 _""2..1558="'464""""'39._

The notes to the general purpose hnancial statemenIs are an an1egra1 part of this statement
4 -

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - fNQN-GAAP BASIS)
GENERAL ANQ SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT c

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

s 8 142 197 93 $
15 802 00
10941 59300
425.000 00

8 875 765 80
10 630 830 00 693.443 99

s $ 19 524 592 93

20 200,039 79

Currant lnstruct10n Support Services Pupil Services Improvement of ln.strucuonal Services Educal10"lal Media Servtces General Adm1nlstrabon School Adm1n1stratton Business Adm1mslraI10n Maintenance and Operation of Plant Sludent Transportation Services Other Support Services Food Servtees Operation Enterprrse Operabons Commun1ly Services Operations
Total Expenditures
Excess of Revenues over (under) Expendrtures

s $ 12 649 923 30

12 000 206 29

719 535 00 269 191 00 514 497 00 950 426 00 2 190 924 00 137 071 00 2 099 586 00 575 169 00

643 009 55 232 809 04 470 932 18 945 031 95 1 552 454 55 134 551 82 1 812 790 45 464,093 64

33631114 91 09

$ 20,106,322 30 $ 18,592.281 70

s s -581 729 37

1 607 758 09

OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)

$

-15 549 83

s -15 549 83

Excess of Revenues and Other F1nanc1ng Sources

s over (under) Expenditures and Other Financing Uses

-581 729 37 $ 1 592 208 26

FUND BALANCE JULY 1 2001

828 697 96

2 371 159 17

Adjustments Food Inventory - Nel Change m Perrod
Donated Commod1t1es Purchased Food

160 00

FLJNP !2A~~Cf JU~E JQ ,002

s $ 247 128 59

3 963.367 43

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s s 108 925 00

195,916 33

1 341 683 00

1 391113 57

289,280 00

357 055 43

s 1 739 888 00 $ 1 944 085 33

s s 899 499 00

1026679 46

75 731 00

31 462 33 33 933 42

535 00

121466

7 200 00 7 800 00 705 318 83

8 385 99 856 617 83

s s 1,696,083 83 1,958,293 69 s 43 804 17 $ -14 208 36

s 15 549 63

s 15 549 83

s 43 804 17 s

1 341 47

204,368 21

187 305 22

4 599 97 1 734 20

s s 248 172 38

19498086

The notes to the general-purpose fmanoal sIatements are an integral part of u-us statement
5

CITY or BUFORD BOARD OF FDUCATION - GWINNETT COUNTY rxHIBIT "D" NOTrs 10 THE GENERAL-PURPOSF FINANCIAL STATEMENTS JUNE 30. 2002
Note I SUMMARY or SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
Ine City of Buford Board ofEducatwn (School District) was established under the laws ofthe State of Georgia and operates under the gmdance of a school board of which four member, arc elected by the pubhc and the fifth member 1s elected as the Chairman of the City Comm1ss1on and a Superintendent appointed by the Board I he School D1stncl 1s not orgam,:ed as a separate legal
entity and docs not have the power lo levy taxes or 1s,ue bonds Its budget 1, ,ubJect to approval by
the City ot Buford, Georgia Accordingly, the City of Buford Board of Education 1s determined to be a component umt of the Cuy of Buford. Georgia, which 1s the primary government
FUND ACCOUNTING
The School District u,es funds and an account group to report on 1ts financial position and the result, of 11, operations T und accounting 1s de,1gncd to demonstrate legal compliance and to aid financial management by segregatmg transactions related to certain governmental functions or act1v1t1es A fund 1s a ,eparate accounting entity with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountab1hty for certain asset, and hab1ht1es that are not recorded in the funds because they do not directly affect expendable available financial re,ourcc,
General Frxed Asset, are recorded as expenditures in the various funds at the time of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1,trict To conform to generally accepted accounting principles. a General Fixed Assets Account Group ,hould be maintained for reporting the co,t of asset, acqmred h} governmental fund type,
Although ",chool activity accounts" arc maintained at the ind1v1dual ,chools. neither the asset,. liab1hues and fund eqmty. nor the revenues. expenditures and changes in fund balances of these account, are renected m thc,e financial statements To conlorm to generally accepted accounting principles. the,e accounts ,hould be recorded in the general-purpose financial statements
The general-purpose financial statement, account for all State. Federal. Taxes and Other fund, under control of the School D1,tnct. m compliance wllh generally accepted accounllng principles apphcabk to governmental umts, unless otherwise disclosed m these notes ~und, and the account group presented m this report arc as follow,
GOVERNMENTAL FUND TYPES - arc used to account for all or most of the School D1,tnct's educational act1v1t1e, Governmental Fund 1 ypc, include
GENERAL T UND - the fund u,ed to account for all financial resources of the School D1,trict <!xcept those required to be accounted form another fund These transactions relate to resources obtained and used for ,crv1ces provided by a board of education
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CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restncted to expenditures for specified purposes These funds are received pnmaniy from the Georgia Department of Education and from the Federal government to accomplish specific educatwnal objectives
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for accrued compensated absences
BASIS OF ACCOUNTING
The accountmg and financial reporting treatment apphed to a fund is deterrnmed by its measurement focus. All governmental funds are accounted for usmg a current financial resources measurement focw,. With this measurement focus, only current assets and current habililles generally are mcluded on the balance sheet Operatmg statements of these funds present mcreases (i e , revenues and other financmg sources) and decreases (1e , expenditures and other financmg uses) m net current as~ets. Their reported fund balance 1s considered a measure of available spendable resources.
L1ab1hues wluch are expected to be financed from available spendable resources are reported as hab1hlles m the governmental funds Other hab1ht1es, which are not expected to be financed from available spendable resources, are reported m the GeneraJ Long-Term Debt Account Group
Governmental funds are accounted for usmg the modified accrual basis of accountmg under which
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and avwlable) "Measurable" means the amount of the transaction can be determmed and "available" means collectible withm the current penod or soon enough thereafter to be used to pay liab1lit1es of the current period The School D1stnct considers receivables collected withm sixty days after yearend to be ava.Jlable. Property taxes and mterest are considered to be susceptible to accrual. Nonexchange transactions, m which the School District gives (or receives) value without directly receivmg (or giving) equal value in exchange, mclude property taxes, mtergovernmental grants and donatwns Revenue for property taxes 1s recogruzed in the fiscal year for which the taxes are levied Revenue from grants and donations 1s rccogruzed m the fiscal year m which all ehg1bility requirements have been satisfied
Expenditures are generally recognized when the related fund hab1hry 1s mcurred
A departure from the above defirutions 1s the accountmg 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 2002, a substantial number of personnel of the School D1stnct were employed for a one hundred and nmety day period beginning in August 200 I and endmg in early June 2002 Personnel contracts for this
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CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO 1 HI: GENERAL-PURPOSE FINANCIAL STATEMENTS JUNr 30, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
employment penod specify that compensation be paid in twelve equal monthly paymenl', bcginmng in September 2001 and ending in August 2002 State grants to fund the State's share of these contract~ were disbursed from the Georgia Department of Education to the School D1stnct in the same twelve months As of June 30. 2002, compensatwn under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002. had not been made Payments for these two month, were made and recorded a~ expenditure~ by the School D1,tnct subsequent to June 30, 2002 Also, the State', portwn of the compcnsatwn paid m July and August 2002 was received and recorded as revenue in the fi~al year subsequent to June 30, 2002 Conversely. the similar e,pend1tures and related revenues for contractual services completed pnor to
June 30. 200 I. were recorded m the year ended June 30. 2002 Generally accepted accounting
pnnc1ples require that revenues be recorded when available and measurable and that expenditures be recorded when incurred. rather than when fund, are received or disbursed
BUDGET
The City of Buford Board ol Education's budget 1s a complete financial plan for the School D1stnct', fiscal year and 1s ba,ed upon estimates of expenditures together with probable funding sources There 1s no ~tatutory proh1b1twn regarding overexpend1ture ol the budget at any level The budget for all governmental funds 1s prepared by fund. function and obJect The legal level of budget control wa, established by the Board at the aggregate level l"he budget for governmental funds was prepared on a basts other than generally accepted accounting principles
The budget proces, begin, when the School D1stnct's adm1mstrallon prepares a tentative budget for the Board's apprO\al Aller approval ofth1s tentative budget by the Board, such budget 1, advertised at least once in a newspaper of general c1rculat1on m the locality At the next regular meet mg of the Board atier advertisement. the Board receives comments on the tentative budget. makes rev1swns as neces~ary and adopts a final school budget This final budget 1s then submitted. m accordance with prov1,1ons of the Quality Basic Education Act. OCGA Section 20-2-167(c ). to the Georgia Department of Educatwn The Board may increase or decrea\e the budget at any time dunng the year All unexpended budget authority lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand and demand deposits in authorized financial inst1tut1ons Georgia Laws OCGA 45-8-14 authorize the School District to depo,1t 1b funds in one or more solvent banks or insured Federal savmgs and loan associatwns
RECEIVABLES
Receivables con~1st of grant reimbursements due on Federal. State or other grants for expenditures made but not reimbursed and other receivables disclosed from inlorrnatwn available Receivable~ are recorded when either the asset or revenue recognition critcria ha, been met Receivable,
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CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Board ofComm1ss1oners fii.ed the property tax levy for the 2001 tax digest year (calendar year) on August 6, 2001 (levy date) Taxes were due on November 20. 2001 Taxes collected vnthin the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The City of Buford City Clerk bills and collects the property taxes for the School District and remits the taxes collected to the School District Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operauons amounted to $10,630,830 00

The tax millage rate levied for the 200 I tax year (calendar year) for the City of Buford Board of Educat10n was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations

l3...6l) mIlls

SALES TAXES

Special Purpose Local Opt10n Sales Tax (SPLOST) is to be used for capital outlay for educational purposes This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years The City of Buford (City Government) has created and maintains Capital ProJects Funds to account for the funds denved from aforementioned SPLOST tax wluch benefit the Board of Education. The City Government also handles all budgeting for the vanous capital projects All revenues and expenditures associated with the SPLOST tax are reflected in the City of Buford (City Government) Financial Report.

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 inventones are reported on the Combined Balance Sheet at cost (first-in, first-out) Donated food commodltles are recorded as revenues and expenditures at the tJme commodity items are received Purchased foods inventones are recorded as expenditures at the time of purchase The inventones reported on the balance sheet for donated food commod111es and for purchased foods arc equally offset by reservallons of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

-9-

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS
Payments made to vendors for services that will benefit penods subsequent to June 30, 2002, are recorded as prepaid items
COMPENSATED ABSENCES
Compensated absences represent obligat10ns of the School D1stnct relating to employees' nghts to receive compensat10n for future absences based upon service already rendered This obhgat10n relates only to vesting accumulating leave in which payment 1s probable and can be reasonably esumated No hab1lity has been recorded in the ind1v1dual funds for the current port10n of this obhgauon as this amount 1~ deemed 1mmatenal to the general-purpose financial statements.
INTERFUND TRANSACTIONS
The School D1stnct has the following types of interfund transactions
Reimbursements of expenditures 1mtially 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 1s reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are capuoned "Memorandum Only" to indicate that they are presented only to fac1htate financial analysis Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting pnnc1ples Neither are such data comparable to a consolidation. lnterfund ehminat1ons have not been made in the aggregat10n of this data Certain reclass1ficat10ns have been made to the comparative data to conform to the current year classifications
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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of secunlles pledged shall be equal to not less than 110 percent of the pubhc funds being secured after the deduction ofthe amount ofdeposit insurance
- IO -

Cl rY or RU FORD BOARD OF EDUCA I ION - GWINNETT COUNTY EX! 11811 "D" NOTES TO TH[ GENERAL-PURPOSE rJNANCIAI STATFMENTS JUNL 10, 2002
Note 2 DEPOSITS
If a deposllory elect, the pooled method (OCGA 45-8-13 I) the aggregate ofthe marl,.ct value ofthe secunue, pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Sectlon 45-8-11 (b) provides an oflicer holding puhhc funds may. in his d1scrct1on. v.al\ e the requirement for securit) in the case of operating fund, placed in demand deposn checking accounb
Acceptable secunty for deposits consists of any one of or any combinatlon of the following
( 1) Surety bond ,1gncd hy a surety company duly qualified and authorized to transact bu.me w1thm the State of Georgia.
(2) Insurance on accounts provided hy the Federal Depo,1t In,urnnce Corporatlon.
(3) Bond;. bills. notes. certificates of mdehtedne,s or other direct obhgallon, of the Umted States or of the State of Georgia.
(4) Bonds. bills. notes. certificates of indebtedness or other obhgatlons of the counlle, or mumc1pah11es of the State of Georgia.
(5) Bonds of any public authonty created by the laws of the State of Georgia. providing that the statute that created the authority authonzed the use of the bonds for this purpose.
(6) Industnal revenue bonds and bond, of development authont1es created by the laws of the State of Georgia. and
(7) Bonds. b1lb. notes. certificates of indebtedness. or other obhgatlons of a suh,1d1ary corporat10n of the Umted States government. which are fully guaranteed by the Umted
State, government both a, to pnnc1pal and interest or debt ohhgat10ns 1,sued h) the h:deral
Land Bank. the Federal Home Loan Bank. the Federal Intermediate Credit Bank. the Central Bank for Cooperallves. the Farm Credit Bank,. the Federal Home Loan Mortgage
r Associat10n. and the ederal f,,;at1onal Mortgage A,sociat10n
CA I FGORIZATION Of- DLPOS!TS At June 30. 2002. the bank balance, were $4.084.613 63 The amounts ofthe total bank balancc,arc classified into three categories of credit nsk
Category I - Cash that 1s insured (cg. Federal depository insurance) or collaterahLed with .ccunt1es held b) the School D1stnct or b) the School D1stnct's agent in the School D1stnct', name
Category 2 - Ca,h collaterahzed with sei:unt1es held hy the pledging financial in,t1tut1on's tru,t department or agent in the School D1stnct's nan1e
- II -

CITY OF BUFORD BOARD OF EDUCA rION - GWINNEn COUN rv EXHIBIT "D" NOTES TO Tl II:. GENERAL-PURPOSE rlNANCIAL STATEMFNTS JUN!:. 30. 2002

Note 2 DEPOSITS

Category 3 - Uncollatcrahzed deposits (This mcludes any bank balance that 1s collatcrahzed with sccunlles held by the plcdgmg financial m,lltullon, or by its trust department or agent but not m the School D1stnct's name )

I hc School D1stnct's deposits are cla,,1fied by nsk category at June 30, 2002, as follows

Risk Category

Bank Balance

$ 100,000 00

2

3,422,802 75

3

56 l,R I 0.88

Total

$.A.084,613,63,

Note 1 NON-MO:-.E I ,\RY TRANSACTIONS

The School D1stncl receives food commod1t1e, from the United State, Department of Agnculture (USDA) for school breakfast and lunch programs The,c commod111cs are recorded at their Federally assigned value See Note 1 - Inventories

'\lote 4 RISK MANAGEMEN I

I he School D1stnct 1s exposed to var1ou, risks of lo related to torts. theli of. damage to. and destruction of a.sets, errors or om1,,10ns. Joh related illness or InJunes to employees, acts of God and unemployment compensat10n

I he ~chool D1stnc1 has obtamed commercial msurance for nsk of lo a,soc1ated v.1th torts, assets, errors or om110ns and Joh related 11lm:ss or mJunes to employee, The School D1stnct has neither s1gmlicantly reduced co,eragc tor these nsks nor mcurred los.es (settlements) which exceeded the School D1stncl's insurance coverage many of the pa.t three years

The School D1stncl has elected to self-msure for all losses related to act, of God I he School D1stnc1 ha, not c~penenced any lo"e, related to th1, nsk m the pa,t three years

Thc School D1stnct is sell~msured with regard to unemployment wmpensat10n da1ms I he School D1stnct a~count, for claims w1thm the same tund that the employee's salary and benefits "ere paid Claims are accounted for \\Ith expenditure and hab1hty hcmg reported when 1t 1s probable that a lo~, has occurred, and the amount of that loss can be reasonably e,t1mated

Changes m the unemployment compen~t10n clmms hab1hty durmg the la,t t\\0 fiscal years arc as lollO\~s

- 12 -

CITY or BUrORD BOARD OF EDUCATION - GWINNETT COUN rY EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STA fEMENTS JUNE 30, 2002

Note 4 RISK MANAGEM[NT

Beginning of Year L1abol1tv

Claims and Changes in Lsumates

Claims Paid

End of Year L1ah1loty

2001 2002

$

0 00 $

0 00 $

0 00 $

0 00

$

0 00 $

3 519 00 $

3 519 00 $

0 00

The School D1stnct has purchased surety hond, to provide add1t1onal msurnnce coverage as follow,

Pos1t1on Covered

Amount

Supenntendent Assistant Supenntendcnt Each Pnnc1pal

$ 50,000 00 $ 50,000 00 $ 3.000 00

Note 5 GENERAL LONG- I ERM Dl:B I

1 he changes m General Long-Term Debt dunng the fiscal year ended June 30. 2002, wen: a, lollows



Compensated

Ab,ences

Balance July I, 2001

$

0 00

Retroactive Restatement of Pnor Year Balances

43 692 48

Balance July I. 200 I
Restated

$ 43.692 48

Additions Annual Leave Earned and Ut1hzed (Net)

22.T22 19

Balance June 30. 2002

$ 66.4)467

Note 6 ON-BEHALF PAYMENTS

The School D1stnct ha:, recognized revenues and expenditures m the amount of $221.257 06 for health msurance and retirement contnbut1ons paid on the School D1stnct's behalfhy the followmg State Agencies

- 13 -

en y OF RU FORD BOARD OF EDUCATION - GWINNETT COUN fY EXHIBIT "D"
NO fES 10 Tl IE GENERAL-PURPOSE FINANCIAL STATEMENTS JUN[ 30, 2002
Note 6 ON-BEHALF PAYMENTS
Georgia Department of Education Paid to the Georgia Department ofCommumty Health For Health Insurance of Non-Certified Personnel In the amount of$ I 99.908 06
Office of Treasury and Fiscal Sernccs Paid to the Public School Employees Retirement System For Public Sehool l:mployees Retirement (PSERS) Employer'~ Cost In the amount of $21,349.00
Note 7 CONTINGENT LIABILITifS
r Amounts rece1ve;:d or receivable principally from the ederal government arc subJect to audll and
review hy grantor agenc1e~ This could result in requests for reimbursement to the grantor agency for any expenditures which arc disallowed under grant terms The School D1stnct believes that ,uch d1sallowances. 1f any. will he 1mmatenal to Jls overall financial posllwn
The School D1stnct 1s a defendant in a legal proceeding pertaining to a matter incidental to the performance of routine School D1stnct operations The ultimate d1spos111on ofth1s proceeding 1s not presently determinable, but 1s not believed to be matenal to the general-purpose financial statements
Note 8 ACCUMULATED EMPLOYEES' LEAVE
The School D1stnct has pro\ 1s1ons for both termination and retirement payments The terminatwn polic} provides that twelve month employees will be paid for their accumulated vacauon leave at their existing pay rate at the end ofthe1r employment The retirement policy provides that payments will be made to tho~ retirees with an accumulatwn of a minimum of I00 s1d. leave days not to exceed 125 sick leave days at a rate of $20 00 per day See Note 1 - Compensated Absences
Note 9 RfTIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers. admin1strat1vc and clcncal personnel employed by local school d1stncts arc covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing muluplc employer defined benefit pen~1on plan TRS provides service retirement, d1~ab1lity retirement and sun 1vor~ benefit~ for its members in accordance with State statute The Teachers Retirement System of Georgia 1s,ues a ~parate;: ,tand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Account,
- 14 -

CITY OF BUFORD BOARD OF EDUCATION -GWINNETT COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002

Note 9 RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE 1:mpk>)Ces of the School D1stnct who are covered hy TRS arc required by State statute to contribute 5% of their gross eammgs to TRS The School D1stnct makes monthly employer contnbut1on~ to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their independent actuary The required employer contnbut1on rate 1s 9 24% and employer contnbutlon~ for the current fiscal year and the preceding two fiscal years are as follow~

Fiscal Year

Percentage Contributed

Required Contnbutlon

2002 2001 2000

100% 100% 100%

$ 1,077,290 34 $1,210.253 68 S 1,059.111 46

- 15 -

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 2002

ASSETS
Cash and Cash Equivalents
Accounts Receivable
lnventones Food Donated Commodrt1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

207,070 74 $

7,896 67

6,316 20

9,577 37 7 190 74

Total Assets

$

2301155 05 $=--==7-896__,6=7=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes,gnated
Total Fund Equity

$

3,291 15

31,883 04

$

$

35 174 19 $

7 896 67 7 896 67

$

9,577 37

7 190 74

178 212 75 $

194 980 86 $

0 00 0 00

Total L1ab1h~es and Fund Equity

$

230.155 05 $ ____7!ii8,_96_6_7_

See notes to the general-purpose financial statements - 16 -

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

191,202 20 $

406,16961 $

439,824 94

6,316 20

6,929 64

9,577 37 7 190 74

4,977 40 5 456 54

$

191 202 20 $

429,253 92 $ _ _4_5_7_1-=88=5"'2""

$

26,664 91 $

29,956 06 $

6034013

80,281 86

112,164 90

10346167

84,255 43

84,255 43

103,094 37

7 896 67

2 987 13

$

191 202 20 $

234 273 06 $

269 883 30

$

$ - - - - -0 0-0

$

000 $

9,577 37 $ 7,190 74

4,977 40 5,456 54

17821275

176 871 28

194 980 86 $ _ _1~8~7=,3=05~22~

s

191 202 20 S

429 253 92 $ _ _4_5_7"'1~88="'52.,

- 17 -

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. 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current I nstructlon Support Services Pupil Services Improvement of Instructional Services General Admin1strat1on Student Transportabon Serv1ces Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commodrt1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

53,534 00 $

107,382 33

447,369 87

357 055 43

$

s 857 959 30

107 382 33

$

107,382 33

$

856 617 83

$

856 617 83 $

107 382 33

$

1,341 47 s

0 00

$

1,341 47 $

000

187,305 22

0 00

4,599 97 1 734 20

FUND BALANCE JUNE 30

$

194 980 86 $-~=~0;;,,;0~0~

See notes to the general-purpose financial statements
- 18 -

EXHIBIT "F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

35,000 00 $

195.916 33 $

140,253 36

943,743 70

1,391,113 57

1,183,88447

357 055 43

328 093 00

$

978 743 70 $ 1 944 085 33 $ -~1,=65=2=,2=3=0~8=3-

$

919,297 13 $ 1,026.679 46 $

859,738 45

31,462 33 33,933 42
1,214 66 8,385 99

31,462 33 33,933 42
1,214 66 8,385 99 856 617 83

99,67542 26,64515
1,19814 12,408 71 77451116

$

994 293 53 $ 1,958,293 69 $ 1 774 177 03

$

-15 549 83 $

-14,208 36 $

-121,946 20

15 549 83

15 549 83

122 391 37

$

0 00 $

1,341 47 $

445 17

0 00

187,305 22

204,667 70

4,599 97 1 734 20

-16,503 65 -1 304 00

$

000 $

194 980 86 $ _ _1.0..1..,30,.5=2=2=

- 19 -

CITY OF BUFORD BOARD OF EDUCATION GWINNETT COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture U S Department of Ch1k:I Nutnuon Cluster Pass-Through From Georgia Department of Educalron Food and Nulntion Program Food Services School Breakfast Program National School Lunch Program
Total Ch1k1 Nulntmn Cluster
Other Programs
Pass-Through From Georgia Department or Educat1011
Food and Nutnbon Program Food Distnbullon Program ( 1)
Total U S Department of Agncullure
Education U S Department of Special Education Cluster Pass-Through From Georgia Department of Educatton lnd1v1duals with Disab1htles Educa.bon Act Part B - Special Education Flow Through Capacity Bu11d1ng Improvement
Total Special Educaoon Cluster
Other Programs Pass-Through From Georgia Department of EducaltOn Elementary end Secondary Educalton Act Trtle I Grants to Local Educational Agencies Title II Eisenhower Profess1011el Development Title VI Innovative Education Program Strategies Class Size Reduction TitleV1I lmmrgrant Educalron Goals 2000 Slate and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Commumltes Vocat10nal Educatton - Basic Granls lo States High School Program Basic Grant
Total U S Department of Education

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 102 609 03

NIA

304 871 43 $

s 407 480 46 $

(2) 816 728 42 (3)
816 728 42

10 550

NIA

3988941

$ 447,369 87 $

3988941 856,617 83

84 027
84 027

NIA

s $ 253 875 44

NIA

4 725 00

s 258,60044 s

253 879 88 (3) 4 725 00
258604 BS

84 010
84 281
84298
84 340 84 162
84 276 84 186
84 048

NIA

549,428 70

NIA

17 181 88

NIA

1520213

NIA

56,677 18

NIA

15 575 00

NIA

2 987 13

NIA

10 564 24

NIA

17 527 00

$ 943 743 70 s

549 428 70 17,181 88 1520213 56,677 18 15,653 74 (3)
4,292 66 (3) 10 564 24
66 688 12 13) 994 293 53

Total Federal Fmanoal Assistance
NJA = Nol Available

. 20.

S 1 39111357 S _..,:.1,;;BS::;0;.;J;.;1.;.1,;;36:;.

CITY OF BUFORD BOARD OF EDUCATION - QWINNffi COUNTY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of Fedgrel Awards
(1) The amounts shown for the Food Dlstnbutlon Program represents the Federally assigned value ol nonmonetary
assLStance for donated commodities recetved and/or consumed by the system dunng the current fiscal year (2) Expenditures for the School Breakfast Program were not ma1nta1ned
separately and are included In the 2002 Natlonal School Lunch Program (3) Expenditures for ttus program include State and/or Other Funds
Expenditures are not ma1nta1ned by fund source
MaJor Programs are Identified by an astensk (*) m fronl of the CFDA number
The School Olstnct did not provide Federal Assistance to any Subrec1pient
The accompanying schedule of expenditures of Federal awards mcludes the Federat grant act.Jvrty of the City of Buford Board of Education and 1s presented on the mocilfied accrual basis of accountmg which IS the basis of accounting used In the presentation of the general purpose financial statements

See notes lo the general-purpose financial statements

- 21 -

CITY OF BUFORD BOARD OF EDUCATION GWINNETT COUNTY
SCHEDULE OF STATE REVENU~
YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education Georgia Department of Qualrty Basic Education Direct lnstrudronal Cost Kindergarten Program Kindergarten Program Earty lntervenlmn Program Pnmary Grades (1-3) Program Pnmary Grades - Earty Intervention (1-3) Program Middle School (6-8) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Program Early lnterventmn High School General Educauon (9-12) Program Vocational Laboratory (9-12) Program Students wtth Dtsab111nes Calegll!'f I Gifted Student - Category VI Remedial Educalton Program Media Center Programs 20 Days Adc:httonal lnstruct10n Altematrve Educatmn Programs Staff and Profess10nat Development Programs lndrrect Cost Categoncal Grants Pupil Transportabon Regular
Bus Re~acement
English Speakers of Other Languages (ESOL) Nursmg Services Pnncipal Supplements Sparsity - Alternative Program Vocational Supel'Vlsors Educational Equahzahon Formula Food Servtces Vocabonal Educa'tlon Other State Programs Extended Day - TechnolOgy/Career Health Insurance Sta18Wlde After School Program Statewide Reeding Program Technology/Career High Schools That Work Vocational Extended Year Vocational Construcban Related Equipment-
State Bonds Fiscal Year 1999 Lottery Program
Asslst1ve Technology Computers m the Classroom
Office of Treasury and Fiscal Services Public School Employees Retirement
OTHER Metropohten Regional Educational Agency Arts Connect Pro1ect

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

596,451 00

50,463 00

1 205 170 00

141 442 00

1,245 589 00

626 864 00

8271300 1 078,722 00
251,504 00

740,153 00 182,433 00
12,929 00 201 303 00
62 144 00 96452 00 3641400

1 332,870 00

129,011 00 30 303 00
225 773 00 61 771 00 9,444 00 35 889 00 10,108 00 34,444 00 $

19 584 00 199 908 06 21,021 80 28,255 94
4,000 00 583 00
100,000 00

21 349 00

$
53 534 00 35 00000
6,082 00 101 300 33

596 451 00 50 463 00
1 205 170 00 141,44200
1,245,589 00 626,864 00
82,713 00 1,078 722 00
251 504 00
740,15300 182,433 00
12 929 00 201,303 00
62,144 00 96,452 00 36 414 00
1,332 870 00
129 011 00 30 303 00
225 773 00 61 771 00 9,444 00 35,889 00 10,108 00 34,444 00 53,534 00 35,000 00
19 584 00 199 908 06
21 021 80 28,255 94
4 000 00 583 00
100 000 00
6 082 00 101,300 33

21,349 00

705 00

705 00

s a $

875 765 00

s 195 916 33

9 071 682 13

See notes to the general-purpose financial statements

-23 -

CIT'/ Of BUFORD BOt.RD OF EDUCATION - GWINNETT COUNTY
GENEAAL FUND - OUALIT'I BASIC EDUCATION PROGRAM {OBEJ
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "3"

DESCRIPTION
Direct lnstruci.K>nal Programs Kindergarten Program Kindergarten Program-Earty Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Earty lnlerventHln (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early lnterventmn (4-5) Program Middle Sct10ol (6-8) Program High Sdlool General Educallan (9-12) Program Vocat10nal Laboratory (9-12) Program Students With Drsab1htres Category I Ca1egory II Category Ill Ca1egory IV Gifted Student - Category VI Remedial Education Program Altematrve Education Program Enghsh Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGAAMS
Media Center Program Staff and Pro1essmnal Dtrvelopment

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGAAM COSTS

SALARIES

OPEAATIONS

TOTAL

$

729 765 00 $ 56971502 $

22 28311 $

59199813

61 742 00

95 459 36

619 04

96 078 40

1 474 541 00 1 686 373 73

118,10436

1 804 478 09

173 056 00

219 852 59

1 669 66

221 522 25

763183 00 1 006 108 35

33 770 93

1 039,879 28

104 994 00 1 523 995 00 1 31983000
307 719 00 905 587 00
223 209 00 1581900
118 010 00 276 237 00

61,405 67 1 838 971 59 1,592 515 57
386 543 06
434 894 10 128 898 12 552 886 54
19 949 82 39141545
64 619 84 134 210 95 326 339 82

103,514 09 232 071 78
41,97802
53,68619 2,432 63 2 093 03
2 983 91 1 391 88 1 516 76 5 330 71

61 405 67 1 942 485 88 1 824 587 35
428 521 08
488 580 29 13133075 554 779 57
19,949 82 394 399 36
6601172 135,727 71 331,670 53

$

7,997 687 00 $ 9 509 959 58 $ 623 446 10 $ 10 133,405 68

246 297 00 44 553 00

395,622 02 10 734 64

69 712 20 43 239 19

465 334 22 53 973 83

TOTAL QBE FORMULA FUNDS

$

8 268 537 00 $ 9 916 316 24 $ 736,397 49 S 10 652 713 73

(1) Compnsed of State Funds plus Local Frve Mill Share

See note!. to the general-purpose financial statements

- 24 -

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

SITE Buford Academy Buford High School Buford Elementary School Buford Middle School Central Office (Altemat1ve Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,678,358 00 $

2,299,302 60

1,991,665 00

2,846,000 43

2,177,987 00

2,333,398 34

2,031,667 00

2,604,387 05

118,010 00

50,317 26

$

7,997,687 00 $ 10,133,405 68

See notes to the general-purpose financial statements - 25 -

SECTION II COMPLIANCI:. AND INTERNAL CONTROL REPOR IS

{tl',.SH.L W, HINTON
STATE AUCMTOn ('(),I) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W..i,hmgton ~trcct SW ~u1tc 214 Atlc.1.nt..1, Gc:org:1J. 303~4-8400
June 6. 2003

Honorable Sonny Perdue. Go, ernor Members of the General Assembly Member, of the State Board of Education
and Supcnntcndent and Members ofth.:.Cll) of Bu lord Board of Education
REPOR I 01\ COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL RFl'ORTING BASED ON AN AUDIT OF FINANCIAL S rA I FMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDI I ING STANDARDS
Ladies ..ind Gentlemen
We ha\'e audited the financial ,tatements of Cit) ol Buford Board olTducat1on as ofand for the year ended June 30. 2002. and have 1,;ued our report thereon dated June 6. 2003 This report wa, qualified for \'anou, departures from generally accepted accounting pnnc1plcs. as 1dcnt1ficd in the auditor's report on the general-purpose financial ,tatcments We conducted our audit in accordance with auditing standard, generally accepted in the United States of Amenca and the standards applicable to financial audits contained in Government A.udltinl! Stand.irds. issued by the Comptroller General ol the United States
Compliance
A, part of obtaining reasonable a,surance about whether City of Buford Board of [ducat1on's linancial statements are free of matenal misstatement. we performed tests of its compliance with certain pron>1on, of laws. regulauons. contracts and gmnts. noncompliance with which could ha\'c a direct and matenal effect on the dctcrminallon of linancrnl statement amounts I lowever. pro\'1ding an opinion on compliance with those prov1>wn, "as not an obJecllvc of our audit. and accordingly. we do not express such an opinion l he results of our tests disclosed no instances of noncompliance that arc required to be reported under Government Auditing Standard,
Internal Control Over rinanc1al Reporting
In pldnning and perlonmng our <1ud1t. we con,1dercd Cit) of Buford Board of Education's internal
control over financial reporting in a, der to determine our auditing procedures for the purpose ol
cxpres,ing our opinion on the fina~lIcial statements and not to prm,1dc assurance on the internal
2002Yl3-41

control over linanc1al reporting However. we noted a certain matter involving the internal control O\ er financial reporting and Its operation that we consider to be a reportable cond1t10n Reportable cond1t10n, involve matters coming to our attenllon relating to s1gmficant delic1cnc1es in the design or operation of the 10temal control over fioanc1al report10g that. 10 ourJudgment. could adversely affect City of Buford Board of Educat10n's ab1hty to record. process. summarize and report financial data con,1,tent with assert10ns of management in the financial statements The reportable cond1uon 1s
rs- de,cribcd in the accompany10g Schedule ofF10d10gs and Quesuoned Co,t, as Item 7641-02-01
A material weakness 1~ a cond1t1on 10 which the de,1gn or operallon ot one or more of the 10temal control components does not reduce to a relatively low le,el the nsk that m1~statement, in amounts that would be matenal 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 a,s1gned funct10ns Our consideration of the internal control over linanc1al reporting would not necessarily disclose all matters 10 the internal control that might be reportable cond111ons and. accordingly. would not nece~~arily d1sclosc all reportable cond1110ns that arc also considered to be material weaknesses However. we con,1der item FS-7641-02-0 I to be a material weakness
This report 1s intended solely for the 10forma11on and use of the management. members ofthe Cny of Buford Board of Education. Federal awarding agencies and pass-through enuues and 1s not intended to be and should not be used by anyone other than these specified parties
Respectfully submitted.

RWH gp 2002YB-41

I linton State Auditor

1.U\SlsLL W. H11,TON
STAT[ AUDITOR
(404/ ESl:i-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshrng1on <;1rcc1 SW Su11c 214 J\IIJnla Gcorg1J 30134-84tKJ
June 6. 2003

I lonorablc Sonny Perdue, GO\ cmor Members ol the General A~sembly Members of the State Board of Education
and Superintendent and "viembers of the
City or Buford Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLI: ro EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OYER COMPLIANCE IN ACCORDANCE WIT! I 0MB CIRCULAR .\-133
Ladies and Gentlemen
Compliance
We have audited the compliance ofCny of Buford Board of l:ducatlon \\ Ith the types of compliance requirements de,crihed in the US Office of Management anJ Budget (0/,,,fB) ( 1rc11lar A-133 Complwnce Supplement that are applicable to each of its maJor Federal program~ for the year ended June 30. 2002 City of Buford Board ol Educallon', ma,1or Federal programs arc 1dent1fied in the Summa') of AudJtor\ Re~ults Secuon of the accompanying Schedule ofFindmgs and Questioned Cost~ Compliance with the requirements of laws. regulation,. contracts and grants applicable to each of Its maJor federal programs 1s the respons1b1lity of City of Buford Board of [duca\1on\ management Our respons1b1lity 1s to express an opinion on City of Buford Board of Education's compliance based on our audit
We conducted our audit of compliance in accordance with aud1tmg ~tandards generally accepted in the United State, ol Amenca, the standards applicable to financial aud1\\ contained in Government Aud11m11, Standards, issued by the Comptroller General of the United Stale\, and 0MB Circular A133. lud111 n(S1a1e.,, Local Guwrnmcnt~. and Non-Profit Orgam=atwm Those standards and 0MB Circular A-113 require that we plan and perform the audit lo obtain reasonable as~urance about whether nonwmpliance with the types ofcomphance requirements referred to abo,e that could have a direct and material effect on a maJor 1-cderal program occurred An audit include, cxam1mng. on a test basis. evidence about the City of Auford Aoard of Fducat1on's compliance with tho~e requirements and performing ,uch other procedure, a, we umsidered necessary in the circum,tanLes We hlie\e that our audit provide, a reasonable basis for our opinion Our .iud1t does not pro,1dc a legal dctcnnmat1on on Cit) of Auford Board ol [ducat1on\ compliance\\ 1th those requirements
200~SA-10

In our opinion. the City of Buford Board of Education complied, in all mak:nal respect~. with the requirements referred to above that are applicable to each of1ls maJor ~cderal program~ forthe year ended June 30. 2002
Internal Control Over Compliance
The management of City of Buford Board of Education 1s responsible for establishing and mainlaining effective internal control over compliance with requirements of laws. regulauons. contracts and grant~ applicable to Federal programs In planning and performing our audit. we con~1dered City of Buford Board of[ducatlon's internal control over compliance \\~th requirements that could have a direct and matenal effect on a maJor Federal program in order to determine our audning procedures for the purpose of expressing our opin10n on compliance and to te~t and report on internal control over compliance in accordance with 0MB Circular A-133
Our con~1derallon of the internal control over compliance would not necessanly disclose all matte~ in the internal control that might be matenal weaknesses A matcnal weakness 1s a cond1110n in which the design or operat10n of one or more of the internal control components docs not reduce to a relatlvely low level of nsk that noncompliance with applicable requirements of laws. regulat10n~. contracts and grants that would be matenal in relation to a maJor Federal program being audited may occur and not be detected wnhin a timely penod by employees in the normal course of performing their assigned functions We noted no matters involving the internal control overcomphance and its operation that we con~1der to be matenal weaknesses
I his report 1s intended solely for the informat10n and use of the management. member, of the City of Buford Board of Education, Federal av.arding agencies and pass-through entitle, and 1s not intended to be and ~hould not be used by anyone other than these specified part1e~
Respectfully submlltt:d.
\(\.43- k
Hinton State Auditor
RWH gp 2002SA-10

SE:.C I ION Ill AUDITEI"'> RESPONSE TO PRIOR YLAR FINDINGS AND QUCSTIONED COSTS

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY AUDITEE'S RESPONSE
SU\1MARY SCHEDULE or PRIOR YEAR FINDINGS AND OUESTIONJ::D COSTS
YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

rs-7641-00-01 FS-7641-01-01

Further Action Not Warranted Unresolved - See Corrective Actmn/Response\

CORRECTIVE ACTION/RESPONSES

G[NERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Fmdmg Control Number I-S-7641-01-01

Due to current staffing hm1tallons and budgetary cons1derat1ons proh1bllmg the hmng of add1t1onal admm1,trat1ve ,tall the School D1stnct has decided not to pursue the recording of general fixed a~.et~ on the financial statements

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF FINDINGS AND OUFSTIONED COSTS YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
Tvpe of Report Issued on the Financ1aI Statements The auditor', opinion on the City of Buford Board of Education's financial statement~ was qualified for various departures from generally accepted accounting princ1pies
2 Reportable Cond11Ions in Internal Control Disclosed bv the Audit of the Financial Statements The audit report for the City of Bu lord Board of Educat10n d1sclo,ed a financial statement reportable cond1t1on related to the following control category
General Frxed As,ets
The reportable condition described above 1s considered to be a material weakness
3 Noncompliance Malena! to the Financial Statements rhe 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 Cond1uons in Internal Control Over Ma)Or Programs The audit report for the City of Buford Board of Education did not disclose any reportable cond111ons in internal control over maJor programs
5 Type of Report ls~ued on Compliance for Ma1or Programs The auditor's op1mon on the City of Buford Board of Education's report on compliance with requm:ments applicable to maJor programs was unqualified
6 Audll Findings Regmred to be Reported hv Section 5l0(a) ofOMB Circular A-133 The City of Buford Board of Education', audit did not disclose audit findings required to be reported hy section 510(a) ofOMB Circular A-133
7 Ma1or Programs Federal award, audited as maJor programs are a, follows 10 553 ~ood and Nutnt1on Program - Food Services - School Breakfast Program IO 555 Food and Nutrition Program - Food Services - Nallonal School Lunch Program
8 Tvpe "A" Program Dollar Thre~hold The dollar thre~hold for type "A" programs was $300,000 00
9 Low R1,I. Aud1tce The City of Buford Board of Education qualified as a low nsl. aud1tee as defined by Section 530 ol 0MB Circular A-133
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CITY OF BUFORD BOARD OF EDUCATION - GWINNETT COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002
ll FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condiuon - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-7641-02-01 The City of Buford Board of Educat10n failed to maintain a system-Wide General Fixed Assets Account Group Withm the formal accounting records as required by generally accepted accounting pnnc1ples This condition results in the general-purpose financial statements of the School D1stnct bemg mcomplete and not m accordance With generally accepted accounting principles. Appropnate action should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group These subs1chary records should include an mventory of land, buildings and equipment owned by the School D1stnct and should include, but may not be limited to, date acquired, acqu1s1t1on cost, estimated replacement cost, locat10n and descnpt10n Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
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