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, 2001

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. ,-REPORT ON AUDIT

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. , . OF THE.FINANCIAL STATEMENTS ,.

FOR

THE

FISCAL-YEAR

ENDED'JUNE

30...

2001.

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Russell W. Hlnt~n,.

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CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTI' -TABLE OF CONTENTS-

SECTION!

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

29

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY -TABLE OF CONTENTS-

SECTION!

FINANCIAL

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

5

BY SITE

Page
34 35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION III
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION JV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION! FINANCIAL

R11,'-lf- I I \\'. H1:\TO'I
STATE AUDITOR (4::-,.ij 6~fi lP4

DEPARTl\1ENT OF AUDITS AND ACCOUNTS
214 \Vc.1,hrngton S1rcel S \\,. Suuc 214
Atl,.rnt..1 Gcorg:1<.1. 303348400
May I, 2002

Honorable Roy E Barnes. Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent 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 accompanymg general-purpose financial statements ofthe City ofCluckamauga Board of Education, a component umt of the City of Chickamauga, Georgia, as of and for the year ended June 30, 200 I, as hsted m the table ofcontents These general-purpose financial statements are the respons1b1hty of the City of Cluckamauga Board of Education's management Our respons1b1hty 1s to express an opm1on on these general-purpose financial statements based on our audit
Except as discussed m the followmg paragraph, we conducted our audit m accordance with auditing standards generally accepted m the Umted States of Amenca and the standards applicable to financial audits contamed m Government Aud1tmg Standards. issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free of matenal misstatement An audit mcludes exammmg, on a test basis, evidence supportmg the amoU11ts and disclosures m the financial statements. An audit also mcludes assessmg the accoU11tJng pnnc1ples used and s1gmficant eslimates made by management. as well as evaluatmg the overall financial statement presentation We believe that our audit provides a reasonable basis for our op1mon
We did not observe the takmg of either the Federal donated cornmod11ies mventory or purchased foods mventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amoU11ts stated as mventones through alternative procedures.

2001ARL-13

As descnbed in the notes to the general-purpose financial statements, the Board of Educatmn's financial statements have been prepared using certain accounting practices and policies which, in our op1mon, vary in some respects from generally accepted accounting pnnc1ples These variances are descnbed as follows.
The general-purpose financial statements of the Board of Educatmn did not contain a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be mcluded to conform to generally accepted accounting pnnc1ples
School activity accounts maintamed at the ind1v1dual schools are not included in the general-purpose fmanc1al statements. To conform to generally accepted accounting pnnc1ples, these accounts should be included in the general-purpose financial statements.
The Board of Education did not recogruze as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed pnor to June 30, 2001 Also funds received, subsequent to June 30, 2001, from the Georg1a 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 pnor to June 30, 2000, were improperly recorded in the year ended June 30, 2001 To conform to generally accepted accounting pnnc1ples, 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 financial statements of these variances or ormss1ons have not been deterrmned, but are believed to be matenal.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as rmght have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food servtce inventones as discussed in the thrrd paragraph, and 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 matenal respects, the financial position of the City of Chickamauga Board of Education as of June 30, 2001, and the resuJts of its operations for the year then ended, in conformity with accounting pnnc1ples generally accepted in the Umted States of Amenca

In accordance with Government Auditing Standards, we have also issued our report dated May 1, 2002, on our consideration of the City of Chickamauga Board ofEducalton's internal control over financial reporting and our tests of Its compliance with certain prov1s1ons 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 m conJunction with tins report in cons1denng the results of our audit
2001ARL-13

Our aud!I was performed for the purpose of forming an op1mon on the general-purpose financial statements of the City ofCluckamauga Board of Education taken as a whole The accompanying combining and ind1v1dual fund statements (Exh1b1ts E through I) and the financial schedules (Schedules I through 5), wluch includes the Schedule ofExpenchtures ofFederal Awards as required by U. S Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organzzatzons, are presented for purposes of add1t10nal analysis and are not a reqwred part of the general-purpose financial statements Such information has been subJected to the auditing procedures apphed in the audit of the general-purpose financial statements and in our op1mon, except for the effect of adJustments, 1f any, on the Special Revenue Fund, as might have been determmed to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventones as chscussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such mformation 1s farrly stated, in all matenal respects, in relation to the general-purpose financial statements taken as a whole
A copy ofth1s report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24

RWHas 2001ARL-13

State Auditor

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 3Q 2001

~
Cash and Cash Equivalents
Investments
Accounts Receweble
Inventories Food Donated CommodllJes Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

63,570 68 S 11767895 S

61 096 65

537,364 85

771,385 35

72 93

543 00

101,781 20

8 678 33 9,490 28

Total Assets

s

601 008 46 S 136 390 56 $ ___934_.,_26_3_2_0_

b!ABILIJIES AND FUND EQUITY
L!ABILIIIES
Cash Overdraft Accounts Payal:Jle Selanes Peyeble Exp:red Gram Balances Payable Contracts Payable Retalnages Payable Deferred Revenue Funds Held for Others Cap,181 Le... Agreements
Total LJablrues
fUNDEOUITY
Fund Balances Reserved For ConUnuallon of Federal Programs For Inventories Food Donated Commodibes Purchesed Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undes,gneted
Total Fund Equrty

$

109,947 77 $

8,322 48

1,500 00

32,528 76

21714

6,858 04

5,322 79

$

11166491 s

53,032 07

$

8,678 33

9,490 28

$

408,368 70

525,894 50

$

489 343 55

65,189 88

000

$

489 343 55 $

83 358 49 s

934,263 20

Total UabJI- and Fund Equity

s

601 008 46 S 1351390 56 $ ___9.3.4,.1"'26""3""2"'0'"

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

EXHIBIT "A"

FIDUCIARY FUND TYPE AGENCY FUND

$

35360

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30. 2000

$

242,699 88 $

194,823 30

1,308,750 20

1,510,27949

102,397 13

378,954.28

- - - - - - $ _ _ _~6~9~106~44~

8,678 33 9,490 28
69 106 44

9,019 96 5,!562 99
129 428 00

$

353 60 $

69106 44 $ 1 741122 26 $ 2,228,068 02

$

10,164 09

$

118,270 25

157,69815

34,028 76

31,825 05

7,07518

4,664 53

145,830 40

53,768 10

5 322 79

$

35360

35360

$

69 106 44

69 106 44

129 428 00

$

35360 $

69 106 44 $

234 157 02 $

533 378 32

$

3,98302

$

8,678 33

9,490 28

408,368 70

525,894 50

9,019 96 5,!562 99 839,976 34 441,39710

554 533 43

394,750 29

$ 1,506,965 24 $ 1 694 689 70

$

353 60 $

69 106 44 $ 1 741122 26 $ 2,228,068 02

-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 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenu..
EXPENDrTURES
Current Instruction Support Services Pupil SelVlces Improvement of lnstrudlonal Servu:es Educational Media Services General Admmistratlon School AdminlSlratlon Business Administration Maintenance end Operabon of Plant Student Transportation Services Other Support Serv,oes Food Serv,ces Operation
Gapllal Outlay Debt Service
Pnnapal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OJJ:1ER FINANCING SOURCES !USES>
Cspltal Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Fmanang Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory- Net Change ,n Period Donated Commodlbe1 Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

s s 5,446,559 83
346,087 75 346 077 61
$ 6,138,72519 $

62 565 22 311,092 07
424 495 03
798152 32

$ 4,362,141 62 $
150,756 73 33,847 70 166,602 55 227,469 91 397,562 05 82,658 62 536,124 25
3,132 62 19,713 21

148,699 12
64,266 56 7,147 73 9,168 00 11,401 36
23,945 66 2,000 00
468,374 74

s 5,980,009 26 $

s

158 715 93 $

60 321 56 5 72340
801 068 13
-2 915 81

$

50,600 00

$

-50 600 00

$

50600 00 $

-50 600 00

s

209,315 93 $

-53,515 81

280,027 62

133,288 64

-341 63 3 927 29

FUND BALANCE JUNE 30

s

489 343 55 $ _ __.83::.,:,35,::8:.;4:::9~

The notes to the genel'lill-purpose financial statements are an Integral part of this statement -4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30 2000

s

s s 30,521 40

5,539,646 45

5,153,408 39

311,092 07

258,696 72

634,025 06

980,11281

934,369 92

51 798 89

822 371 53

780 028 50

s

s 716 345 35

7,653,222 86 $ 7,126,503 53

s s 4,510,840 74

3,982,538 96

$

66250

489,815 59

215,043 29 40,99543 175,770 55 238,871 27 397,562 05 83,32112 536,124 25 23,945 66
5,132 62 488,087 95 489,815 59

294,64817 161,41265 154,358.21 171,383 21 345,871 23 77,066 67 419,625 17 79,542 80
3,167 50 482,23645 1,031,652 52

60,321 56 5 72340

11,803 88 731 34

$

s 490 478 09 $ 7,271,555 48

7,216,038 76

s

s 225,867 26

s 381 667 38

-89 535 23

$

64,714 00

s

50,600 00

73,913 00

s -572 977 50

-623 577 50

-611 000 50

$

-572 977 50 $

s -572 977 50

-472 373 50

s

s -347, 110 24

s -191,31012

-561,908 73

1.281,373 44

1,694,689 70

2,254,494 78

-341 63 3 927 29

3.258 71 -1155 06

s

934 263 20 $ 1,506,965 24 $ 1 694 689 70

-5-

CITY OE CHICKAMAUGA BOARD QF EDUCATION -WALKER COUNTY COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET ANT ACTUAL (NON-GMP BASIS!
GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2001

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

s s 5.268 412 55

5,446,559 83

19 544 00

450,000 00

346,087 75

242,323 25

346 077 61

s s 5.980,279 80

6.138.72519

Current Instruction
Support Services PupUServices Improvement of lnstructtonal Servtc:es
Educational Media Services General Admirustratton School Administration Buau,ess Adm1mstrabon Mal:ntenance and Operabon of Plant Student Transportation SeMcel Other Support Services Food Services Operation Debt Service
Total Expendrtures
Excess of Revenues over (under) Expenditures

s s 4,179,238 65

4 382 141 62

148,202 47 33,527 00 184,998 00 237 621 53 408,131 58 82,882 78 838,112 20

150 756 73 33,847 70
168,802 55 227 469 91 397,582 05
82,858 62 538,124 25

3,117 50

3,132 62 19,713.21

s s 5,895.629 69

5.980.009 26

s

s 8465011

15871593

OTHER FINANCING SOURCES {USESl
Other Sources Other Uses

$ 50,600 00

Total Other Flnanang Sources (Uses)

$ 50 600 00

Excess of Revenue& and Other Financing Sources over (under) Expenchtures and Other Financing Uses $
FUND BALANCE JULY 1 2000
Ad1ustments Food Inventory - Net Change In Period
Donated Commodrtles Purchased Food

84,650 11 $
330,017 91'
-6515

209,315 93 280,027 62

FUND BALANCE JUNE 30 2001

$ 414 602 87 $ 489.343 55

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

s 62,282 00 s 82,565 22
286,752 77 311,092 07
308.818 40 424.495 03
s 857 853 17 s 798.152 32

s s 115,411 00 148,69912

44 84400 59,001 00 9,188 00
150 00

64,286 56 7,147 73 9,188 00
11,401 36

463,629 50

23,!M5 68 2,000 00 488,374 74 68,044 98

s s 692.403 50 801.068 13

$ -34.550 33 $ -2 915 81

$ -50.600 00 $ -50.600 00

$ -34,550 33 $ -53,515 81

32 884 56

133,288 64

-19 441 32

-341 63 3 927 29

$ -21 307 07 $ 83,358 49

The notes 10 the general-purpose finanaal statements are an Integral part of ttus atatement 7.

c1n OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001
Note l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City ofCJuckamauga Board ofEducauon (School D1stnct) was estabhshed under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appointed by the Board The School D1stnct 1s not orgaruzed as a separate legal enllty and does not have the power to levy taxes or issue bonds Its budget 1s subJect to approval by the City of Cluckamauga, Georgia Accordingly, the City of Chickamauga Board of Educallon 1s determined to be a component urut of the City of Cluckamauga, Georgia, wluch 1s the pnmary government.
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos11lon and the results of1ts operauons Fund accounting 1s designed to demonstrate legal comphance and to aid financial management by segregallng transacllons related to certain governmental func!lons or ac11v1t1es. A fund 1s a separate accounting entity with a self-balancing set of accounts. An account group 1s a financial reporting device designed to proVJde accountab1hty for certain assets and hab1hlles 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 vanous funds at the !lme of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct. To conform to generally accepted accounting pnnc1plcs, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types
Although "school activity accounts" are maintained at the ind1V1dual schools, neither the assets, hab1h11es and fund eqmty, 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 D1stnct, in comphance With generally accepted accounllng pnnc1ples apphcable to governmental uruts, unless otherwise disclosed in these notes Funds and the account group presented in this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School D1stnct"s educallonal activities Governmental Fund Types include.
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for in another fund These transacuons relate to resources obtained and used for serVJces proVJded by a board of educallon
- 8-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEME1'7"S JUNE 30, 2001
Note I 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 restncted to expenditures for specified purposes These funds are received pnmarily from the Georgia Department of Education and from the Federal government to accomphsh specific educational objectives
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1s1t1on or construction ofmaJor capital fac1ht1es.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit m a trustee capacity or as an agent for md1viduals, pnvate orgaruzatlons, other government units and/or other funds. This fund mcludes
AGENCY FUND - the fund used to account for assets held m a fiduciary capacity for other funds, governments, or md1v1duals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for capital lease obhgatlons.
BASIS OF ACCOUNTING
The accountmg and fmanc1al reportmg treatment apphed to a fund 1s determmed by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current hab1ht1es generally are mcluded on the balance sheet. Operating statements of these funds present mcreases (1.e , revenues and other financmg sources) and decreases (1.e , expenditures and other financmg uses) m net current assets Their reported fund balance 1s considered a measure of available spendable resources
L1ab1h1Jes which are expected to be fmanced from available spendable resources are reported as hab1ht1es m the governmental funds. Other hab1ht1es, whJch are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group
Agency funds are purely custodial m nature and do not mvolve measurement ofresults ofoperations
Governmental funds are accounted for usmg the modified accrual basis ofaccountmg under whJch
Revenues are recogmzed when susceptible to accrual (1 e, when they become both measurable and available) "Measurable" means the amount of the transacllon can be determmed and "available" means collectJble withm the current penod or soon enough thereafter to be used to pay hab1hlles of the current penod The School D1stnct considers receivables collected within sixty days after yearend to be available and therefore suscepl!ble to accrual. Nonexchange transacllons, m which the School D1stnct gives (or receives) value without directly receiving (or givmg) equal value m exchange, mclude property taxes, local opllon sales taxes, mtergovernmental grants and donal!ons
-9-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001
Note l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue for property t3lces 1s recogruzed m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogruzed m the fiscal year m wluch all ehg1b1hty requ1rements have been satisfied
Expenditures are generally recogmzed when the related fund hab1hty 1s mcurred
A departure from the above defimtions 1s the accountmg treatment afforded the fmal two payments on General Fund teachers' and bus dnvers" contracts, and the resources avrulable from the Georgia Department of Education for the State"s share of these contracts. Dunng fiscal year 2001, a substantial number ofpersonnel of the School D1stnct were employed for a one hundred and mnety day penod beginmng m August 2000 and endmg in early June 2001 Personnel contracts for this employment penod specify that compensation be prud m twelve equal monthly payments beginmng m September 2000 and endmg m August 2001 State grants to fund the State"s share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m the same twelve months As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School D1stnct subsequent to June 30, 2001. Also, the State's portion ofthe compensa!Jon paid m July and August 2001 was received and recorded as revenue m the fiscal year subsequent to June 30, 2001. Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2000, were recorded m the year ended June 30, 2001. Generally accepted accountmg pnnc1ples require that revenues be recorded when avrulable and measurable and that expemhtures be recorded when mcurred, rather than when funds are received or disbursed
Agency funds are accounted for usmg the modified accrual basis ofaccountmg m recogruzmg assets and hab1ht1es.
BUDGET
The City of Chickamauga Board ofEducatJ.on"s budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fund mg sources There 1s no statutory prolub1t1on regardmg overexpend1ture ofthe budget at any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples
The budget process begins when the School District's adm1111stratJ.on prepares a tentatJ.ve budget for the Board"s approval After approval oftlus tentative budget by the Board, such budget 1s advertised at least once ma newspaper ofgeneral c1rculat1.on m the locality. At the next regular meetmg ofthe Board after advertisement, the Board receives comments on the tentative budget, makes reV1s1ons as necessary and with the approval of the City Council adopts a final school budget Tlus final budget

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1s then subnutted, in accordance with prov1s1ons ofthe Quahty Basic Educat10n Act, OCGA Section 20-2-167(c), to the Georgia Department of Education The Board may increase 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 eqmvalents consist ofcash on hand, demand deposits and short-tenn mvestments with onginal matunties of three months or less from the date of acqms1t10n in authonzed financial institutions Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan assoc1at10ns
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1patmg mterest-eanung contracts and money market mvestments with a matunty at purchase ofone year or less are reported at amortized cost Both partJ.c1pat:mg interest-eaming contracts and money market investments with a matunty at purchase greater than one year are reported at farr value The Official Code ofGeorgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds In selectmg among options for mvestment or among 1nsl!tut1ona\ bids for deposits, the highest rate ofreturn shall be the obJectlve, given eqmvalent conchtlons of safety and hqwd1ty. Funds may be invested m the fol10W1Dg
(I) Obhgauons issued by the State of Georgia or by other states,
(2) Obhgattons issued by the Uruted States government,
(3) Obhgat1ons fully insured or guaranteed by the Uruted States government or a Uruted States government agency,
(4) Obhgattons of any corporation of the Umted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adm1rustered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgauons of other pohtlcal subd1V1s1ons of the State of Georgia
- 11 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER C0l.NlY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANOAL STATEMENTS
JUNE 30, 2001

Note 1 SUMMARY OF SJGNlFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformat10n available Receivables are recorded when either the asset or revenue recogrutlon cntena 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 uncollec!ible receivables

PROPERTY TAXES

The City of Cluckamauga fixed the property tax levy for the 2000 tax year (calendar year) on October 2, 2000 (levy date) Taxes were due on February 23, 2001 (hen date). Taxes collected w1thm the current fiscal year or w1thm 60 days after year-end are reported as revenue m fiscal year 2001. The Cluckamauga City Clerk bills and collects the property taxes for the School D1stnct and remits the taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2001 for mamtenance and operations amounted to $346,087.75

The tax rmllage rate leVIed for the 2000 tax year (calendar year) for the City ofCluckamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

~mills

SALES TAXES

Special Purpose Local Option Sales Tax 1s to be used for capital outlay for educational purposes. Special Purpose Local Opuon Sales Tax revenue dunng the fiscal year amounted to $634,025 06 and was recorded m the Capital Projects Fund. The State will termmate collection oftlus tax once an additional $1,517,178.25 has been collected or on June 20, 2002, whichever occurs first

The City of Cluckamauga (City Government) sold general obhgauon bonds to provide advance fund mg for Capital Outlay Projects associated wtth issuance ofa Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2001, the School D1stnct proVIded $572,977 50 ofSPLOST proceeds to the City Government for debt serVIce on said general obhgatJon debt

INVENTORIES

FOOD INVENTORIES Inventones of donated food commodities used m the preparation of meals are reported on the Combmed Balance Sheet at their Federally assigned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commodities are recorded as revenues and expenditures at the tlrne commodity Items are received. Purchased foods mventones are recorded as expenditures at the time ofpurchase. The mventones reported on the balance sheet

- 12 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EX'l-IIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANQAL STATEMENTS
JUl\'E 30. 2001
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for donated food commodities and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets
INTERFUND TRANSACTIONS
The School D1stnct has the followmg types of mterfund transactions:
Reimbursements of expenditures m1t1ally made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg fund and as reduct10ns of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all mterfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to mchcate that they are presented only to fac1htate financial analysis. Data m these columns do not present financial position or results ofoperat10ns m confomuty with generally accepted accountmg pnnc1ples Neither are such data comparable to a consolidation Interfund ehmmatlons have not been made m the aggregation of tlus data. Certam 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 many depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral The aggregate ofthe face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduction ofthe amount ofdeposit msurance. 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 11 0percent ofthe daily pool
balance OCGA Sect10n 45-8-11 (b) provides an officer holdmg pubhc funds may, m his discretion, waive the reqmrernent for secunty m the case ofoperating funds placed m demand deposit checkmg accounts.
Acceptable secunty for deposits consists of any one of or any combmatlon of the followmg
(I) Surety bond signed by a surety company duly qualified and authonzed to transact busmess within the State of Georgia,
(2) Insurance on accounts proVJded by the Federal Deposit Insurance Corporation,
- 13 -

CITY OF CHICKAMAUGA BOARD OF EDUCA1101' - WALKER COUNTY EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FJNANCIAL STATEMENTS JUNE 30, 2001

Note 2 DEPOSITS AND INVESTMENTS

(3) Bonds, bills, notes, certificates ofmdebtedness or other direct obhgauons of the Uruted States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of mdebtedness or other obhgatlons of the counties or mUIUc1paht1es of the State of Georgia,

(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, proVIdmg that the statute that created the authonty authonz~ the use of the bonds for tlus purpose,

(6) Industnal revenue bonds and bonds ofdevelopment authontles created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgations of a subsidiary corporation of the Uruted States government, which are fully guaranteed by the Uruted States government both as to pnnc1pal and mterest or debt obhgabons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperattves, the Farm Credit Banlcs, the Federal Home Loan Mortgage Assoc1at1on, arid the Federal National Mortgage Assoc1atJ.on

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $1,210,641.88. The amounts ofthe total bank balances are classified mto three categones of credit nsk.

Category I - Cash that 1s msured (e g, Federal depository msurance) or collateral1zed with secunues held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name
Category 2 - Cash collaterahzed with secunttes held by the pledgmg financial 1nstJ.tution's trust department or agent m the School D1stnct's name
Category 3 - Uncollateral1zed deposits. (Tlus mcludes any banlc balance that 1s collateralized with secunties held by the pledgmg financial 1nst1tutton, or by its trust departmen! or agent but not m the School District's name )

The School D1stnct's deposits are classified by nsk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1 2 3
Total

$ 100,000.00 000
1,110.641 88
$ 1.210,641 88

- 14-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" !':,"OTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001
Note 2 DEPOSITS AND INVESTMENTS
CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carryrng value of the School D1stnct's total investments was S771,385 35 which 1s matenally the same as fair value Tius investment consisted entirely of funds rnvested in the Local Government Investment Pool adm1mstered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqmred to be categonzed since the School D1stnct did not own any specific identifiable secuntles in the pool The investment pohcy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1dity Portfoho) does not provide for investment in denvatlves or similar rnvestments A descnptlon ofthe Pnmary L1qmd1ty Portfolio 1s as follows
The Pnmary Liqu1d1ty Portfolio consists of Georgia Fund 1, which 1s a combination local and state government rnvestment pool, and Fund 6 Georgia Fund l 1s a stable net asset value rnvestment pool wluch follows Standard and Poor's cntena for AAAm rated money market funds. The pool 1s not registered with the SEC 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 1s considered to be a Rule 2a7 like pool. The pool's pnmary obJectlves are safety of capital, investment income, liqmd1ty and d1vers1ficat1on while maintarnrng pnnc1pal ($1.00 per share value). Net asset value 1s calculated weekly to ensure stab1hty. The pool d1stnbutes earnrngs (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 wluch approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Part1c1pat1on in the pool 1s voluntary and deposits consist of funds from local governments, operating and trust funds of Georgia's state agencies, colleges and umvers1t1es; and current operating funds of the State of Georgia's General Fund
Investments rn Georgia Fund I and Fund 6 are directed toward short-term rnstruments such as U S.
Treasury obligations, secuntles issued or guaranteed as to pnnc1pal and interest by the U S. Government or any of its agencies or rnstrumentahtles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund 1 may not exceed 60 days. The weighted average matunty for Georgia Fund 1 on June 30, 2001. was 39 days The average investment duration for Fund 6 on June 30, 2001, was 6 months
Note 3 NON-MONETARY TRANSACTIONS
The School D1stnct receives food commod1ties from the United States Department of Agnculture (USDA) for school breakfast l!Ild lunch programs. These commodities are recorded at their Federally assigned value See Note 1 - Inventories
Note 4 RISK MANAGEMENT
The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets; errors or om1ss1ons,Job related Illness or rnJunes to employees, natural disaster and unemployment compensation
- 15 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "D"

Note 4 RISK MANAGEMENT

The School D1stnct has obtamed commercial insurance for nsk ofloss associated with torts, assets, errors or onuss1ons, Job related 1llness or mJunes to employees and natural disaster The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor incurred losses (settlements) winch exceeded the School D1stnct's insurance coverage m any of the past three years

The School D1stnct 1s self-msured with regard to unemployment compensation claims The School D1stnct accounts for chums w1tlnn the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School D1stnct has not expenenced any unemployment churns durmg the last two years.

The School D1stnct has purchased a surety bond to proVJde add1!ional msurance coverage as follows

Pos1t1on Covered

Amount

Supermtendent

$ 10,000 00

Note 5 GENERAL LONG-TERM DEBT

CAPITAL LEASES The City ofClnckamauga Board of Education has entered mto a lease agreement as lessee for the purchase oftwo buses. Tins lease agreement quaJ1fies as a capital lease for account.mg purposes and, therefore, has been recorded at the present vaJue of the future m1mmum lease payments as of the date oftins inception

The changes m General Long-Term Debt dunng the fiscaJ year ended June 30, 2001, were as foJiows:

Capital Leases

Balance July 1, 2000

$ 64,714 00

Retroactive Restatement of Pnor Year BaJances

64,714.00

Balance July l, 2000 Restated

$ 129,428.00

Deductions Payments

60,321 56

BaJance June 30, 2001

$ 69.106 44

- 16 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COU]'ffY EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANC!AL STATEMENTS
JUNE 30. 2001

Note 5 GENERAL LONG-TERM DEBT

At June 30, 200 I, payments due by fiscal year wluch mcludes pnnc1pal and mterest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

2003 2004 2005

$ 26,044 96 26.044 96 26,044.96

Total Pnnc1pal and Interest

$ 78,134 88

Deduct: Imputed Interest

9,028 44

Net Present Value of Future Mmunum Lease Payments

$ 69 )06.44

Note 6 ON-BEHALF PAYMENTS

The School D1stnct has recogruzed revenues and expenditures m the amount of $66, I IO 42 for health msurance and relirernent contnbutions paid on the School D1stnct's behalf by the foUowmg State Agencies.

Georgia Department of Educa!ion Paid to the Georgia Department of Cornmuruty Health For Health Insurance of Non-Certified Personnel In the amount of $50,370 46

Paid to the Teachers Re!irernent System of Georgia For Teachers Re!irement System (TRS) Employer's Cost In the amount of $5,550.96

Office of Treasury and Fiscal SeTV1ces Paid to the Public School Employees Retrrement System For Public School Employees Relirement (PSERS) Employer's Cost In the amount of$10,189.00

Note 7 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies Tlus could result m requests for reunbursement to the grantor agency for any expenditures wluch are disallowed under grant terms. The School D1Stnct beheves that such d1sallowances, 1f any, will be 1rnmatenal to its overall financial pos1t1on.

- 17 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001
Note 8 SUBSEQUENT EVENTS
On March 19, 2002, the voters of Walker County voted in favor of a Special Purpose Local Option Sales Tax referendum (commencing upon the expiration ofthe current I percent sales and use tax) for educatJ.onal purposes. The unpos1tion ofthe tax approved by the voters, as stated on the Official Ballot of Walker County, 1s as follows
"Shall a one percent sales and use tax be imposed in Walker County for a penod oft1me not to exceed twenty calendar quarters and for the raising of not more than $27,500,000 . (b) $3,575,000 ofwh1ch shall be received by the Board ofEducatJ.on ofthe City of Cluckamauga for the purposes of (1) constructing and eqmpping additional instructional space at the Chickamauga Elementary School, (11) constructing, modifying, renovatmg, and eqmppmg Gordon Lee Middle School, (111) mod1fymg and upgrading HVAC at Ware-Jewell ActJ.v1bes Bu1ldmg at Gordon Lee High School, (1v) constructmg new physical education and athletic fac1ht1es at Gordon Lee High School, and (v) acqumng, constructmg, repamng, unprovmg, retrofittmg, upgradmg and eqmppmg other bu1ldmgs and fac1hties useful or desirable m connection therewith, mcluding acqumng any necessary property therefore, both real and personal.
If 1mpos1tlon of the tax 1s approved by the voters, such vote shall also constitute approval of . (i1) the issuance of general obligation debt of the City of Cluckamauga m the pnnc1pal amount of $2,600,000 for the purpose of financmg the costs of the capital outlay projects of the Cluckamauga School System descnbed above."
Note 9 RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, adnnrustratlve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), wluch 1s a cost-sharmg multiple employer defined benefit pension plan. TRS provides service retirement, chsab1hty retirement and surY1vors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial aucht report and a copy can be obtamed from the Georgia Department of Audits and Accounts.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% ofthe1r gross eammgs to TRS. The School D1stnct makes monthly employer contnbutlons to TRS at rates adopted by the TRS Board ofTrustees m accordance with State statute and as advised by their mdependent actuary. The required employer contnbut1on rate 1s 11.29% and employer contnbut1ons for the current fiscal year and the preceding two fiscal years are as follows:
- 18 -

CITY OF CHICKAMAUGA BOARD OF EDUCATIO:-1 - WALKER COIDIJ)' EXHIBIT "D" NOTES TO 11-IE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

Note 9. RETIREMENT PLANS
Fiscal Year
2001 2000 1999

Percentage Contnbuted
100% 100% 100%

Requ1red Contnbut10n
$ 445,025.85 $ 413,375.26 $ 417,74493

- 19

CIJY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY COMBINING BALANCE SHEET
SPECIAL REVENUE FUND
JUNE 30. 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

29.165 65 $

000

8,678 33 9490 28

$

41334 26 s_ _~..;o~oo:;;::..

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total L1abthbes
FUND EOUIJY
Fund Balances Reserved For Conbnuabon of Federal Programs For lnventones Food Donated Commod1t1es Purchased Food Unreserved Un designated
Total Fund Equity
Total L1abllrtJes and Fund Equity
See notes to the general-purpose financial statements
-20

$

2,863 61

26,302 04

$

29,16565

$

8,678 33

9,490 28

000 $

000

$

18 168 61 $

000

$

47 334 26 $-~-=.::,0.,::0::,0

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

23,32342 $

65,189 88 $

117,67895 $

159,672 36

54300

54300

8,678 33 9 490 28

9,019 96 5 562 99

$

6518988 $

s___ 136.390 56

1_14_.2.,s.5._3_1

$

5,458 87

6,226 72

6,858 04

5 322 79

$

23,866 42

$

8,32248 $

4,477 09

32,528 76

31,825 05

6,858 04

4,664 53

5,322 79

$

53,032 07 $

40 966 67

$

3,983 02

$

8,678 33

9,490 28

9,019 96
5,562 99

$

0 00 $ _ __.,65=-a1""89=-8"'8'-

65 189 88

114 722 67

$

000 $

65 189 88 $

83,358 49 $ _~1~33=,2=8~8~64~

$

65 189 88 $

1361390 ss s_,__1.1.4._.2_5_5_3_1

21 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstructJon Support Services Pupil Services Improvement of lnstructJonal SeMces Educabonal Medill SeMces General Adm1mstrabon Student Transportation Services Other Support Services Food Services OperatJon
Debt Service Pnnc:,paJ Interest
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES {)JSES}
Caprtal Leases Operellng Transfers In Operating Transfers Out
Total Other F1nanc:,ng Sources (Uses)
Excess of Revenues and Other Flnanc:,ng Sources over (under) Expendrtures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change 1n Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements -22-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

35,242 00 $

108 796 90

300 056 51

$

444 095 41 $

27,323 22 27 323 22

$

27,32322

s

468,374 74

$

468 374 74 $

$

-24 279 33 $

27,323 22 000

$

14,834 96

$

14 834 96

s

-9,44437 $

000

24,027 32

000

-341 63 3927 29

$

1a 168 s1 s_ _ _ _o__oo_

EXHIBIT "F''

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30. 2001

JUNE 30. 2000

s

$

202,29517

- - - - - - $ _ _~12'-'4~4~38~52"-

$

202 29517 $

124 438 52 $

62,56522 $ 311,092 07 42449503

93,069 77 258,696 72 409.36666

798 152 32 $ _ _7""6'-'1~1~33"-"15"-

$

121,375 90

64,28656 7,147 73 9,16800 2,30000, $

2,00000

$

206 27819 $

$

-398302 $

$
9,101 36 23,94566
60,32156 5 72340
99 09198 $ 25 346 54 $

148,69912 $
64,28656 7,147 73 9,168 00
11,401 36 23,94566
2,00000 468,374 74
60,321 56 5 72340
80106813 $
-2 915 81 $

141,060 78
50,412 41 16,035 29
50000 16,62260 79,542 80
482,23645
11,80388 73134
798 94555
-37 812 40

$

64,714 00

$

14,834 96

$

-6543496

-65434 96

-40 000 00

$

-6543496 $

-50600 00 $

24 714 00

$

-3,983 02 $

--40,088 42 $

-53,515 81 $

-13,09840

3,983 02

105,278 30

133,288 64

144,283 39

-341 63 3 927 29

3,258 71 -1 155 06

$

000 $

65189 88 $

s_ _ 83 358 49

1_3_3._2_88__64_

-23-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY
COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30. 2001

ASSETS Cash and Cash Equ1Valents Investments Accounts Rece1Vable
Total Assets

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

59,952 24 $

000

348,416 46

$ 408 368 10 s_ _ _ _o~oo._

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total l.Jab,lrties
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST ProJects Unreserved Undes1gnated
Total Fund Equity
Total Uabllltles and Fund Equity

$

408.366 70

ooo s_______co:..oo=$ 406 366 10 s _ _ __,,:o:...oo=-

$

408 368 70 $ _ _ _...,.;0;;.,;00::,::....

See notes to the genera~purpose financial statements - 24 -

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30. 2000

$

1,144 41 $

61,096 65 $

110,245 04

422,968 89

771,385 35

1,066,940 55

101 781 20

101 781 20

378 880 45

$

525,894 50 $

934,263 20 $ 1,556,066 04

$

75,09410

145,830 40

53 768 10

$

274 692 60

$

408,368 70 $

839,976 34

$

525,894 50

525,894 50

441,397 10

000

000

000

$

525,894 50 $

934.~&3 20 S 1 281 373 44

$

525,894 50 $

934,263 20 S ' 1,556,066 04

-25

CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30. 2001

REVENUES
State Funds TSlCeS Other Funds
Total Revenues
EXPENDITURES
Current Support SeMces Business Adm1rnstrabon
Capital Outlay Building end Bu1ld1ng lmprovemems Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES fUSESl
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

$

30,521 40

$

27,686 55

$

27 686 55 $

30 521 40

$

126,020 74 $

295,415 85

68 379 00

$

194 399 74 $

29541585

$ -166 713 19 $ -264,89445

$ $ -264 89445

$

-264 89445 $

264,89445 264 89445

$

-431,607 64 s

000

83997634

000

$ 408 368 10 $ _ _ _....;o_oo:;.::..

See notes to the general-purpose financial statements 26.

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

30,521 40 $

274,692 60

$

634,025 06

634,025 06

596,041 71

24 112 34

51 798 89

88,804 93

$

658137 40 $

716 345 35 $ _---'9~5=9'-",53"'9'-'2=-4~

$

662 50 S

662 50 $

66250

421,436 59 68 379 00

1,028,011 52 3 641 00

$

662 50 $

49047809 S 1,032,31502

$

657 474 90 $

225 867 26 $

-72 775 78

$

264,894 45 $

597,408 00

$

-572 977 50

-837 871 95

-1.100,582 50

$

-572 977 50 $

-572 977 50 $

-503174 50

$

84,497 40 $

-347,110 24 $

-575,950 28

441 39710

1,281,373 44

1,857,323 72

$

525 894 50 $

934,263 20 $ 1 281 373 44

- 27 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY
STATEMENT OF CHANGES IN ASSETS AND UABIUTIES
FIDUCIARY FUND TYPE - AGENCY FUND
YEAR ENDED JUNE 30 2001

EXHIBIT"I"

VAN PROOYEN FELLOWSHIP FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 2000

ADDITIONS

BALANCE DEDUCTIONS JUNE 30, 2001

$

000 $ 500000 $

4 646 40 s_ _....:3;;;;5,;:;3.:.6.0..

LIABILITIES Funds Held for Others

$

000 $ 5.00000 $

4 646 40 s_ _....:3.5.3__,60._

See notes to the general-purpose financial statements

-29-

CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY SCHEDULE OF EXPEND[T\JRES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2001

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
El'lTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agnculture, U S Department of Child Nutntion Cluster Pass-Through From Georgia Department of Educotlon Food and Nutntron Program food SeMC:SS School Breakfast Program National School Lunch Program

10 553 10 555

NIA

$ 12,637 94

NIA

68,832 31 $

(2) 441,048 09 (3)

Tolal Child Nutntion Cluster

$ 81,470 25 $

441,048 09

Other Programs Pass-Through From Georgia Department of Education Food and Nutnbon Program Food Dlslnbu!Jon Program (1)
Total u S Department of Agriculture

10 550

NIA

27,326 65

$ 108,796 90 $

27 32665 468 374 74

Educabon, U S Department of Special Educaton Cluster Pass-Through From Georgia Department of Educabon lndrviduals with D1sabllltles Educabon Ad. Part I! - Special Education Flow Through Preschool

84027 84173

NIA $ 65,102 00 $

NIA

4 03310

65,102 00 4 033 10

Total Specal Educabon Cluster

$ 69,13510 $

69,135 10

Other Programs

Pass-Through From Georgia Department of Educotlon

Comprehensive School Refo!Tll Demonstrabon Project 84332

Elementary and Secondary Educabon Act

Title!

Accountabi,ty Grants

84348

Grants to Local Educabonal Agencies

84 010

Trtlell

Eisenhower Professional Development

84 281

Trtle V1

lnnovatrve Educauon Program Strategies

84298

Class Size Reduction

84 340

Vocational Education - BaS1c Grants to States

High School Program

BaSIC Grant

84048

Total U S Department of Education

NIA

49,507 66

49,507 66

NIA

3,615 00

NIA

55,968 85

NIA

-2,322 79

NIA

9,168 00

NIA

12,456 00

3,615 00 55,968 85
1,660 23
9,168 00 12,456 00

NIA

4 767 35

s $ 202,295 17

4 767 35 206 27819

Total Federal Flnandal Assistance NIA Not Available

$ 3111092 07 $ _ _ _67'"'4"',6"'5"'2-93._

C[IY Of CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2001

SCHEDULE "1"

Notes to the Schedule of Expendlhnes of Federal Awards
(1) The amounts 5hown for the Food Dlstnbubon Program represents the Federally assigned value of nonmonetary assistance for donated C011YT10dltle! recerved and/or consumed by the system duMg the a.irrent fiscal year
(2) Expendttures for the School Breakfast Program were not maintained separately and are mduded ,n the 2001 Nabonal School Lunch Program
(3) Expendrtures tor this program mdude State, and/or Other Funds Expendrtures ara not mamta,ned by fund source
r> MaJor Programs are ldentJ!ied by an estansk ,n front of tho CFDA number
The School DIStnd did not provide Federal Assistance to any SUbredplent
Toa accompanying schedule of expendrturas of Federal awartls Includes the Federal grant ectrvJ!y of the Ctty of Chickamauga Boartl of Educabon and ,s presented on tho modified accrual basis of accounbng which Is the basis of aa:ountlng used 1n the presentabon of the general-purpose finanoal statements

See notes to tho gonoral-purposo financial statements

31

CITY OF CHICKAMAUGA BOARD OE EDUCATION -WALKER COUNTY
SCHEDULE OE STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community AffaD'S, Georgia Department of Local Assistance Grant (1)
Educabon Georgia Department of QuaUty Basic Education Dl:red: lnsbucllonal Coat
Kindergarten Program Primary Grlldea (1-3) Program Upper Elementary Gracles (4-5) Program Middle School (13-8) Program High School General Education (9-12) Program Vocallonal Laboratory (9-12) Program Students with Diaabilrtles
C.tegory II C.tegory Ill Gifted Stulant - c.tegory VI Remedial Education Program Attemetrve Education Program Media Center Program
Staff and Profeutonal Dewlopment Indirect Cost
CelegorlcalGrllnta Nursing Se.Mees Pr1ndpal Supplements VocationalSuperviaonl,
Educabon Equarizabon Funding Grant Food Services Vocatlonal Education Other State Programs
At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Spec:lal EducaUOn Low lnadence Grant Teachers' Rebrement Lottery Programs Asalattve Technology Computers in the Claaaroom
Georgia State Financing and Investment Commlukm Reimbursement on ConatructkJn Pr0j8dS
Office of Treasury and Flscal SeMces Pul>hc School Employon Rotlnlmont
CONTRACT Education Georgia Department of Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s

24,000 00

s

24,000 00

223,002 00 7231144 00 353,533 00 827,199 00 818,316 00 239 38S 00

15,078 00 134,158 00 216,582 00
28 433 00 68,403 00 121,480 00 31,388 00 942,673 00

43,686 00 4,944 00 8,349 00
509.234 00 $
3,181 41

35 242 00

1,172 79 50,370 46
9,658 45 1,638 76 11,488 00 5,!550 96

681 22 28,642 00

s 30,521 40

10,189 00

223,002 00 723,1144 00 353,533 00 827,19900 818 318 00 239 386 00
15,078 00 134,158 00 218,582 00
28,433 00 68 403 00 121,480 00 31,388 00 942,673 00
43,688 00 4,944 00 8,349 00
509.234 00 35,242 00 3,181 41
1,172 79 50,370 46
9,658 45 1 638 76 1148800 5 550 96
681.22 2S,642 00
30 521 40
10 189 00

19 544 00

19 544 00

(1) Resurface Gonion Lee High School Track See notes to the general-purpose financial &tatements

$ 5 448,!559 83 $ 62 585 22 $ 30,521 40 S 5,539,848 45 . 32-

CITY OE CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPBOVEP LOCAL OPTION SALES TAX PROJECTS
VEAR ENDED JUNE 30 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMDUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

ConstrudJon of a new physical education faality for Gordon Lee Middle School, ccnstrud and eq'"p a ,_ Sclonce/Malh classroom bulld,ng for Gordon Lee High School, repa~. renovate, modify, retrofit, and reroof aelectod dassrooma and buildings renovate and retrofit for aca:mmodabon of cornputers and other technology for and purchasing tecmology eqwpmem for, Chickamauga Bementary School, Gordon Lee Middle 5chool and Gordon Lee High School

s 3 TT6 340 00 s 3 ns,340 oo $ 489,815 59 $ 2,090 788 91 1

PROJECT STATUS
Ongo,ng

(1) The School Dlsbicl'a onglnal cost osllma1e as speafled In the reaolubOn calUng for the Imposition of Iha Local Option Sates Tax
(2) The School Dlslricl'a a,m,m oabma1a of total cost for the project. lndudos ell cost from prqect lnoept,on to complotlon
(3) The voteno of the Clly of Chickamauga approved the lmpOSltion of a 1% sates tax to fund the obow pro,od and retire assoaated debt tnamod by the City of Chickamauga City Government on the School lllsbict'a behalf Amounts expended for this project may Include sales tax proceeda, 81at8, local property- and/or other fund ovor the hie of the project.

See 0018s to t h e ~ flnandal atataments

-33-

CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY GENERAL FUND QUALITY BAS1C EDUQATIQN PROGRAM (QBE)
ALLOTMENTS ANP EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30 2001

SCHEDULE "4"

DESCRlpTION
Dlrect lnstructlonal Programs Kindergarten Program Kindergarten Program-Earty Intervention Program Primary Grades (1-3) Program Primary Grades-Earty Intervention (1-3} Program Upper Elementary Grades (-4-5) Program M1<1dle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Student& wrth Oiseblllbas Category Ill Glfted Student Category VI Remedial Education Program Altematlve Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS
FROM GEORGIA DEPARTMENT OF
EDUCATION (1 l

ELIGIBLE QBE PROGRAM COSTS

SALARIES OPERATIONS

TOTAL

$

231,253 00 $ 196,127 24 $

6,399 37 $ 202,526 61

5 666 57

5,666 57

750,729 00

745,066 76

27,213 54

n2 210 30

41,216 64

41,216 64

366,613 00

402 36564

6,366 62

410,732 26

657,SQ,400

666 932 08

20 7 16

887 379 24

64859200

956,350 15

36,178 65

992,529 80

248,243 00

249,373 55

31,559 8!5

280,93340

154,756 00

197,666 52

2,267 35

199 933 67

224,574 00

167,621 83

1,481 11

189,102 84

29,485 00

36,063 99

178 31

36,242 30

70 934 00

66 954 90

88,954 90

$

3,782,983 00 $ 3,951,596 07 $ 134,092 96 $ 4,08!5,889 03

125 974 00 32 549 00

133,789 04 4 520 71

26 901 05 28 310 57

160,690 09 32 831 28

TOTAL QBE FORMULA FUNDS

$

3,841,506 00 $ 4 089,905 82 $ 189,304 58 $ 4 279 210 40

(1) Comprised of State Funds plus Local Frve MIii Shara

See notes to the general-purpose falancial statements

CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY GENERAL FUND QUALITY BASIC EDUCATION PROGRAM /QBE} ALLOTMENTS AND EXPENDITURES BY S(TE YEAR ENDED JUNE 30. 2001

SCHEDULE "5"

SITE Gordon Lee Middle School Gordon Lee High School Chickamauga Elementary School Central Office (AltematJve Education Program)
TOTAL
(1) Compnsed of Sta1e Funds plus Local F,ve Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

944,579 00 $

1,006,958 57

1,287,988 00

1,493,034 89

1,479,482 00

1,585,695 57

70,93400

$

3 11s2,ss3 oo s_....;.4:,;;,0B;:;;5:1i;e_s:.:;.g.;;o3;;.

See notes to the general-purpose financial statements 35

SECTION II COMPLIANCE AND INTERNAL CONIROL REPORTS

Rll"i'iE:.I I \\'. H1,TO",'
STATE AUOITOP <04' 656 2174

0EPARTl\1ENT OF AUDITS AND ACCOUNTS
254 WJ,hmgton S1reet S \V Suite::! 14 AtlJnta, Georgia 10314-8400
May I, 2002

Honorable Roy E Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Supenntendent and Members of the City ofCluckamauga Board ofEducat10n
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of City of Chickamauga Board ofEducation as of and for the year ended June 30, 2001, and have issued our report thereon dated May I, 2002 This report was qualified for a scope lim1tat1on and for vanous departures from generally accepted accounting pnnc1ples, as identified in the auditor's report on the general-purpose financial statements Except as discussed in the following paragraph, we conducted our audit in accordance with audlhng standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contamed m Government Auditing Standards, issued by the ColI!ptroller General of the Umted States.
We did not observe the takmg ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as mventones through aitematlve procedures
Compliance
As part ofobtaming reasonable assurance about whether City ofChickamauga Board ofEducal!on's financial statements are free of matenal misstatement, we performed tests of its compliance with certam proVJs1ons oflaws, regulations, contracts and grants, noncompliance with wluch could have a direct and matenal effect on the determination offinancial statement amounts However, providing an opm1on on compliance with those prov1s1ons was not an obJectlve of our audit, and accordingly, we do not express such an op1mon The results of our tests disclosed no mstances ofnoncompliance that are requued to be reported under Government Auditing Standards
2001YB-41

Internal Control Over Fmanc1al Reportmg
In planmng and performmg our audit, we considered City of Cluckamauga Board of Educal!on's mtemal control over fmanc1al reportmg m order to determme our audil!ng procedures for the purpose of exprcssmg our opm1on on the financial statements and not to provide assurance on the mternal control over financial reporling However, we noted a certam matter mvolvmg the mternal control over financial reporling and its operalion that we consider to be a reportable cond1l!on. Reportable condil!ons mvolve matters commg to our attenlion relal!ng to significant defic1enc1es m the design or operation ofthe mtemal control over financial reportmg that, m ourJudgment, could adversely affect City of Chickamauga Board ofEducatlon's ab1hty to record, process, surnmanze and report financial data consistent With asserlions ofmanagement m the financial statements. The reportable condilion 1s descnbed m the accompanymg Schedule ofFmdmgs and Queslioned Costs as item FS-7691-0101.
A matenal weakness 1s a condil!on m which the design or operauon of one or more of the mternal control components does not reduce to a relalively low level the nsk that misstatements m amounts that would be matenal m relauon to the financial statements bemg audited may occur and not be detected Witrun a tlmely penod by employees m the normal course of performmg theu assigned funcUons. Our cons1deratlon of the mtemal control over financial reportmg would not necessanly disclose all matters m the mternal control that might be reportable condil!ons and, accordmgly, would not necessarily disclose all reportable condil!ons that are also considered to be nrntenal we~esses. However, we consider item FS-7691-01-01 to be a matenal weakness.
Tlus report 1s mtended solely for the mformalion and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awardmg agencies and pass-through entlt1es and 1s not mtended to be and should not be used by anyone other than these specified parlies.
Respectfully submitted,
~-,1al w. c:ld~
Russell W Hmton State Auditor
RWH:as 2001YB-41

Rt'CSlt I W. Ht Nm,
STATE AUDITOR
{404) 65+3-217A

DEPARTMENT OF AUDITS AND ACCOUNTS
254 \Va,;;hmgton Street S V,,/, Sunc 214
AtlJnto, Georgia 30334-8400
May 1, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent 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 0MB CIRCULAR A-133
Ladies and Gentlemen.
Compliance
We have audited the compliance of City of Chickamauga Board of Education with the types of compliance reqwrements descnbed m the US Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits ma3or Federal programs for the year ended June 30, 2001 City of Chlckamauga Board of Education's maJor Federal programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each of its ma3or Federal programs 1s the respons1b1lity of City ofC!uckamauga Board of Education's management Our respons1b1lity 1s to express an opm1on on City of Chickamauga Board of Education's compliance based on our audit.
We conducted our audit ofcompliance m accordance with auditing standards generally accepted m the Uruted States of Amenca, the standards applicable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Uruted States, and 0MB Circular A133, Audl/s of States, Local Governments, and Non-Profit Organizations Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtam reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and matenal effect on a maJor Federal program occurred An audit mcludes examirung, on a test basis, evidence about the City ofChickamauga Board ofEducation's compliance with those reqmrements and performmg such other procedures as we considered necessary m the circumstances

2001SA-10

We beheve that our audit provides a reasonable basis for our op1ruon Our audit does not provide a legal detennmallon on City of Chickamauga Board of Education's comphance with those reqmrements
In our op1ruon, the City of Chickamauga Board ofEducation compiled, mall matenal respects, with the reqmrements referred to above that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 200I.
Internal Control Over Comphance
The management of City of Cluckamauga Board of Education 1s responsible for estabhslung and mamtammg effective mtemal control over comphance with requrrements of laws, regulations, contracts and gran1., a,,phcable to Federal programs. In planrung and performing our audit, we considered City of -, 1ckarnauga Board of Education's mtemal control over comphance with reqmrements that cou!J have a direct and matenal effect on a maJor Federal program m order to detennme our audnmg procedures for the purpose of expressmg our op1ruon on comphance and to test and report on mternaJ control over comphance m accordance with 0MB Crrcular A-133.
Our consideration ofthe internal control over comphance would not necessanly disclose all matters m the mternaJ control that I111ght be matenaJ weaknesses A matenal weakness 1s a condition m which the design or operation of one or more of the mternaJ control components does not reduce to a relatively low level of nsk that noncomphance with applicable reqmrements of laws, regulations, contracts and grants that would be matenaJ in relallon to a maJor Federal program bemg audited may occur and not be detected w1thm a llmely pcnod by employees m the normal course of performmg therr assigned functions. We noted no matters mvolvmg the mtemaJ control over compliance and Its operation that we consider to be matenal weaknesses.
This report 1s mtended solely for the mformation and use ofthe management, members ofthe City of Cluckamauga Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~/JJ.<f)~
Russell W. Hmton State Auditor
RWHas 200JSA-10

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FlNDING CONTROL NUMBER AND STATUS

FS-7691-99-01 FS-7691-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS FaI)ure to M3.!Ilt3.ln General Fixed Assets Account Group Fmdmg Control Number FS-7691-00-01

The School D1stnct has staffing hmitat10ns and budgetary considerations prolnb1tmg the luring ofaddtt!onal adtrunistratlve staff, which would be necessary to resolve tins finding

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF CIDCKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Fmancial Statements The auditor's opm1on on the City ofChickamauga Board ofEducation's financial statements was qualified for a scope lim1tat1on and for vanous departures from generally accepted accoW1tlng pnnc1ples
2 Reportable Conditions m Internal Control Disclosed by the Audit of the Fmancial Statements The audit report for the City of Cluckamauga Board of Educat10n disclosed a financial statement reportable comhtlon related to the followmg control category
General Fixed Assets
The reportable condition described above 1s considered to be a matenal weakness.
3 Noncompliance Malena! to the Fmanc1al Statements The amht of the City of Cluckamauga Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements
4 Reportable Conditions m Internal Control Over Ma10r Programs The audit report for the City of Cluckamauga Board of Education did not disclose any reportable cond11Jons m mternal control over maJor programs
5. Type of Report Issued on Compliance for Ma1or Programs The auditor's opm1on on the City of Chickamauga Board of Education's report on compliance with requirements applicable to maJor programs was W1qual1fied
6. Audit Fmdmgs Required to be Reported by Section .510(a) ofOMB C1rcular A-133 The City ofCluckamauga Board ofEducation's audit did not disclose audit findmgs reqUired to be reported by secllon .510(a) ofOMB Circular A-133
7 Ma1or Programs Federal awards audited as maJor programs are as follows 10.553 Food and Nutnllon Program - Food Services - School Breakfast Program IO 555 Food and Nutnt1on Program - Food Services - National School LWlch 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 Chickamauga Board of Education qualified as a low nsk aud1tee based on a waiver granted by the U S. Department of Education
-I-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable Cond1uon - Matenal Weakness Repeated From Pnor Year Fmdmg Control Number FS-769I-0I-0l The City ofCluckamauga Board of Education did not mamtam a system-wide General Fixed Assets Account Group w1thm the formal accountmg records as reqwred by generally accepted accountmg pnnc1ples This cond1Uon results in the general-purpose financial statements ofthe School D1stnct being incomplete and not in accordance with generally accepted accounung pnnc1ples Appropnate acuon should be taken by the School D1stnct to estabhsh accounting controls and procedures to proVIde for mamtenance of a General Fixed Assets Account Group These subs1d1aryrecords should mclude an inventory of land, bmldmgs, and equipment owned by the School D1stnct and should include, but may not be hm1ted to, date acqurred, acqms1Uon cost, esllmated replacement cost, location, and descnpt10n Dela!led records should be mainla!ned of all add1t1ons and deleuons to the General Fixed Asset Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
-2-