City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

GA AgOo



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CITY OF CHICKAMAUGA BOARD OF EDUCATION
A COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA

REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor


CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLEOFCONTENTS-

SECTION I

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

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS -

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

SCHEDULES

1 SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

EXPENDITIJRE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

. BYPROGRAM

Page
2
4
7 8
20 22
24
26 28
30 31 33 34

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLEOFCONTENTS-
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
SECTIONllI AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ~Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV
.
FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS




SECTION I FINANCIAL

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RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-S400
June 27, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Chickamauga Board of Education
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 ofthe City ofChickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Chickamauga 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

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

2000ARL-13A

* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose fmancial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters
referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Chickamauga Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 27,
2001, on our consideration of the City ofChickamauga Board ofEducation'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 Chickamauga Board of Ed~cationtaken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13A

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the pres'~ ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
.-----R..e.s.pectfully submitted,

RWH:jb 2000ARL-13A

Ru sell W. Hinton
State Auditor


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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 2000

ASSETS

Cash and Cash Equivalents

Investments



Accounts Receivable

Inventories Food Donated Commodities Purchased Food

Amount to be Provided in Future Years For Payment of Capital Lease Agreements

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

159,672.36

$

443,338.94

73.83

9,019.96 5,562.99

Total Assets

$

443,412.77 $ ====17=4*,2=5.5.'.;;;;,31=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

10,164.09

153,221.06 $

4,477.09

31,825.05

4,664.53

$

163,385.15 $ _---:4::.::0:.c!9~.6~6.~67:-

$

3,983.02

9,019.96 5,562.99

$ _~2~8~0~,O~27~.6~2=-

114,722.67

$

280,027.62 $ _----:.:13::.:=3~!2~8~8.~64~

Total Liabilities and Fund Equity

$

443,412.77 $ _~17;.;;:4~,2~5~5.~31:...

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

35,150.94

1,066,940.55

378,880.45



ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

---",..,.-.,..~(Mernorand urn On Iy)~...,....,....~

JUNE 30, 2000

JUNE 30, 1999

$

194,823.30 $

303,369.82

1,510,279.49

1,981,002.68

378,954.28

87,489.25

9,019.96 5,562.99

5,761.25 6,718.05

______ $

6~4~,7:.....:1~4.~00::_

64,714.00

11 ,803.88

$ 1,480,971.94 $

64,714.00 $ 2,163,354.02 $ 2,396,144.93

$

10,164.09

157,698.15 $

101,085,52

31,825.05

26,672.29

$

145,830.40

4,664.53 145,830.40

2,088.46

53,768.10

53,768.10

$

64,714.00

64,714.00

11,803.88



$

199,598.50 $

64,714, .00 $

468,664.32 $

141,650.15 .

$

839,976.34

441,397.10

0.00

$ 1,281,373.44

$ 1,480,971.94 $

$

3,983.02 $

4,350.79

9,01~.96
5,562.99 839,976.34 441,397.10

5,761.25 6,718.05 1,491,827.68 365,496.04

394,750.29

380,340.97

$ 1,694,689.70 $ 2,254,494.78

64,714.00 $ 2,163,354.02 $ _ _2,396,144.93

- 3

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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

$ 4,785,646.02 $
338,328.21 281,856.91

93,069.77 258,696.72
409,366.66

$ 5,405,831 .14 $ _ _.:.7;:.61.:.l,.:.,:13::.:3:.:.1. .:.::5:...

$ 3,841,478.18 $
244.235.76 145.377.36 153.858.21 154,760.61 345.871.23 76,404.17 419.625.17
3,167.50

141.060.78 50,412.41 16.035.29
500.00 16.622.60
79,542.80 482.236.45

11.803.88 731.34

$ 5,384.778.19 $ _---:7:..::9:.::::8c:9:.::.;45~.5~5::...


$

21.052.95 $ _ _~-3~7~,8:...:.;12.~.::.;40::...

$

64,714.00

$

40.000.00

-33.913.00

-40,000.00

$

6.087.00 $ _ _~2:::::4:.t.:..7..,!;14:!.:.~00::...

$

27.139.95 $

-13.098.40

252.887.67

144.283.39

3.258.71 -1,155.06

FUND BALANCE JUNE 30

$

280,027.62 $ _ .....:.;13~3~.2;;;;;8,;;;,;8.,;;;,64~

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

_ _ _(Memorandum Onl'il

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

274,692.60 $ 5,153,408.39 $ 4,731,093.76

258,696.72

499,538.35

596,041.71

934,369.92

868,979.35

88,804.93

780,028.50

807,509.94

$

959,539.24 $ 7,126,503.53 $ 6,907,121.40

$ 3,982.538.96 $ 3,984,717.13

$

662.50

1.031.652.52

294,648.17 161,412.65 154.358.21 171,383.21 345,871.23 77.066.67 419.625.17 79,542.80
3,167.50 482.236.45 1.031.652.52

298,402.83 207,879.29 153.756.13 156,052.59 346,245.75
70.959.38 472,493.67
13,995.06 3.150.00
458.820.84 734,471.54

11,803.88 731.34

11.067.87 1,520.97

$ 1.032,315.02 $ 7,216,038.76 $ 6.913,533.05

$

-72,775.78 $

-89,535.23 $

-.::;6z..:,4.:.,11.:..:,.6:,:5:.,..



$

64,714.00

$

33.913.00

73.913.00 $

179.274.38

-537.087.50

-611 ,000.50

-693,169.38

$

-503.174.50 $

-472.373.50 $ _ _-:::.51:.,:::3:.r.::.8:::,95:::,.:.:.;00::...

$

-575.950.28 $

-561.908.73 $

-520.306.65

1.857.323.72

2.254,494.78

2.775.960.21

3.258.71 -1.155.06

-1.816.87 658.09

$ _ _1,281.373.44 $ _ ..1...694.689.70 $ _..:;2.254,494.78 -5-

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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL- (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT C"



REVENUES

GENERAL FUND

ACTUAL

BUDGET

(BUDGET BASIS)

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 Other Support Services Food Services Operation
Debt Service

$ 4,689,155.61 $ 4,785,646.02

19,544.00

322,000.00

338,328.21

153,000.00

281,856.91

$ 5,183,699.61 $ 5,405,831.14



$ 3,756,875.77 $ 3,841,478.18

220,319.00 156,866.00 150,400.00 141,917.77 360,640.14 72,110.00 507.465.00

244,235.76 145,377.36 153,858.21 154,760.61 345,871.23 76,404.17 419,625.17

3,400.00

3,167.50

Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINAl:l/CING SOURCES (USES)

$ 5,369,993.68 $ 5,384.778.19
$ -186.294.07 $ ....._=.21.!..:.0~5~2':2.95lL

Other Sources Other Uses
Total Other Financing Sources (Uses)

$

40,000.00

-

-33,913.00

$ _--.:6~,O::l::8~7.~00::..

Excess of Revenues and Other Financing Sources over (under) Expenditures and O1her Financing Uses $ -186,294.07 $

27.139.95

FUND BALANCE JULY 1, 1999

253.570.57

252,887.67

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

-664.05

FUND I2&6.NCE JU~E 30. 2000

$ _ ....6~6,612.45 $ 280,027.62

SPECIAL REVENUE FUND

ACTUAL

BUDGET

(BUDGET BASIS)

$

93,378.94 $

93,069.77

262,463.00

258,696.72

287,900.00

409,366.66

$ 643,741.94 $ 761,133.15

$ 107,919.94 $ 141,060.78

66,809.00 31,065.00
840.00

50,412.41 16,035.29
500.00 16,622.60

79,542.80

473,060.00

482,236.45 12,535.22

$ 679.693.94 $ 798,945.55

$ -35,952.00 $ -37.812.40

$

64,714.00

-40,000.00

$ _....::2:;;:;4,..:.7..:.;14~.0::::0::..

$ -35,952.00 $ -13,098.40

77,168.46

144,283.39

-1.424.41

3,258.71 -1.155.06

$

39,792.05 $ _..:o13~3,288.64

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

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

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The City ofChickamauga Board ofEducation (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City ofChickamauga Board ofEducation is detennined to be a component unit of the City of Chickamauga, Georgia, which is the primary government.

FUND ACCOUNTING

The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confonn 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.

Altpough "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 confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.

-

.

The general purpose financial statements account for all State, Federal, Taxes and Other funds under

control of the Board, in compliance with generally accepted accounting principles applicable to

governmental units, unless otherwise disclosed in these notes. Funds and the account group

presented in this report are as follows:

GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:

GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

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

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for 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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this

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

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
employment period specify that compensation be paid in twelve equal monthly payments beginning
in September 1999 and ending in August 2000. State grants to fund the State's share of these
contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar
expenditures and related revenues for contractual services completed prior to June 30, 1999, were
recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The City of Chickamauga Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure 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 on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at
least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe
Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and with the approval ofthe City Council adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA'Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS
Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws
OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

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

EXHffiIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVESTMENTS

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

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

(2) Obligations issued by the United States government,

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

(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 of other political subdivisions of the State of Georgia.

RECEIVABLES

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

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

EXHffiIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The City of Chickamauga fixed the property tax levy for the 1999 tax year (calendar year) on November 16, 1999 (levy date). Taxes were due on February 25,2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Chickamauga City Clerk bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the City ofChickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

9.56 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $596,041.71 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $2,151,203.31 has been collected or on June 20, 2002, whichever occurs first.

The City of Chickamauga (City Government) 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 2000, the Board of Education provided $537,087.50 of SPLOST 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 Ballince 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 net current assets.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

- 12-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face . value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
- 13-

CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

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

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

CATEGORIZATION OF DEPOSITS
At June 30, 2000, the bank balances were $935,410.43. The amounts ofthe total bank balances are
classified into three categories of credit risk:

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

The Board's deposits are classified by risk category at June 30, 2000, as follows:

Risk Category

-

1



2

3

Bank Balance
$ 100,000.00 0.00
835,410.43

Total

$ 935&IQ.43

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by' the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the

Board's name.

Category 2 -

Uninsured or unregistered, with .securities held by the counterparty's

trust .

department or agent in the Board's name.

Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its

trust department or agent but not in the Board's name.

- 14-

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

EXHIBIT "D"

Note 2: DEPOSITS AND INVESTMENTS

At June 30, 2000, the carrying value of the Board's total investments was $1,066,940.55. The investments are classified as to risk categories as follows:

Type of Investment
u. S. Government

Risk Categories

1

2

3

Carrying Amount

Fair Value

$.=====o!!=!.o~o $ 3Q3.lQA.80 $====O~.O~O $ 303,104.80 $ 303,104.80

Local Government Investment Pools

Total Investments

763,835.75 763,835.75
$.....1 .066,940.55 $-.1 ,Ogp,94.0.55

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value), Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1,00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days, The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.



- 15 -

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

EXHIBIT "D"

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

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

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims, The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not experienced any unemployment claims during the last two years,

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

Position Covered

Amount

Superintendent

$ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The City ofChickamauga Board ofEducation has entered into a lease agreement as lessee for a bus purchase. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

- 16-

CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS . JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

Balance July 1, 1999

$ 11,803.88

Additions Capital Leases

64,714.00

Deductions Payments

11,803.88

Balance June 30, 2000

$

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

Fiscal Year Ended June 30

Capital Leases

2001 2002 2003 2004 2005

$ 20,000,00 13,022.48 13,022.48

13,022.48 13,022.48

Total Principal and Interest -

Deduct: Imputed Interest

$ 72,089,92 7,375.92

Net Present Value ofFuture

Minimum Lease Payments

$

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $61,245.58 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$42,168.95

- 17 -

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

EXHIBIT liD"

Note 6: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $5,373.63

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$13,703.00

Note 7: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

GSFIC 01/00S-769-048

$ 313,446.02 $ 30,521,40

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

Note 8: CONTINGENT LIABILITIES

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

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

- 18 -

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

EXHIBIT "0"

Note 9: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE
Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by 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:

Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 413,375.26
$ 417,744.93 $ 391,993.26

- 19-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

38,817.52 $

0.00

9,019.96 5,562.99

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

53,400.47 $ ====,;;;,;0.=00=

$

3,275.72

26,097.43

$ _ _--=2:.::9:.r.:,3:.:.7:.,:3...:.;15::..



$

9,019.96

5,562.99

9,444.37 $

$

24,027.32 $

~O.~OO~
: . :0.:.: :.00: :. .

Total Liabilities and Fund Equity

$

53,400.47 $ ======0=,0==0

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

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

15,576.54 $

105,278.30 $

159,672.36 $

163,496.41

9,019.96 5,562.99

5,761.25 6,718.05

$

15,576.54 $

105,278.30 $

174,255.31 $ ===17=5:l::,9=7=5..7..1.....

$

1,201.37

5,727.62

_ _~4,664.53

$ _ _...;1:.;.1,593.52




$

4,477.09 $

3,595.62

31,825.05

26,672.29

4,664.53

1,424.41

$

40,966.67 $ _ _--=3;..:.1,692.32

-

$

3,983.02

$

3,983.02 $

4,350.79

9,019.96 5,562.99

5,761.25 6,718.05

0.00 $ _ _.:.:10::.;:5:.L:,2:.:.7.:.;8.;.;:;.30::-

114,722.67

127,453.30

$

3,983.02 $

105,278.30 $

133,288.64 $ _ _1..:...4~4J.:.2:.=.83::..:.;39=--

$

15,576.54 $

105,278.30 $

174,255.31 $ ===17=5:l::,9=75;;;,;..7..1.....

- 21 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services Operation
Debt Service Principal Interest

Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Capital Leases 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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

34,690.00 $

108,520.16

289,537.85

58,379.77

$

432,748.01 $ _ _-,5:;.;:8=,3:.;.7.:;.;9,;.;..77,-

$

58,379.77

$

482,236.45

$

482,236.45 $ _ _-,5:;.;:8=,3:.;.7.:;.;9,;.;..77,-

$

-49,488.44 $

.:::.;o.~OO:::....

$

-49,488.44 $

0.00

71,412.11

0.00

3,258.71 -1,155.06

FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
- 22-

$

24,027.32 $ =====O,=OO==.

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

$

150,176.56

_ _ _ _ _ _ $ _ _...:..11:..:::9~,8;::2.::..:8.~81.:...

$

150,176.56 $

119,828.81 $

93,069.77 $ 258,696.72 409,366.66

89,554.88 499,538.35 402,026.92

761 ,133.15 $ _ _.::..:99:....:11~,~2.::.;0.~15::;...

$

82,681.01

50,412.41 16,035.29
500.00 915.62 $

$ _ _1.:.,::5:..::.0,544.33 $

$

-367.77 $

$
15,706.98 79,542.80
11,803.88 731.34
107,785.00 $ 12,043.81 $

141,060.78 $

351,732.98

50,412.41 16,035.29
500.00 16,622.60
79,542.80 482,236.45

66,510.80 16,830.97 4,308.00 18,777.91
49.95 13,995.06 458,820.84

11,803.88 731.34

11,067.87 1,520.97

798,945.55 $ _ _9=-4;.:3.t.=,6;..:.15.::..:.::.;35=.-

-37,812.40 $

4~7..L:,5:.=0....:.;4.~80=-



$

64,714.00 $

64,714.00

-40,000.00

-40,000.00 $ _ _-..:.:12:.:;0.t.=,6~00.::...:::.;00=.-

$

24,714.00 $

24,714.00 $ _ _-..:.:12:.:;0.t.=,6;.;:;.00.::..:.::.;00=.-

$

-367.77 $

36,757.81 $

-13,098.40 $

-73,095.20

4,350.79

68,520.49

144,283.39

218,537.37

3,258.71 -1,155.06

-1,816.87 658.09

$

3,983.02 $

105,278.30 $

133,288.64 $ ===14,;,;;4~,2~8;;;,;3.~39~



- 23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity


BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

109,317.05

730,659.29

_ _ _ _ _ _ $ _ _~2:.:.7....:.4J.:::,6;.:::;92:::..:.~60:::....

$

839,976.34 $ ==~27,;.;;4~,6~9,;;,;2.~60;;..

$

75,094.10

145,830.40

53,768.10

$ _ _=.27.:...:;4:.c,6:..::::9=.:2.~60::....

$

839,976.34

0.00 $

-$

839,976.34 $

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

$

839,976.34 $ ===27;..,;4*,6;,;;;,9=2..;;.;60;;..,

See notes to the general purpose financial statements.

- 24-

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

927.99 $

110,245.04 $

2,561.42

336,281.26

1,066,940.55

1,767,333.80

104,187.85

378,880.45


87,428.50

$

441,397.10 $

1,556,066.04 $

1,857,323.72



$

75,094.10

145,830.40

_ _.....::5::.:::3,768.10

$

274,692.60






$

839,976.34 $ 1,491,827.68

$

441,397-.10

441,397.10

365,496.04

0.00

0.00

0.00

$

441,397.10 $ 1,281,373.44 $ 1,857,323.72



$

441,397.10 $ 1,556,066.04 $ 1,857,323.72

- 25-

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay BUilding and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

274,692.60

$ _ _.....:7:...:1..!,..;,1~9.:.,:5.~58=-

$

71 ,195.58 $ _ _-=2:.:.7..::.4.1.:::,6.:::;92::':".:.,:60::-

$

155,910.92 $

3,641.00

872,100.60

$

159,551 .92 $ _ _.=.87:..:2:J..,1;'~0.:;.:0..:::.;60=--

$

-88,356.34 $ _ _-~59::...:.7...z.::,4::..:::.0::.':,.:8,:OO=--

$ $ _---:-5::.::6:.:::3L..:,4~95::.:..O=.:O=--


597,408.00

$

-563.495.00 $ _ _.....:5:,::9:..:...7c:.4.:::;08::.:..0=.:0::-

$

-651,851.34 $

0.00

1.491,827.68

0.00

$

839,976.34 $ ====,;;;,;O.~OO;;...

See notes to the general purpose financial statements. - 26-

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

274,692.60 $

29,887.30

$

596,041.71

596,041.71

547,757.43

17,609.35

88,804.93

104,162.98

$

613,651.06 $

959,539.24 $ _ _.;:.;68:..:1..z.::,8~0..:.....:7~71..:.-.

$

662.50 $

662.50

1.028,011.52 $
_ _--::::3.641.00

658.961.54 75.510.00

$

662.50 $ 1,032.315.02 $ _ _.:..:73:;.:4'-1,;.4;.:.7..;.;1.;;;;.54..;...

$

612,988.56 $

-72.775.78 $ _ _....:-5:.:2:.t.:.6~6.;:.;3.:=.:83::...

$ $ _ _-:=.:53::.:,7.z.:0~'8..:....:7.:.::,50;:::...

$

-537.087.50 $

597.408.00 $-1.100,582.50

168.274.38 -513.895.00

-503.174.50 $ _ _-3=-4~5J.::.6::.20::.:.::.:62=-

$

75,901.06 $

-575.950.28 $

-398.284.45

365.496.04

1,857,323.72

2,255,608.17

$

441,397.10 $ 1.281,373.44 $ 1.857,323.72

- 27-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

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

10.553 10.555

N/A $
N/A

Total Child Nutrition Cluster

$

Other Program

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

N/A

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 Flow Through Preschool
Total Special Education Cluster

84.027 84.173

NlA $
NlA


$

Other Programs

Pass-Through From Georgia Department of Education

Comprehensive SChool Reform Demonstration

-

Program



Elementary and 5econcIary Education Act

84.332

NlA

ntle I Grants to Local Educational Agencies
ntle II

.

84.010

NlA

Eisenhower Professional Development ntle VI

84.281

NlA

Innovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States

84.298

NlA

84.340

NlA

High SChool Program

Basic Grant .

84.048

NlA

Total U. S. Department of Education

$

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

13,755.51
71,065.26 $
84,820.77 $

(2)
458,537.06 (3)
458,537.06

23,699.39

23,699.39

108,520.16 $ _ _~4::::82:.c,2::::3:::::6:::.4::.5

50,348.00 $
3,887.00
54,235.00 $

50,348.00 3,887.00
54,235.00

26,000.00

26,693.03

38,913.09
16,000.00
7.47 11,660.00

38,913.09
15,674.74
7.47 11,660.00

3,361.00

3,361.00

150,176.56 $ _ _1~50~,:::::544=.3::.3

Total Federal Financial Assistance
N/A = Not Available

$

258,696.72 $ _ _.;;;6,;,:32:0.:.7' ;,.;;8;;:,0;7,;,.~8

-28-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000

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 received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the
City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

see notes to the general purpose financial statements.

-29-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs $
Special Education Programs

Remedial Education Program

Media Center Programs

Staff Development Programs



Indirect Cost

Middle School Incentive Program

In-School Suspension

Counselors Grades 4 and 5

Technology Specialist

Local Five Mill Share

Educational Etlualization Funding Grant

Food Services

Other State Programs

At-Risk Summer School Program

Health Insurance

Innovative Programs

Preschool Handicapped Program

Remedial Summer School Program

Special Education Low Incidence Grant

Teachers'Retirement

Lottery Programs

Assistive Technology

Computers in the Classrooms

Office of Treasury and Fiscal Services Public School Employees Retirement

CONTRACT Education, Georgia Department of Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

2,899,630.00 355,500.00 49,079.00 119,018.00 31,696.00 799,263.00 121,433.00 34,032.00 11,145.00 28,842.00 -175,768.00 407,536.00
$
1,990.14 42,168.95
5,000.00 6,488.08 2,201.22 7,771.00 5,373.63
13,703.00

$
34,690.00
7,420.72 50,959.05

19,544.00

TOTAL
2,899,630.00 355,500.00 49,079.00 119,018.00 31,696.00 799,263.00 121,433.00 34,032.00 11,145.00 28,842.00
-175,768.00 407,536.00
34,690.00
1,990.14 42,168.95
5,000.00 6,488.08 2,201.22 7,771.00 5,373.63
7,420.72 50,959.05

13,703.00
19,544.00

$ 4,785,646.02 $

93,069.77 $ 4,878,715.79

See notes to the general purpose financial statements. - 30-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECTS

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

Construction of a new physical education facility

for Gordon Lee Middle School; Construct and

equip a new Science/Math classroom building

for Gordon Lee High School; Repair, renovate,

modify, retrofit, and reroof selected classrooms

and buildings; renovate and retrofit for

accommodation of computers and other

technology for and purchasing technology

equipment for, Chickamauga" Elementary School,

Gordon Lee Middle School and Gordon Lee

High School

$

3,776,340.00 $


3,776,340.00 $

1,031 ,652.52 $ =.-.1':;;.05;,;9;,;"1;.;;3~6.;;;,39;;"

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for these projects. Includes all cost from project inception to completion.
(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire
associated debt incurred by the City of Chickamauga City Govemment on the Board's behalf. Amounts expended for these projects may include sales tax proceeds. state. local property taxes and/or other funds over the life of the projects.


-




see notes to the general purpose financial statements.
31

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY

SCHEDULE "4"



ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

YEAR ENDED JUNE 30, 2000

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

3,423,227.00 $ _ _-.:..:10:.::;9~,8;..:.1.::..:0.~OO::...

$

3,532,034.18

185,630.35 $ _ _...;.16;.;0.:.;,8;.;.0.;.9.;.;..79.;.

$

3,717,664.53

-33,919.06
$ _ _..:3:;.z.;6,~8;..:;3.:..:7.,...;.4.::..:5...;.47.:...

$

0.00 $ =====0...0...0....



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

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY ANAl"YSIS OF MINIMUM EXPENPITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total- K-3 Grades 4 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS RegUlar Programs Category III (*) Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUATION PROGRAMJ:) Total Fourteen Weighted Programs
~IA CENT..ER pROGRAMS,
Salaries Operations
Total Media center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

222,372.00

$

200,134.80 $

675,936.00

608,342.40

$

898,308.00 90 $

808,477.20 $

332,603.00 90

299,342.70

723,210.00 90

650,889.00

440,362.00 90

396,325.80

298,432.00 90

268,588.80

206,715.00 90

186,043.50

$ 2,899,630.00

$ 2,609,667.00 $

0.00 0.00
--=0:.:;.0:.::...0

$

154,289.00 90 $

138,860.10 $

201,211.00 90

181,089.90

$

355,500.00

$

319,950.00 $

$

49,079.00 90 $

44,171.10 $

$ 3,304,209.00

$ 2,973,788.10 $

$

94,319.00 90 $

84,887.10 $

24,699.00 100

24,699.00

$

119,018.00

$

109,586.10 $

0.00
--=0:.:;.0:.::...0 --=0:.:,:.0:.::...0 --=0"".0"'-0
0.00 --=0"".0"'-0

Total Fourteen Weighted and Media center Programs $ 3,423,227.00

$ 3,083,374.20 $ _ ....._ ...0.,;;;.0-.0

STAFF DEVELOPM~T PROGRAMS
Cost of Instruction Professional Development

$

10,303.00

$

10,303.00 $

0.00

21,393.00

21,393.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

31,696.00 100 $

31,696.00 $ .....====0...0..0...

See notes to the general purpose financial statements.

- 34

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

200,134.80 $

177,462.88 $

9,671.00 $

187,133.88

608,342.40

700,697.80

30,375.70

731,073.50

$

808,477.20 $

878,160.68 $

40,046.70 $

918,207.38 $

0.00

299,342.70

369,665.91

12,219.77

381,885.68

0.00

650,889.00

661,978.54

11,743.22

673,721.76

0.00



396,325.80

514,435.27

24,512.33

538,947.60

0.00

268,588.80

315,824.53

11,924.94

327,749.47

0.00

186,043.50

228,062.19

20,941.03

249,003.22

0.00

$ 2,609,667.00 $ 2,968,127.12 $

121,387.99 $ 3,089,515.11

$

138,860.10 $

181,089.90

$

319,950.00 $

$

44,171.10 $

$ 2,973,788.10 $

190,353.40 $ 144,839.45 335,192.85 $ 100,597.71 $ 3,403,917.68 $

2,556.07 $

192,909.47

36,275.86

181,115.31

38,831.93 $ _.......::3:.:,.74~,O;;:2:.:4.:.:.7..:;.8

589.87 $ _~1~0.:..o1,..:.:18~7.::::.5:::..8

160,809.79 $ 3,564,7-27.47

$

84,887.10 $

128,116.50

$

128,116.50

24,699.00

$ _ _..:.24..:.l,8;;:2:.::0.:.::.5;;..~

24,820.56

$

109,586.10 $ 128,116.50 $

24,820.56 $ _~1..:.52:.l,;::.:93~7.:.::.0.::.6

$ 3,083,374.20 . $ 3,532,034.18 $

185,630.35 $ 3,717,664.53 $

0.00 0.00 0.00
0.00 0.00
......_ _0;,;;.0.0.

$

10,303.00

21,393.00

$ ...........3.1.;,;;,6.9.6..0...0.

$

19,441.91 $

19,441.91

12,254.10

12,254.10

$

31,696.01 $

31,696.01 $

...._ ..0.;,;;.0.0.

35



SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS


RUSSELL W. HI"'TON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingtoll Strcct. S.W., Suitc 214
- Atlanta, Gcor!.!ia .~()334-X4()()
June 27, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Chickamauga Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of City ofChickamauga Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated June 27,2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the stan4ards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States.
Compliance
As part ofobtaining reasonable assurance about whether City ofChickamauga Board ofEducation'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 offmancial 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 Reporting
In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect City ofChickamauga Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. ,The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7691-00-
01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration 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 noted above is considered to be a material weakness.
This report is intended solely for the information and use of management, members ofthe City of Chickamauga 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.
/"",,--:;.R-.;;e;.::,spectfully submitted,


RWH:jb 2000YB-40A

sell W. Hinton e Auditor




RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 27, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education

and Superintendent and Members of the City of Chickamauga Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of City of Chickamauga Board of Education with the types of
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular
A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. City of Chickamauga Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Chickamauga Board of Education's management. Our responsibility i~ to express an opinion on City of Chickamauga 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-133 require that we plan and perform the audit to obtain reasonable 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 ofChickamauga Board ofEducation's compliance with those

2000SA-IOA

requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements.
In our opinion, the City ofChickamauga Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce 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 ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its

operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 2000SA-IOA

Ru sell W. Hinton State Auditor

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

CITY OF CHICKAMAUGA BOARD OF EDUCAnON - WALKER COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7691-98-01 FS-7691-99-01

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7691-99-01

The Board has staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, which would be necessary to resolve this finding.





,

-







SECTION IV FINDINGS AND QUESTIONED COSTS


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

I SUMMARY OF AUDITOR'S RESULTS

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

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Chickamauga Board of Education disclosed a financial statement reportable condition relat~d 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 Chickamauga Board of Education disclosed no instances of noncompliance that were deemed to be material t<;> the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City of Chickamauga Board of Education 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 Chickamauga Board of Education's report on compliance with requirements applicable to major programs was unqualified.

,





6. Audit Findings Required to be Reported by Section .510CID ofOMB Circular A-B3

The City ofChickamauga Board ofEducation's audit did not disclose audit findings required

to be reported by section .51O(a) ofOMB Circular A-133.

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

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

9. Low Risk Auditee The City of Chickamauga Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.


- 1-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000
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-7691-00-01 The City ofChickamauga Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.


-2-