City of Carrollton Board of Education, Carroll County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

,_,-.., ,'1('
~elo~.
.~I

,,

.- '

,1 T
' .

--

,.J '.

, .

- . {?3~,
,., ,,.I, ,
"" '

.
-

,,
i

.-- r

,. '

.. , ,

STATE oF .GEORGIA

.,. ,'

',DEPARTMENT :oF-: AU oiTs 'AN oACCbU NTS.

- ~ ,



' .,

..

'

,,,

' I

' -.

. '

, '

,'

,' '

'f ,, I

',

,'

. .. '' -..
'

-.

"

.

,--
'

\

' -

...

_.,_

,l'

- '-, '

',
:--

'

'

,, - '
,-_

..-'

' '-

~ r.~ :
' ,.

'

' _CITY, q,::~ARRpLLT9f\! BOARPOF EQUCATION

. CARROLL COUNTY. GEORGIA:

' '

'

'

'

.'.

, .-.'REPORT ON AUDIT_

,-< !_. 1OF THE FINANCIAL STATEMENTS

,,

,, .

FOR,:Ti-lE FISCAL YE~R ENDED Jf!NE 30; 2002

' --.

' '

..

'-' -..
, '-
( ' --

.- r '

,,,.

'

'
', ,- '

C

,-
'' ..
'' '

,', ,,,
-- ' -
,'
~~: ~
-'
',,
_,
'

' '

." , J"-' '

'

.., --
' t

''

, -

,__

Russell W.; H'inton

r,

. State :O:udltor, . .' , ' '

,,

' - \ ', .,

''

.. , ,

'

,' I

~

'

, .. ' .

.

,,
..

, '

'i.
\
-''
,.

. '
~ ,,
"-.

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

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE rlNANCIAL 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 RF VENUES, 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

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGl:.S IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCIIEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS lQBE)

4

BY PROGRAM

JO

5

BY SITE

31

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY -TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORl S 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 0MB CIRCULAR A-133
SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSl S

SECTION I FINANCIAL

{ Ui>M,LI W. I IIN1 ON
STAT[ NJOITOA
(404) 65&-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJShmglon S1rcc1, SW Su11c 214 Allanla, Georgia 30334-8400
July 17, 2003

Ilonorablc Sonny Perdue, Governor Members of the General Assembly Member., of the State Roard of Education
and Superintendent and Members of the City of Carrollton Board of Education
INDEPENDEN I AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULF OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanying general-purpose financial statements of the City of Carrollton Board of Educat10n. a, of and for the year ended June 30, 2002. a~ listed in the table of content, These general-purpose financial statements are the respons1b1lity of the City of Carrollton Board of Education's management Our responsib1hty 1s to express an op1mon on these general-purpose financial ~tatemcnts ba~ed on our audit
We conducted our audit in accordance with auditing standards generally accepted in the Umted States of Amenca and the ~tandards applicable to financial audits contamed m Government Auditing Standards, issued b} the Comptroller General of the Umted State, Those standards reqmre that we plan and perlorm the audit to obtain reasonable assurance about whether the 1inanc1al statements are free ofmatenal misstatement An audit mcludes examining, on a test ba~1s, evidence supporting the amounts and disclosures m the financial ,tatements An audit also includes assessing the accounting pnnc1ples used and s1gmlicant eslimates made by management, as well as evaluating the overall financial ,tatement presentation We believe that our audit provides a reasonable basis for our opinion
As descnbed in the notes to the general-purpose financial statement,, the Board of Education's financial statement~ have been prepared using certain accounting practices and policies which, m our opin10n, vary m some respects from generally accepted accounting pnnc1ple~ These vanances are de,cnbcd as follows

2002ARL-13

The general-purpose financial statements of the Board of Educallon did not contam a General Fixed Assets Account Group to account for property and equipment 0\\11ed by the Board of Educallon which should be included to conform to generally accepted accountmg principles
School ac11v1ty accounts mamtamed at the mdiv1dual schools are not mcluded m the general-purpose financial statements. To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded in the general-purpose financial statements
The aggregate effects on the general-purpose financial statements of these variances or om1ss1ons have not been determmed, but are believed to be matenal
In our op1mon, except for the effects on the general-purpose financial statements of the matters referred to in the precedmg paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial posillon of the City of Carrollton Board of Educal!on as of June 30, 2002, and the results of its operat10ns for the year then ended, in conformity \\1th accounting pnnc1ples generally accepted m the United States of Arnenca
In accordance with Government Aud1tmg Standards, we have also issued our repon dated July 17, 2003, on our considerat10n of the City of Carrollton Board of Educallon's mternal control over financial reportmg and our tests of its compliance with certam prov1s10ns of laws, regulat10ns, contracts and grants That report 1s an mtegral part of an audit performed m accordance with Government Auditmg Standards and should be read m conJunction with this report m cons1denng the results of our audit
Our audit was performed for the purpose of formmg an op1mon on the general-purpose financial statements of the City of Carrollton Board of Educallon taken as a whole The accompanymg combining statements (Exh1b1ts E through H) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as reqmred by U. S Office of Management and Budget Circular A-133, Audas of States. Local Governments, and Non-Profit Orgamzat1ons. are presented for purposes of add1t1onal analysis and are not a reqmred part of the general-purpose financial statements Such mformal!on has been subjected to the aud1tmg procedures apphed m the audit ofthe general-purpose financial statements and m our opm1on. except for the effects of the matters referred to m the third paragraph, such mformat10n 1s fairly stated. mall matenal respects, m relat10n to the general-purpose financial statements taken as a whole
20021\RL-13

A copy ofth1s report has been filed as a permanent record m the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24
--~- w . J 1 . " k Respectfully submitted,
RWHgp 2002ARL-13

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY

CITY Of CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30 2002

~ Cash and Cash Equivalents
Investments
Accounts Recetvable
lnventones Food Donated Commochhes Purchased Food
Amount Available in Debt Service Food
Amount to be Provided m Future Years For Payment of Ceprtal Lease Agreements For Payment to the City of Cerrollton
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 5 664,146 92

$ 4,326,066 83

7,266,991 80

1,885,284 21 $ 593,156 05

508,291 89

23,155 26 4 120 18

$ 7 549 431 13 $ 620 431 49 s 12,101,35052

~l~ILITIES AND EUND EQUITY
LIABILITIES
Cash Ovenlraft Accounts Payable Salenes Payable Expired Grant Balances Payable Contracts Payable Retemeges PeyabJe Capital Lease Agreements Debi Proceeds - City of Cerrollton
Total Llabirues
FUND EQUITY
Fund Balances Reserved For Debt Service For lnventones Food Donated Commodibes Purchased Food For Pi.rpose of Bond Issue For SPLOST Pro)Octs Unreserved Urdes,gnated
Total Fund EqL<ty

s 233,66966

$

518,771 77

69,690 07

1,788,868 18

248,753 32

157 94

s 2,307,639 95 $

552,270 99

$
$ 5.241 791 18
$ 5 241 791 18 s

23,15526 4,120 18 $

9 134 136 35 2,967 214 17

40.885 06

000

68 160 50 $ 12,101,350 52

Total LlabllrtJes and Fund Eqllty

s 7 549 431 13 $ 620 431 49 s 12 101 350 52

The notes to the general-1)4.Xl)OSe finanaal statements ere en Integral part of this statement - 2.

EXHIBIT"A"

DEBT SERVICE
FUND

$

31 614 24

2 305,605 00

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$ 10,021,827 99 S 6 063110 27

9,572 596 80

3 662 995 36

2,986,73215

3,057 763 40

s 1 968,096 74
460495 88 8,596,903 26

23 155 26 4 120 18
1,968 096 74
460,495 88 8 596 903 26

26,725 36 6 969 82
2,570,000 00
727,759 72

s s s 2 337 219 24

1110251495 88 $ 33,633,92826

1611151323 93

$

s 233,66966

273 750 55

$

369,122 50

957,584 34

890,993 06

2,037 621 50

1,810 053 30

157 94

479 70

245,737 39

s

460 495 88

460,495 88

58,11480 727 759 72

10,565,000 00

10,565,000 00

2,570,000 00

s

s 369 122 50

11,025 495 88 $ 14,254,529 32 $ 6,576,888 52

$ 1,968,096 74
000 $ 1,968,096 74

s $ 1 968,096 74

3 807,943 68

23 155 26 4,120 18
9,134,136 35 2,967 214 17
5,282,676 24
s s 19,379,398 94

26,725 36 6,969 82
781,005 48
4 915 791 07 9 538 435 41

$

s s 2 337 219 24 $ 1110251495 88

33,633,92826

16115 323 93

- 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 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Servoces PupilServ,ces Improvement ol lnstrucllonel Services Educebonal Media SelVlces General Admlnlstrabon School Admlllistre1lon Bu81nesa Admnstration Mamtenence and Operabon of Plant Student Transportation SeMces Central SUppon SelV1ces Other Support Services Food SelVlces Operation
Ceprtel Outlay Debt SelVlce
PMcipal Interest
Tolal Expendmes
Excess of R...,nues over (under) Expenditures
OI!::tl;R FINANCIN(l SOUBCES (USEl
Accrued Interest on Bonds Soki Proceeds from General Obhgebon Bonds
Par Value Prenuum on Bonds Sold Capital Leases Operating Transfers In Operating Transfers Out
Total Other F"onancmg Sources (Uses)
Excess of Revenues and OIJ'\er fmanang Sources over (under) Expendrtures end Other FI08JlClll9 Uses
FUND BALANCE JULY l (Restated See Note 1)
Food Inventory - Net Change in Penod Donated Commodrues Purchased Food Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

$ 13,638,812 03 $
8,263,311 27 857 80883
$ 22,759,932 13 $

1 092,649 79 2 078,162 69
567 204 03
3,738,016 51

$ 15,658,856 58 $
583,813 97 862,959 71 527,063 26 585,395 88 1 970 866 46 156,951 78 1,995 501 82 624,653 13
99 621 40 227,296 70
61 264 04 199 282 87
213,268 78 35 149 44
$ 23,801,945 82 $
$ -1,042,01369 $

1660,26560
266,126 39 180,971 96
2,14317 1 730 00
7 887 15 65,113 63
7,430 56 1,483,214 85
53,995 06 2 004 94
3,730,883 31
7 133 20

$ 1,401,76566 $ -18 514 23
s 1 383 251 43 $

$

341,237 74 $

4,900,553 44

18 514 23
18,514 23
25 647 43 48,932 81
-3 570 10 -2 849 64

FUND BALANCE JUNE 30

$

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

.4.

524179118 $

68160 50

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

!Memorandum O!]!:j)

YEAR ENDED

JUNE 30, 2002

JUNE 30. 2001

s

861 865 00

2 970 360 34 s
108 680 00

s 3 940 905 34 $

s
1,13023

15 593 326 82 s
2 078 162 69 11,234,801 84
1.533,692 86

14,342,685 24 1,994,828 36
11274,127 99 1 970 412 92

1 130 23 $ 30 439 984 21 $ 29,582,054 51

$ 17,319 122 18 $ 15,392 663 37

s

233,90860

341,304 60

849,940 36 1,043,931 67
527,063 26 587,53905 1,972,596 46 390,860 38 2,003,388 97 689,766 76
99,621 40 234,727 26 1 544,478 89 540,587 47

661 230 33 1,267 452 46
504 971 82 621,15868 1 759,168 18 188,07515 1,887 470 80 1,534,11412
95 860 38 238,047 92 1 448,435 76 2,317 069 74

s 1,570 000 00 292 573 75

1 837,263 84 329 728 13

2 363,53568 437 374 80

s

575 213 20 $ 1,862,573 75 s 29 970 616 08 $ 30,716,629 19

s 3 365 692 14 $ -1 861 443 52 s

469 368 13 $ -1 134 574 68

$
s 9 250 000 00
96400 90
-1 401 765 66
s 7 944 635 24 $

31,614 24 s

31 614 24

31 614 24 s

9,250,000 00 96,400 90
s
1,420,279 89 -1 420 279 89
9 378 01514 s

87645913 2,251 152 92 -2,251,152 92
876 459 13

s s 1131032738

-1 829,829 28 s

781,005 48

3,807,943 68

9,847,383 27 $ 9,538,435 41

-258,11555 9 792 618 61

10 017 66

-10 017 66

-3,570 10 -2,849 64
000

5 536 29 -1 603 94

$ 12,101,350 52 $ 1 968 096 74 S 19 379 398 94 $ 9 538 435 41

-5-

CIJY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - fNON-GAAP BASIS)
GENERAL AND SPECIAL REVENUE FUNDS YEAR ENPEP JUNE 30 2002

EXHIBIT"C"

GENERAL FUND

BUDGEl

ACTUAt

REVENUES
State Funds Federal Funds
T.Other Funda
Total Revenues

s 13 042 594 00 s 13 638 812 03

7 943 101 00 830 MS 00

8 263 311 27 857 808 83

s 21 818 540 00 s 2217591932 13

EXPENPITIJRES

Cummt lnstruct10n SupportSeMces Pupil SeMces Improvement of lnslnJCbonal Services Educational Media ServlCes General Adm1n1stre!Jon School Adlll1nistrah0n Business .A.dm1rnslrabon Mallltensnce and Operabon of Pl.ant Student Trenaportabon ServlC8S Cen1rel Support Services Other Support Services Food ServlO!la Operation
Capltal Outlay Debt ServlO!I
TOUll Expenditures
Excess ot Revenues over (under) Expenditures
OTHER FINANCIN~ SQUBCES (USESl
OtherSourc:&S Other Uses
TotBI Other Finanong Sources (Uses)

s 15 422 358 00 s 15,658,858 58

367 525 00 908 295 00 528 401 00 549 562 00 1 1!!125 346 00 150 275 00 1 932 209 00 917 565 00 108 922 00 257 535 00
85,873 00 267,773 00

!583,813 97 862 959 71 527 003 26 585,395 88 1,910 886 ,4e 158,951 78 1,995 501 82 624,653 13
99,821 40 22.7,296 70
61 284 04 199 282 87 2-48 418 22

s 23,299,639 00 s 23 801 945 82

s -1 483 099 00 s -1 042 013 69

s 1 401 785 66
-18 51-4 23
s 1 383 251 43

Excess of Revenues snd Other Fmancng Sources over (under) Expenditures and Other Financmg Uses

s -1 483 099 00 s

341 237 7,4

FUND BALANCE JULY 1 2001 (Restated- See Note 11

5 054 456 71

-4,900 553 44

Food Inventory - Net Change tn Penod Donated Commodities PlJ<ChasedFood

FUND BALANCE JUNE 30 2002

S 3 571 357 71 S 5 2-41 791 18

SPECIAL REVENUE FUND

BUOOEl

AClUAL

s 1,049 561 00 s 1092649 79

1 895 978 82

2 078 162 69

646 87!5 00

567 204 03

s 315921412 82 s 3 738 016 51

s 1 552 875 82 s t 660 265 60

250 643 00 207 968 00

266 126 39 180 971 96

6 191 00 1 730 00

2 143 17 1,73000

9 000 00 58,995 00

7,887 15 65,11383

8 700 00 1496,51000

7,'30 56 1 ,483,21-4 85

56 000 00

s 3 592 412 82 s 3 730 883 31

s

000 s

7 133 20

s 18 514 23

s 18 514 23

s

0 00 s 25 647 43

38 774 05

48 932 81

-3 570 10 -2 849 84

s 38 774 05 S ___BB,...tB_D_.,50._

The note:a to the general-purpose tinanaal statements are sn llllegral part of tht8 statement -6 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002

EXHIBIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Carrollton Board of Education (School D1stnct) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board The School D1stnc1 1s organized as a separate legal enllty and has the power to levy taxes Accordingly, the School D1stnct 1s a pnmary government and consists of all the organizallons that compose its legal enllty
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial posillon and the results of Its operallons Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transacllons related to certam governmental funct10ns or act1v11Ies A fund 1s a separate accounting entity with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountability for certain assets and liab1lit1es 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 llme of purchase A General Fixed Assets Account Group is not presently maintained by the School D1str1ct To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintamed for reporting the cost of assets acquired by governmental fund types.
Although "school acllvity accounts" are maintained at the individual schools, neither the assets. hab1h11es 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 pnnc1ples, 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 School Distnct, in compliance with generally accepted accounting pnnc1ples 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 the School D1stnct"~ educat10nal ac1Iv11Ies Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School Distnct 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 restncted to expenditures for ~pec1fied purpo~es. These funds are received pnmarily from the Georgia Department of Educat10n and from the Federal government to accomplish specific educat10nal objectives
-7-

CITY OF CARROLLTON BOARD OF EDUCATION CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002

EXHIBIT "D"

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the
acquistt1on or construction of major capital fac1httes
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term pnncipal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgation debt outstanding and capital lease obligations
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus All governmental funds are accounted for using a current financial resources measurement focus With this measurement focus, only current assets and current liabilities generally are included on the balance sheet Operating statements of these funds present increases (1 e., revenues and other financmg sources) and decreases (i e , expenditures and other financing uses) in net current assets Their reported fund balance ts considered a measure of available spendable resources
L1ab1hties which are expected to be financed from available spendable resources are reported as hab1ht1es m 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 of accounting under which
Revenues are recognized when susceptible to accrual (1.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 penod or soon enough thereafter to be used to pay liabihlles of the current penod. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be 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 donattons. Revenue for property taxes 1s recogruzed in the fiscal year for which the taxes are levied Revenue from sales taxes 1s recognized in the fiscal year the resources are received or susceptible lo accrual Revenue from grants and donations is recognized m the fiscal year in which all eligibility requirements have been satisfied
Expenditures are generally recognized when the related fund Jiabihty 1s incurred.
A ~ubstantlal number of personnel of the School Distnct were employed for a one hundred and nmety day penod beginning in August '.2001 and ending in early June 2002. Employment contracts for these employment periods typically specify that compensatton be paid in twelve equal monthly payments beginning in September 2001 and endmg in August '.2002 State grants to fund the State's
-8-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
share of these contracts are disbursed to the School D1stnct in the same twelve month penod In accordance \\1th generally accepted accounting pnnc1ples, salary and fnngc benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal penod covered by these financial statements.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In pnor years, the School D1stnct's After School Program was reported as "Other Programs" in the Special Revenue fund This fund had a fund balance of$16,279 09 at June 30,200 I For fiscal year 2002, this fund has been reported as a part of the General Fund The fund balance at July I, 2001, has been restated as appropriate.
BUDGET
The City of Carrollton Board of Education's budget 1s a complete financial plan for the School Di~tnct's fiscal year and 1s based upon estimates of expenditures together with probable funding sources. There 1s no statutory proh1b1t1on regarding overexpendnure ofthe budget at any level. rhe budget for all governmental funds 1s prepared by fund, funct10n and object The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting pnnc1ples.
The budget process begins when the School D1stnct's adm1mstration prepares a tentative budget for the Board's approval. After approval ofth1s tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulat10n in the locality At the next regular meeting of the Board after advertisement. the Board receives comments on the tentative budget, makes rev1s1ons ~ necc~sary and adopts a final school budget This final budget 1s then submitted, in accordance with prov1s10ns of the Quality Basic Education Act, OCGA Sect10n 20-2-167(c), to the Georgia Department of Education. The Board may inerease or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents con~i~t ofcash on hand. demand deposits and short-term investments with onginal matuntles of three months or less from the date of acquisition in authonzed financial inst1tut10ns Georgia Laws OCGA 45-8-14 authorize the School D1stnct to deposit its funds in one or more solvent banks or insured Federal ~vmgs and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonpart1c1pating mterest-earnmg contracts (such a~ certificates ofdeposit) and repurchase agreements arc reported at cost Participating mtercst-earmng contracts and money market investments with a maturity at purchase ofone year or less are reported
-9-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002

EXHIBIT "D"

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
at amortized cost Both partic1patmg mterest-eammg contracts and money market mvestments With a matunty at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authonzes the School District to mvest its funds and m selectmg among opt10ns for mvestment or among mst1tut1onal bids for deposits, the highest rate of return shall be the obJect1ve, given eqwvalent conditions of safety and liqwd1ty Funds may be mvested m the followmg:
( 1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully msured or guaranteed by the United States government or a United States government agency.
(4) Obligations of any corporalton of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool admmistered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgat10ns of other political subdivisions of the State of Georgia
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available Receivables are recorded when either the asset or revenue recognit10n critena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollectible receivables
PROPERTY TAXES
The City of Carrollton City Clerk fixed the property tax levy for the 2001 tax digest year (calendar year) on September 17, 2001 (levy date). Taxes were due on December 20, 2001 (hen date) Taxes collected withm the current fiscal year or Withm 60 days after year-end on the 200 I tax digest a1 c reported as revenue m fiscal year 2002. The City of Carrollton City Clerk bills and collects the property taxes for the School D1stnct and remits the balance of taxes collected to the School D1stnct Property tax revenue~ during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $8,263,3 I I 27

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 2001 tax year (calendar year) for the City of Carrollton Board of Educat10n w~ as follows (a mill equals $1 per thousand dollars of assessed value)

School Operat10ns

~mills

SALES TAXES

Special Purpose Local Opt10n Sales Tax revenue dunng the year amounted to $2,971,490 57 and 1s to be used for capital outlay for educational purposes or debt service This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

The City of Carrollton Board of Education utlhzed $504,116.25 in Special Purpose Local Opt10n Sales Tax (SPLOST) proceeds for payment of$315.000.00 m principal and $189,116.25 m interest of the City of Carrollton's (City Government) general obligation bond debt m accordance with SPLOST project expenditure requirements.

The City of Carrollton sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of a Special Purpose Local Option Sales Tax (SPLOST) In fiscal year 2002, the School District provided $1,358,457 50 ofSPLOST proceeds to the City Government for debt service on said general obhgallon debt

INVENTORIES

FOOD INVENTORIES Inventones of donated food commod1t1es used in the preparation of meals are reported on the Combined Balance Sheet at theu Federally assigned value. Purchased foods inventones are reported on the Combmed Balance Sheet at cost (first-in, first-out) Donated food comrnod1t1es are recorded as revenues and expenditures at the time commodity items are received Purchased foods inventones are recorded as expenditures at the time of purchase. The inventones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservat10ns of fund balance which indicates that these amounts do not constitute "ava1lable spendable resources" even though they are a component of net current assets

INTERFUND TRANSACTIONS

The School D1stnct has the following types of mterfund transactions

Reimbursements of expenditures imtially made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg fund and as reducllons of expenditures m the fund that 1s reimbursed

Residual equity transfers are recorded for nonrecurring or nonroutme permanent transfers of eqmty

- 11 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002

EXHIBIT "D"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captmned "Memorandum Only" to indicate that they are presented only to fac1htate financial analysis Data in these columns do not present financial position or results ofoperation:, in conformity with generally accepted accounting pnnc1plcs 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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the pubhc funds being secured after the deduction ofthe amount ofdeposit insurance Ifa depository elects the pooled method (OCGA 45-8-13. I) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpubhc 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 d1scret10n, waive the requirement for secunty m the case ofoperating funds placed in demand deposit checking accounts
Acceptable security for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporatmn,
(3) Bonds. bills, notes, certificates of indebtedness or other direct obhgations of the Uruted States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or munic1pal1t1es of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authonlles created by the laws of the State of Georgia, and
- 12 -

CITY OF CARROLLTON BOARD OF EOUCATION - CARROLL COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT "O"

Note 2 DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obhgatJons of a subs1d1ary corporation of the Uruted States government, which are fully guaranteed by the United States government both as to principal and mterest 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 Nat10nal Mortgage Association.

CA"! EGORJZATION OF DEPOSITS At June 30, 2002. the bank balances were $17,921,281.80. The amounts of the total bank balances arc classified into three categories of credit nsk

Category I - Cash that 1s msured (e g. Federal depository insurance) or collaterahzed with secuntles held by the School D1stnct or by the School District's agent in the School District's name
Category 2 - Cash collateral1zed with secunt1es held by the pledging financial institution's trust department or agent m the School Distnct's name.
Category 3 - Uncollateral1zed deposits. (This includes any bank balance that is collateral1zed with securities held by the pledgmg fmanc1al mstitullon. or by its trust department or agent but not m the School D1stnct's name )

The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows

Risk Category

Bank Balance

I

$ 131,614.24

2

0.00

3

17.789.667 56

Total

$I7.921,281,8-0

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the fair value of the School D1stnct's total mvestments was $2,572,5% 80 and this entire amount consisted ofU. S Treasury money marl.et mutual funds which are not reqmred to be classified by categones of credit risk

Note 3 NON-MONETARY TRANSACTIONS

The School D1stnct receives food commod111es from the Uruted States Department of Agnculturc (USDA) for school breakfast and lunch programs. These commodities are recorded at theu Federally ass1gne<l value See Note 1 - Inventories

- 13 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2002

EXHIBIT "D"

Note 4 RISK MANAGEMENT

The School District is ei.posed to various nsks of loss related to torts: theft of, damage to, and destruction of assets, errors or omissions, Job related illness or inJunes lo employees; acts of God and unemployment compensation.

The School D1stnct has obtained commercial insurance for risk of loss associated with torts. assets. errors or omissions and Job related illness or injunes to employees. The School District has neither s1gmficantly reduced coverage for these nsks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to acts of God The School
D1stnct has not expenenced any losses related to this risk in the past three years

The School D1stnct is self-insured with regard lo unemployment compensation claims. The School D1stnct accounts for claims within the General Fund with expenditure and liab1hty being reported when It 1s probable that a loss has occurred, and the amount ofthat loss can be reasonably esumated

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

2001 2002

Begmnmg
of Year
L1ab1hty

Claims and Changes m Estimates

$

0 00 $ 5,736 Q!! $

$

000 $

170 00 $

Claims Paid

End of Year
L1ab1hty

5 736 00 $

0 00

170 00 $

0 00

The School District has purchased surety bonds to provide addiuonal msurancc coverage as follows

Pos1t10n Covered

Amount

Superintendent Board Treasurer Each Prmc1pal Each Cafetena 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 vanous lease agreements as lessee for classroom computer equipment and buses These lease agreements qualify as capital leases for accountmg purposes and, therefore. have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

- 14 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002

EXHIBIT "D"

Note 5. GENERAL LONG-TERM DEBT

CITY OF CARROLLTON DEBT PROCEEDS The School District entered mto a Jomt resolution with the City of Carrollton, Georgia (City) whereby the City issued $6,000,000 00 of 1998 Senes general obligat10n debt and $9,250,000 00 of 2002 Senes general obhgat10n debt on behalf ofthe School Distnct to finance the cost of acquinng, constructmg, renovatmg, mod1fymg, 1mprovmg, extendmg and eqmppmg capital outlay proJects throughout the School District The School D1stnct has agreed that Sales and Use Tax proceeds ~uffic1ent to retue the principal and mterest will be placed m escrow to service the debt.

1 he changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as
follows.

Capital Leases

City of Carrollton Debt Proceeds

Total

Balance July 1, 2001

$ 727.759 72 $ 2,570,000 00 $ 3,297,759 72

Add11Lons GO Bonds

9,250,000 00 9,250,000.00

Deducllons Payments
Balance June 30, 2002

267,263.84 1,255,000 00 1,522,263 84
$ 'l~Q ~2:i.88 $H!,5!i5,!!QQ,QQ $II .!!~5.~2~..8.&

At June 30, 2002, payments due by fiscal year wluch mcludes pnncipal and mterest for these Items are as follows

Fiscal Year Ended June 30
2003 2004 2005 2006 2007 2008 - 2009
Total Pnncipal and Interest
Deduct Imputed Interest

Capital Leases

City of Carrollton Debt Proceeds

Total Debt

$ 248,418.22 $ 1,666,334.58 $ 1,914,752 80

248,418 22

325,175 00

573,593 22

1,795,175 00 1,795,175 00

1.908,037 50 1,908,037.50

2,032,225 00 2,032.225 00

4,389,275 00 4,389,275 00

$ 496,836.44 $12,J 16,222.08 $ I2,!iJ3,Q58,52

36,340 56

Net Present Value of Future
Mm1mum Lease Payments $ 460,425.88

- 15 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

Note 6 ON-BEHALF PAYMENTS
The School D1stnct has recognized revenues and expenditures in the amount of $279,8% 27 for health msurance and retITement contnbutions paid on the School District's behalf by the following State Agencies.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified PersoMel In the amount of $241,824 27
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Pubhc School Employees Retuement (PSERS) Employer's Cost In the amount of$38,072.00
Note 7 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 School District believes that such disallowances, if any, will be immaterial to its overall financial pos1tmn
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substanually all teachers, admm1strative and clerical per.,oMel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, d1sab11ity retirement and survivors benefits for its members m 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 School Distnct who are covered by TRS are reqmred by State statute to contnbute 5% of their gross earnings to TRS. The School District makes monthly employer contnbuuons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by theu mdependent actuary The required employer contribution rate is 9 24% and employer contribuuons 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. 2002

EXHIBIT "D"

Note 8 RETIREMl:'.NT PLANS
Fiscal Year
2002 2001 2000

Percentage Contributed
100% 100% 100%

Required Contnbution
$ 1,372.529.60 $ 1,540,260 57 $1,472,253 81

- 17 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
lnventones Food Donated Commod1t1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

111,69305

14,463 32 $

160,308 72

23,155 26 4 120 18

Total Assets

$

153431 81 s=~-1s.o...3._0_8_.1...,2

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable
Total l.lab1ltt,es
FUNDEOUITY
Fund Balances Reserved For lnventones Food Donated Commodrttes Purchased Food Unreserved Undes19nated
Total Fund Equity

$

38,860 05

$

18,533 41

26,63549

66,737 90

94,81318

$

85 271 31 $

160 308 72

$

23,15526

4,120 18

40 885 06 $

000

$

68 160 50 s

000

Total L1ab1ht1es and Fund Equrty

$

153 431 81 $ =-1='6_0_308=_.7_2_

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

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

111,69305 $

201,49303

$

418,384 01

593,156 05

609,627 80

23,155 26 4 120 18

26,725 36 6 969 82

$

41838401 $

732124 54 s~-=844=-_e_16._o..1,,,

$

306,502 66 $

345,362 71 $

491,522 67

24,52117

69,690 07

65,343 03

87,202 24

248,753 32

238,537 80

157 94

15794

47970

$

418 384 01 $

663 964 04 $

795,883 20

$

23,15526 $

26,725 36

4,120 18

6,969 82

40 885 06

15 237 63

$

000 $

- - - - - - 68 160 50 $

48 932 81

$

41838401 $

- - - - - 732 124 54 $

844 816 01

- 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. 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstructJon Support Services Pupil SeMces Improvement of Instructional S8MC8s General Admmlstrabon School Adm1mstrat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food SeMces Operabon
Debt SeMce Pnnclpal Interest
Total Expendrtures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other F1nancmg Sources over (under) Expenditures
FUND BALANCE JULY 1 (Restated - See Note 1)
Food Inventory - Net Change on Penod Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30
See notes to the genera~purpose financial statements
- 20 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

107.840 00 $

822,449 58

567,204 03

$ 1,497,493 61 $

984,809 79 984 809 79

$

810,624 29

93,48717 9,074 13 47320

$ 1,471,846 18

7,887 15 12,919 50
1,45245 11,36867

53,995 06 2 004 94

$ 147184618 $ 1,003,286 56

$

25,647 43 $

-18,476 77

18 476 77

$

25,647 43 $

000

48,932 81

000

-3,570 10 -2 84964

$ sa 1so 50 s=~_.....o__oo_

EXHIBIT "F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,092,649 79 $

923,280 77

$ 1,255,71311

2,078,162 69

1994,82836

567 204 03

505 021 70

$ 1 255 713 11 $ 3,738,016 51 $ 3,423,130 83

$

849,641 31 $ 1,660,265 60 $ 1,441,363 23

172,639 22 171,897 83
1,669 97 1,73000
52,19413 5,978 11

266,126 39 180,971 96
2,143 17 1,730 00 7,887 15 65,11363 7,430 56 1,483,214 85

311,629 71 218,876 41
3,114 45
8,624 76 61,448 91
5,571 09 1,380,160 73

53,995 06 2 004 94

71,051 04 4 298 96

$ 1,255,750 57 $ 3,730,883 31 $ 3,506, 139 29

$

-37 46 $

7,13320 $

-83,008 46

3746

18 514 23

75 903 31

$

0 00 $

25,647 43 $

-7,10515

0 00

48,932 81

52,10561

-3,570 10 -2 849 64

5,536 29 -160394

$

000 $

68 100 50 $ ==-48=9_32_8_1_

- 21 -

CIJY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Reta:nages Payable
Total L:ab:ht:es FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Pr<>j8ds Unreserved Undes,gnated Total Fund Equ:ty
Total L:abrl:bes and Fund Equ:ty

REGULAR

BOND PROCEEDS

$

000 $ 2,134,136 35

7,000,000 00

$

000 $ 9,134,136 35

$ 9,134,136 35

$ _ _ _---'0"-00~

$

000 $

000 9,134,136 35

$

000 $ 9 134 136 35

See notes to the genera~purpose financial statements - 22 -

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

000 $

2,191,930 48 $ 4,326,066 83 $ 1,084,857 67

266,991 80

7,266,991 80

508,291 89

508,291 89

$

000 $ 296721417 $ 12,101,35052 $ 1 084 857 67

$

245,737 39

58114 80

$ _ _30~3~,8=52~19~

$
$ 2,967,214 17
$ _ _ _ _~0~00~ _ _ _ _ _0~00~

9,134,13635 $ 2,967,214 17
000

781,00548 000

$

000 $ 296721417 $ 12,101,35052 $ _ _7~8~1~00=5~4~8~

$

000 $ 2,967.21417 $ 12.101.35052 $ 1,084,857 67

- 23 -

CITY OF CARROLLTON BOARD Of EDUCATION - CARROLL COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENOED JUNE 30 2002

REVENUES
State funds Taxes Other funds
Total Revenues
EXPENDITURES
Current Support Services Business Adm1rnstrat1on
Capital Outlay Profess10nal and Technical Services Building and Bu1\d1ng Improvements Equipment
Total Expendrtures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES CUSESl
Premiums on Bonds Sold Proceeds from General Obhgallon Bonds
Par Value Operating Transfers In Operabng Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures and Other financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

000 $

2164405

$

000 $

2164405

$

000 $

233.908 60

$

000 $

233,90860

$

0 00 $ -212,264 55

$

96,400 90

9,250,000 00

-78100548

$ 8,565,395 42

$

000 $ 8,353, 130 87

000

781,00548

$

000 $ 9 134 136 35

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

861,865 00

$

861,865 00

$ 2,970,360 34

2,970,360 34

1 199 78

85 836 17

108,68000 $

863 064 78 $ 3,056.196 51 $ 3,940,905 34 $

85 218 75 85 218 75

$

233,908 60

$

35,890 58 $

69,000 00

236,414 02

104,890 58 236,414 02 $

1,940,291 19 12444105

$

2n,304 60 $

69 000 00 $

575,213 20 $ 2,004,732 24

$

590 760 18 $ 2,987,196 51 $ 3,365,692 14 $ -1,979,513 49

$

811,005 48

-1 401 765 66 $

$

-590 760 18 $

$

96,400 90

-30,000 00

9,250,000 00 811,005 48 $
-2 212 771 14

-30 000 00 $ 7,944,635 24 $

2,175,249 61 2,175,249 61

$

000 $ 2,957,196 51 $ 11,310,327 38 $

195,736 12

000

0 00

781,005 48

585,269 36

10 017 66

10 017 66

$

0 00 $

s_ _ 2 967 21411 $ 121101 1350 52

1:.0"'1"'00=5~4,,;;s;;..

- 25 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
SCHEDULE OF EXPENDiTURES Of FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agncullure U S Departmem of Child Nutnt.Jon Cluster Pa!os-Tuough FfOm Georgia Department of Educa\1on
Food and Nutrition Prog rem Food Services School Breakfast Program
National School Lunch Program
Total Child NutrtUon Cluster
Other Programs Pass-Through From Georgla Department of Education Food and Nutrttlon Program Food Drstnbut10n Program ( 1)
Total U S Department of Agnculture
Educabon u s Department of Special Education Cluster Pass-Through From Georgia Department of EducatJon lndNldl.1816 wrth Disabdrttes Education Ad Part B - Spaaal Educabon Capaaty Building lmprovemen1 Flow Through Preschool
Total Special Education Clu,ter
Other Programs Pass-fuough From Georgia Department of Education
Elementary and Secondary Education Act TIHo I Grants to Local Educatlonal Agencies
Title II
El$enhower Profesa:ional Deveklpment Tillo Ill
Technology Lrterecy Challenge Fund Grants TIIJeVI
lmovaUve EducaHon Program Strategies Class Sae Reductzon Goals 2000 State and Local Education Systemtc Improvement Grants Safe and Drug-Free Schools and Communities Stewan B McKinney Homffless Assistance Act Educ:abOn for Homeless Children and Youth Vocational Educabon - Beak; Grants to States High Sdlool Program Basic: Grant
Total U S Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

$ 164,584 97

(2)

NIA

580 106 75 $ 1,394 088 32 (3)

$ 74-4,691 72 $ 1 394,088 32

10 550

NIA

TT757 86

TT757 86

$ 822,4-49 58 $ 1 471 846 18

84 027 84027 84 173

NIA

$ 10,048 52 $

NIA

458,656n

NIA

39,585 14

$ 508 290 43 s

10,049 50 (3) 458,891 37 (3)
39,587 02 (3)
508,327 89

84 010 84281 84 318 84 298 84 340
84278 84186 84 198
84 048

NIA

480,430 94

480430 94

NIA

1254 97

125497

NIA

13 279 00

13,279 00

NIA

19 039 73

19 039 73

NIA

74 828 00

74,828 00

NIA

78,337 04

78 337 04

NIA

14,375 00

,. 375 00

NIA

30,000 00

30,000 00

NIA

35 860 00

35 860 00

$ 1,255,713 11 $ 1,255 750 57

Total Federal Fmandal Aaslstanc:e NIA Not Available

-26 -

2 727 598 75

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1"

Notes to the Schedule ot Exoenchturu of Federal Awardn
(1) The amounts Shown for the Food Dtstnbutlon Program represents the Federally assigned value of nonmonetary ass1!tance for donated commodlbes recetved and/or consumed by the system durlng the current flscal year
(2) Expenditures for tile School Breakfast Program were not maintained separately and are rncluded m the 2002 Nabonal School Lunch Program
(3) Expernhtures for thts program Include State and/or Other Funds Expenclllures are not ma1nta1ned by fund aource
Ma1or Programs are Identified by an uterisk r) m hont of the CFDA number
The Sdlool Oastnd did not provide Federal Assistanc:e to any Subredpkmt
The accompanying sc:heclule of expend:11ures of Federal awards mctudes the Federal grant actMty of the Qty of Carrollton Board of EducatK>n and I! presented on the modified acaual basis of accounting which IS the bastS of accounting used In the presentation of the general-purpose finanaal statements

See notes to the general--purpoge financial statements

- 27 -

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCYIFUNPING
GRANTS Educabon ~ Department ol
Quality Basac Educabon
Direct lnstruc:bonal Cost Kmde1vor1en Program Kindergarten Program - Early lntervenoon Prognlm Pnmary Gradeo (1-3) Program Pnmary Grades - Earl)' lntervenhon (1-3) Program Upper Elemon1ary Grades (4-5) Program Upper Elemen1ary Gredoo (4-5) Early ln1erven11on Program Mlddlo School (~I f>rogom H,gh School Genenil Educat,on (l>-12) Program Vocanonal Leboratory (l>-12) Prog,,.,, Students wrth D1sabllmes Cll1egory I Cll1ogory II C01egorylll C"1egorylV Cll1egory V G"'9d Student - Category VI RemedL!II Educabon Program Memabve Educabon Program Eng,,h Speokers of Other Languegeo (ESOL)
Media Center Program 20 Daya Addrtlonal lnstrucbon Staff and Profealonal Development Indirect Cost Deferred Sunmer Selane& (Pnor Year} Deferred Summer Salanes (Cumtnt Year} Cll1egor1cal Grants Pupil Tranapo,tanon
Regulllr BusR8!J(aalrnent Sparwty - Altemabve Program Nln1ng SerVlces Pnnapal s....,Ae,oent:s Voc:abona1 Supervisors Education Equ-allzatton Funding Grant FoodSeMcet Other State Programs E><tended Dey-Technology/Career Gradea 4-8 StateWlde After School Program Heeltl"I lnlUf'Snce K-3 S,.,_ Reading Program MomorTeechers National Teacher CerbfJCabon Poot Secondary OpliOn - Spnng Preschool Hendlcapped Program VIX8bon81 Construchon Related Equipment Lottery Prograrne AN<st,ve Technology Computera ., the C1assroom
Georgia State Ftnanemg and Investment Comm,won Reimbursement on Conatrucbon Pro,ect5
Office of School Reachne:ss Pre-Kr,dergarten Program
Office of Treasury end Fl!Cal 5eMces PublK: School Employees Rebramen1

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s 854 556 00
215 937 00 15TT,68200
534 672 00 738 630 00
217 835 00 1 685 307 00 1 681 138 00
514 820 00
48 275 00 196 778 00 BOO 600 00 127 076 00
7B 626 00 634 319 00
12 484 00 148 183 00
28 699 00 298 341 00
90 500 00 57 929 00 1 864 022 00 -1 815 373 33 1 782 624 00

256 057 00 75 319 00 20 000 00 83 896 00
14 725 00 21 339 00 340 977 00
s

107 &40 00

25 968 00 31 879 80 241 824 27 42 085 40
1,98800 8 186 00
693 00 82 019 89 75 000 00

8,751 72 180 057 00

s 854 558 00
215 937 00 1 5TI,692 00
534,672 00 736 830 00
217 835 00 1 685 307 00 1,681 138 00
514,920 00
48 275 00 18677800 900 600 00 127,078 00
7B,626 00 634 318 00
12 "84 00 148 193 00 28 899 00 298 341 00 90 500 00 57 929 00 1 864 022 00 1 815 373 33 1 782 624 00
256 057 00 75 319 00 20 000 00 83 696 00 14 72500 21 339 00
340 977 00 107 840 00
25 866 00 31 879 80 241 824 27 42,085 40
1,989 00 6,186 00
693 00 82,019 89 75 000 00
8 751 72 160 057 00

38 072 00

s 861 865 00
816 001 07

861 865 00 816 001 07
38 072 00

See notes to the general-purpose flnanoal statements

S 1363881203 S 1109264979 S 86186500 S 1559332682 . 28.

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE QF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3'"

PROJECT
To pay the pnoopal and interest commg due on the outstanding Senes 1990 and Senes 1995 General Obl1gabon School Bonds of the City of Carrollton as the same come due on July 1 1998 through July 1 2003
Funding the acqws1bon, construd.Jon renovabon, modrficallon, 1mprovemen1, extending and eqU1pp+ng of capital outlay project> lhroughout the Carrollton School
Sysrem includmg but wrthout llrTVtation,
renovabons mod1ficabons improvements extenStOOS and equ1ppmg of taol1be8 at the
Carrollton High School to Jnducle a band
room, k1tdlen expansion and the addlbon
of a saence wing et the carronton Juruor High School to 1nciUCe a classroom
addrtion of regular dassrooms, soenc:e
dassrooms a technology laborator/ and a medra center- at the Carrollton Elementary
School to include a clas5room addlbon of regular da5srooms restrooms covered walkways anc improvements to the Maple Street Educatton Center 1ncluC1ng
the 8CQU1Slbon o1 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

S 291669750 S 291669750 S 50411625 S 1,47523375 Ongomg

12 743 302 50 12 743,302 50

341 304 60

9 161 312 02 Ongomg

S 1566000000 $ 15660,00000 S 84542085 $ 1063654577

(1) The School DIStnct's Of1Qlnal cost estnnate as specrfied an the resoh.lbon calling for the 1mposd:]on of the Local Optton SSles Tax

(2) The School 01sb"lct's current esbmate of total cost for the profeCtS lndudes all cost from pro,ect tncepbon to completJon
(3) The voters of Carroll County approved the 1mp0Sll:ion of a 1% sales tax to fund the above pro,ects and retire assooated debt Amounts expended for these pro,ects may include &ales tax proceeds state, tcx:al property taxes and/or other funds over the life of the prOf8dS

(4) In add1bon to the expend1b.JreS shown above the Sdlool D1stnd has incurred interest to provide advance funding for the above projects as follows

Pnor Years

$ 588 545 00

Current Year

103 457 50

Total

$ 692 002 50

See notes to the general-purpose flnanoal statements

- 29 -

CITY Of CARROLLTON BOARD OF EDUCATfON - CARROLL COUNTY
GENERAi, FUND - OUAllJY BASIC EDUCATION PROGRAM IQBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 3Q 2002

SCHEDULE "4"

DE SC Rf PTION
Direct lnstruebOnal Programs K111dergarten Program K111dergar1en Progrom-Eerty lmerventlon Program Pnmary Grades (1-3) Program Pnmary ~ r t y lnlorolei-, (1-3) Program Upper Elementary Grades (4-5) Program Upper Elemenlary Grades-Early lmervenbon (4-5) Program Middle School (8-8) Program High School General EducaUon (9-12) Program Vocational Labora1ory (9-12) Program
Students wtth D!$8.blhbes Calegory I Category II Ca1egorylll Ga1egorylV Category V
Gifted Studen1 - Category VI Remodlal EducabOn Program Allematlve Educabon Program Enghsh SpeakeB of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Profewonal Dei.elopmet 1I

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

s

s s 789,34<1 00

626,712 83

s 28 429 75

655,142 58

260,403 00

270,402 13

9 150 00

279,552 13

1 902,588 00

2,017 708 83

155 590 08

2 173,298 89

64477100

515 405 21

12 857 27

528 262 48

888,557 00

1 248 275.26

84,790 49

1 333 085 75

282 891 00 2,032 344 00 2 027 316 00
620 952 00 1 830 831 00
764 938 00 15 055 00
178 297 00 34 609 00

182 379 73 2 184 386 01 2 537,827 03
51931589
247,514 DO 1 195 681 83
134,732 88 65,832 59 372,78244 39.288 54 159,219 03 86,383 94

14 522 64 254,225 00 328 056 50
89,861 88
2,919 86 3 270 53 32,516 78 4,232 46 8 880 81 10 778 94
42,274 59

196,902 37 2 438 811 01 2,865 883 53
589 177 57
2 919 88 250 784 53 1,228198 59 138,965 18
94,51340 383 561 38
39 286 54 20149362
68 393 94

s

s s s 12 050 678 00 12 403,637 97

1,082,357 38

13,485 995 35

359 775 00 89 858 00

421,008 25 1158817

94 534 55 58 324 02

515 540 80 69 912 19

TOTAL QBE FORMULA FUNDS

s

12,480,309 00 S 12 838 232 39 S 1215215 95 S 14 051 448 34

(1) Composed of SUl1e Funds plus L - F:ve Mill Share

See notes to the gene,al-!UJ>088 flnanclaJ state11ie,1ts

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM /QBEl ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

SITE Carrollton Elementary School Carroltton High School Carroltton Junior High School Alabama Street Elementary School Central Office (AltematJve Education Program) Other Awahary Facilrty
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

5,715,536 00 $

6,204,232 01

3,281,135 00

3,991,018 33

2,877,708 00

3,085,095 73

179,802 23

176,297 00

5 847 05

$

12,050,676 00 $ 13,465,995 35

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

{U',St I I w. HI" rm,
STATF AUDI JQf-1
!40-.l 6!ro ,'\74

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street.SW Sullc 214
Atl.rnta, Gcorg1.1 30l34-8MJO
July 17. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Supermtendent and Members of the Ctty of Carrollton Board of Educatwn
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT or FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements ofCtty of Carrollton Board of Education as of and for the year ended June 30. 2002. and have 1s~ued our report thereon dated July 17. 2003 This report was qualified for vanous departures from generally accepted accountmg pnnc1ples. as identified m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted in the Umted States of Amenca and the ,tandards applicable to financial audits contamed m Government Audnmg Standards, issued by the Comptroller General of the Umted States
Compliance
As part of obtammg reasonable assurance about whether City of Carrollton Board of Educallon's financial statements are free of matenal m1s~tatement, we performed tests of its compliance with certam prov1st0ns of laws. regulatwns. contracts and grants. noncompliance with which could have a direct and matenal effect on the determmatlon of financial statement amounts However, prov1dmg an opm1on on compliance with tho,e provisions was not an obJectlve of our audit, and accordingly, we do not express such an optmon The results of our tests disclosed no mstances of noncompliance that are requ1red to be reported under Government J\ud1tmg Standards
Internal Control Over r manctal Rcportmg
In planmng and performmg our audit. we con,1dered Ctty ofCarrollton Board of Education', internal control over financial reporting m order to determine our auditing procedures for the purpose of expressmg our optmon on the financial statements and not to provide assurance on the internal
2002YB-4I

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operat10n that we consider to be a reportable condition Reportable cond1t10ns involve matters coming to our attention relating to s1gruficant deficiencies in the design or operat10n ofthe internal control over financial reporting that, in our judgment, could adversely affect City of Carrollton Board ofEducauon's ab1hty to record, process, summari.re and report financial data consistent with assert10ns of management in the financial statements The reportable cond1t1on 1s descnbed in the accompanying Schedule of Findings and Questioned Costs as item FS-7661-0201
A matenal weakness 1s a cond1t1on m which the design or operation of one or more of the intcmal control components does not reduce to a relatively low level the risk that m1~statemcnts in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely penod by employees in the normal course of performing their assigned funcuons Our considerat10n of the internal control over financial reporting would not necessanly 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, we consider item FS-7661-02-01 to be a matenal weakness
This report 1s intended solely for the informat10n and use of the management, members ofthe City of Carrollton Board of Education, Federal awarding agencies and pass-through entities and 1s not
intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
w~~
Hinton Sta e Auditor
RWHgp 2002YB-41

{u,~t.u W. HIN wr,
STATF AUDITOR (40,,I) 6'>fi 217A

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington ~treet. SW Suuc 214 AtlantJ, Georgia 30334-8400
July 17, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Member; of the City of Carrollton Board of Education
Rl-,PORT ON COMPLIANCE WITH REOUIREM[N1 S APPLICABLE TO 1-,ACH MAJOR PROGRAM AND ON INTLRNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of City of Carrollton Board of Education with the types of compliance requirements described in the US Office ofManagement and Budget (0MB) Circular A-133 Comphance Supplement that arc applicable to each of its maJor Federal programs for the year ended June 30. 2002 Cay ofCarrollton Board ofEducatwn's ma1or Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questwned Costs. Comphancc with the requirements of laws, regulations. contracts and grants applicable to each of1ts ma1or Federal programs 1~ the respons1b1hty of City of Carrollton Board of l:oducat1on's management Our respons1b1lity 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 Umted State~ of Amenca. the standards applicable to financial audlts contained in Government Auditing Standards. issued by the Comptroller General of the Umted States, and 0MB Circular A133, Audi/~ of States. Local Governments. and Non-Profit Orgamzatwns. Those standards and OMA Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the type~ ofcompliance reqwrcmcnts referred to above that could have a direct and material effect on a maJor federal program occurred An audit includes cxarmning. on a test basis, evidence about the City of Carrollton Board of Education's comphance with those requirements and perform mg ~uch other procedures as we considered necessary in the circumstance~ We believe that our audit provides a rea~onable basis for our opinwn Our audit doe~ not provide a legal determination on City of Carrollton Board ofEducatwn's compliance ..,th those requiremcn~
2002SA-10

In our op1mon, the City of Carrollton Board of Education complied, mall matenal respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002

Internal Control Over Compliance

The management of Cny of Carrollton Board of Education 1s responsible for establishmg and mamtaining effecuve internal control over compliance with reqmrements of laws, regulat10ns, contracts and grants applicable to Federal programs In plannmg and performmg our audit, we considered City of Carrollton Board of l:ducation's mternal control over compliance with requirements that could have a direct and matenal effect on a maJor Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opm10n on compliance and to test and report on mtemal control over compliance in accordance with 0MB Circular A-133

Our cons1deral!on of the mtemal control over compliance would not necessanly disclose all matters in the internal control that might be matenal weaknesses. A matenal weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with applicable reqmrements of laws. regulations, contracts and grants that would be matenal in relation to a major Federal program being audited may occur and not be detected withm a umely penod by employees in the normal course of performing the1r assigned functions We noted no matters mvolving the internal control over compliance and its operat10n that we consider to be matenal weaknesses

lb!, report 1s mtended solely for the information and use ofthe management, members ofthe City of

Carrollton Board of Educal!on, Federal awarding agencies and pass-through entitles and 1s not

--... intended to be and should not be used by anyone other than these specified parties Respectfully submitted,



RWH.gp 2002SA-10

Sta e Audnor

SECTION Ill
AUDIT[E'S RESPONSE ro PRJOR YEAR FINDINGS AND QUESTIONED COSTS

en y OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY
AUDITEE'S RESPONSE SUMMARY SCHEDULC OF PRIOR YEAR FINDINGS AND QUESTIONED COS IS
YEAR ENDED JUNE 30, 2002

PR1OR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7661-00-0 I FS-7661-01-01

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Frulure to Mamtam General Fixed Assets Account Group Fmdmg Control Number FS-7661-01-01

Due to current staffing hm1tations and budgetary cons1dcrallon proh1b1tmg the hmng of add111onal admimstranve stafT, the School D1stnc1 has decided not to pursue the recordmg of general fixed assets on the financial statements. We do, however, mruntam an up-Iodate mventory and plan to meet the GASB 34 reqmrements by fiscal year 2003

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNl Y SCHEDULI:: OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Fmanc1al Statements The auditor's op1mon on the City of Carrollton Board of Education's financial statements was qualified for various departures from generally accepted accounting prmc1ples
2 Reportable Conditions m Internal Control Disclosed by the Audit of the Fmancial Statements The audit report for the City ofCarrollton Board of Education disclosed a financial statement reportable condition related to the following control category.
General Frl(ed Assets
The reportable condition descnbed above 1s considered to be a matenal weakness
3 Noncompliance Matenal to the Fmanc1al Statements The audit of the City of Carrollton Board of Education disclosed no instances of noncompliance that were deemed to be matenal 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 cond1t10ns m mtemal control over major programs
5 Type of Report Issued on Compliance for Ma10r Programs The auditor's opmion on the City of Carrollton Board of Education's report on compliance with requirements applicable to major programs was unqualified
6 Audit Fmdmgs Required to be Reported by Sect10n 510(a) ofOMB Circular A-133 The City of Carrollton Board of Education's audit did not disclose audit findings required to be reported by section 510(a) ofOMB Circular A-133
7 Mmor 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 Nutnt1on Program- Food Serv1ces-Nat10nal School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300.000 00.
9 Low Risk Aud1tee The City of Carrollton Board of Education qualified as a low nsk aud1tee as defined by Scct10n .530 ofOMB Circular A-133
-I-

CITY OF CARROLLTON BOARD OF EDUCATION - CARROLL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Matenal Weakness Repeated From Prior Year Finding Control Number- FS-7661-02-01 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 pnnc1ples This condition results in the general-purpose financial statements of the School D1stnct being incomplete and not in accordance with generally accepted accounting principles Appropnate acl!on should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group These subs1d1ary records should mclude an mventory of land, buildmgs and equipment owned by the School District and should mclude, but may not be hm1ted to, date acquired, acquisition cost, estimated replacement cost, locat10n and descnption. Detailed records should be mamtained ofall additions and deletions to the General Fixed Assets Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2 -