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, 2002

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clTY OF CHICKAMAUGA BOARD OF EDUCATiON

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REPORT.ON AUplT .

'bF THE FINANCIAL STATEMENTS "

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

SECTION!

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDIT1JRES OF FEDERAL AWARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND 1YPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND 1YPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTTJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDillONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2
4 7 9
20 22
24 25 27 28
30 31

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

Page

SECTION!

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENfS AND EXPENDIT1JRES

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

SECTION II
COMPLIANCE AND INTERNAL CONfROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONfROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWTIHGOVERNMENTAUDITINGSTANDARDS
REPORT ON COMPLIANCE WI1H REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONfROL OVER COMPLIANCE IN ACCORDANCE WI1H 0MB CIRCULAR A-133

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

SECT10NN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

Rrn,st:1.1. W. HINTIJN
STATE AUDITOR (~) a56-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
-:!54 Wa,hing1on S1rce1. S W ~ullc 214 Atlan\a, Georgia 30334-8400
March 15, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the City of Clnckamauga Board of Educalion
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have auchted the accompanymg general-purpose financial statements ofthe City ofClnckamauga Board of Education, a component urut of the City ofClnckamauga, Georgia, as of and for the year ended June 30, 2002, as listed m the table ofcontents. These general-purpose financial statements are the respons1b11ity of the City of Clnckamauga Board of Education's management Our responsibility 1s to express an opmion on these general-purpose financial statements based on our audit.
We conducted our audit m accordance With auditing standards generally accepted m the Uruted States ofAmenca and the standards applicable to financial audits contamed m Government Aud11Ing Standards, issued by the Comptroller General ofthe Uruted States Those standards reqwre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit mcludes exarrurung, on a test basis, evidence supporting the amounts and disclosures m the financial statements An audit also mcludes assessmg the accounnng pnnc1ples used and s1gruficant estimates made by management, as well as evaluanng the overall financial statement presentation We believe that our audn provides a reasonable basis for our op1ruon
As descnbed m the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared usmg certam accounnng pracnces and pohc1es winch, m our optruon, vary m some respects from generally accepted accounling pnnc1ples. These vanances are descnbed as follows

2002ARL-13

* The general-purpose financial statements of the Board ofEducat10n did not contam 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 accountmg pnnc1ples.
School act1v1ty accounts mamtamed at the md1V1dual schools are not mcluded m the general-purpose financial statements. To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded in the general-purpose financial statements
,. The Board of Education did not recogrnze as expenditures, m the year ended June 30, 2002, a portion of salanes and the corresponding employer's cost ofrelated benefits earned for contractual semces completed pnor to June 30, 2002. Also funds received, subsequent to June 30, 2002, 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 reVJew Conversely, the s1m1lar expenditures and related revenues for contractual serVJces completed prior to June 30, 2001, were unproperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting pnnc1ples, revenues should be recorded when avrulable 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 vanances or omissions have not been determmed, but are beheved to be material.
In our oplillon, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fa.trly, m all matenal respects, the financial position of the City of Chickamauga Board of Educat10n as ofJ11De 30, 2002, and the results of its operations for the year then ended, m confomuty with accounting pnnc1ples generally accepted m the Uruted States of Amenca
In accordance With Government Auditing Standards, we have also 1Ssued our report dated March 15, 2003, on our consideration of the City ofCluckamauga Board of Education's mtemal control over financial reporting and our tests of its comphance With certam proV1s1ons of laws, regulallons, contracts and grants That report 1s an mtegral part of an audit performed in accordance with Government Aud,tmg Standards and should be read in conJuncllon With tins report m cons1denng the results of our audit
Our audit was performed for the purpose of formmg an op1ruon on the general-purpose financial statements of the City of Chickamauga Board of Education taken as a whole The accompanying
comb1rung and md1v1dual fund statements (Exhibits E through O and the financial schedules
(Schedules I through 5), which mcludes the Schedule ofExpenditures offederal Awards as reqwred by U S. Office of Management and Budget Circular A-133, Audzts ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a reqmred part ofthe general-purpose financial statements. Such informatJon has been subjected to the
2002ARL-13

aud1tmg procedures applied m the aucht of the general-purpose financial statements and m our op1mon, except for the effects of the matters referred tom the third paragraph, such mformal!on 1s fiurly stated, m all matenal respects, m relation to the general-purpose financial statements taken as a whole

A copy oftlus report has been filed as a permanent record m the office ofthe State Auchtor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.

---- \0 . ~ ...Respectfully submitted,

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ll W Hmton

RWH.as 2002ARL-13

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 2002

ASSETS
Gash and C8ah Equivalents
lnvealments
Accounts RecelV8ble
lnventanes Food Donated Commodllles Purchu&d Food
Amount ta be Provided ,n Future Yean; Far Payment of Capital Lease Agreement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

179,353 92 $ 151,582 50 $

2,038 22

625,527 57

50,249 32

3,176,791 76

24,987 24

15,000 00

106,70816

9,870 02 6,11295

Total Assets

$

829868 73 $ 232,814 79 $ 3,285,538 14

LIABILITIES AND FUND EOUfTY
LIABILITIES
Accounts Payable Salanes Payable Explr8d Grant Balances Payable Deferred Revenue Funds Held far Othe111 Capital Lease Agreements
Total l.Jab1hbes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Cammadlbes Purchased Food Far Purpoae of Band luue Far SPLOST PrQJ8CIS Unreaervad Undeslgnated
Total Fund Equity

s

s 69,545 92

4,635 42

36,453 30

13,205 10

9,098 53

$

s 69,545 92

63,392 35

$

9,870 02

6,11295

$ 2,756,679 63

528,858 51

$

760,322 81

15343947

000

s

s 760 322 81

169 422 44 $ 3,285,538 14

Total L!abll1bes and Fund Equity

$

829,868 73 $ 232.814 79 S

The notes ta the general-purpaaa finanaal statemenls are an lnlegrel part of thm atatament -2-

3,285,53814

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$

5,353 60

$

338,328 24 $

242,699 88

3,852,568 65

1,308,750 20

146,695 40

102,397 13

- - - - - - $ _ ____,6""9"'1"'06"-44=-

9 870 02 6,11295
69106 44

8,678 33 9,490.28
69106 44

$

535360 $

69 106 44 $ 4,422,681 70 $ 1 741 122 26

s

5,353 60

$

$

s 535360

$
6910644
s 69106 44

s 74,181 34
36,453 30
13,20510 9,098 53 5,35360
6910644
s 207,398 31

118,270 25 34,028 76 7,075 18 5,322 79 35360 6910644
234157 02

$

535360 $

$

s 9,870 02

6,11295

2,756,679 63

528,858 51

8,678 33 9,490 28 409,368 70 525,894 50

913 762 28
s 4,215,283 39 $

554 53343 1,506,965 24

6910644 $ 442268170 $ 1 741 122 26 -3-

CIJY OF CHICKAMAUGA BOARD Of EDUCATION - WALKER COUNTY COMBINED STATEMENT OF REI/ENUES EXPENPIJVRES AND CHANGES IN FUND BALANCES
ALL GOyERNMENTAL FUND JYPES YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Rewtnues
EXPENDIJVRES
Current lnstrucllon SupportSeMc:es Pupil SeMces Improvement of lnstruc:bonal Servlcea Educabonal Media 5erv..,. General Adnmlstration School AdmlmstratJon Business Admlmstratlon Maintenance and Oparabon of Plan! Studen1 Tranaportabon SeMCet Other Support Services Food Services Operation
Cep,tal Outlay Debt Service
Pnnclpal lnterul
Total E,,pendlturet
Excels of Revenues ow,r (under) E,,penditures
OTHER flNANCING SOURCES {USES)
Proceeds from General Obl!gabon Bonds Par Value
Operabng Transfers In Oparabng Transfera Out
Tolal Other Flnanang Soun:es (I.Jaes)
Exceaa of Revenues and Other Finenang Sources over (under) ExpendrbJras and Other fm9nang Uaes
FUND BAV,NCE JULY l
Food lnwnlory- Net Change mPe~od Dona19d Conmod111os Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

s s 5,916,415 50
607,547 67 253,227 89
s s 6 777191 06

71 035 97 360,076 76
480 84961
911 962 34

s s 4,724,345 34
145,982 87 23,674 67 167,974 43 294,002 66 540,474 61 84,844 56 522,071 52
3,155 00 6,248 83

164,737 27
60,893 22 57,11788
6,012 45 17,966 04
20,738 30 17,765 21
469,519 69

s s 6,512,774 49

s

s 264416 57

814 750 06 97 212 28

s

s 11,25000

-4 687 31

$

s 6,562 69

s

s 270,97926

489,343 55

2,287 31 -1125000
-I! 962 69
88,249 59 83,35849

1,191 69 -3 377 33

fUNP BAIJINCE JUNE 30

s

Tha notes to tho general-purpooe ftnanaal llatemon1B era an integral part of this llatemon1
-4-

s_ _ 150 322 81

1_.6_9,_42.,2,_44_,

1

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

$ 5,987,451 47 s 5,539 64645

360,076 76

311,092 07

$

592,623 32

1,200,170 99

980,11281

20 34048

754 417 98

822 371 53

$

s s 612,963 80

8,302, 117 20

7,653~22 86

s s 4,889,082 61

4,510,840 74

s

55,711 97

207,329 39

206,876 09 80,782 55 173,986 88 311,968 70 540,474 61 140,556 53 542,809 82 17,765 21 3,155 00
475,768 52 207,329 39

215,043 29 40,99543 175,TT0 55
238,871.27 397,562 05 83,32112 536,124 25
23,94566 5,13262
488,087 95 489,815 59

60,321 56 5 72340

$

s s 263 041 36

7,590,565 91

7,271,555 48

s

s 349 922 44

711 551 29 s

381667 38

s s 2,600,000 00

2,600,000 00

2,40000

15,937 31 s

-601 047 50

-616 984 81

s s 2,001,352 50 s 1,998,952 50

50,600 00 -623 5TT 50
-5n9TT50

s s s 2,351,274 94

2,710,503 79

-191,310 12

934,263 20

1,506,965 24

1,694,689 70

1,19169 -3 3TT 33

-341 63 3 927 29

s

4,2151293 39 s __1.,:,506=.:96::;5:...24. .,

-5-

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 RE\IENUE FUNDS
YEAR ENDED JUNE 3Q 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
Slate Funds F-.ilFunds Taxeo Other Furos
Total Rewnues

s s 5 884,445 00

5 916,415 50

500,00000 295,00000

607,547117 253,227 69

s s 6 479 445 00

6,m,191 06

EXPEND[TURES
C1.mmt Instruction SupportServlcos
P\c)6Servlces
I m - of lnotrudlonal SeMCSI Educational Media Services General Admln!Wwon Sd>ool Adnmlstration BlJ81nau Admlni11'1'ation Malnt9nance and Operation of Plant Student Transporta!Jon Se11111:es Other Support Se1111ces Food SeMc:es Operation
TotaJExpe-..as
ExceosofRewooellMlf(undor)E,cpendltlns

s s 4,773,762 00

4,724,345 34

170.264 00 38,862 00 173.295 00 253,75000 494,602 00 83,0llO 00 63350000

145 982.67 23.674 67 167,874 43 294,00266 640474 61 &4&4456 522,07152

3,500 00

3155 00 6 246 63

s s 6,622.735 00

6,512,774 49

s s -143i90 00

264 416 57

OTHER EINANs,IN!, llQURs,ES !Llliiali)
OtherS<ut:85 Other Ules
TOia! Other Fnandng Sourooa (Ules)
Excess of Rewnuos and Other Financing 5olat:es
s owr (under) Expendrtina and Other Fnandng U-
EUND BALANCE JULY l ~ l
AdJUO!mfflll Food Inventory - Net Change In Period
Donated CommodPurchaaed Food

s s s -143.290 00
489,515 00 71500

11.250 00 -4 667 31 6,56269
270,97926 489,343 55

EUNQ BALANs,E JUNE 30 2002

s s 3461940 00

7601322 81

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 71 919 00 $ 71,03597

2n 315 00

360 076 76

34150000

460,649 61

s s 690734 00

91196234

s s 125 999 00

164,737 27

61,543 00 3098200
15000

60,693.22 57,117.86
6,01245 17,966 04

2,00000

20 738 30 17 76521

441,229 00

469,519 69

s s 661,903 00

614 750 06

s s 8 631 00

97,212 28

s 2.287 31
-11,250 00
s -8,962 69

s s 8,631 00

66,249 59

21,527 00

63 35849

6,528 00

1 191 69 -3 377 33

s s 38.888 00

169 422 44

The notes to the genora~purpose flnanci..l statements an, an 1nte9ral part of this ata1ement
7 -

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

EXHIBIT "D"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City ofCluckamauga Board ofEducation (School D1stnct) was estabhshed under the Jaws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted by the Board The School D1stnct 1s not organized as a separate legal entity and does not have the power to levy taxes or issue bonds Its budget 1s subJect to approval by the City of Clnckamauga, Georgia Accordmgly, the City of Cluckamauga Board of Education 1s determmed to be a component unit of the City of Clnckamauga, Georgia, winch 1s the pnmary government
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1Uon and the results ofits operations Fund accountmg 1s designed to demonstrate legal comphance and to aid financial management by segregating transactions related to certam governmental functions or activities A fund 1s a separate accountmg entity wtth a self-balancmg set of accounts An account group 1s a financial reportmg deV1ce designed to proV!de accountab1hty for certam assets and hab1hues that are not recorded m the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures m the vanous funds at the ume of purchase A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct. To conform to generally accepted accounting pnnc1ples, a General Fixed Assets Account Group should be maintamed for reportmg the cost of assets acquired by governmental fund types
Although "school acuv1ty accounts" are maintained at the md1V1dual schools, neither the assets, hab1h!Ies and fund eqwty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements. To conform to generally accepted accounting pnnc1ples, these accounts should be recorded m 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, m comphance wtth generally accepted accounting pnnc1ples apphcable to governmental uruts, unless otherwtse disclosed m these notes Funds and the account group presented m tins report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational ac!IV1tles Governmental Fund Types mclude
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those required to be accounted form another fund These transactions relate to resources obtained and used for SerV!ces provided by a board of educat10n.

-9-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COill,TY EXHIBIT "D" NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEME"ITS
JUNE 30, 2002
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 legaJly restncted to expenditures for specified purposes. These funds are received pnmanly from the Georgia Department of Education and from the FederaJ government to accomplish specific educatlonaJ obJectlves
CAPITAL PROJECTS FUND - the fund used to account for financ1aJ resources to be used for the acqu1S1tlon or construction of maJor cap1taJ fac1ht1es
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government urut m a trustee capacity or as an agent for md1v1duaJs, pnvate orgamzatJons, other government uruts and/or other funds Tius fund mcludes:
AGENCY FUND - the fund used to account for assets held m a fiduciary capacity for other funds, governments, or md!VIduaJs.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP-A financ1aJ reportmg deVIce used to account for cap1taJ lease obhgatJons
BASIS OF ACCOUNTING
The accountmg and fi.nanc1aJ reporting treatment apphed to a fund 1s determmed by its measurement focus. All govemmentaJ funds are accounted for usmg a current financial resources measurement focus With tins measurement focus, only current assets and current hab1htJes generaJly are mcluded on the baJance sheet Operatmg statements ofthese funds present mcreases (1 e., revenues and other financmg sources) and decreases (1.e., expenditures and other fi.nancmg uses) m net current assets The1r reported fund baJance 1s considered a measure of available spendable resources
L1ab1htJes winch are expected to be financed from available spendable resources are reported as hab1hlles m the governmental funds. Other hab1ht1es, which are not expected to be financed from available spendable resources, are reported m the GeneraJ Long-Term Debt Account Group
Agency funds are purely custod!aJ m nature and do not mvolvc measurement ofresults ofoperations
Governmental funds are accounted for usmg the mochfied accruaJ basts ofaccounllng under which.
Revenues are recogmzed when susceptible to accrual (1.e , when they become both measurable and available) "Measurable" means the amount ofthe transaction can be determmed and "available" means collectible w1thm the current penocl or soon enough thereafter to be used to pay hab1ht1es of the current penod The School D1stnct considers receivables collected wtthm sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be susceptlble to accrual Nonexchange transactions, m winch the School D1stnct gives (or receives) value without

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTI' EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
duectly rece1vmg (or givmg) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes 1s recogruzed in the fiscal year for which the taxes are leVIed Revenue from sales taxes 1s recogruzed in the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogruzed in the fiscal year in which all ehgib1hty requirements have been satisfied
Expenditures are generally recogruzed when the related fund habihty 1s incurred.
A departure from the above defirutions 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel ofthe School D1stnct were employed for a one hundred and runety day penod beginnmg ID August 200l and endrng ID early June 2002 Personnel contracts for this employment penod specify that compensation be paid in twelve equal monthly payments beginrung m September 2001 and endmg m August 2002. State grants to fund the State's share of these contracts were d!sbursed from the Georgia Department of Education to the School D1stnct in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expend1t1Ires by the School D1stnct subsequent to June 30, 2002 Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the srnular expendJtIIres and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002. Generally accepted accountmg pnnc1ples reqwre that revenues be recorded when available and measurable and that expendJtIIres be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccountmg in recogruzmg assets and habihues.
BUDGET
The City of Chickamauga Board of Education"s budget 1s a complete financial plan for the School D1stnct"s fiscal year and 1s based upon estimates of expend1t1Ires together with probable funding sources There 1s no statutory prolub1t1on regarding 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 D1stnct's admm1stratlon prepares a tentative budget for the Board"s approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once in a newspaper ofgeneral c1rculat1on in the locahty At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes reV1s1ons as
- 11 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COl/ND' EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAt STATEMENTS JUNE 30. 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
necessary and with the approval ofthe City Council adopts a final school budget Tins final budget 1s then submitted, in accordance with prov1s10ns ofthe Quality Basic Educanon Act, OCGA Secnon 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any nme dunng the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with ongmal matunt1es of three months or less from the date of acqws1t1on in authonzed financial 1nslltut1ons 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 assoc1allons.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonparncipating interest-earrung contracts (such as certJ.ficates ofdeposit) and repurchase agreements are reported at cost Part1c1patmg mterest-earnmg contracts and money market investments with a maturity at purchase ofone year or less are reported at amortJ.zed cost Both parnc1pat1ng interest-earning 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 invest its funds and in selecting among
options for investment or among mstltu0onal bids for deposits, the lnghest rate ofreturn shall be the obJcctlve, given equivalent condinons of safety and hqu1d!ty. Funds may be invested in the following:
(I) Obhgat1ons issued by the State of Georgia or by other states,
(2) Obhgallons issued by the Urutcd States government,
(3) Obhgallons fully msured or guaranteed by the Uruted States government or a Umted States government agency,
(4) Obligations of any corporalion ofthe United States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adrmrustered by the State of Georgia, Office of
Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgat1ons ofotherpohtlcal subd1vis1ons of the State of Georgia
- 12 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformat1on available. Receivables are recorded when either the asset or revenue recogrullon cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts wluch would necessitate the need for an allowance for uncollecl!ble receivables.

PROPERTY TAXES

The City of Cluckamauga fixed the property tax levy for the 2001 tax digest year (calendar year) on October I, 2001 (levy date). Taxes were due on December 20, 2001 (hen date). Taxes collected w1thm the current fiscal year or withm 60 days after year-end on the 2001 tax digest are reported as
revenue in fiscal year 2002. 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, 2002 for maintenance and operallons amounted to $607,547 67

The tax millage rate levied for the 2001 tax year (calendar year) for the City ofCluckamauga Board of Educauon was as follows (a rrull equals $1 per thousand dollars of assessed value):

School Operallons

~mills

SALES TAXES

Special Purpose Local OptJon Sales Tax revenue dunng the year amounted to $592,623.32 and 1s to be used for capital outlay for educal!onal purposes or debt service Tlus sales tax was authonzed by local referendum and the sales tax must be re-authorized at least every five years

The City of Cluckamauga (City Government) sold general obhgatJon bonds to provide advance funding for Capital Outlay ProJects associated with issuance ofa Special Purpose Local OptJon Sales Tax (SPLOST) In fiscal year 2002, the School D1stnct proVJded $601,047 50 ofSPLOST proceeds to the City Government for debt service on said general obhgallon debt

INVENTORIES

FOOD INVENTORIES Inventones of donated food commod11Jes used m the preparallon 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 commod!tJes are recorded as revenues and expenditures at the IJme commodity items are received. Purchased foods mventones are recorded as expenditures at the llme ofpurchase The mventones reported on the balance sheet

- 13 -

CIIT OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 School D1stnct has the follow1Dg types of interfund transactions
Reimbursements ofexpenditures 1rutJ.ally made from a fund that are properly applicable to another fund are recorded as expenditures in the re1mbursmg fund and as reductJ.ons of expenditures ID the fund that 1s reimbursed
Operating transfers are recorded for all 1Dterfund transactions other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total colwnns on the general-purpose financial statements are captioned "Memorandum Only" to mdicate that they are presented only to fac1htate financial analysis Data m these colwnns do not present financial pos1t1on or results of operatJ.ons m confonruty with generally accepted accounting pnnc1ples Neither are such data comparable to a consohdatJ.on. Interfund ehmmatJ.ons have not been made ID the aggregation of th.ls data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 proVldes that there shall not be on deposit at any time m any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofIDSurance, 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 being secured after the deduction ofthe amount ofdeposit IDSurance Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Section 45-8-11 (b) proV1des an officer holding public funds may, m his d1scretJ.on, waive the requirement for secunty m the case ofoperating funds placed m demand deposit checking accounts.
Acceptable secunty for deposits consists of any one ofor any combination of the following.
(1) Surety bond signed by a surety company dwy qualified and authonzed to transact busmess within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
- 14 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgations of the Umted States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of mdebtedness or other obhgallons of the counties or mumc1pah11es 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 authonzed the use of the bonds for this purpose,

(6) lndustnal revenue bonds and bonds of development authonlies created by the laws of the State of Georgia, and

(7) Bonds, b1lls, notes, certificates of indebtedness, or other obhga!Jons of a subs1d1ary
corporation of the Uruted States government, which are fully guaranteed by the Umted
States government both as to pnncipal and mtcrest or debt obhgatJons 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 Assoc1at1on, and the Federal National Mortgage Assoc1a!lon.

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1,417,803.36. 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 collaterahzed With secun!les held by the School District or by the School D1stnct's agent m the School District's name.
Category 2 - Cash collateralIZed With secunbes held by the pledgmg financial mstltut10n's trust department or agent m the School D1stnct's name
Category 3 - Uncollateral1zed deposits (Tins includes any bank balance that 1s collateral1zed with secunties held by the pledgmg financial 1nst1tullon, or by its trust department or agent but not m the School D1stnct's name.)

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

Risk Category

Bank Balance

I

$ 100,000 00

2

000

3

1,317.803 36

Total

$ 1.417,803,36

- 15 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION- WALKER COUNTY EXHIBIT "D" NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002
Note 2 DEPOSITS AND INVESTMENTS
CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value of the School D1stnct's total investments was $3,176,791 76 wluch 1s matenally the same as fa.ir value. Tlus investment consisted entirely of funds invested in the Local Government Investment Pool adrmmstered by the State ofGeorgia, Office ofTreasury and Fiscal Services wluch are not required to be categonzed smce the School D1stnct did not own any specific 1denllfiable secunl!es in the pool The mvestment pohcyofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1d1ty Portfolio) does not provide for investment in denvatlves or smular investments A descnptlon ofthe Pnmary L1qwd!ty Portfolio 1s as follows:
The Pnmary L1qu1d1ty Portfolio consists of Georgia Fund I, wluch 1s a combmat1on local and state government investment pool, and Fund 6 Georgia Fund l 1s a stable net asset value mvestment pool wluch follows Standard and Poor's cntena for AAAm rated money market funds. The pool is 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 is coDS1dered to be a Rule 2a7 hke pool. The pool's pnmary ob3cctives are safety of capital, mvestment mcome, liqwd1ty and d!vers1fica11on while mamla!mng pnnc1pal ($1.00 per share value). Net asset value 1s calculated weekly to ensure stability The pool d1stnbutes earmngs (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash eqwvalents and investments are reported at cost wluch approxlOlates fmr value The pool does not issue any legally bmdmg g11armtees to support the value ofthe shares Paruc1patlon m the pool 1s voluntary and deposits consist of funds from local governments; operatmg and trust funds of Georgia's state agencies, colleges and wuvers11!es; and current operal!ng funds of the State of Georgia's General Fund
Investments m Georgia Fund 1 and Fund 6 are directed toward short-term mstruments such as U. S Treasury obligations, secunl!es issued or g11armteed as to pnnc1pal and interest by the U S Government or any of its agencies or 1nstrumentali11es, banker's acceptances and repurchase agreenients The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average matunty for Georgia Fund 1 on June 30, 2002, was O 12 years The average mvestment duralion for Fund 6 on June 30, 2002, was 0.75 years.
Note 3 NON-MONETARY TRANSACTIONS
The School D1stnct receives food commod!l!es from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod!l!es 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 m3unes to employees, acts of God and unemployment compensal!on
- 16 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY EXHIBIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEME!-."TS
JUNE 30. 2002

Note 4 RISK MANAGEMENT

The School D1stnct has obtamed commercial msurance for nsk ofloss associated with torts. assets, errors or om1ss10ns,1ob related illness or mJunes to employees and acts ofGod The School D1stnct has neither s1gruficantly reduced coverage for these nsks nor mcurred losses (settlements) which 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 District accounts for claims w1thm 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 mcurred any hab1hties for unemployment compensation dunng the past two fiscal years.

The School D1stnct has purchased a surety bond to proVIde additional insurance coverage as follows

Position Covered

Amount

Supenntendent

$ 10,000.00

Note 5. GENERAL LONG-TERM DEBT

CAPITAL LEASES The City of Cmckamauga Board of Education has entered mto a lease agreement as lessee for the purchase oftwo buses Tins lease agreement qualifies as a capital lease for accounting purposes and,
therefore, has been recorded at the present value of the future mirumum lease payments as of the
date of its mception

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

Balance July I, 2001

Capital Leases
s 69,106 44

Deductions

Lease Payments

000

Balance June 30, 2002

$ '22.1~1i4

At June 30, 2002, payments due by fiscal year which includes pnnc1pal and mterest for these Items are as follows

- 17 -

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

EXHIBIT "D"

Note 5 GENERAL LONG-TERM DEBT

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 M1rumurn Lease Payments

$ 69 )06 44

Note 6: ON-BEHALF PAYMENTS

The School D1stnct has recogruzed revenues and expenditures m the amount of $62,641 50 for health insurance and retrrement contnbutlons patd on the School D1stnct's behalf by the following State Agencies

Georgia Department of Education P111d to the Georgia Department of Comrnuruty Health For Health Insurance ofNon-Certtfied Personnel In the amount of$54,813.50

Office of Treasury and Fiscal SCTV1ces Patd to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of$7,828.00

Note 7 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies Thts could result m requests for reimbursement to the grantor agency for any expenditures winch are chsallowed under grant terms The School Dlstnct believes that such chsallowances, 1f any, will be umnatenal to its overall fmanc1al position

I '

- 18 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COU>,TY
NOTES TO TIJE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002

EXHIBIT "D"

Note 8 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substan!Ially all teachers, adnumstrative and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), wluch 1s a cost-shanng multiple employer defined benefit pension plan. TRS provides service retirement, d1sab1hty retirement and survivors benefits for its members m accordance With State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE
Employees ofthe School Distnct who are covered by TRS are reqwred by State statute to contnbute 5% ofthe1r gross earnings to TRS The School Dlstnct makes monthly employer contnbut1ons to TRS at rates adopted by the TRS Board of Trustees m accordance With State statute and as adVIsed by therr independent actuary. The requrred employer contnbution rate 1s 9 24% and employer
contnbutlons for the current fiscal year and the preceding two fiscal years are as follows.

Fiscal Year

Percentage Contributed

Required Contnbutlon

2002 2001 2000

100% 100% I 000/o

$ 398,215 59 $ 445,025 85 $ 413,375 26

- I9 -

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

ASSETS Cash end Cash Equivalents Investments
Accounts Receivable
lnventones Food Donated Commodl!Jes Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

60,707 73 $

9,098 53

9,870 02 6 112 95

$

16 690 10 s_ _..e_oo=0_s.3..

LIABILITIES AND FUND EQUITY
UABILJJIES
Accounts Payable Selanes Payable Expired Grant Balances Payable Deferred Revenue
Total Uabllrtles
FUND EOUIJY
Fund Balances Reserved For Inventories Food Donated Commodmes Purchased Food Unreserved Undes1gneted
Total Fund Equrty
Total Llebillbes end Fund Equrty
See notes to the genera~purpose finencael statements
- 20 -

$

2,813 48

27,956 70

$

$

30 770 18 $

9 098 53 9 098 53

$

9,870 02

6,112 95

29 937 55 $

000

$

45,920 52 $

000

$

76 eoo 10 s _ _ _9.;0=9=8;;;53~

EXHJBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

8,523 64 $

73,252 60 $

151,58250 $

117,678 95

50,249 32

50,249 32

15,000 00

15,000 00

54300

9,87002 6 112 95

8,678 33 9 490 28

$

23,52364 $

123,501 92 $

s_ _ 232181410

1:.:36=,390;::;.56:;::..

$

1,821 94

8,496 60

13,205 10

$

23,52364

s

4,63542 s

8,322 48

36,453 30

32,528 76

13,205 10

6,858 04

9,098 53

5,322 79

s

63 392 35 s

53,032 07

$

9,870 02 $

8,678 33

6,112 95

9,490 28

$

0 00 $ _---'1~2.:!,3,~50:c,1_,9:,e,_2

153 439 47

65 189 88

$

000 $

123,501 92 $

169 422 44 $ _ _..8.,.,3,:358=c4c:..9

$

23,523 64 $

123,501 92 $

232 814 79 s _ _1_36..,,,:;;39;;;:o_se_

- 21 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL RE\IENUE FUND
YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDlil/RES
Current lnstrucbon Support SeMC&S Pup1ISeMCeS Improvement of lnstrucl!onal SeMCeS Educational Mocha Serv,oes General Adrrumslrabon Maintenance and Operation of Plant Student Transporta11on Serv,ces Other Support ServlC89 Food Services Operation
Debi Service Pnnapal Interest
Total Expendrtures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES rUSESl
Operating Transfera In Opera1mg Transfera Out
Total Other F1nanang SotJroes (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY l
Adjus1ments Food Inventory - Not Change ,n Penod
Donated CommodrtJes Purchased Food

FUND BALANCE JUNE 30

See notes to the general-purpose financial Bla1ements

-22-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

36,48600 $

107,192 36

355 TT8 88

$

499457 24 $

34 549 97 34 54997

$

34,54997

$

469,519 69

$

469 519 69 $

$

29937 55 $

34 54997 000

$

29,937 55 $

000

18,16861

000

1,191 89 -3 377 33
$ 45 920 52 s_____o_oo_

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

$

$

252,88440

- - - - - - $_---'1=25=0=7=0~7~3

$

252,884 40 $

125 070 73 $

71,03597 $ 360,07676 480 849 61

62,56522 311,092 07 424 495 03

911 962 34 $ _ __;.7,,:;98e.:.,15:,,.2.:,:32~

$

130,187 30

60,893 22 57,117 88
6,012 45 96086 $

$

255 171 71 $

$

-2 287 31 $

$
17,005 18 20,738 30 17,765 21
55 50889 $ 69562 04 $

164,737.27 $ 60,89322 57,117 88 6,012 45 17,966 04 20,738 30 17,765 21
469,51969
814 750 06 $
s 97 212 28

148,699 12
64,286 56 7,147 73 9,168 00 11,40136
23,94566 2,00000
468,374 74
60,321 56 5 723 40
801 06813
-2 915 81

$

2,287 31

$

2,287 31 $

14,834 96

-1125000

-85434 96

$

2 287 31 $

-1125000 $

-e 962 69 s_ _-=50=eoo==oo~

$

000 $

58,312 04 S

88,249 59 $

-53,515 81

000

65,189 88

83,35849

133,288 64

1,19169
-3 377 33

-341 63 3927 29

$

000 S

123 501 92 $

s_ _ 159 422 44

.;:;83::..3:::.58=49::..

-23-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING BALANCE SHEET
CAPIIAL PROJECTS FUND
JUNE 3Q 2002

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30. 2002 JUNE 30 2001

$

2,35945 $

2,35945 $

61,096 65

$ 2,757,000 86

419,79090

3,176,791 76

771,385 35

106 708 16

106 708 16

101 781 20

S 2,757,000 86 $ 528.858 51 S 3,285.859 37 S 934 263 20

LIABILITIES AND FUND EQUITY

LIABILITIES Cash Overdraft

$

321.23

FUND ECUIJY
Fund BalanCB8 Reserved For PulJ)Ol88 of Bond Issue For SPLOST Projects Unreserved Undea:gnated
Total Fund Equ:ty

$ 2,756,679 63
$
000
s $ 2,756,679 63

s

321 23

s $ 2 756 679 63

528,858 51

528,858 51

000

000

s 528,858 51 $ 3,285,538 14

408,368 70 525,894 50
000
934,263 20

Totsl Llab:lrlies and Fund Equ:ty

$ 2,757,000 86 $

528,858 51 S 3,285.859 37 $ 934 263 20

See notes to the general-purpose financial alBlemBnts

-24 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAP!TAL PROJECTS FUND
YEAR ENDED JUNE 30 2002

EXHIBIT "H"

REVENUES
State Funds Taxes Other Funds
Tola! Revenueo
EXPEND!TURES
Current
SupportSelvlcea
Bu11neaa Adnmlslrabon Capital Outlay
Bulchng and Bu1fdlng Improvements Eqinpmont
Total Expendltunls
Excesa of R.,_,uoa over (under) Expenditures
Olli!;R FINANCING SQURCES (USES!
Proceeds from Genorot Obtlgaton Benda Par Value
Operabng Trans""" In OperatJng Transfers Out
Totat Other Flnanang Sources (Usea)
Exceaa ol Revenueo and Other Flnancng Soun:es over (under) Expendtturea and Other Financing
Usea
FUND BALANCE JULY 1

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

30,521 40

$ 592,623 32 $ 592,623 32

634,025 06

$

8 952 29

1138819

20 34048

5179889

$

8,952 29 $

604 011 51 s 612,963 80 $ 716.345 35

$ 55,711 97
83 93065 $ 123 398 74
$ 263 041 36 s
$ -254 089 07 $

$ 000
000 $ 604 011 51 $

55,711 97 $ 83,93065 123,398 74 263 041 36 $
349 922 44 $

66250 421,436 59
68 37900 490 478 09 225,867 26

$ 2,600,000 00 2,400 00 $
s 2,602,400 00 $

$ -60104750

2,600,000 00 2,400 00 $
-601 047 50

264,894 45 -837,871 95

-601 047 50 $ 2,001,352 50 $ -572 977 50

s 2,348,310 93 $
408,368 70

2,964 01 $ 2,351,274 94 $ -347, 110 24

525,894 50

934,263 20

1 281 373 44

FUND BALANCE JUNE 30

528 858 51 $ 3,i!8S,S38 14 $ 934,263 20

Sae notea 10 the g_,,1-purpose finandal atataments

- 25 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY
STATEMENT Of CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2002

EXHIBIT"!"

VAN PROOYEN FELLOWSHIP FUND
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 2001

BALANCE ADDITIONS DEDUCTIONS JUNE 30, 2002

$

35360 $ 5 00000 $

000 $

5 353 60

LIABILmES Funds Held for Others

s___353=-so-- s 5ooo oo s

o oo s _ _ _5._3_53._s_o_
1

See notes to the general-purpose flnanaal s1a1ements -27 -

CITY Of CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
AgnaJltule, U S Department of Child NutrttlOn Cluster
Pass-Through From Georgl8 Department of Education Food and Nulr1tlon Program
Food Services School Breakfast Program National School Lunch Program
Total Child Nutrlbon Cluster
Other Programs Pua-Through From Georgia Department of Education
Food and Nutrition Program Food Dlslrfbullon Program (1 )
Total U S Departmant of Agnrultln
Education, U S Depa11ment of
Special EdLIC8llon CIUSler Pass-Through From Geo,vla Depar1menl of Education Individuals with Dlsablllties Education Ad Part B - Special EdLIC8llon Capaaty Building lmprowement Flow Through Pleschool
Total Special Education Cluster
Other Prog1'1!11ms Pass-Through From Georgia Depar1menl of Education
Comprehenalve Sdlool Reform DerrM um a w Protect Elementary and Seconclary Educabon Ad
T1tle I Grants lo Local Educational Agendeo
T1tle II Eisenhower Profaulonal Dewloprnant
TIiie VI
IMOVIUon Program Class Slza Reduction VocabOnal Education - Baaic Grants to States High School Program
Baalc Grant
Total U S Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 15,474 13

NIA

71 591 77 s

s s 87,065 90

(2) 449 393 23 (3)
449,393 23

10 550

NIA

20,128 48

s s 107,192 36

20 126 48 489,519 89

114 027 114 027 114 173

NIA s 1,40000 s

NIA

89,272 89

NIA

3 828 00

s 74,30089 s

2,735 09 (3) 89,272 89
3 961 17 (3)
75,989 15 (3)

114 332
114 010 114281 114 298 114 340
114 048

NIA

52,00000

52,000 00

NIA

85,445 17

NIA

31,840 60

NIA

3,152.20

NIA

15,505 00

~.44517
32,459 55 (3)
3,152 20 15,605 00

NIA

1084064

s 252,884 40 s

10 640 64 255171 71

Total Federal Flnandal Asu.tance NIA Not Aviulable

s 360,076 76 s

724 891 40

-28-

C)TY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE Of EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

Notes to the Sdledule of ExDendrtures of Federal Awards
(1) The amounts shown for the Food OlsbibuUon Program represents the Federally assigned value of nonmonetary assistance for donated commodmes recerved and/or consi..med by the system dlllng lhe a.nrent fiscal year
(2) Expenditures tor the Sdlool Breakfast Program were not nuuntalned lel)arately and are lnduded In the 2002 Nation.al SchOOI Lunch Program
(3) Expenchtures for this program Include State, and/or Other Foods Expenditures are not malntalned by hmd source
MaJor Programs are klen1ltle<I by an asterisk (") In front of the CFDA number
Tho Schoot Ols1!1tl did not provide Fecler,il Aulstanc:e to any S u b ~
The accompanying achedule of expenclJtures of Federal awards Includes the Feclaral grant activity of the Clly of Chld<amauga Boanl of Education and lo pn,sentecl on the modlfled acaual bul of aw,unbng which " the bHls of aocountJng used In the presentation of the ve-al-purpose financial statements

See notes to the genaral-purpoae financial ,tatementa

-29

CITY OF CHICKAMAUGA BOARD Of EDUCATION WALKER COUNTY
SCHEDULE Of STATE RE\/ENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Communrty Alfa<a, Georgia Department of Local Aulstance Gran\ (1)
Educabon, Georgia Department of Quelrty Basic Educallon Daecl lnstructJonal Coo\ Kinder!larten Program Kindergarten Program - Ear1y Intervention Program Prima1y Grades (1-3) Program Primely Grades - Early lnter,ent,on (1-3) Program Upper ElaiMntary Grades (4-5) Program Upper EleiMntary Grades lntervenbon (4-5) Program Middle School (6-8) Program High School General Educa11on (9-12) Program Vocational Laboratory (9-12) Program Sluden\s wl\h Dlsabdibes Category II Category Ill Category IV Gifted Student Ce1egory VI Remedial Educa\lon Program Mematlve Education Program 20 Days Addibonal lns1rudlon Medra Center Program Staff end ProfeSSlonal DeW!lopment Indirect Cos\ Categorical Grants Sparsity Nin,ngSernces PnnclpalSupplemenla Vocational ~ Educa\lon Equallzallon Finl1ng Grant Food Services Other State Programs Heatth Insurance Preachool Handicapped Program Special Education Low Incidence Grant Lottery Programs AealltMI Technology Computers n the Classroom
Office of Treaaury end FISCIII Serv,ces Public School Employees Retnment
CONTRACTS Educabon, Georgia Department of After SchooJ Programs Reading Fnt Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ <40,000 00

$ <40 000 00

259,197 00 9,950 00
692,715 00 <40,405 00 349,411 00 53,669 00 923,2<40 00 811,4<40 00
251,392 00

15,376 00 150,311 00
67,844 00 234,591 00
3,568 00 75,014 00 41.213 00 127,204 00 22,798 00 978,212 00

20,00000 43,822 00
5,048 00 9,097 00 588.266 00

$ 36,486 00

54,81350 7,164 00
10,046 00

3,482 54 31,06743

7,828 00

259,197 00 9,950 00
692,715 00 40,405 00 349,411 00 53,669 00
923 2<40 00 811,4<4000 251,392 00
15,376 00 150,311 00
67,844 00 234,591 00
3,568 00 75,014 00 41,213 00 127,204 00 22,798 00 978,212 00
20,00000 43,822 00
5,048 00 9,097 00 588,266 00 36,486 00
54 81350 7,164 00
10 046 00
3,482 54 31 067 43
7,828 00

10,781 00 12,000 00

10,781 00 12 000 00

(1) The purpoae of the funds ere to construct e physleaI educa\lon fadIlly

See notes to the general-purp088 linanaal stataments

-30-

CITY OF CHICKAMAUGA BOARD Of EDUCATION - WALKER COUNTY SCHEDULE OF APPRO\IED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 3Q 2002

SCHEDULE "3"

PROJECT
ConalrudJon of a oow physical education fadl/ty
for Gordon Lee Mkkfte SdlOol, construcl and equrp a new Science/Math dawoom bulldlng for Gonlon Lee Hlgh School, ,-Ir, 19110Y81e, modify, retrofit and reroot selected da1Sf'00111S and bu.tidings rvnovate and retrofit for acammodatlon of computers and
other technology for and purchaalng tecmology
equipment for, Chickamauga Elementary School, Gonlon Lee Middle School and Gonion Lee High School

Conslrucllng Ind equipping eddltionlll

lnstrudlonal lll>OCO at Cllicl<amauga Elementary Scl1oal, cone1rudlng, modifying, renovating

-cand eq11pp,ng Gonlon Lee Mcldle School,
mocflf)jng and uporadmg HVAC at W.,.._ . - 1 AdMtles Buidlng It Gordon Leo High School, a,nstructing MW ~ I education

and

facilities at Gonlon Leo High

School, aid acq11nng, constructing, repa!rfng

lml)tO\llnl,, 1o1Joflttu,g, upgrading, and &q\Jlpp,ng

- building and facil- useful or deu'ablo 1n a>medlon therewith 1ndudmg acqulnng any

necessary property-. both real Ind

por,onal

ORIGINAL
ESTIMATED COST 11)

CURRENT ESTIMATED
COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3l (4l

AMOUNT EXPENDED
IN PRIOR YEARS(3l

PROJECT STATUS

$ 3,776,34000 $ 3,776,34000 $ 207,32939 $ 2,560,60450 Ong01ng

3,575,000 00

3,S75,000 00

0 00 --~0~00~ Ongoing

S 71351,34000 $ 713~1,34000 $ 207,32939 $ 2,580,604 50

(1) The School Dlslrlct's original cost osbmate 81 specified In Iha l9liOfutlon calling for Iha Imposition of Iha Local Option Sa!eaTax.

(2) The School Dlslrlct'& runent estimate o f - cost for Iha projeda lnc:looes all cost !ram project Inception to caupleHCA,

(3) The II018rO of the Crty of Chickamauga approved the .....,.nlon of a 1II lllleS tax to fund the above projeda and ratJra 81S<>Cilted debt lnam1'd by the City of Ctaduimauga C i t y ~ on the School Dlstricl'& beha~ Amounts -ided fer Iha prqecli may Uldude Ille> tax proceed&, - local - r t y taxao and/0< other fir.do .,... Iha lie of Iha P'oie<:I>

(4) In addition to the expend...... ahcMn above, Iha School Dlstrld has Incurred for Iha above projects ae follows

to prtJlllde advance funding

Prior Yaaro

$ 304,197 92

Ctarent Year Total

4104750
s 345 245 42

. - o Seo

to Iha genoral-lJurJ>o ftnar,dal statements

31

ctIX Of CHICKAMAUGA BOARD OF EOUCATION - WALKER COUNTY
GENERAL FUND - QUALITY BASIC EDUCAJION PROGRAM !CBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM VEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Dhct lnstrucllonal Programs Klnde,val1en Program Kildergarten Program-Earty lrrtarvention Program Primary Grades (1-3) Program Primary Gnuleo-Earty Intervention (1-3) Program Upper Elemanlary Grades (4-5) Progrmn U - Elementary Gradel-Earty lnle!wntlon (4-5) Program Middle School (6-8) Program High School General Educabon (11-12) Program Voca11onal Laboratory (11-12) Program
Studanu with DiaablllUes
Co1egorylll Gifted Student - Co1egory VI Remod1&I Education Program Allemative EdUCltion Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Ce- Program Slaff and Professional Developmen1

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES OPERATIONS

TOTAL

s

s s 268,573 00

201,098 15

s 7,735 73

208,833 88

10,310 00

10 88429

130 00

11 01429

717,TT2 00

752,590 34

38,177 22

790 767 56

41,887 00

46,882 75

65000

47 612 75

362,026 00

399,372 01

16 754 72

416,125 73

85,634 00 956,835 00 840,791 00 250,465 00 241,979 00
243,0TTOO 3,697 00
TT72700

49,875 47 952,974 28 1,038,728 90 266,947 60
200,90840 193 901 05
22,19668 62 794 42

870 74 38,68093 51 480 59 26,648 55
5 230 45 4,665 04
6,060 53

50,746 21 989,835 21 1,088,189 49 295 594 35
206,138 85 196,766 09
22,196 68 70 674 95

$

4,060,673 00 $ 4,199,234 54 $ 199,262 50 $ 4,398,497 04

131,605 00 23,622 00

137,8TT36 443862

24,316 58 19 169 37

162193 94 23 626 99

TOTAL QBE FORMULA FUNDS

$

4.236,000 00 $ 4 341 548 52 $ 242 768 45 $ 4 584 316 97

(1) Com~ of Stale Funds plus Local Five MIii Share

See notes to the general-purpose flnanctal statemen1s

- 32 -

CITY OF CHICKAMAUGA BOARD OF EDUCATION WALKER COUNTY GENERAL FUND QUALITY BASIC EDUCATION PROGRAM CQBEl ALLOTMENTS AND EXPENDITURES BY SlTE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

IDif
Gordon Lee Middle School Gordon Lee H,gh School Chickamauga Elementary School Central Office (AltematJVe EducatJon Program)
TOTAL
(1) Compnsed of State Funds plus Local FIVe Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,065,909 00 $

1,133,91460

1,351,566 00

1,599,676 79

1.585,371 00

1,664,905 65

77 727 00

$

4,0801573 00 $~....,41c3'""98..,,4_9_7_04.,.

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

SECTTONil COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSF.11 W. HINTON
5TA.TE AUDITOR (4(),1) 656-217

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmglon S1rcc1, SW Sunc 214 A1lan1J, Georgia 30334-8400
March 15, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducauon
and Supenntendent 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 of Ch1ckaniauga Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated March 15, 2003 Tius report was qualified for vanous departures from generally accepted accounting pnnc1ples, as identified m the auditor's report on the general-purpose financial statements. We conducted our audit m accordance with aud1tmg standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contamed in Government Aud1tmg Standards, issued by the Comptroller General of the Uruted States
Compliance
As part ofobtainmg reasonable assurance about whether City ofChickamauga Board ofEducation's financial statements are free of matenal misstatement, we performed tests of its compliance with certain prov1S1ons oflaws, regulations, contracts and grants, noncompliance with wluch could have a direct and matenal effect on the determination offinancial statement amounts. However, providing an op1mon on compliance with those prov1s1ons was not an obJect1ve of our audit, and accordingly, we do not express such an opinion The results ofour tests disclosed no instances ofnoncomphance that are reqwred to be reported under Government Aud1tmg 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 m order to detemime our audJtmg procedures for the purpose of expressing our op1mon on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reporting However, we noted a certain maner involving the internal control over financial reporting and Its operation that we consider to be a reportable cond1t10n Reportable cond1!1ons involve matters coming to our atten!lon relating to s1gruficant defic1enc1es in the design or operauon ofthe internal control over financial reporting that, in ourJudgment, could adversely affect City of Chickamauga Board ofEducation's ab1hty to record, process, summanze and report financial data consistent with assert:tons ofmanagement in the financial statements The reportable cond1t:ton 1s descnbed in the accompanying Schedule of Findings and Questioned Costs as item FS-7691-0201
A matenal weakness 1s a condition in winch the design or operation of one or more of the internal control components does not reduce to a relatively low level the nsk that misstatements in amounts that would be matenal in relatton to the financial statements bemg audited may occur and not be detected withm a timely penod by employees m the normal course of performing theu assigned functions. Our consideration ofthe internal control over financial reporting would not necessanly disclose all matters in the internal control that nught be reportable cond111ons and, accordingly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses. However, we consider item FS-7691-02-01 to be a matenal weakness
Tlus report 1s intended solely for the mformation and use ofthe management, members ofthe City of Chickamauga Board of Education, Federal awarding agencies and pass-through entlties and 1s not
intended to be and should not be used by anyone other than these specified parties
RWH:as 2002YB-41

RU<,SEU. W. HlNTOl'
STil.TE ,t,UOITOFI (40') 6!>6-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wnshmgton Street. S W Su11c 214 AtlJnlJ, Georg1J 30334-8400
March 15, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the City of Cluckamauga Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPUCABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
0MB CIRCULAR A-133
Ladles and Gentlemen
Compliance
We have audited the compliance of City of Cluckamauga Board of Education with the types of comphance reqmrements descnbed m the US Office ofManagement and Budget (0MB) Circular A-133 Comphance Supplement that are applicable to each of its maJor Federal programs for the year ended June 30, 2002. City of Cluckamauga Board of Education's maJor Federal programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and QuestJoned Costs. Comphance With the reqwrements of!aws, regulations, contracts and grants apphcable to each of its maJor Federal programs 1s the respons1b1hty ofCity of Chickamauga Board of Education's management Our respons1b1hty 1s to express an opm1on on City of Chickamauga Board of Educa!lon's comphance based on our audit
We conducted our audit of comphance m accordance With audltmg standards generally accepted m the Uruted States of Amenca, the standards apphcable to financial audits contamed m Government Audltmg Standards, issued by the Comptroller General of the Uruted States, and 0MB Circular A133, Audi/s of States, Local Governments, and Non-Profit Orgamzat,ons Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtam reasonable assurance about whether noncomphance With the types ofcomphance requirements referred to above that could have a direct and matenal effect on a major Federal program occurred. An audit mcludes exammmg, on a test basis, evidence about the City ofCluckamauga Board ofEducanon's comphance with those

2002SA-10

reqmrements and performmg such other procedures as we considered necessary m the circumstances We believe that our audit provides a reasonable basis for our opnuon Our audit does not provide a legal determmatlon on City of Cluckamauga Board of Education's compliance with those requuements.
In our opmton, the City ofChickamauga Board ofEducation complied, m all matenal respects, with the requuements referred to above that are applicable to each of1ts ma3or Federal programs for the year ended June 30, 2002
Internal Control Over Compliance
The management of City ofCluckamauga Board of Education 1s responsible for estabhshmg and mamtammg effective mtemal control over comphance with requrrements of laws, regulations, contracts and grants applicable to Federal programs In planning and performmg our audit, we considered City of Cluckamauga Board of Education's mtemal control over compliance with requrrements that could have a drrect and rnatenal effect on a ma3or Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opm1on on compliance and to test and report on mtemal control over compliance m accordance with 0MB Circular A-133
Our consideration ofthe mternal control over compliance would not necessarily disclose all matters in the mternal control that might be matenal weaknesses. A matenal weakness 1s a cond1t1on m wluch the design or operation ofone or more ofthe mternal control components does not reduce to a relatively low level of nsk that noncompliance with applicable requrrements of laws, regulations, contracts and grants that would be matenal m relation to a major Federal program being auchted may occur and not be detected withm a tunely penod by employees in the normal course ofperformmg theu assigned functions. We noted no matters involvmg the internal control over compliance and its operation that we consider to be matenal weaknesses
Tlus report is intended solely for the information and use ofthe management, members ofthe C1tyof Chickamauga Board of Education, Federal awardmg agencies and pass-through entitles and 1s not intended to be and should not be used by anyone other than these specified parties.
Respectfully sublllltted,

RWH.as 2002SA-10

ell W. Hmton Auditor

SECTION ill 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, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-769I-OO-0l FS-7691-01-01

Further Acnon Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Fw.lure to Maintain General Fixed Asset Account Group Fmdmg Control Number. FS-7691-01-01

The School D1stnct has staffing lmutatJons and budgetary considerations proh!b1tmg the hmng ofadd1tJonal adnurustranve staff, which would be necessary to resolve this find.mg

SECTIONN FINDINGS AND QUESTIONED COSTS

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Fmanc1al Statements The auditor's opmJon on the City ofCluckamauga Board ofEducation's financial statements was qualified for vanous departures from generally accepted accountmg prmc1ples.
2 Reportable Cond1t1ons m Internal Control Disclosed by the Audit of the Fmanc1al Statements The audit report for the City of Cluckamauga Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable conditJon described above 1s considered to be a material weakness
3. Noncompliance Matenal to the Fmancial Statements The audit of the City of Cluckamauga Board of Education disclosed no mstances of noncompliance that were deemed to be matenal to the financial statements
4 Reportable Conditions m Internal Control Over Major Programs The audit report for the City of Cluckamauga Board of Education did not disclose any reportable conditions m internal control over maJor programs.
5. Type of Report Issued on Compliance for Ma1or Programs The auditor's opimon on the City of Chickamauga Board of Education's report on comphance with reqwrements applicable to major programs was unqualified.
6. Audit Fmdmgs Reqwred to be Reported by Section 510(a) ofOMB Circular A-133 The City ofCluckamauga Board ofEducatJon's audit did not disclose audit findings reqwred to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and NutntJon Program - Food ServJces - School Breakfast Program 10.555 Food and Nutntlon Program- Food ServJces - 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 ofEducatJon qualified as a low nsk auditee as defined by Section .530 ofOMB Circular A-133
- 1-

CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Fm.lure to Mai.ntai.n General Fixed Assets Account Group Reportable Conchllon - Matenal Weakness
Repeated from Pnor Year
Fmchng Control Number FS-7691-02-01 The City ofCluckamauga Board ofEducation chd not mamtai.n a system-wide General Fixed Assets Account Group witlun the formal accounllng records as reqwrecl by generally accepted accounllng pnnc1ples. Tlus conchuon results m the general-purpose financial statements ofthe School D1stnct bemg incomplete and not m accordance with generally accepted accountmg pnnc1ples Appropnate acllon should be taken by the School Dtstnct to establish accounllng controls and procedures to proVIde for mai.ntenance of a General Fixed Assets Account Group. These subsidiary records should mclude mventory of land, bwldmgs, and eqwpment owned by the School D1stnct and should mclude, but may not be hmited to, date acqwred, acquisition cost, estimated replacement cost, location, and descnption. Detailed records should be mai.ntai.ned ofall additions and delet10ns to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-