City of Carrollton Board of Education, Carroll County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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CITY OF CARROLLTON BOARD OF EDUCATION



CARROLL COUNTY, GEORGIA





. REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000


Russell W. Hinton State Auditor

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BY PROGRAM

Page
2
4 6
7
18 20
22
24
26 28
_ 29
31
32

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY - TABLE OF CONTENTS -


SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
.
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV

FINDINGS AND QUESTIONED COSTS



SCHEDULE OF FINDINGS AND QUESTIONED COSTS






SECTION I
FINANCIAL


USSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 114 Atlanta, Georgia 30334-X400
May 14,2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

~d

.

Superintendent ~d Members of the

City of Carrollton Board of Education

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

Ladies ~d Gentlemen:

We have audited the accompanying general purpose financial statements of the City of Carrollton Board of Education, as of ~d for the year ended June 30, 2000, as listed in the table of contents. These general purpose fin~cial statements are the responsibility ofthe City ofCarrollton Board of Education's m~agement. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica ~d the st~dards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those st~dards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts ~d disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by m~agement, as well as evaluating the overall fin~cial statement presentation. We believe that our audit provides a reasonable basis for our

OpInIOn.

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These vari~ces are described as follows:

2000ARL-13A

* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Carrollton Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 14, 2001, on our consideration of the City of Carrollton Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts ~d grants. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the 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 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.

2000ARL-13A

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.
, , - -R..e....spectfully submitted,

RWH:jb 2000ARL-13A

Rus ell W. Hinton State Auditor


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, 2000

ASSETS

Cash and Cash Equivalents

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

Total Assets

GENERAL FUND
$ 6,586,637.85

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,216,545.02

1,960,525.78 $

527,682.74

21,189.07 8,573.76

$ 8,547,163.63 $

557,445.57 $ 1,216,545.02

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Coctracts Payable Retainages Payable Due to Other Funds Capital Lease Agreements Debt Proceeds - City of Carrollton
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated
Total Fund Equity

$

$

440,153.06

1,504,950.62

190,663.18 64,814.05
229,264.58 79.23 $

400,714.01 230,561.65

$ 1,945,103.68 $

484,821.04 $ _---:6~3~1~,2~75:::.:..::::66~


$
$ 6,602,059.95 $ 6,602,059.95 $

21,189.07 8,573.76 $

585,269.36

42,861.70

0.00

72,624.53 $ _---:5~8~5:c,2:.::!6=.:9..::::36:!...

Total Liabilities and Fund Equity

$ 8,547.163.63 $

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

-2-

557.445.57 $ ====1~.2=1~6:=;;,54~5'o;;;:02:=

EXHIBIT "A"

DEBT SERVICE
FUND
$ 2,429,560.52
472,226.75

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Onl:tl'-

_

JUNE 30, 2000

JUNE 30, 1999

$ 7,803,182.87 $ 7,906,901.59

2,429,560.52

3,610,118.83

2,960,435.27

2,932,634.76

472,141.06

$ 2,532,664.77
719,836.27 1,232,335.23

21,189.07 8,573.76
2,532,664.77
719,836.27 1,232,335.23

30,152.36 7,858.79
1,543,821.40
1,347,240.36 3,366,178.60

$ 2,901,787.27 $ 4,484,836.27 $ 17?07,777.76 $ 21,217,047.75

$

190,663.18 $

29,453.66

$

369,122.50

874,089.61

1,242,075.38

1,734,215.20

1,574,381.87

79.23

7,79.4.69

400,714.01

618,490.26

230,561.65

124,311.85

472,141.06

$

719,836.27

719,836.27

1,347,240.36

3,765,000.00

3.765,000.00

4,910,000.00



$

369,122.50 $ 4,484,836.27 $ 7,915,159.15 $ 10,325,889.13

$ 2,532,664.77
0.00 $ 2,532,664.77

$

10,403.00

$ 2,532,664.77

1,543,821.40

21,189.07 8,573.76
585,269.36

30,152.36 7,858.79
3,540,139.54

6,644,921.65

5,758,783.53

$ 9,792,618.61 $ 10,891,158.62

$ 2,901,787.27 $ 4,484,836.27 $ 17,707,777.76 $ 21,217,047.75

-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, 2000

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest

Total Expenditures

-

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Capital Leases Operating Transfers In Operating Transfers Out

Total Other Financing Sources (Uses)

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 13,334,871.42 $
7,819,660.79 958,766.78
$ 22,113,298.99 $

991,161.17 1,783,535.96
769,880.00
3,544,577.13

$ 12,963,348.52 $ 1,452,202.98

667,415.34

243,478.34

1,139,844.60

174,474.90

443,509.13

494,573.30

14,339.16

1,494,064.85

1,736.02

231,872.30

1,619,488.70

7,714.29

881,836.73

55,288.67

89,956.54

7,245.27

256,567.93

32,338.67

1,429,500.06

115,008.48


553,730.32 66,672.79

73,673.77 8,827.40

$ 20,800,905.54 $ 3,717,803.52

$ 1,312,393.45 $'_ _-1:..:,7,,:;:,3'L::.2:,:26:.:;.3::,::9:,..

$ $ _---:-3~3:.::.2~7,~57~.5~7_

69,325.63

$

-332,757.57 $ _ _~6:.:::9~,3:.::.25~.~63::....

$

979,635.88 $

5,622,424.07

-103,900.76 184,773.61

-8,963.29



714.97

FUND BALANCE JUNE 30

$

6,602,059.95 $ ==..:.7,:;,2:,6~24~.5~3:.:

The notes to the general purpose financial statements are an integral part of this statement. -4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

_ _---..:(Memorandum Only)~ _ _

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

26,213.80

$ 14,352,246.39 $ 13,897,041.05

1,783,535.96

1,935,597.23

$ 2,735,979.07

10,555,639.86

9,491,307.50

175,199.24

81,171.80

, 1,985,017.82


1,821 ,805.61

$

201,413.04 $ 2,817,150.87 $ 28,676,440.03 $ 27,145,751.39

$ 3,419,715.16 $
$ 3,419,715.16 $ $ -3,218,302.12 $

$ 14,415,551.50 $ 13,773,796.71


1,405,000.00 423,307.50

910,893.68 1,314,319.50
443,509.13 508,912.46 1,495,800.87 231,872.30 1,627,202.99 937,125.40
89,956.54 263,813.20 1,461,838.73 3,534,723.64

2,032,404.09 498,807.69

1,032,162.67 1,181,991.12
450,387.35 2,519,253.82 1,239,818.72
121,983.01 1,605,423.97
635,996.10 44,885.89
267,510.86 1,375,513.44 2,544,696.98
2,008,059.67 510,922.46

1,828,307.50 $ 988,843.37 $

-49,766,731.72 $
-1,090,291.69 $

29,312,402.77 -2,166,651.38

$

263,431.94

$

263,431.94

$ 2,007,820.00

$

332,757.57

403,515.58

-332,757.57

-403,515.58

$

0.00 $ 2,007,820.00

$ -2,954,870.18 $
3,540,139.54

988,843.37 $
1,543,821.40

-1,090,291.69 $
10,891,158.62

-158,831.38 11,064,625.67

-8,963.29 714.97

-9,666.54 -4,969.13

$

585,269.36 $ 2,532,664.77 $ 9.792,618.61 $ 10,891,158.62

L

-5-

CITY OF CARROLLTON BOARD QF EDUCATIQN - CARROLL COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2000

EXHIBIT C

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 12,628,290.00 $ 13,334,871.42

7,148,127.00 450,310.00

7,819,660.79 958,766.78

Total Revenues

$ 20,226,727.00 $ 22,113,298.99

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
Capital Outlay Debt Service

13,462,892.00 $ 12.963,348.52

799,926.00 1.066.845.00
458,008.00 451,921.00 1,657,928.00
96,303.00 1,653.757.00
856,345.00 65,438.00
45,390.00 282,949.00

667,415.34 1,139,844.60
443,509.13 494,573.30 1,494.064.85 231,872.30 1.619,488.70 881,836.73
89,956.54 7,245.27
32,338.67 115,008.48 620,403.11

Total Expenditures

$ 20,897,702.00 $ 20.800,905.54

Excess of Revenues over (under) Expenditures

$ -670,975.00 $ 1,312,393.45

OTHER FINANCING SOURCES,(USES)

Other Sources Other Uses

$ -332,757.57

Total Other Financing Sources (Uses)

$ -332,757.57

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $

-670,975.00 $

979,635.88

FUND BALANCE JUbY 1, 1999

5,684,449.59

5,622,424.07

Food Inventory Net Change in Period Donated Commodities Purchased Foods

FUND BALANCE JUNE 30. 2000

$ 5,013,474.59 $ 6,602,059.95

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

947.085.00 $

991,161.17

1,754,453.24

1.783,535.96

814,512.23

769.880.00

$ 3,516,050.47 $ 3,544,577.13

$ 1,470,466.26 $ 1,452,202.98

236,009.00 197,454.98
400.00 5,568.00

243,478.34 174,474.90
14,339.16 1.736.02

13,000.00 44.730.00

7.714.29 55,288.67

254.565.23 1,294,857.00

256.567.93 1,429,500.06

82,501.17

$ 3.517,050.47 $ 3,717,803.52

$

-1,000.00 $ __-:..:1..:..73"",=22:::6::.:;.3",,9:-

$

69,325.63

$ _---'6""9"",3::;25:<:,.6""3:-

$

-1.000.00 $ -103,900.76

173,822.48

184,773.61

-8.963.29 714.97

$

172,822.48 $ _ _7;,;2.,6;,;;2_4..-5.3 .

The notes to the general purpose financial statements are an integral part of this statement.
-6-

CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

EXHffiIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Carrollton Board of Education (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes. 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. 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 i~dividual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements.- To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.

The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 of specific 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 NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

DEBT SERVICE FUND - the fund used to account for the accumulation 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 byits measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

.

Governmental funds are accounted for using the modified accrual basis ofaccounting under which:





Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option

sales taxes, intergovernmental grants and investment income.

Expenditures are generally recognized when the related fund liability is incurred.

A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.

- 8-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 ofbudget 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 ofthis tentative budget by the Board, such budget is advertised at

least once in a newspaper of general circulation in the locality. At the next regular meeting of the

Board after advertisement, the Board receives comments on the tentative budget, makes revisions as

necessary and adopts a final school budget. This final budget is then submitted, in accordance with

provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia

Department of Education. The Board may increase or decrease the budget at any time during the

year. All unexpended budget authority lapses at fiscal year-end.

.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.


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 marketinvestments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

- 9-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

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

PROPERTY TAXES

The City ofCarrollton City Clerk fixed the property tax levy for the 1999 tax year (calendar year) on September 20, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The City of Carrollton 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 1999 tax year (calendar year) for the City ofCarrollton Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17.34 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 $2,735,979.07 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $9,633,833.35 has been collected or on December 31, 2002, whichever occurs first.

The City of Carrollton Board ofEducation utilized $483,985.00 in Special Local Option Sales Tax (SPLOST) proceeds for payment of$260,000.00 in principal and $223,985.00 in interest ofthe City ofCarrollton's (City Government) general obligation bond debt in accordance with SPLOST project expenditure requirements.

- 10-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHIBIT liD"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as reven~es and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another
fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
- 11 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHIBIT "D"


Note 2: DEPOSITS AND INVESTMENTS
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $8,006,899.69. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 2000, as follows:

- 12-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000

EXHmIT "D"

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 100,000.00

2

0.00

3

7,906,899.69

Total

$ 8,006,899.69

CATEGORIZATION OF INVESTMENTS
At June 30, 2000, the fair value ofthe Board's total investments was $2,429,560.52 and this entire
amount consisted of U. 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 of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk ofloss 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 ofthe 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 ofthat loss can be reasonably estimated.

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

1999
2000

Beginning of Year Liability_

Claims and Changes in Estimates

Claims Paid

End ofYear Liability_

$

0.00 $ 14,250.00 $ 14,250.00 $

--"0=.0=0

$

0.00 $ 2,664.00 $ 2,664.00 $

-"'0=.0=0

- 13-

CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHffiIT "D"

Note 4: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent Each Principal Each Cafeteria Manager

$ 100,000.00 $ 25,000.00 $ 25,000.00

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 purposes and, therefore, have been recorded at the present value ofthe future minimum
lease payments as of the date oftheir inception.

CITY OF CARROLLTON DEBT PROCEEDS The Board entered into ajoint resolution with the City ofCarrollton (City) whereby the City issued $6,000,000.00 of 1998 Series general obligation debt on behalf ofthe Board to finance the cost of acquiring constructing, renovating, modifying, improving, extending and equipping capital outlay projects throughout the City ofCarrollton 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, 2000, were as
follows:

Capital Leases

City of Carrollton Debt Proceeds


Total

Balance July 1, 1999

$ 1,347,583.86 $ 4,910,000.00 $ 6,257,583.86

Retroactive Restatement of Prior Year Balances

-343.50

-343.50

Balance July 1, 1999 Restated

$ 1,347,240.36 $ 4,910,000.00 $ 6,257,240.36

Deductions Payments
Balance June 30, 2000

627,404.09 1,145,000.00 1,772,404.09
$ 719,836,27 $ 3.765,000.00 $ 4A84,8J!2.27

- 14-

CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHIBIT "D"

Note 5: GENERAL LONG-TERM DEBT

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2001 2002 2003

Capital Leases

City of Carrollton Debt Proceeds

Total Debt

$ 702,904.28 $ 1,345,660.00 $ 2,048,564.28 58,954.28 1,358,457.50 1,417,411.78 491.48 1,368,257.50 1,368,748.98

Total Principal and Interest $ 762,350.04 $ 4,072,375.00 $ 4,834,725.04

Deduct: Imputed Interest

42,513.77

Net Present Value ofFuture Minimum Lease Payments $ 719,836.27

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $359,280.54 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation

.



Paid to the Georgia Department of Community Health

For Health Insurance ofNon-:Certified Personnel

In the amount of $290,497.22
-

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $21 ,096.32

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $47,687.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000:

- 15 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHffiIT "D"


Note 7: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

High School Science Wing Addition to Central Board Office


$ 1,414,575.58 2,944.00
$ 1,417,519.58

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

Note 8: CONTINGENT LIABILITIES

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

The Board is a defendant in a legal proceeding pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by Jheir independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 16-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000

EXHffiIT "0"

Note 9: RETIREMENT PLANS

Fiscal Year



2000 1999 1998



Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,472,253.81 $ 1,473,235.90 $ 1,360,750.30

- 17 -

CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

104,967.60 $

14,195.63

10,552.78


101,535.65

21,189.07 8,573.76

$

145,283.21 $ ==1=1~5:l:O:,7,;;;,3=1';,;28~

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balance Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

18,791.48 $

25,793.06

74,386.12

89,938.22

$

93,177.60 $ _ _..:....11~5:.L7.:~,3..:..:.1.::28~



$

21,189.07

8,573.76

22,342.78 $

$

52,105.61 $

.:::..:o.~OO~ .:::..:O.~OO~

Total Liabilities and Fund Equity
See notes to the general purpose financial statements. - 18 -

$

145,283.21 $ ==.;.,11=5~,7.;;;3.;.;1.o:=;28~



EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

20,518.92 $

139,682.15 $

332,843.77

$

415,594.31

527,682.74

511,420.02

21,189.07 8,573.76

30,152.36 7,858.79

$

415,594.31 $.

20,518.92 $

697,127.72 $ ==8=8=2=,2..7..4....=94==

$

330,345.33

20,229.51

64,940.24

-

79.23

$

415,594.31

$

330,345.33 $

362,297.43

64,814.05

106,062.76

229,264.58

221,346.45

79.23

7,794.69



$

624,503.19 $

697,501.33

$

21,189.07 $

30,152.36

8,573.76

7,858.79

$

0.00 $ _ _-=2=0=,5,-,-1=8.=92=-

42,861.70

146,762.46

$

0.00 $

20,518.92 $

72,624.53 $ _ _.:.:18:.;4.l7.:..'.:..73=..::..61~

$

415,594.31 $

20,518.92 $

697,127.72 $ ==8=8=2=,2..7..4....=94==

-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, 2000

REVENUES

State Funds Federal Funds Other Funds

Total Revenues

EXPENDITURES

Current . Instruction
Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School 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) Expenditures

OTHER FINANCING SOURCES

Capital Leases Operating Transfers In

Total Other Financing Sources

Excess of Revenues and Other Financing Sources over (under) Expenditures

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

100,944.00 $

855,189.17

699,717.69

522,271.41

4,774.80

$

1,322,933.1 0 $ _---:8~5~9z.::.,9.::.;63~.9=-:7_


$
$ $

$

699,346.87

92,757.83 8,978.95

343.24

1,420,799.74

7,714.29 17,070.00
1,980.17 8,700.32

62,822.48 7,527.52

1,420!799.74 $ _---:9::;.=0;.:,.7=,2c.;,.41,:.:..6=-:7-=-

-97,866.64 $ _ _-=--4'-'-7=,2-=-77;...;.,7.;....;0'-



$ _ _-:4~1=,2.::.;58::.:,.3:::..4:$ _ _..;4;..;.1=,2.::.;58~,3=-4,-



$

-97,866.64 $

158,220.57

-6,019.36 6,019.36

-8,963.29 714.97

FUND BALANCE JUNE 30
See notes to the general purpose financial statements. - 20-

$

52,105.61 $ ====0;;;';',;;;,;00=


EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

35,028.00

$

1,083,818.27

_ _ _ _ _ _ $ _--.;2=-4:.:2J.::,8:.::::,33:::.:.,.:..,:79::-

$ 1! 118,846.27 $

242,833.79 $

991,161.17 $ 1,783,535.96
769,880.00
3,544,577.13 $

978,341.23 1,933,291.23
525,536.39
3,437,168.85

$

739,606.18 $

13,249.93 $ 1,452,202.98 $ 1,414,008.73

150,720.51 165,495.95
13,995.92 1,736.02
34,663.85 1,132.06
10,851.29 1,299.88

3,554.82 253,455.70

243,478.34 174,474.90
14,339.16 1,736.02 7,714.29
55,288.67 256,567.93 1,429,500.06
73,673.77 8,827.40

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

$ 1,119,501.66 $

$

-655.39 $

270,260.45 $ -27,426.66 $

3,717,803.52 $.
-
-173,226.39 $

3,954,622.76 -517,453.91



$

345,252.10

$

655.39 $

27,411 .90 $ _ _...:6:.::::,913.:=' .;25:.:;.6::.::3~

139,470.44

$

655.39 $

27,411.90 $

69,325.63 $ _ _4.;.;:8,-,-4,-,-,7=22=.5;;;..4,-

$

0.00 $

-14.76 $ -103,900.76 $

-32,731.37

0.00

20,533.68

184,773.61

232,140.65

-8,963.29 714.97

-9,666.54 -4,969.13



$

0.00 $

20,518.92 $

72,624.53 $ ==1=8=4=,7:::73=.6=1;..,

- 21 -


CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 2000


ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable

Due from Other Funds

REGULAR

BOND PROCEEDS

$

19,880.00 $ 1,196,665.02

Total Assets

$

19,880.00 $ ==1'=l:'=19=6:l:6:'=65=,=02=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Due to Other Funds
Total Liabilities
-
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated
Total Fund Equity

$

$

$ 19,880,00

400,714.01 210,681.65

19,880.00 $ _ _.;:..61:....:1..L:,3~9.::..:5.~66=--

$

585,269.36

,$

0:.;,.::..:00:_

0.00

$

0.00 $ _ _5;;.;:8=5=,2=69='.;:..36=-

Total Liabilities and Fund Equity

$

19,880.00 $ ==1:i::!:,=19=6:l::,6=65=.=02=

See notes to the'general purpose financial statements.
- 22-

EXHIBIT "G"

LOTTERY PROJECT

TOTALS

JUNE-30,2000

JUNE 30,1999

$

0.00 $ 1,216,545.02 $ 2,461,691.15

2,110,171.47

235,924.20

472,141.06


$

0.00 $ 1,216,545.02 $ 5,279,927.88

$

521,670.17

3,175.00

$

0.00 $

400,714.01

618,490.26

230,561.65

124,31.1.85

472,141.06

$

0.00 $

631,275.66 $ 1,739,788.34

-

$

585,269.36 $ 3,540,139.54

$

.: :.:0.:.: :,00:;:.;. >

0.00

0.00

$

0.00 $

585,269.36 $ 3,540,139.54

$

0.00 $ 1,216,545.02 $ 5,279,927.88



- 23-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Other Funds
Total Revenues

EXPENDITURES
Capital Outlay Building and Building Improvements Equipment
Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1
FUND BALANCE JU,NE 30

REGULAR

BOND PROCEEDS

$

o.00 $ _ _.:..:17;.::5~1,:.=.9.::.;9.:=.24.:.-

$

0.00 $ _ _.:...:17;.::51~,:.,:::9.::.;9.:::;24:;:....

$

261,219.94 $ 3,076,388.08

2,212.00

$

263,431.94 $ 3,076,388.08

$

-263,431.94 $ -2,901,188.84

$

263,431.94

_ _ _ _ _ _ $ _ _~-5~3~,6::::.8.:...:1.~34~

$

263,431.94 $ _ _...::-5~3~,6::::.8..:..:1.~34::....

$

0.00 $ -2,954,870.18

0.00

3,540,139.54

$

0.00 $ ==,;;;;58~5;,:.;,2:,;;;6~9.~36;;;..

See notes to the general purpose financial statements. - 24-

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

26,213.80 $

26,213.80 $

235,924.20

175,199.24

277,468.27

$

26,213.80 $

201,413.04 $ _ _5;:;,.1:.=3.!.:,3;.:.92=.,.:..:.47~

$

79,895.14 $ 3,417,503.16 $ 2,321,703.38

2,212.00

$

79,895.14 $ 3,419,715.16 $ 2,321,703.38

$

-53,681.34 $ -3,218,302.12 $ -1,808,310.91

$

53,681.34 $

317,113.28 $ 1,129,481.55

-53,681.34

-1,108,376.91

$

53,681.34 $

263,431.94 $ _ _-=2:..:1..z..;1,:..::::0..:.:4.~64~



$

0.00 $ -2,954,870.18 $ -1,787,206.27



0.00

3,540,139.54

5,327,345.81

$

0.00 $

585,269.36 $ 3,540,139.54 .

-

- 25-

CITY QF CARROLLTON BOARD QF EDUCATIQN - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR END~D JUNE 30. 2000

SCHEDULE "1"


FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY
10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.555

N/A

$ 134,615.90

(2)

N/A

507,053.01 $ 1,362,750.96 (3)

$ 641,668.91 $ 1,362,750.96

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture

10.550

N/A

58,048.78

58,048.78

$

699,717.69 $ _.......:.1.:::,4::20::...7~9~9:..:..7~4

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

-
84.173 84.027 84.173

NlA $

11,900.00 $

N/A

306,161.38

N/A

52,787.73

$ 370,849.11 $

11,900.00 306,161.38 52,787.73
370.849.11

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II

Eisenhower Professional Development
Title III
Technology Literacy Challenge Fund Grants Title VI
Innovative Education Program Strategies Class Size Reduction
Goals 2000
State and Local Education Systemic Improvement Grants Stewart B. McKinney Homeless Assistance Act
Education for Homeless Children and Youth Vocational Education - Basic Grants to States

High School Program Basic Grant
Total U. S. Department of Education

84.010 84.281 84.318 84.298 84.340 84.276 84.196
84.048


N/A

304.527.96

305,183.35 (3)

N/A

14,394.66

14.394.66.

N/A

126,360.68

126.360.68

N/A

18.510.00

18,510.00

N/A

56.032.07

56,032.07

NlA

138,989.39

138.989.39

N/A

25.821.40

25,821.40

N/A

28.333.00

28,333.00

$ 1,083,818.27 $ _ _1~,O~8::.4,~47C.:!3~.6~6

Total Federal Financial Assistance
N/A = Not Available

$ 1,783,535.96 $ 2,505,273.40

26 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000
Notes to the Schedule of Ex~nditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State. and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipienl.
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 accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

SCHEDULE "1"






See notes to the general purpose financial statements.

27

CITY QF CARROl.!.TON BOARD OF ~UCATION - CARROL.L COUNIY SCHEDUl.E OF STATE REV~.NUE
YEAR ENDf;D JUNE 30, 2000

SCHEDULE "2"

AGENCYfFUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL FUND

REVENUE FUND

PROJECTS FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education
General and Career Education Programs $
Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation
Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program National Teacher Certification Grant Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Assistive Technology Exceptional Growth-Capital Outlay Instructional Technology
Office of School Readiness Pre-Kindergarten Program

8,208,819.00 1,832,906.00
196,225.00 348,049,00
94,850,00 2,190,224.00
223,454,00 69,364.00 3,448.00
288,748.00 276,247.00
70,257.00 160,844,00
34,214.00 28,842.00 -2,057,436.00 -1,745,244.00 1,841,392.00 755,952.00
$
15,000.00
23,553.12 750.00
290,497.22 5,000,00 2,754.00 3,048.00
46,690.00 3,380.76
21,096,32

100,944.00
21,101,65
$
80,434.00 753,653,52

$ 8,208,819.00
1,832,906.00 196,225.00 348,049.00 94,850.00
2,190,224.00

223,454.00 69,364.00 3,448,00
288,748.00 276,247.00
70,257,00 160,844.00
34,214.00 28,842,00 -2,057,436.00 -1,745,244,00 1,841,392.00 755,952.00 100,944.00 15,000.00

23,553,12 750.00
290,497.22 5,000.00 2,754.00 3,048.00
46,690.00 3,380.76
21,096.32

26,213.80

21,101.65 26,213.80 80,434.00

753,653.52

Office of Treasury and Fiscal Services Public School Employees Retirement

47,687.00

47,687.00



CONTRACTS

Education, Georgia Department of

New Accounting Software Implementation Georgia Reading Challenge Program

54,125.00

35,028.00

Substitute Teacher

135.00

54,125,00 35,028.00
135.00

$ 13,334,871.42 $

991,161.17 $

26,213,80 $ 14,352,246.39

See notes to the general purpose financial statements,


-28 -

CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2QQO

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (..:..!1) _

CURRENT ESTIMATED COSTS (.::,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 $

483,985.00 $

485,351.25

Funding the acquisition, construction, renovation, modification, improvement, extending and equipping of capital outlay projects throughout the Carrollton School System, including, but without limitation, renovations, modifications, improvements, extensions and equipping of facilities at the Carrollton High School to include a band room, kitchen expansion and the addition of a science wing; at the Carrollton Junior High School to include a classroom addition of regular classrooms, science classrooms, a technology laboratory and a media center; at the Carrollton 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

3,156,283.22

4,068,788.71

$ 15,660,000.00 $ _,;,;;15,660,000.00 $ 3,640,268.22 $ 4,554,139.96

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

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

(3) The voters of Carroll County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board has incurred interest to provide advance funding for the above projects as follows:

Prior Years

$

238,562.50

Current Year Total

199,322.50
$ _-.;4;:,;;:3:,:.:7,,:;:,:88~5:;:;:.0~0

,


See notes to the general purpose financial statements.

29

cr: CITY ,- ,.~.~ CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
ANALrSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

10,746.843.00 $ _ _....:3~1:.::3~,4~7::.:9.:.:::00::..

$

11.207,749.68

1,030,285.89 $ _ _~94::.=:2:.l.::,6::::3=2.:.:.1.:..1

$

12,238,035.57

-104.951.25 $ _ _1.:.:2::.!.1.:.:3:,:.3.!.:,O:.:.84.:..:.=;32=-

Amount of Underexpenditure for Total Allotment

$

0.00 $ =====0;:;,;.,;,;00;;,

Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported
as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Sala-ry accruals (July and August 1999 Deferred Salaries) reported
as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.





See notes to the general purpose financial statements.
- 31 -

CITY OF CARROLI..TON BOARD OF ~DUCATIONCARROl.L COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATlQN ~RQGRAMS YEAR ENDED JUNE 30, 2000


GENERAL AND CAREER EDUCATION PROGRAMS

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

Kindergarten (*) Grades 1 - 3 (*)

$

860,217.00

2,338,646.00

$

774,195.30 $

2,104,781.40

0.00

Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*)

$ 3,198,863.00 90 $ 2,878,976.70 $

0.00

1,020,233.00 90

918,209.70

,

1,729,018.00 90

1,556,116.20

Grades 9 - 12 (*)

1,001,621.00 90

901,458.90

High School Laboratories (*) Vocational Education Laboratories (*)

709,199.00 90 549,885.00 90

638,279.10
,
494,896.50

160,844.00

Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS

$ 8,208,819.00

$ 7,387,937.10 $ _ _1:.::6:::0.:::,8:::;44..~:::00::..

Regular Programs Category I (*) . Category II (*) Category III (*) Category IV (*) Category V (*)

$ 1,597,418.00

$ 1,437,676.20 $

0.00

Sub-Total - Regular Category VI (Gifted) (*)

$ 1,597,418.00 90 $ 1,437,676.20 $

235,488.00 90

211,939.20

0.00

Total Special Education Programs
REMEDIAL EDUCATION PROGRAM 1:}
Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS
-
Salaries Operations
Total Media Center Programs

$ 1,832,906.00

$



$

196,225.00 90 $

$ 10,237,950.00

$

1,649,615.40 $ 176,602.50 $
9,214,155.00 $

.::;O.~O.::;O
.:::0.,:::00::,. 160,844.00

$

280,011.00 90 $

252,009.90 $

68,038.00 100

68,038.00

$

348,049.00

$

320,047.90 $

0.00
0.00

Total Fourteen Weighted and Media Center Programs

$ 10,585,999.00

$ 9,534,202.90 $ ==1;,;;6;.;;,0:,;;,8;,;;;44;,;.;;;;00:;"

STAFF DEVE;LOPMENT PROGRAMS
Cost of Instruction Professional Development

$

30,780.00

64,070.00

$

30,780.00 $

64,070.00

0.00 0.00

Total Staff Development Programs
(*) Identifies Fourteen Weighted Programs.
(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
See notes to the general purpose financial statements.


$

94,850.00 100 $

94,850.00 $ ====0;;,;.;;;;00:;"

(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements .are included on this analysis as required by program guidelines.

32

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2)

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT



$

774,195.30 $

2,104,781.40

754,977.18 $ 2,386,949.87

73,540.04 $ 183,316.80

828,517.22 2,570,266.67

$ 2,878,976.70 $ 3,141,927.05 $

256,856.84 $ 3,398,783.89 $

0.00

918,209.70

1,111,939.62

105,937.43

1,217,877.05

0.00

1,556,116.20

1,895,876.96

144,071.11

2,039,948.07

0.00

901,458.90

859,860.05

167,815.99

1,027,676.04

0.00

799,123.10

1,355,189.27

138,207.87

1,493,397.14

0.00

494,896.50

587,862.09

67,985.23

655,847.32

0.00

$ 7,548,781.10 $ 8,952,655.04 $

880,874.47 $ 9,833,529.51

$ 1,437,676.20 $

134,377.34 $ 175,934.35 960,206.14
97,690.76 98,552.23

2,102.60 $ 4,535.08 28,441.54 1,696.00 16,848.06

136,479.94 180,469.43 988,647.68 99,386.76 115,400.29

$ 1,437,676.20 $ 1,466,760.82 $

53,623.28 $ 1,520,384.10

0.00

211,939.20

206,260.76

6,225.00

212,485.76

0.00

$ 1,649,615.40 $

1,673,021.58 $

59,848.28 $ 1,732,869.86

$

176.602.50$

216,726.59 $

1,909.36 $ _---:2:.:1~8,::::6:::;35:::..9~5:..

0.00

$ 9,374,999.00 $ 10,842,403.21 $

942,632.11 $ 11,785,035.32

$

252,009.90 $

365,346.47

-$

365,346.47

0.00

68,038.00 _ _ _ _ _-'- $ _ _.::::87.:..:,:::;65::::3::.,:.7.::.8

87,653.78

0.00

$

320,047.90 $

365,346.47 $

87,653.78 $ _----'4c::.53::::.::::00:.:0"".2~5

$ 9,695,046.90 $ 11,207,749.68 $ 1,030,285.89 $ 12,238,035.57 $======~O.,;;,OO;;.


$

30,780.00

64,070.00

$

91,878.33 $

91,878.33

2,974.31

2,974.31

$ ===9.4...,8.5.0.;;;;..0..0=


$

94,852.64 $

94,852.64 $ ....=====~O.~OO;;.

33



SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-X400
May 14,2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Carrollton Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL. REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
-
Ladies and Gentlemen:
We have audited the financial statements ofCity of Carrollton Board ofEducation as of and for the year ended June 30, 2000, and have issued our report thereon dated May 14, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the

auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. _
Compliance
As part of obtaining reasonable assurance about whether City of Carrollton Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofourtests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City ofCarrollton Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or
operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect
City of Carrollton Board of Education's ability to record, process, summarize and report financial data consistent witb assertions ofmanagement in the financial statements. The Reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7661-00-
01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the City of Carrollton Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
" . - -.....

RWH:jb 2000YB-40A

Ru ell W. Hinton

State Auditor


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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-g400
May 14, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

~d

.

Superintendent ~d Members of the

City of Carrollton Board of Education

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
-
Ladies ~d Gentlemen:

Compliance

We have audited the compli~ce of City of Carrollton Board of Education with the types of
u.s. compli~cerequirements described in the Office ofManagement and Budget (OMB) Circular

A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year

einntdhee-daJcucneom3p0,~2y0i0n0g.

City ofCarrollton Board ofEducation's major Federal programs Schedule ofFindings ~d Questioned Costs. Compli~ce with the

are identified requirements

of laws, regulations, contracts ~d gr~ts applicable to each of its major Federal programs is the

responsibility of City of Carrollton Board of Education's m~agement. Our responsibility is to

express ~ opinion on City of Carrollton Board of Education's compli~ce based on our audit..

We conducted our audit of compli~cein accord~cewith auditing st~dards generally accepted in the United States of America; the st~dards applicable to fin~cial audits contained in Government Auditing St~dards, issued by the Comptroller General ofthe United States; ~d OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those st~dards ~d OMB Circular A-133 require that we pl~ ~d perform the audit to obtain reasonable assur~ce about whether noncompli~cewith the types ofcompli~cerequirements referred to above that could have a direct ~d 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 compli~ce with those requirements ~d performing such other procedures as we considered necessary in the circumst~ces.
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 compli~ce with those requirements.

2000SA-I0A

In our opinion, the City ofCarrollton Board ofEducation complied, in all material respects, with the require, 'Its referred to above that are applicable to each ofits major Federal programs for the year ended j;"le 30, 2000.

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 of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.

Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce toa relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
,

This report is intended solely for the information and use of management, members of the City of
Carrollton Board of Education, Federal awarding agencies and pass-through entities and is not
intended to be and should not be used by anyone other than these specified parties.


.

.

.-

-Respectfully
.....

submitted,

-

R sell W. Hinton State Auditor

RWH:jb 2000SA-IOA


SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS




CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY

AUDITEE'S RESPONSE

S

Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7661-98-01 FS-7661-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7661-99-01

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.





SECTION IV FINDINGS AND QUESTIONED COSTS



CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofCarrollton Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements

The audit report for the City ofCarrollton Board ofEducation disclosed a financial statement

reportable condition related to the following control category.




General Fixed Assets

The reportable condition described above is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the City of Carrollton Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City ofCarrollton Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. me of Report Issued on Compliance for Major Programs
The auditor's opinion on the City of Carrollton Board ofEducation's report on compliance

with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .5IOW ofOMB Circular A-I33 The City ofCarrollton Board ofEducation's audit did not disclose audit findings required to be reported by section .5 IO(a) ofOMB Circular A-I33.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

8. me "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

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 JUNE 30, 2000
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7661-00-01 The City of Carrollton Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
i
I
-2-