Audit report, City of Carrollton Board of Education, Carroll County, year ended June 30, 1999

AUDIT REPORT CITY OF CARROLLTON BOARD OF EDUCATION
CARROLL COUNTY, GEORGIA YEAR ENDED JUNE 30, 1999

CITY OF CARROLLTON BOARD OF EDlJCATION - CARROLL COUNlY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES BUDGET AND ACTIJAL

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES .

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

28

ANALYSIS OF MINIMUM EXPENDITURE REQUIR.EMENTS

GENERAL FUND: QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

29

6

BY PROGRAM

30

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
- TABLE OF CONTENTS -
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB Cm.CULAR A-l33
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S,W. Suite 214 Atlanta, Georgia 30334-8400
April 25, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe City of Carrollton Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDlJLE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the City of Carrollton Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe City ofCarrollton Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Ai; 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:

99ARL-13

" 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. .
" School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe City of Carrollton Board ofEducation as ofJune 30, 1999, and the results ofits 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 April 25, 2000, on our consideration ofthe City of Carrollton Board of Education's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Carrollton Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required byU. S. Office of Management and Budget Circular A-l33, 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 ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
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 ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~1~Lb.J~
State Auditor
RWH:gjl 99ARL-13

CITY OF CARROLLTON BOARD OF EDUCATION CARROll COUNTY

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1999

Cash and Cash Equivatents
Investments
Accounts Receivable
Due from Other funds
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt service fund
Amount to be Provided in Future Years For Payment of Capital Lease Agreements For Payment to the City of carrollton

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 5,966,880.61

1.940,020.96

2,110,171.47

1.772,294.00 $

511,420.02

235,924.20

472,141.06

30,152.36 7,856.79

Tolal Assets

549.431.17 $ 4?58.257.71

LIABILITIES AND FUND EQUITY
~
cash Overdraft Accounts Payable salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds capital L.... Ag.-nenls Debt Procaeds - City of C8noIIton
Total UabDlties
FUNDEOUITY
Fund Balances Reserved For 8us Replacement Funds For ContInuation of Federal Programs For Debl5ervioe For Inventories Food Donated Commodities Purchaaed Food For Purpose 01 Bond Issue For Slala capital Outlay Projects Unreserved Undeslgnated
Total Fund Equity

$

763.715.12

1.353.035.42

29,453.88 106.062.76 $ 221.346.45
7.794.69

3.175.00
618.490.26 124,311.85 472.141.06

$ 2116,750.54 $

364,657.56

1,218118.17

$

10,403.00

30.152.36 7,858.79

5612021.07 5 622,424.07 $

146 762.46 184 773.61

3.540,139.54
0.00 3.540 139.54

Total LJablUlias and Fund Equity

7739,174.61 $

549431.17 $ 4758257.71

The notas 10 lha genaral purpose financial slalaments ara an intagral part 01 this stalament -2-

EXHIBIT "A"

DEBT SERVICE
FUND
1,499,947.36 412,996.54

ACCOUNT GROUP
GENERAl LONGTERM
DEBT

TOTALS

(Memorandum Only)

JUNE30 1999

JUNE 30 1998

7,906,901.59 $ 5,167,269.95

3,610,118.83

2,932,634.76

8,407,672.86

472,141.06

1,543,821.40
1,347,583.86 3,366,178.60

30,152.36 7,858.79
1,543,821.40
1,347,583.86 3,386,178.60

35,121.49 17,525.33
951,342.61
12,823.53 5048657.39

$ 1,912943.90 $

6,257,583.86

21,217,391.25

19,640,413.16

$

369,122.50

369122.50

$
1,347,583.86 4,910,000.00

29,453.86 1,242,075.38 1,574,381.87
7,794.69 618,490.26 124,311.85 472,141.06 1,347,583.86 4,910,000.00

6257583.86 $ 10,326.232.83

199,231.75 398,525.69 1,403,016.06
3,201.80 450,726.26 108,282.40
12,823.53 8,000,000.00
8575787.49

1,543.821.40
0.00 $ 1,543.821.40

$

10,403.00 $

1.543.821.40

9,329.00 1,046.58 951,342.61

30.152.36 7,858.79 3,540.139.54

35.121.49 17.525.33 5,286,001,81 41.344.00

5,758.783.53

4.722.914.85

$ 10891158.62 $ 11.064.825.67

$ 1,912,943.90 $

6 257.583.86 $ 21,217,391.25 $ 19.640.413.16

3

CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1999

REVENUES
State Funds Federal Funds Taxes Other Funds
Tolal Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services central Support Services Other Support Services Food Services Operation
capitalOUUay Debt Service
Principal Interest
Totar Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSES)
Debt Proceeds from City of carrollton (Net) capital Leases Operating Transfers In
Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expend~ures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 12,682,775.62 $
2,306.00 7,123,368.12
980,347.79
$ 20,788,797.53 $

978,341.23 1,933,291.23
525.536.39
3,437,168.85

$ 12,359,787.98 $

732,873.41 869,119.08 450,216.23 2,127,480.57 1,239,687.36 121,983.01 1,599,629.17 616,983.25
44,885.89 208,573,95
43,280.00 222,993.80

558,064.68 26,644.70

$ 21,222,162.88 $

$

-433,365.35 $

1,414,008.73
299,289.26 312,872,04
171,12 391,773.25
131.36
5,794.80 19,032.85
58,936,91 1,332,253.44
114,994.99 5,364.01
3,954,622.76
-517,453.91

$ 1,662,587.90 $ 121,470.25 -282,045.33
$ 1,501,992.82 S
$ 1,088,627.47 $ 4,553,796.60

345,252.10 139,470.44
464,722.54
-32,731,37 232,140.65

-9,666.54 -4,969.13

FUND BALANCE JUNE 30

$

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

-4-

5,622,424.07 S

184,773.61

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$

235,924.20

$ 13,897,041.05 $ 14.117.688.86

1,935.597.23

1,441.633.97

$ 2,367.939.38

9,491.307.50

7,293.092.60

277,468.27

38,453.16

1,821.805.61

1.615,696.48

$

513.392.47 $ 2,406.392.54 $ 27.145,751.39 $ 24.468.311.91

$ 2,321,703.38 $
$ 2,321,703.38 $ $ -1,808.310.91 $

$ 13,773,796.71 $ 13,411,677.19

1.032,162.67 1,181,991.12
450,387.35 2,519,253.62 1,239,818.72
121,963.01 1,605,423.97
635,996.10 44,885.89 267,510.86 1,375,513.44 2,544.696.96

877,676.44 862,285.38 417,345.55 548,614.37 1,121,965.40 231,890.03 1,481,736.46 637,668.75 79,348.25 259,770.21 1,300,982.88 2,000,718.61

1,335,000.00 478,913.75

2,008,059.67 510,922.46

289,219.71 44,915.12

1.813,913.75 $ 29.312.402.77 $ 23,565.812.35

592,478.79 $ -2.186,651.38 $

902.499.56

$

142,574.89

-121.470.25

$

21.104.64

$ -1,787,206.27 $ 5,327,345.81

$ 6,029,778.75

$ 2,007,820.00

12,000.00

403,515.58

71,611.71

-403.515.58

-71.611.71

$ 2.007.820.00 $ 6.041,778.75

592,478.79 $ -158,831.38 $

951,342.61

11,064,825.67

6,944,278.31 4,101,073.04

-9,666.54 -4.969.13

9,640.72 9.433.60

$ 3,540,139.54 $ 1,543,821.40 $ 10,891.158.62 $ 11,054,625.67

-5-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 1999

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

SIale Funds Federal Funds
Taxes Other Funds

$ 12,160,616.00 S 12,682,775.62

2,306.00

6,700,825.00

7,123,368.12

440,310.00

980,347.79

Tolal Revenues

$ 19,301,751.00 20,788,797.53

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 Sludenl Transportation Services Central Support Services Other Support Services Food Services Operation
capilal OUtlay Debt Service
Totel Expenditures

S 13,086,060.97 S 12,359,787.98

702,135.99 653,759.00 456,784.00 436,961.00 1,335,705.00 114,458.00 1,624,071.00 755,236.00 61,595.00
44,929.00 282,949.00

732,673.41 869,119.08 450,216.23 2,127,480.57 1,239,687.36 121,983.01 1,599,629.17 616,963.25
44,885.89 208,573.95
43,280.00 222,993.80 584,709.38

S 19,554,823.96 $ 21,222,182.68

Excess of Ravenues over (under) Expenditures OTHER FINANCING SOURCES (USES)

S -252,872.96 S -433,385.35

Other Sources Other Uses
Tolal Other Financing Sources (Uses)

$ 1,784,038.15 -282,045.33
$ 1,501,992.82

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses S -252,872.96 S 1,068,627.47

FUND BALANCE JULY 1 1998

4,553,677.37

4,553,796.60

Food Inventory - Nat Change in Period Donated Commodities Purchased Food

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 901,231.00 $ 978,341.23 1,592,709.59 1,933,291.23

731,444.56

525,536.39

$ 3,225,385.15 $ 3,437,168.85

$ 1,297,605.00 $ 1,414,008.73

229,695.00 165,479.00
9,047.00
13,413.00 21,660.00

299,289.26 312,872.04
171.12 391,773.25
131.36
5,794.80 19,032.85

213,206.29 1,276,776.17

58,936.91 1,332,253.44

120,359.00

S 3,226,881.46 $ 3,954,622.76

S -1,496.31 $ -517,453.91

$

496.31 $ 484,722.54

S

496.31 $ 484?22.54

S -1,000.00 $ -32,731.37

236,936.58

232,140.85

-9,688.54 -4,969.13

FUND BALANCE JUNE 30 1999

$ 4,300,804.41 $ 5,822,424.07

$ 237,936.58 S 184,773.61

The notes 10 the general purpose financial statements are en Integral part of this slatement -6-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 1UNE3Q 1999
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES
REPORTING ENTITY
The City ofCarrollton Board of Education (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most 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 of Education and from the Federal government to accomplish specific educational objectives.
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CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY EXHIBIT "0"
NOTES TO THE GENERAl, PURPOSE FINANCIAL STATEMENTS flJNE3Q 1999
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accwnulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. AJI 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 ofavailable spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt !,ccount Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrua1 (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, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial nwnber of personnel of the Board were employed for a one hundred and ninety day ,period beginning in late August ofl998 and ending in early June 1999. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
8

CITY OF CARROUJQN BOARD OF EDUCATION - CARROLL COUNTY EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30 1999
Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES
BUDGET
The City ofCarrollton Board ofEducation'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 in accordance with 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofdeposits 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.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State ofGeorgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
-9-

CITY OF CARROLIJQN BOARD OF EDUCATION - CARROll, COUNTY EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE3Q 1999

Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The City of Carrollton City Clerk fixed the property tax levy for the 1998 tax year (calendar year) on August 31, 1998 (levy date). Taxes were due on December 20,1998. The lien date for property taxes was January I, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The City ofCarrollton City Clerk bills and collects the property taxes for the Board of Education and remits taxes collected to the Board.

The tax millage rate levied for the 1998 tax year (calendar year) for the City ofCarrollton Board of Education was as follows (a mill equals $1 per thousand dollars ofassessed value):

School Operations

~mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,367,939.38 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $12,369,812.42 has been collected or on December 31, 2002, whichever occurs first.

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cny OF CARROLLTON BOARD OF EPUCATION - CARROLL COUNTY EXHffiIT "D" NOTES TO JHE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1999

Note 2: PEPOSITS AND INVESTMENTS

Acceptable security for deposits consists ofanyone ofor any combination of the following:

(I) 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 of the State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations ofa subsidiary corporation of

the United States government, which are fully guaranteed by the United States government both as

to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home

Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm

Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage

Association.

.

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $10,437,890.91. 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 ~oard's name.)

The Board's deposits are classified by risk category at June 30, 1999, as follows:

- 12-

Cra OF CARROLLTON BOARD OF EPUCATION - CARROLL COl JNTY EXHIBIT "P" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE30 1999

Note 2' DEPOSITS AND INVESTMENTS

Rjsk Categmy

Bank Balance

1

$ 100,000.00

2

0.00

3

10 337 890 91

Total

$10.437890.91

CATEGORIZATION OF INVESTMENTS At June 30,1999, the fair value of the Board's total investments was $1,499,947.36 and this entire amount consisted ofU. S. Treasury money market mutual funds which are not required to be classified by categories of credit risk.

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 ofloss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning of Year
Liability

Claims and Changes in Estimates

Claims . Paid

End ofYear
Liability

1998

$

000 $

2702.00 $

270200 $

000

1999

$

000 $ 14250,00 $ 1425000 $

000

-13 -

CITY OF CARROIJ3ON BOARD OF EDUCATION - CARROLL CillJNIT EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE3Q 1999

Note 4' RISK MANAGEMENT

The Board has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered Superintendent

$ 100,000.00

Note 5' GENERAL LONG-TERM DEBT

CAPITAL LEASES The City of Carrollton Board of Education has entered into various lease agreements as lessee for classroom computer equipment and copiers. These lease agreements qualifY as capital leases for accounting pmposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date oftheir inception.

CITY OF CARROLLTON DEBT PROCEEDS The Board entered into a joint resolution with the City of Carrollton (City) whereby the City issued $6,000,000.00 of 1998 Series general obligation debt on behalfofthe Board to finance the cost of acquiring, constructing, renovating, modifYing, improving, extending and equipping capital outlay projects throughout the City of Carrollton School System. The Board has agreed that Sales and Use Tax proceeds sufficient to retire the principal and interest will be placed in escrow to service the debt.

The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows:

Balance July 1,1998
Retroactive Restatement ofPrior Year Balances
Balance July I, 1998 Restated
Additions Capital Leases
Deductions Payments
Balance June 30, 1999

Capital
Leases
$ 527,652.40

City of Carrollton Debt Proceeds
$ 6,000,000.00

Total $ 6,527,652.40

-51482887

000

-5]4 828 87

$ 12,823.53 $ 6,000,000.00 $ 6,012,823.53

2,007,820.00

2,007,820.00

67305967 109000000 1.76305967 $ 1 34758386 $ 4 910 000 00 $ 6 25758386

- 14-

coy OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNfY EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE3Q 1999

Note 5' GENERAL LONG-TERM DEBT

At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2000 2001 2002 2003

Capital Leases

City of Carrollton Debt Proceeds

Total Debt

$ 702,904.28 702,904.28 58,954.28 98386

$ 1,344,322.50 1,345,660.00 1,358,457.50 1 36825750

$ 2,047,226.78 2,048,564.28 1,417,411.78 136924136

Total Principal and Interest

$ 1,465,746.70 $ 5 416 697 50 $ 6 882 44420

Deduct: hnputed Interest

118 16284

Net Present Value ofFuture Minimum Lease Payments

$1.347,583.86

Note 6' ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$334,879.74 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Deparnnent ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$266,100.87

Paid to the Teachers Retirement System ofGeorgia For Teachers Retirement System (IRS) Employer's Cost In the amount of$21,222.87

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$47,556.00

Note 7' SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as ofJune 30,1999, together with funding available:

- 15-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY EXHlBIT "0"
NOTES TO TIIE GENERAL PJJRPOSE FINANCIAL STATEMENTS UJNE3Q 1999

Note 7' SIGNIFICANT COMMITMENTS

Unearned Executed Contracts

Funding
Available
From State

Addition to Central Board Office High School Cafeteria Addition Maple Street Renovations 99G/98-766-069

$ 257,038.00 1,213,803.37 178,417.96 79 89644 $ 26 213 80

$ 1 729 15577 $ 26213.80

The amounts described in this note are not reflected in the general purpose financial statements.

Note 8' CONTINGENT LlABUJIIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9' RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clencal personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (IRS), 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 IRS 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 of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

-16-

CI1Y OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE3Q 1999

Note 9' RETIREMENT PLANS
Fiscal Year 1999 1998 1997

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,473,235.90 $ 1,360,750.30 $ 1,297,951.36

- 17-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1999

Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Tolal Assets
LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Tolal Liabilities
FUND EqUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Tolal Fund Equity
Tolal Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

183,507.34 $

128,152.45

11,105.11

8,909.56

30,152.36 7,858.79

$ 232,623.60 $ 137,062.01

$

16,701.31 $

42,410.48

57,701.72

88,632.17

$

74,403.03 $

131,042.65

S

30,152.36

7,858.79

120,209.42 $

S 158,220.57 S

6,019.36 6,019.36

S 232,623.60 $

137,062.01

See notes to the general purpose financial statements.

-18-

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS JUNE 30, 1999 JUNE 30, 1998

$

21,183.98 $ 332,843.77 $ 230,883.19

$ 491,405.35

511,420.02

319,306.85

30,152.36 7,858.79

35,121.49 17,525.33

$ 491,405.35 $

21,183.98 $ 882,274.94 $ 602,836.86

$ 362,297.43 46,300.67 $ 75,012.56 7,794.69
$ 491,405.35 $

$ 650.30
650.30 $

362,297.43 $ 106,062.76 221,346.45
7,794.69
697,501.33 $

230,675.84 24,282.85 112,535.92
3,201.80
370,696.21

$

1,046.58

$

30,152.36

7,858.79

35,121.49 17,525.33

$

0.00 $

20,533.68 -

146,762.46

178,447.25

$

0.00 $

20,533.68 $ 184,773.61 $ 232,140.65

$ 491,405.35 $

21,183.98 $ 882,274.94 $ 602,836.86

-19

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1999

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expend~ures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expend~res end Other Finencing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commod~ies Purchased Food

FUND BALANCE JUNE 30

See notes to the general purpose financial statements.

20

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

95,594.00 $

701,016.72

479,509.59

$ 1,276,120.31 $

842,326.04 9,764.70
852,090.74

$

25.00 $ IT2,654.48

171.12 1,179,18

106,072.48 4,355.76
202,469,31

336.82

5,457.98

1,332,253.44

1,761,91

67,214.74 3,135,26

$ 1,333,965.56 $ 1,163,121.92

$

-57,845,25 $ -311,031,18

$ 201,800,32 115,250.22
$ 317,050.54

$

-57,845.25 $

230,701.49

6,019.36 0.00

-9,666,54 -4,969.13

$ 158,220.57 $

6,019.36

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ $ 1,232,274.51
$ 1,232,274.51 $

40,421.19 $ 36,262.10

978,341.23 $ 1,933,291.23
525,536.39

1,022,759.74 1,441,014.06
591,988.11

76,683.29 $ 3,437,168.85 $ 3,055,761.91

$ 641,329.25 169,559.38 $ 308,516.28 187,561.94 72.50
19,032.85 691.67
47,780.25 2,228.75
S l,376,IT2.87 S S -144,498.36 S

$ 1,414,008.73 $ 1,160,347.86

23,657.40 562.82 58.86
56,483.33

299,289.26 312,872.04
171.12 391,773.25
131.36
5,794.80 19,032.85 58,936.91 1,332,253.44

282,359.99 99,123.25
81,904.86
6.00 44,171.68 19,102.84 81,420.21 1,264,033.96

114,994.99 5,364.01

66,520.53 11,167.47

80,762.41 S 3,954,622.76 S 3,110,158.65

-4,079.12 S -517,453.91 S -54,396.74

S 143,451.78 S
S 143,451.78 S

S

-1,046.58 S

1,046.58

S
24,220.22
24,220.22 S

345,252.10
139,470.44 S
484,722.54 S

30,267.71 30,267.71

20,141.10 S
392.58

-32,731.37 S
232,140.65

-24,129.03 236,995.36

-9,666.54 -4,969.13

9,840.72 9,433.60

S

0.00 S

20,533.68 S 184,IT3.61 S 232,140.65

- 21 -

CITY OF CARROLLTON BOARD OF eDUCATION - CARROLL COUNTY COMBINING BALANCE SHEET CAPITAl PROJECTS FUND JUNE 30, 1999

EXHIBIT"G"

8lli Cash and cash Equivalents Investments Accounts Receivable Due from Other FundS
Total Assets

~

BOND PROCEEDS

$ 61,852.85 $ 2,399,838.30

LOTTERY PROJECT

TOTALS JUNE 30, 1999 JUNE 30, 1998

$ 2,461,691.15

2.110.171.47

2,110,171.47

$ 235.924,20

235,924,20 $ 6,085,566.22

----

472,141.06

472.141.06

673.991.47

$ 61,852.85 $ 4,510:009.n $ 708,065,26 $ 5,279,927.88 $ 6,759,557.69

LIABILITIES AND FUND EQUITY
~
cash Overdraft Accounts Payable Contracts Payable Retaina9es Payable Due to Other Funds
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For Stale capital Ouaay Projects UrveseNed Undesignaled
Total Fund Equity

$ $ 47,796.85
14.056.20

$ 521,670.17 $

3.175.00

430,993.07 139,700.54

83.581.10

46.694.55

472,141.06

521.670.17 $ 3,175.00
618,490.26 124,311.85 472.141,08

199,231.75
450.726.26 108,262.40 673,991.47

$ 61,852.85 $ 969.870.23 $ 708,065.26 $ 1,739,788.34 $ 1.432,211.88

$ 3.540.139.54

$

0.00

0.00 $

$

0.00 $ 3.540.139.54 $

$ 3,540,139.54 $ 5.286.001.81 41.344.00

0.00

0.00

0.00

0.00 $ 3.540,139.54 $ 5.327,345.81

Total liabilities and Fund Equity

$ 61.852.85 $ 4.510,OO9.n $ 708,085.26 $ 5,279,927.88 $ 6,759,557.69

see notes to the general purpose financial statements.

-22-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDEp JUNE 30 1999

EXHIBIT"H"

REGULAR

BOND PROCEEDS

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30 1998

REVENUES

Slale Funds Other Funds

$ 235,924.20 $ 235,924.20 $ 1,012,118.00

0.00

277.48827

277,468.27

76,924.41

Total Revenues

0.00 $ 277.468.27 $ 235,924.20 $ 513,392.47 $ 1,089,042.41

EXPENDITURES

Current Support services Business AdminIstration
capitalOuuay Building and Building Improvements

142.574.89

978221.13 $ 1.200,907.36

2,321.703.38

124,176.98 1,831.457.47

Total Expenditures

142.574.89 $ 978221.13 $ 1.200,907.36

2,321.703.38 $ 1,955,836.45

Excess of Revenues over (under) Expenditures

$ -142.574.89

-700.752.86 $ -964,983.16 $ -1,808310.91 $ -866.594.04

OTHER FINANCING SOURCES (USES)

Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out

$

7,247.85

$ 142,574.89

$ 986,906.86 $ 1,129.481.55

$ 1.045.109.41

-63.267.50 -1.108,376.91

6,000,000.00 715.335.47 -673.991.47

Total Other Flnandng Souroes (Uses) $ 142.574.89 $ -1.045,109.41 $ 923.839.16

21.104.64 $ 6,048.591.85

Excess of Revenues and Other Anandng Souroes

over (under) Expenditures and Other Rnendng

Uses

$

0.00 $ -1,745,88227 $ -41,344.00 $ -1.787,20627 $ 5,181,997.81

FUND BALANCE JULY 1

0.00

5286,001.81

41.344.00

5,327 345.81

145348.00

FUNP BALANCE JUNE 30

$

0.00 $ 3,540.139.54 $

0.00 $ 3,540,139.54 $ 5,327.345.81

see noles to the general purpose f1nandal statemants.

-23-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

Agriculture, U. S. Department of Child Nubition Cluster Pass-Through From Georgia Department of Education Food and Nubition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant

Tolal Chil~ Nubition Cluster

Other Programs Pass-Throu9h From Georgia Department of Education Food and Nubition Program Food Disbibutlon Program (1)

Total U. S. Department of Agriculture

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education capaclly Building Improvement 1999 Grant Flow Through 1999 Grant Preschool 1999 Grant

Tolal Special Education Clus1er

Other Programs

Dired

ImpaetAld

1999 Grant

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I



Grants to Local Educational Agencies

1999 Grant

TItiell

Eisenhower Professional Development

1998 Grant

1999 Grant

Tltie III

Technology Uleracy Challenge Fund Grants

1999 Grant

TItieVI

Innovative Education Prognim Strategies

1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

N/A

$

NlA

$

138,234.17 492,787.76 631,021.93 $

(2) 1.263,970.77 (4) 1,263,970.77

10.550

NlA $

69.994.79 701,016.72 $

69.994.79 1,333.965.56

84.173 84.027 84.173

NlA $ NlA NlA
$

16,466.00 $ 314.305.95 53.904.49 384,676.44 $

16.466.00 314,305.95
53.904.49 384.676.44

84.041

2.306.00

(3)

84.010

NlA

84.281

NlA

84.281

NlA

84.318

NlA

84.298

NlA

354.908.64
19,453.20 110.854.32
16,906.12

354.908.64
130.05 19,453.20
110,854.32
16.906.12

-24-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pas&-Through From Georgia Department of Education Goals 2000 Stale and Local Education Syslemic Improvement Grants 1998 Grant 1999 Grant Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 1999 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.276 84,276
84.196

NJA

NJA

$

$ 284,389.13

916.53 284,389.13 (5)

NJA

27,237,66'

27.237.66

84.048 84.243

NJA

28.849.00

28.849.00

NJA

5.000.00

5.000.00

$ 1.234,580.51 $ 1.233.321.09

Total Federal Financial Assistance

$ 1.935.597.23 $

NJA =Not Available

Notes 10 the SchedUle of ExpendlhJres of Federal Awards

(1) The amounts shown for the Food Dls1ribution Program represents the Federally assigned value of nonmonetary

assistance for donated commodities _

and/or consumed by the system during the cunant fiscal year.

(2) Expenditures for the SChool Braakfast Program were not maintained

separately and are Included In the 1999 National School Lunch Program.

(3) Expenditures on this programlproject were not maintained on a prograrntproject basis.

(4) Expenditures for this program Indude Stale. and/or Other Funds.

Expenditures are not maintained by fund scuoe.

(5) Expenditures In the amount of $143.451.78 essocIated with the Inception of a capltalleese hava _n excluded

from this schedule.

Major Programs are Identified by an asterisk r) In front of the CFDA number.

The Board did not provide Federal AssIstance to any SUbredplenL

The accompanying schedule of expenditures of Federal awardS Includes the Federal grant activity of the City of Carrollton Board of Education and Is presented on the modified acauat basis of aocounting which Is the basis of accounting used In the presentation of the _ I purpose financial statements.

2.567.286.65

see notes to the general purpose financial statements.

-25-

C'TY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1999

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Geor9ia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Cenler Programs Staff Development Programs Indirecl Cost Pupil Transportation RegUlar Bus Replacement Middle Schoollncentivn Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Governor's Emergency Funds (1) Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Record Grant Teachers' Retirement Lottery Programs Assistive Technology Computers In the Classroom Exceptional Growth-Capital OuUay
Georgia Department of Natural Resources Governor's Emergency Funds (2)
Juvenile Justice, Georgia Department of Famlty Connection
OffICe of School Readiness Pre-Kindergarten Program
OffICe of Treasury and FIScal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 7,872,023.00 1,515.468.00 355,827.00 340,181.00 92,709.00 2,148,272.00

$ 7,872,023.00 1,515,468.00 355,827.00 340,181.00 92,709.00 2,148,272.00

222,793.00 69,364.00
270,869.00 346,718.00
90,096.00 73,915.00 31,250.00 28,642.00 -1,928,810.00 -1,653,541.00 1,745,244.00 622,483.00
S
12,000.00

95,594.00

222,793.00 69,364.00
270,869.00 346,718.00
90,096.00 73,915.00 31,250.00 28,642.00 -1,928,810.00 -1,653,541.00 1.745,244.00 622,483.00 95,594.00 12,000.00

13,613.83 2,000.00
268,100.87 2.916.00
54,050.00 4,950.00 2,663.25
21,222.87

13,613.63 2,000.00
266,100.87 2,916.00
54,050.00 4,950.00 2,663.25
21,222.87

8,864.56 70,350.00

S 235,924.20

8,864.56 70,350.00 235,924.20

10,000.00

10,000.00

40,421.19

40,421.19

763,111.48

763,111.48

47,556.00

47,556.00

S 12,682,n5.62 $ 978,341.23 S 235,924.20 S 13,897,041.05 (1) The purpose of the funds are 1999 Georgia School of Excellence. (2) The purpose of the funds are to assist wlth resurfacing tennis courts and related Improvements. See notes to the general purpose financial statements.
-26-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 1999

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED IN PRIOR
YEARS

To pay the principal and interest coming due on the

outstanding Series 1990 and Series 1995 General

Obligation School Bonds of the City of Carrollton as

the same come due on July 1. 1998 through July 1.

2003

$ 2.916.697.50 $ 2,916,697.50 $ 485.351.25 $

0.00

Funding the acquisition, construction. renovation, modification. improvement. extending and equipping of capital outlay projects throughout the Canrolhon School System. including. but without limitation, renovations. modifications. improvements. extensions and equipping of facilities at the Canrollton High School to include a band room. kitchen expansion and the addition of a science wing; at the Canrollton Junior High School to Include a classroom addition of regular classrooms. science classrooms. a technology laboratory and a media center; at the Canrollton Elementary School to Include a classroom addition of regular classrooms. restrooms. covered walkways; and Improvements to the Maple Street Education Center, Including the acquisition of all property. both real and personal

12.743.302.50 12.743.302.50

2.179.128.49

1.889.660.22

$ 15.660.000.00 $ 15.660.000.00 $ 2.664,479.74 $ 1.889.660.22

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option
Sales Tax.

(2) The Board's cummt estimate of IoIaI cost for the projects. Includes all cost from project inception to completion.

(3) The voters of City of Carrollton approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended tor these projects may Include sales tax proceeds. state. local property taxes andlor other funds over the life of the projects.

(4) In addition to the expenditures shown above. the Board has incurred Interest expense to provide advance funding tor the above projects as follows:

Prior Years

$

0.00

CummtYear

238.562.50

Telal

$_....;;23:;;8.:;.56;,;,;2;,;,;.50;;;,

Sea notes to the general purpose financial statements.

-27

CITY OF CARROLLTON BOARP OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 30 1999

SCHEDULE '4'

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS IN THE
CLASSROOM

PREKINDERGARTEN PROGRAM

TOTAL

Current

Instruction

$

Support Services

Pupil Services

Improvement of Instructional Services

General AdministraUon

Maintenance and OperaUon of Plant

Other Support Services

Debt Service

Principal

Interest

8,864.56 $

$
67,214.74 3,135.26

763,789.92 $ n2,654.48

106,072.48 4,355.76 668.99 5,457.98 1,761.91

106,072.48 4,355.76 668.99 5,457.98 1,761.91

67,214.74 3,135.26

Total Expenditures

$

8,864.56 $

70,350.00 $

..8.8:2:,1;0;7;.=0~4_ $ 961,321.60

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expend~ures Assislive Technology Computers In Uhe Classroom Pre-Kindergarten Program

$ 826,610.69
8,864.56 70,350.00 55,496.35

$ 961,321.60

see notes to the general purpose financial slatementa.

-28-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1999

SCHEDULE '5'

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries (1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

10,157,414.00 $

292,387.00

$

10,618,027.27

1,148,415.11 $

1,056,778.16

$

11,766,442.38

-97,660.22

$

11,668,782.16

Amount of Underexpenditure for Total Allotment

$

0.00 $

0.00

Note: (1) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1998 Deferred salaries) reporled as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

see notes to the general purpose financial statements. - 29 -

CITY OF CARROLLTON BOARD OF EDUCATION. CARROLl COUNTY
ANALYSIS OF MINIMUM EXPENPITURE REQUIREMENTS ~ BY PROGRAM GENERAL FUND - QUALJD' BASIC EDUCATION pROGRAMS
YEAR ENDED JUNE 30 1QQQ

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1-3(*} Sub-Total K-3
Grades 6 - 8 (oJ Grades 9 -12 (oJ High School Laboratories (*) Vocational Education Laboratories r)
Total General and Career Education Programs SPECIAL EPUCATION PROGRAMS
Regular Programs
Ca,-rylrl Ca'-IYUrJ Ca,-rylllrJ Ca'-IY IV (0)
Sub-TotaI- Regular
Ca'-IY VI (Gifted) rJ
Tolal Special Education Progl'8lTll REMEDIAl EDUCATION pROGRAM Cl
Tolal Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Fourteen Weighted and Media Center Programs
STAFF PEYElOF'MENT PROGRAMS
COSt of Instruction ProIessIonal Development
Tolal Stall Development Prcgrams
rJ Identifies Fourteen Weighted Programs. (1) SaIory accruals (July and August 1999 Dafarrad
Salaries) reported 8S expenditures in the General Purpose financial Statements are not included on this analysis in order 10 comply with program guidallnas. See notes 10 the general purpose financial statements.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

860,507.00 2.383.963.00 3.244,470.00 90
931,563.00 90 1,611,246.00 90 1.031.343.00 90
859.594.00 90 393.807.00 90 7.872.023.00

n4.456.3O 2,145.5ll6.70 2,920.023.00
838,406.70 1.450.121.40
928.208.70 593.634.60 354.428.30 7,084,820.70

0.00 0.00 38.957.00 38.958.00
73,915.00

1.223.8n.00

1,101.489.30 $

0.00

1.223.en.00 90 291.591.00 90
1.515.488.00 355.827.00 90
9.743.318.00

1,101.489.30 282.431.90
1.363.921.20 320.244.30
8.788.988.20

0.00
0.00 0.00 73.915.00

271,887.00 90

244.898.30

0.00

88.294.00 100

88.294.00

340.181.00

312,992.30

0.00

$ 10.083,499.00

9.081,978.50 $

73.915.00

29.242.00 83.487.00

29,242,00 83.487.00

92.709.00 100 $

92.709.00 $

(2) Salary accruals (July and August 1998 Dafarrad Salaries) -""<l as _ndl1urao In 1ha prior year General Purpose Rnanclel Statements
are Included on this analysis 88 required by
program guidelines.

30

0.00 0.00
...::;0.::;00:,

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES (1 )(21 OPERATIONS

TOTAL

AMDUNTDF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

774,456.30

764,896.06

25.907.58

790,803.64

2.145.566.70

2.256.425.46

218.468.42

2,474,893.90

2.920.023.00

3,021,321.54

244.376.00

3,265,697.54-

0.00

675.363.70

1,084,414.47

145,490.37

1.229.904.84

0.00

1.487.079.40

1,777,445.43

180,254.60

1.957,700.03

0.00

926.208.70

823.638.31

161,150.22

984,788.53

0.00

593,634.60

1.166,589.11

160.906.69

1,327,495.80

0.00

354,426.30

643,258.68

105.413.65

748,672.33

0.00

7,188,735.70

8.516,667.54

997,591.53

9,514.259.07

1,101,489.30

371,666.11 115,895.42 637,491.24
57,732.63

2,198.33 1,934.88 31,475.88
540.57

373.884.44 117,830.30 688,966.82 88.273.20

1,101,489.30

1,182,585.40

36.149.38

1.218.734.76

0.00

262.431.90

242,855.43

21,995.77

264,851.20

0.00

1,363.921.20

1,425,440.83

88,145.13

1,463,885.96

320.244.30

329,714.83

1,041.50

330.756.13

0.00

8.842.901.20

10.271.823.00

1,056,778.18

11 ,328,801.18

244.898.30

348,204.27

348,204.27

0.00

88.294.00

91,638.95

91.636.98

0.00

312.992.30

348.204.27

91,636.95

437.841.22

9,155.893.50 $ 10,618.027,27 $ 1.148,415.11 $ 11,788,44238 $

0.00

29.242.00 63.467.00
92,709.00

82,132.88 12.119.06

82,132.88 12,119.08

94,251.74 $

94.251.74 $,

. . . .0;:;:.00;:::

- 31

SECTION II COMPUANCE AND INTERNAL CONrROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
Apri125,2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Carrollton Board ofEducation
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 Carrollton Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated April 25, 2000. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with genera11yaccepted auditing standards and the standards applicable to financial audits contained in Government Audjtins Standards issued by the Comptroller General of the United States.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether City of Carrollton Board ofEducation's financial statements are free ofmaterial misstatement, we performed tests ofits 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 ofour 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 Auditins Standards.

99YB-40

Internal Control OYer Financial Reporting
In planning and performing our audit, we considered City of Carrollton Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgement, could adversely affect City of Carrollton Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7661-99-01.
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 ofperforming their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe City of Carrollton Board ofEducatioD, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~:~~.~~ State Auditor
RWH:gp 99YB-40

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 25, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent illld Members of the City of Carrollton Board ofEducation
REPORT ON COMPLIANCE WITH REOUIREMENTS AppUCABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPUANCE INACCQRDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of City of Carrollton Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (DMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 1999. City ofCarrollton Board ofEducation'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 Carrollton Board of Education's management. Our responsibility is to express an opinion on City of Carrollton 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 Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-B3, Audits ofStates. Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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 Carrollton Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City ofCarrollton Board ofEducation's compliance with those requirements.

99SA-lO

In our opinion, the City of Carrollton 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 30,1999.
Internal Control Over Compliance
The management of City of Carrollton 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 Carrollton 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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
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 solely for the information and use of management, members of the City of Carrollton Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~.~
State Auditor
RWH:gp 99SA-IO

SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

CITY OF CARROLLTON BOARD OF EDITCATION - CARROLL COUNTY
AUPITEE'S RESPONSE SUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
YEAR ENDED TIJNE 30 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-766l-97-0l FS-766l-98-0l

Further Action Not Warranted Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-766l-98-0l

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL CmJNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30 1999
SUMMARY OF AUDITOR'S RESULTS
I. TXVe of Report Issued on the Financial Statements The auditor's opinion on the City of Carrollton Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit oBbe Financial Statements The audit report for the City of Carrollton 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 Carrollton Board of Education disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over MAjor Promms The audit report for the City of Carrollton Board of Education did not disclose any reportable conditions in internal control over major programs.
5. type of Report Issued on Compliance for Major Promms The auditor's opinion on the City of Carrollton Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findin~ Reg.ujred to be Reported by Section 510(a) ofQMB Circular A-133 The City of Carrollton Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. MajorPrograms Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold
The dollar threshold for type "A" programs was S300,000.OQ.
9. Low Risk Auditee The City of Carrollton Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30 1999
IT FINANCIAL STATEMENT FINDINGS AND QlJESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-766l-99-0l The City of Carrollton 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 fmancial statements of the Board being incomplete and not in ccordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. We do, however, maintain an up-to-date inventory.
ill FEDERAL AWARD FINDINGS AND mJESTIQNED COSTS
No matters were reported.
-2-