City of Carrollton Board of Education, Carroll County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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

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 ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

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 ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 . Atlanta, Georgia 30334-8400
June 7, 2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe City of Carrollton Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SuPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the City of Carrollton
Board of Education, as of and for the year ended June 30, 200 I, as listed in the table of contents.
These general-purpose financial statements are the responsibility ofthe City ofCarrollton Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted' in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our oplmon.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

200IARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.

* School activity accounts maintained at the individual schools are not included in the

j'

general-purpose financial statements. To conform to generally accepted accounting

i,
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.

fu 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, 2001, and"the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

fuaccordancewith Government Auditing Standards. we have also issued our report dated June 7, 2002, 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 and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the 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'{J. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.

2001ARL-13

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made
available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.

RWH:as 2001ARL-13

Respectfully submitted,
~s:~t~ 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, 2001

Cash and Cash Equivalents
Investments
Accounts Receivable
Inventortes 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
$ 4.978.252.60

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1.084.857.67

1.934.064.78 $ 609.627.80

26.725.36 6.969.82

$ 6,912.317.38 $

643.322.98 $ 1.084.857.67

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salartes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements Debt Proceeds - City of Carrollton
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Debt Service For Inventortes Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated
Total Fund Equity

$

$

456.527.53

1.571.515.50

273.750.55 65,343.03
238.537.80 479.70 "$

245.737.39 58.114.80

$ 2.028.043.03 $

578,111.08 $

303.852.19

$
$ 4,884.274.35 $ 4,884 ,274.35 $

26.725.36 6.969.82 $
31.516.72
65,211.90 $

781.005.48 0.00
781,005.48

Total Liabilities and Fund Equity

$ 6,912.317.38 $

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

643,322.98 $ 1.084,857.67

EXHIBIT "A"

DEBT SERVICE
FUND
$ 3,662,995,36 514,070.82

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

. TOTALS

(Memorandum Only>

JUNE 30, 2001

JUNE 30, 2000

$ 6,063,110.27 $ 7,803,182.87

3,662,995.36

2,429,560.52

3,057,763.40

2,960,435.27

$ 2,570,000,00 727,759.72

26,725.36 6,969,82
2,570,000.00
727,759.72

21,189.07 8,573.76 2,532,664,n
719,836.27 1,232,335.23

$ 4,1n,066.18 $ 3,297,759.72 $ 16,115,323.93 $ 17,707,m.76

$

273,750.55 $

190,663.18

$

369,122.50

890,993.06

874,089.61

1,810,053.30

1,734~215.20

479.70

79.23

245,737.39

400,714.01

58,114.80

230,561.65

$

727,759.72

727,759.72

719,836.27

2,570,000.00

2,570,000.00

3,765,000.00

$

369,122.50 $ 3,297,759.72 $ 6,576,888.52 $ 7,915,159.15

$ 3,807,943.68
0.00 $ 3,807,943.68

$ 3,807,943.68 $ 2,532,664.n

26,725.36 6,969.82
781,005.48

21,189.07 8,573.76 585,269.36

4,915,791.07

6,644,921.65

$ 9,538,435.41 $ 9,792,618.61

$ 4,1n,066.18 $ 3,297,759.72 $ 16,115,323.93 $ 17,707,m.76

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, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business 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

$ 13,419,404,47 $
8,295,527.05 1,011 ,286.30
$ 22,726,217.82 $

923,280,77 1,994,828,36
725,672.40
3,643,781.53

$ 13,951,300,14 $ 1,441,363.23

349,600.62 1,048,576.05
504,971,82 618,044.23 1,759,168.18 188,075.15 1,878,846.04 1,472,665.21
95,860.38 7,586.30
68,275.03 252,337.50

311,629.71 218,876.41
3,114.45
8,624.76 61,448.91
230.461.62 1,380,160.73

797,484.64 76,518.34

71,051.04 4,298.96

$ 23,069.309.63 $. 3.731.029.82

$ -343,091.81 $

-87,248.29

$

876,459.13

$

-2,251,152.92

$ -1,374.693.79 $

75,903.31
- 75.903.31

$ -1,717,785.60 $ 6,602,059.95

-11,344,98 72,624.53

5,536.29 -1.603.94

FUND BALANCE JUNE 30

,$

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

4,884,274.35 $ _-==6;m5/ii.2=11m.9;,;0:;.,

EXHISIT"S"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 14,342,685.24 $ 14,352,246.39

1,994,828.36

1,783,535.96

$ 2,978,600.94

11,274,127.99

10,555,639.86

$

85,218.75

148,235.47

1,970,412.92

1,985,017.82

$

85,218.75 $ 3,126,836.41 $ 29,582,054.51 $ 28,676,440.03

$ 2,064,732.24 $
$ 2,064,732.24 $ $ -1,979,513.49 $

$ 15,392,663.37 $ 14,415,551.50

661,230.33 1,267,452.46
504,971.82 621,158.68 1,759,168.18 188,075.15 1,887,470.80 1,534,114.12
95,860.38 238,047.92 1,448,435.76 2,317,069.74

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

1,495,000.00 356,557.50

2,363,535.68 437,374.80

2,032,404.09 498,807.69

1,851,557.50 $ 30,716,629.19 $ 29,766,731.72

1,275,278.91 $ -1,134,574.68 $ -1,090,291.69

$ 2,175,249.61 $ 2,175,249.61

$

876,459.13

2,251,152.92 $

-2,251,152.92

$

876,459.13 $

332,757.57 -332,757.57
0.00

$

195,736.12 $ 1,275,278.91 $

-258,115.55 $ -1 ,090,29~ .69

585,269.36

2,532,664.n

9,792,618.61

10,891,158.62

5,536.29 -1,603.94

-8,963.29 714.97

$

781,005.48 $ 3,807,943.68 $ 9,538,435.41 $ 9,792,618.61

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CITY Of CARROLLTON BOARD Of EDUCATION - CARROLL COUNTY COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUpGET AND ACTUAL GENERAL AND SPECIAL REVENUE fUNPS
YEAR ENDED JUNE 30 2001

EXHIBIT"C"

The notes to the general-purpose financial statements are an integral part of this statement -7-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHmIT "0"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Carrollton Board ofEducation (School District) 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 Boar,d. The School District is organized as a separate legal entity and has the power to levy taxes. Accordingly, the School.District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District ~es 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 ofpurchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accePted accounting principles~ these accounts should be recorded in the general-pwpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board ofeducation.
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.
-8-

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CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

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: generallong-tenn 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 detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (Le., revenues and other financing sources) and decreases (Le., 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 (Le., When they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after year- . end to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in earlyJune 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly
-9-

CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

,

JUNE 30. 2001

EXHmIT "0"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

payments beginning in September 200,0 and ending in August 2001. State grants to fund the State's

share of these contracts are disbursed to the School District in the same twelve month period. In

accordance with generally accepted accounting principles, salary and fringe benefit expenditures and

the related revenue from the State to fund these contracts are recorded in the fiscal period covered by

these financial statements.

'

BUDGET

The City of Carrollton Board of Education's budget is a complete ,financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding somces. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the'aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles.

The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised , at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary'and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA' Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end~

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS

Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenninvestments with

original maturities of three months or less from the date of acquisition in authorized financial

institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one

or more solvent banks or insured Federal savings and loan associations.

'

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market mvestments with a maturity at purchase greater. than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or amonginstitutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the
following:

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CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS
ruNE 30, 2001

EXHffiIT "D"

(2) Obligations issued by the United States government,

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

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

(5) Prime banker's acceptances,

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

(7) Repurchase agreements, and

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

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables 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 2000 tax year (calendar year) on September 18,2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The City ofCarrollton City Clerk bills and collects the property taxes for the School District and remits taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $8,295,527.05.

The tax millage rate levied for the 2000 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

~mills

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CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30; 2001

EXHmIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational pwposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $2,978,600.94 and was recorded in the Debt Service Fund.. The State will tenninate collection of this tax once an additional $6,655,232.41 has been collected or on December 31, 2002, whichever occurs first.

The City of Carrollton Board of Education utilized $505,897.50 in Special Purpose Local Option Sales Tax (SPLOST) proceeds for payment of$300,000.00 in principal and $205,897.50 iri interest of the City of Carrollton's (City Government) general obligation bond debt in accordance with SPLOST project expenditure requirements.

The City ofCarrollton sold general obligation bonds to provide advance funding for Capital Outlay

Projects associated with issuance ofa Special Purpose Local Option Sales Tax (SPLOST). In fiscal

year 2001, the School District provided $1,345,660.00 ofSPLOST proceeds to the City Government

for debt service on said general obligation debt.

.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value: Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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 ~et current assets.

INTERFUND TRANSACTIONS

The School District pas the: following types of interfuild 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.

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CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 3D. 2001

EXHIBIT .iD" ;,'

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 fmancial analysis. Data in these columns do not present financial position or results ofoperations in confonnity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by'collateral. The aggregate ofthe face value ofsuch 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 110percentofthedailypool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of anyone of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business

within the State of Georgia,

.

(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 ofthe State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

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

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

- 13-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "0"

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the
Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage
Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $6,922,576.14. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. .
. Category 2 - Cash colla~eralizedwith securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3- Uncollateralized deposits. (This includes any bank balance that is collateralized
with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

.

,

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

. $ 100,000.00

2

0,00

3

6,822.576.14

Total

$ 6.922.576.14

CATEGORIZATION OF INVESTMENTS

At June 30, 2001, the fair value ofthe School District's total investments was $3,662,995.36 and this

entire amount consisted ofU. S. Treasury money market mutual funds which are not required to be

classified by categories ofcredit risk.

.

Note 3: NON-MONETARY TRANSACTIONS
..
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These conuil()dities are recorded at their Federally assigned value. See Note 1 - Inventories

- 14 - .

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHmIT "D"

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District 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 School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District 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:

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $ 2,664.00 $

$

0.00 $

5,736.00 $

Claims Paid

End ofYear Liability

2,664.00 $

0.00

5,736.00 $

0.00

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

Position Covered

Amount

Superintendent Board Treasurer Each Principal Each Cafeteria Manager

$ 100,000.00 $ 25,000.00 $ 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, copiers and buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

CITY OF CARROLLTON DEBT PROCEEDS The School District entered into a joint resolution with the City of Carrollton, Georgia (City) whereby the City issued $6,000,000.00 of 1998 Series general obligation debt on behalf of the School District to finance the cost of acquiring, constructing, renovating, modifying, improving,

- 15 -

'.
CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHffiIT "D"

Note 5: GENERAL LONG-TERM DEBT
extending and equipping capital o~tlayprojects throughout the School District. The School District 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-Tenn Debt during the fiscalyear ended June 30, 2001, were as follows: '

Capital Leases

City of Carrollton Debt Proceeds

Total

Balance July 1, 2000

$ 719,836.27 $ 3,765,000.00 $ 4,484,836,27

Additions Capital Leases

876,459,13

876,459.13

Deductions Payments

868.535.68 1.195,000.00 2,063.535.68

Balance June 30, 2001

$ 727.759.72 $ 2.570,000.00 $ 3.297.759.72

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

City of Carrollton Debt Proceeds

Total Debt

2002 2003 2004

$ 304,418,22 $ 1,358,457.50 $ 1,662,875.72

248,418,22 1,368,257,50 1,616,675.72 .

248,418.22

248,418.22

Total Principal and Interest $ 801,254,66 $ 2.726.715.00 $ 3.527.969,66

Deduct: Imputed Interest

73,494.94

Net Present Value of Future Minimum Lease Payments $ 727.759.72

- 16-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL couNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHIBIT "D"

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $342,757.01 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the Georgia Department ofCommunity Health For Health Insurance ofNon-Certified Personnel In the amount of $269,725.67

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $23,695.34

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 $49,336.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as ofJune 30, 2001, together with funding available: .

Project

Unearned Executed Contracts

Funding Available From State

Carrollton High School Renovations

$ 242.304,60 $ 861.865.00

The amounts described in this note are not reflected in the general-purpose fmancial 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 reimburseIIlent to the grantor agency for any expenditures which are disallowed under grant tenns. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9: SUBSEOUENT EVENTS

On September 18,2001, the voters of City of Carrollton voted in favor ofa Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition ofthe tax, as stated on the Official Ballot ofthe City ofCarrollton and applicable to the City ofCarrollton Board ofEducation is as follows:

- 17-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS " JUNE 30. 2001

EXHIBIT "D"

Note 9: SUBSEQUENT EVENTS

"Shall a special one percent sales and use tax be imposed in Carroll County (such tax to b~ a continuation ofthe existing 1% sales and use tax and not an additional sales and use tax) for a period oftime not to exceed five years (20 calendar quarters) commencing upon the expiration ofthe existing one percent sales and use tax currently in force, and for the raising ofnot more than $110,000,000 for the purposes of... (iii) funding the acquisition, construction, renovation, modification, improvement, extending and equipping ofcapital outlay projects throughout the Carrollton School System, including, but without limitation, the acquisition and construction of a new elementary school; additions, renovations and improvements at existing facilities ofthe Carrollton School System; system-wide technology improvements; the acquisition of school transportation vehicles; the acquisition of land for additional school facilities and all other properties, both real and personal, deemed necessary and adyisable for the school system (the "Carrollton School Projects"), the maximum cost of such Carrollton School Projects not to exceed $21,604,140; (iv) to pay principal and interest coming due on the outstanding Series 1995 General Obligation School Bonds of the City of Carrollton as the same come due on January 1,2004, through and including July 1,2007, which principal and interest payments total $2,045,860, and calling fortedemption at par on July 1, 2007 of ~ll such remaining outstanding Bonds maturing July 1, 2008 through and including July 1, 2010, which principal and interest payments total $1,375,000; (v) funding capitalized interest on the City of Carrollton debt hereinafter referred to; ...lf the imposition and continuance of the tax is approved by the voters within the City ofCarrollton, such vote shall also constitute approval of the issuance ofgeneral obligation debt ofthe City ofCarrollton, for the benefit ofits school in the principal amount of $9,250,000 for the purpose of funding portIons of the Carrollton School Projects."

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION

".

Substantially all teachers, administrative and clerical personnel employed by local school districts

are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple

employer defined benefit pension plan. TRS provides service retirement,. <iisability 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 ofAudits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE

Employees ofthe School District who are covered by TRS are required by State statute to contribute

5% of their gross earnings to TRS. The School District makes monthly employer contributions to "

TRS at rates adopted by the TRS Board ofTrustees in accordance with State sta~te and as advised

by their independent actuary." The required employer contribution rate is 11.29% and employer

contributions for the current fiscal year and the preceding two fiscal years are as follows:

"

"

- 18 -

1111

CITY OF CARROLLTON BOARD OF EDUCAnON - CARROLL COUNTY EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 10: RETIREMENT PLANS
Fiscal Year
2001 2000 1999

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,540,260.57 $ 1,472,253.81 $ 1,473,235.90

- 19-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

83,710.33 $

117,782.70

15,590.03

26,725.36 6,969.82

Total Assets

$

132,995.54 $ ====1.=17"=!:,7=8=2.=70=

Total Liabilities and Fund Equity

$

132,995.54 $ ==1...1;,;,7=,7.8..2=".7..0.,,=

See notes to the general-purpose financial statements. - 20-

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 3D, 2001

JUNE 30, 2000

$

16,279.09 $

217,n2.12 $

139.682.15

$

594,037.n

609,627.80

527.682.74

26.725.36 6,969.82

21.189.07 8,573.76

$

594,037.n $

16,279.09 $

861,095.10 $ -===6:=97'=1:,1,;;:2;,;,;7.=72=

$

491,522.67

22,083.04

79,952.36

479.70

$

594,037.n

$

491.522.67 $

330,345.33

65.343.03

64,814.05

238.537.80

229,264.58

479.70

79.23

$

795.883.20 $

624,503.19

$

26.725.36 $

21.189.07

6.969.82

8,573.76

$

0.00 $ _ _...:.:16::.&:,2::.:.7~9.:.:.:09~

31,516.72

42,861.70

$

0.00 $

16,279.09 $

65,211.90 $ _ _.;..:72::&;,6::;.:2~4.:.:.:53~

$

16,279.09 $

861,095.10 $=0:::=::;6=97=,1=2.7..'.:;,;72=

21 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 3D, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services 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
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 22-

SCHOOL FOOD
SERVICES FUND

.LOTTERY PROGRAMS

$

104,266.00 $

752,901.67

505,021.70

$ 1,362,189.37 $

819,014.n 819,014.n

'$

689,249.14

92,874.14 6,024.82 1,221.26

.$ 1,369,294.52

8,624.76 13,800.00
1,907.75 10,866.21

66,336.24 4,013.76

$ 1,369,294.52 $' 894,918.08

$

-7,105,15 $

-75,903.31

75,903.31

$

-7,105.15 $

0.00

52,105.61

0.00

5,536.29 -1,603.94

$

48,932,81 $==========0=,0;:;0;..,

EXHIBIT"F"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,241,926.69
------$
$ 1,241,926.69 $

$ 220,650.70 220,650.70 $

923,280.77 $ 1,994,828.36
725,672.40
3,643,781.53 $

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

$

752,114.09

218,755.57 212,851.59
1,893.19

47,648.91 3,663.34 $

4,714.80 285.20

$ 1,241 ,926.69 $

$

0.00 $

$
224,890.53 224,890.53 $
-4,239.83 $

1,441,363.23 $
311,629.71 218,876.41
3,114.45
8,624.76 61,448.91 230,461.62 1,380,160.73
71,051.04 4,298.96 .
3,731 ,029.82 $
-87,248.29 $

1,452,202.98
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
3,717,803.52
-173,226.39

75,903.31

69,325.63

$

0.00 $

-4,239.83 $

-11,344.98 $ -103,900.76

0.00

20,518.92

72,624.53

184,773.61

5,536.29 -1,603.94

-8,963.29 714.97

$

0.00 $

16,279.09 $

65,211.90 $

72,624.53

-23 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY . COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

EXHIBIT"G"

ASSETS Cash and Cash Equivalents

REGULAR

BOND PROCEEDS

TOTALS JUNE 30, 2001 JUNE 30, 2000

$_"",,",,"=;O,~OO= $ 1,084,857.67 $ 1,084,857,67 $ 1,216,545,02

Total Uabilities and Fund Equity

$ _.......,;;,;0..,0.0.. $ 1,084,857.67 $ 1;084,857.67 $ 1,216,545.02

See notes to the general-purpose financial statements.

24

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, 2001

EXHIBIT "H"

FUND BALANCE JUNE 30

$

0.00 $ 781,005.48 $ 781,005.48 $ 585,269.36

See notes to the general-purpose financial statements.

-25-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENpED JUNE 30, 2001

. SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
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

CFDA NUMBER
10,553 10.555

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)

10,550

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 Capacity Building Improvement Flow Through Preschool

* 84,027 * 84,027 * 84,173

Total Special Education Cluster

Other Programs

Pass-Through From Georgia Department of Education

Elementary and secondary Education Ad

TiUel

.Grants to Local Educational Agencies

*

TiUe 1/

Eisenhower Professional Development

Trtlelll

Technology Uteracy Challenge Fund Grants

TiUeVI

Innovative Education Program Strategies

Class Size Reduction

Goals 2000

State and Local Education Systemic Improvement Grants

Stewart B. McKinney Homeless Assistance Ad

Education for Homeless Children and Youth

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84,010 84.281 84.318 84.298 84,340 84.276 84.196
84.048

TotalU, S, Department of Education

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NlA $ 166.508,94

(2)

NlA

504.017,32 $ 1.286,919,11 (3)

$ 670.526,26 $

1.286.919:11

NlA

82.375,41

82.375.41

$ 752.901,67 $ 1.369.294,52

NlA $

7.572.89 $

NlA

395,559,56

NlA

50.054,12

$ 453.186,57 $

7.572.89 395.559,56 50,054.12
453.186,57 .

NlA

389,613,52

389.613,52

NlA

12,n2,94

12.n2,94

NlA

111.720.23

111.720,23

NlA

17.895,63

17.895,63

NlA

60.831,00

60,831.00

NlA

138,559.80

138.559,80

NlA

29.382,00

29.382,00

NlA

27,965,00

27.965.00

$ 1.241.926.69 $ 1.241 ,926,69

Total Federal Financial Assistance
= NlA Not Available

$ 1.994,828,36 $ 2.611.221.21

26 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDER JUNE 30, 2001

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities receive<! 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 2001 National School Lunch Program,
(3) Expenditures for this program Indude State. and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are Identified by an asterisk CO) In front of the CFDA number.
The School Distrid did not provide Federal Assistance to any Subreciplent.
The accompanying schedule of expenditures of Federal awards Indudes 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-pUtpOse financial statements.

see notes to the general-purpose financial statements.

-27 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCYIFUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS Community Affairs. Georgia Department of Local Assistance Grant

$

15.000.00

$

15,000,00

Education. Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program ' Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program
Students with Disabilities
category I Category II category III Category IV Category V Gifted Student - Category VI Special Education Supplemental Speech Remedial Education Program Media Center Program Staff and Professional Development Indirect Cost Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Other State Programs Altemative Program At-Risk Summer School Program Extended Day-Technology/Career Health Insurance Innovative Programs Mentor Teachers National Teacher Certification Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Program Computers In the Classroom

563,888.00 204,354.00 1.540,082.00 506.073.00 909,638.00 1,634.616.00 1.538,037.00 500.930.00
52,697.00 259.783.00 831,596.00
83,346.00 106,216.00 371,912.00
328.00 186.122.00 291,680.00 82.741.00 1.922,313.00 -1,841.392.00 1.815,373.33

563,888.00 204.354.00 1,540.082.00 506,073.00 909.638.00 1.634,616.00 1,538.037.00 500.930,00
52.697.00 259.783.00 831.596.00
83,346.00 106.216.00 371,912.00
328.00 186.122.00 291,680.00 82,741.00 1.922,313.00 -1,641,392.00 1.815.373.33

243,704.00 72,008.00 64,192.00 14.668.00 20.659.00
236.825.00 540.518.00
$

104,266.00

134,071.00 4.715.42 11.837.00
269,725.67 5,000.00 2.781.08 6,288,00
50,657.00 4.596.63
23.695.34

75,486.00

243.704.00 72,008.00 64.192.00 14,668.00 20.659.00
236,825.00 540.518.00 104,266.00
134,071.00 4,715.42 11.837.00
269,725.67 5,000.00 2,781.08 6,288.00
50.657.00 4,596.63 23.695.34
75,466.00

Office of School Readiness Pre-Kindergarten Program

743.528.n

743,528.n '.

Office of Treasury and Fiscal Services Public School Employees Retirement

49,336.00 .

49,336.00

- 28-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

"
AGENCYIFUNDING
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

33,766.00

35,028.00

$

33,766.00

35,028.00

$ 13,419,404,47 $ 923,280.77 $ 14,342.685.24

see notes to the general-purpose financial statements.

- 29-

CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT
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
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

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2}

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

$ 2,916,697.50 $ 2,916,697.50 $. 505,897.50 $ 969,336.25 Ongoing

12,743,302.50 12,743,302.50 1,936,240.09

7,225,071.93 Ongoing

$ 15,660,000,00 $ 15,660,000.00 $ 2,442,137.59 $ 8,194,408,18

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

(2) The SchooJ District'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 School District has incurred interest to provide advance funding for the above projects as follows:

Prior Years

$ 437,885,00

Current Year

150,660.00

Total

$ 588,545.00

see notes to the general-purpose financial.statements.

31

CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY GENERAL FUND - gUALlTY BASrCEDUCATION PROGRAM <gBEI ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (11

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

category III

category IV

Category V

Gifted Student Category VI

Remedial Education Program

Alternative Education Program

669,530.00 $ 242.639.00 1.828,608.00 .600.883.00 1.080,054.00 1.940.853.00 1.826,180.00 594.m.00 1.583,879.00
441.588.00 220,991.00 159,189.00

516.817.47 $ 234,868.94 1.956.915.70 525.652.66 1.179.241.37 2,265,590.98 2.161.764.86 523,085.48
30,366.40 283.585.36 1.101,668.62 142.655.56 32,533.71 339.926.45 198.573.36 27.709.13

15,376.34 $
144.268.57
109.171.40 100.266.00
58.132.57 132,885.47

532,193.81 234.868.94 2,101.164.27 525,652.66 1.288,412.n 2.365.856.98 2;219,917.43 655,970.95

2,837.17 . 5.204.87 20,110.34 3.581.35 13.233.88 7,140.31 6.206.73 142,392.10

33,203.57 288.790.23 . 1.121,n8.96 146.236.91 45.767.59 347.066.76 204.780.09 170,101.23

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$ 11.189.171.00 $ 11.520,976.05 $ 760.807.10 $ 12,281.783.15

Media Center Program Staff and Professional Development

346.325.00 98,242.00

387,032.91 5.127.14

109,782.05 95,659.01

496,814.96 100,786.15

TOTAL aBE FORMULA FUNDS

$ 11,633,738.00 $ 11,913,136.10 $ 966,248.16 $ 12,879,364.26

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

32 -

IIII! CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE "5" GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30, 2001

Carrollton Elementary School Carrollton High School Carrollton Junior High School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

5,396,582.00 $ 5,898,927.33

2,942,116.00

3,284,593.61

2,691,284.00

2,922,907.47

159,189.00

175,354.74

$ 11,189,171.00 $ 12,281,783.15

II

See notes to the general-purpose financial statements. - 33-

SECTIONll COMPLIANCE AND INTERNAL CONlROL REPORTS

1IIIi

, USSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 Washington Street. S. Suite 2 J4
Atlanta. Georgia 30334-8400
June 7, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe 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 ofCity ofCarrollton Board ofEducation as ofand for the

year ended June 30, 2001, and have issued our report thereon dated June 7, 2002. This report was

Ii 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 Uni. ted 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

Internal Control Over Financial Rg>orting

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

2001YB-40

II
I
!I

IIIP
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 adverselyaffect City of Carrollton Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the fmancial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7661-0101.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily .disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe 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,
~Io m ~~ ~ell W. Hinton State Auditor
RWH:as 2001YB-40

USSI!:I.L W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
w.. 254 Washington Street. S. Suite 214
Atlanta. Georgia 30334-8400
June 7, 2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members ofthe City of Carrollton Board ofEduc~tion
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-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 (OMB) Circular
I"I A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. City ofCarrollton Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of -Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofCity ofCarrollton Board of Education's management. Our responsibility is to express an opinion on City ofCarrollton Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-I33 require that we plan and perform the audit to obtain reasonab~e assurance about whether noncompliance with the types ofcompliance requirements referred.to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Carrollton Board ofEducation's compliance with those requirements and perfonning 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.
200ISA-I0

'.
In our opinion, the City ofCarrollton Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of 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 perfonning 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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-I33.
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 componentsdoes not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperfonning 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 ofthe manag~ent, members ofthe 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 su~mitted,

RWH:as 200ISA-IO

Russ 11 W. Hinton State Auditor

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

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7661-99-01 FS-7661-00-01

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-7661-00-01

Due to current staffing limitations and budgetary consideration prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements.

I
SECTION IV FINDINGS AND QUESTIONED COSTS

IIIII1

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type ofReport 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 ofthe 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. Type ofReport 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 .510(a) ofOMB Circular A-133 The City ofCarrollton Board ofEducation's audit did not disclose audit findings required to be reported by section .5lO(a) of OMB Circular A-133.

7. Major Programs

Federal awards audited as major programs are as follows:

84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational

Agencies

84.027 Individuals with Disabilities Education Act - Part B - Special Education ..

Capacity Building Improvement

84.027 Individuals with Disabilities Education Act - Part B - Special Education -

Flow Through

84.173 Individuals with Disabilities Education Act - Part B - Special Education -

Preschool

.

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

- 1-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001

I SUMMARY OF AUDITOR'S RESULTS

9. Low Risk Auditee

The City ofCarrollton Board ofEducation qualified as a low risk aUdltee based on a waiver

granted bythe U. S. Department of Education.

.

II 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-7661-01-01
;- .
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 ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include inventory ofland, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cpst, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group..

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

-2-