Audit report, City of Dalton Board of Education, Whitfield County, year ended June 30, 1994

G,a
ABDO
,Rl
f:33

l)J,

1t1q:z
' l ,..,,

-l'Ii

STATE OF GEORGIA DEPARTMENT OF AUDITS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334

AUDIT REPORT CITY OF DALTON BOARD OF EDUCATION
WHITFIELD COUNTY YEAR ENDED JUNE 30, 1994

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY -, TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXIIlBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES -ACTUAL AND BUDGET

GOVERNMENTAL FUND TYPES

4

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

5

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE

26

2 ANALYSIS OF CASH AND CASH EQUIVALENTS

29

3 INVESTMENTS

30

4 ACCOUNTS RECEIVABLE

31

SCHEDULE OF REVENUE

5

STATE FUNDS

32

6

LOCAL AND OTHER FUNDS

33

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES BY OBJECT

7

GOVERNMENTAL FUND TYPES

35

8

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

9

OVERALL

39

10

BY PROGRAM

40

11 SCHEDULE OF TRAVEL OF BOARD MEMBERS

42

SECTION II
COMPLIANCE
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS
SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

SECTION III
INTERNAL CONTROL
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY - TABLE OF CONTENTS -
SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS SCHEDULE OF PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 29, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofDalton Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
Ladies and Gentlemen:
We have audited the general purpose financial statements (Exhibits A through D) of the City of Dalton Board of Education, as of and for the year ended June 30, 1994, as listed in the table of contents. These financial statements are the responsibility of the Board's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards issued by the Comptroller General of the United States, and the provisions of the Office of Management and Budget Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
94ARL-14

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements present fairly, in all material respects, the financial position of the City of Dalton Board of Education as of June 30, 1994, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the general purpose financial statements, during fiscal year 1994, the Board changed its method of accounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
Our audit was conducted for the purpose offorming an opinion on the general purpose financial statements ofthe City ofDalton Board ofEducation taken as a whole. The combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 11 which includes the Schedule of Federal Financial Assistance) are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements of the City ofDalton Board ofEducation. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and, in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by. Official Code of Georgia Annotated Section 50-6-24.
t r ~ ~ Respectfully submitted,
Claude L. Vickers State Auditor
CLV:cm 94ARL-14

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY - 1-

!.!D'. QE tle,LTQ!l l:!QARQ OF ~Q!,!!:;ATION -WH!IEll;LQ !.Q!.!tm'. ~M61NEQ MLANQE St:U~EI 61,~ FUNQ Il'.P~
JUNE 30 1994

EXHIBIT"A"

~
cash and cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTALS {Memorandum On~ JUNE 30 1994 JUNE 30 1993

$ 1,087,659.n s 125,639.44 $

7,012.09 $ 1,220,311.25 $

478,262.53

701,056.16

701,056.16

7,231,757.01

1,817,179.49

441,295.n

2,258,475.21

2,010,678.32

25,701.45 7213.30

25,701.45 7 213.30

32,252.52 7148.14

Total Asoels

$ 3 605 895.37 $ 599849.91 $

7012.09 $ 4 212 757.37 $ 9 760 098.52

Ll!ilillLIIIE~ ANQ FllNQ EQUITY

~

Accounts Payable

$

Salaries Payable

Nale& Payable

I-Payable

ElCpired Grant Balances Payable

Dslened Revenue

556,118.16 $ 1,932,340.63
140.11

Tolal Llabllltieo
EUNPEQUITY

$ 2 488 598.90 $

Fund Balances

Reserved

For Continuation of Federal Programs

Forl-

Food

Donated Commodities

$

Purchased Food

For State capital Outlay Projects

Unreoerved UooNignated

$ $ 1117296.47

Total Fund Equity

$ 1117296.47 $

73,105.22 271,831.06
6,413.86 303.88
351654.02
25,701.45 7,213.30 $
32,914.75 $ 215281.14 248195.89 $

$

629,223.38 $

633,483.32

2,204, 171.69

2,069,699.04

6,322,554.00

36,712.96

6,553.97

1,806.49

303.88

$ 2 840 252.92 $ 9064255.81

$

$ 7012.09 7,012.09 $
0.00 7012.09 $

25,701.45 7,213.30 7 012.09
39,926.84 $
1332577.61
13n504.45 s

7,238.35
32,252.52 7,148.14 7012.09
53,651.10 642191.61 695842.71

Total Liabillties and Fund Equity $ 3 605 895.37 $ 599849.91 $

7012.09 $ 4 212 757.37 $ 9 760098.52

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

CrTY OF QAl TON BOARD OF EQUCATION -WMITFIEI P COUNTY COMBINER STATEMENT OF REVENUE$ EXPENDITURES ANP CHANGES IN BJNP BAI ANCES
GOVERNMENTAL B,JNP TYPES
YEAR ENDED JUNE :JQ 1994

EXHIBIT"!!"

~
State Funds F..,_.Funds Local 1111d Other Funds
Total-uos
EXPENDITURES
Current Instruction Support Services Pupil Services lmp!'>VOt11enl ol lrlllruotional Services Educational Media Services General Administration School Administration Business Administration - Sluden- t Trans11p1o1drtOalpioenraStieornvoicfePslan1 C...I Support Services Other Support Services Food Services Opo,alion OlherOpe,ationsol-1 Services
Capital Outlay
Total Expenditures
Excoss ol-uos over (under) Expenditures
QD:IEB ~ m SQ!.!RCES !UEl
Oporating T..-,. In Clp,Qting T..-,. Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources ewer (under) Expenditures and other Financing Uses
FLJNP BALANCE JULY 1
Food Inventory Nol Change In Period Donated Commodities
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAi. PROJECTS
FUND

TOTALS {M!morandum On!}1
YEAR ENDED JUNE30 1994 JUNE 30 1993

8,873,936.89 $ 78,753.28
15i15115.57

2,098,161.96 2,260,210.58 $
452605.00

24 168 805.74 $ 48109TT.54 $

1,808.00 1808.00

10,sn,098.ss s 2,341,871.86 15867no.51

8,557,848.38 1,874,145.63 15 777 915.26

28 881 691.28 $ 21ioss10.28

13,765,932.42 $ 2,297,309.30

1,022,524.34 643,683.76 805,868.45 410,TT5.28
1,323,738.01 395,845.82
3,039,569.70 801,071.18 484,784.10 630.08
305,374.n 202i21.50

555.479.29 44,256.92 28,822.00 775,808.28
74,368.81 15,588.50
328.03 1,221.24 1,003,341.76

23 502 120.41 $ 4 786 625.13 $

686685.33 $

14 352.41 $

6284.00 si84.oo -4 376.00

s 1&,063.241.n

15,105,935.78

1,578,003.63
987,840.68 834,790.45 1,186,683.56 1,323,738.01 395,845.82 3,113,938.51 816,659.68 "'85,113.13
1,851.32 1,003,341.76
305,374.77 208505.50

1,331,414.86 1,035,085.21
802,669.76 836,345.84 1,358,428.57 561,090.62 2,863,601.88 710,246.76 452,TTS.76
860,502.51 69,602.01 405804.05

28305029.54 $ 26 423 508.82

676861.74 $

786401.46

$ .23 537.96
.23 537.86 $

19,181.86 $ 18161.86 $

643,147.37 $ 425,473.93

33,514.37 $ 263,356.69

4,376.00 4376.00
0.00 7,012.09

48675.17

-48 675.17

23,537.96 $ -23537.86
0.00 $

143,153.18 -U3153.18
0.00

676,661.74 $ 695,842.71

786,401.46 -81,526.33

-9,032.42 0.00

FUND BAl..ANCE JUNE 30

1117~.47 $ 248195.89 $

s 7012.09 $ 13n504.45

695842.71

The notes to the general purpose financial statements are an integral part of this statement. .3.

CITY OF DALTON BOARD OF EDUCATION -WHITFIELD COUNTY

EXHIBIT"C"

COMBINED STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES

ACTUAL ANO BUDGET - GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30 1994

ACTUAL PER
EXHIBIT"B"

BUDGET

VARIANCE FAVORABLE (UNFAVORABLE)

REVENUES

State Funds Federal Funds Local and Other Funds

$ 10,972,098.85 $ 10,350,575.42 $

2,341,871.86

1,934,833.42

15,667,720.57

15,662,255.08

621,523.43 407,038.44
5,465.49

Total Revenues

$ 28,981,691.28 $ 27,947,663.92 $

1,034,027.36

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Other Operations of Non-Instructional Services
Capital Outlay

$ 16,063,241.72 $ 15,930,697.97 $

1,578,003.63 987,940.68 834,790.45
1,186,683.56 1,323,739.01
395,845.82 3,113,938.51
816,659.68 485,113.13
1,851.32 1,003,341.76
305,374.77 208,505.50

1,462,615.75 1,095,407.25
849,857.00 1,077,365.08 1,421,163.00
460,376.00 3,182,402.00
823,547.00 497,829.00
1,080.00 874,973.00 214,743.00
93,000.00

-132,543.75
-115,387.88 107,466.57
15,066.55 -109,318.48
97,423.99 64,530.18 68,463.49
6,887.32 12,715.87
-771.32 -128,368.76
-90,631.77 -115,505.50

Total Expenditures

$ 28,305,029.54 $ 27,985,056.05 $

-319,973.49

Excess of Revenues over (under) Expenditures

$ 676,661.74 $

-37,392.13 $

714,053.87

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

23,537.96 $

50,283.00 $

-23,537.96

-45,283.00

-26,745.04 21,745.04

Total Other Financing Sources (Uses)

$

0.00 $

5,000.00 $

-5,000.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

676,661.74 $

-32,392.13 $

709,053.87

FUND BALANCE JULY 1 1993

695,842.71

1,470,885.00

-775,042.29

FUND BALANCE JUNE 30 1994

$ 1,372,504.45 $ 1,438,492.87 $

-65,988.42

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

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1994

EXHIBIT"D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City ofDalton Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. With the exception of the departures from generally accepted accounting principles disclosed in the following paragraphs, the financial statements of the Board have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.
The more significant of the Board's accounting policies are described below.
REPORTING ENTITY
In evaluating how to define the government unit for financial reporting purposes, management has considered the criteria set forth in GASB Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, "Defining the Financial Reporting Entity". The primary government consists of all the organizations that compose the legal entity of the City ofDalton Board ofEducation.
Based upon the application of the above criteria, the City of Dalton Board ofEducation is determined to be the lowest level of government exercising oversight responsibility and control over all activities related to public education in Dalton, Georgia. The Board is not included in any other governmental "reporting entity" as defined by GASB Codification of Governmental Accounting and Financial Reporting Standards.
Board members were elected by the public and have decision making authority, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. The Board determines its operating budget on an annual basis and it is the duty of the Mayor and City Council to levy a tax sufficient to raise an amount of money equal to that budget. The Board is not required to repay bonded debt incurred by the City Government on the Board's behalf.
FUND ACCOUNTING
The Board uses funds to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities.
A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

- 5-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1994

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Local and Other Funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a Board's general activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services traditionally provided by a board ofeducation.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are primarily received from the Georgia Department of Education and from the Federal government to accomplish specific objectives and are required to be accounted for separately. Also included are proceeds received from State, Federal, Local and Other sources for operations of the school food services fund. This fund could be accounted for as an enterprise fund; however, the Board chooses not to provide for depreciation, but to maintain the fund on a modified accrual basis and to report the fund as a special revenue fund under governmental fund types, which is acceptable under generally accepted accounting principles for governmental entities.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
- 6-

CITY OF DALTON BOARD OF EDUCATION - WlflTFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXHIBIT"D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTiNG POLICIES
Revenues are recogniz.ed when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available ifthey are collected and remitted by the collecting agent to the Board within 60 days after fiscal year-end.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1993 and ending in early June 1994. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1993 and ending in August 1994. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
BUDGET
The City of Dalton Board ofEducation has a legally authorized nonappropriated budget which is formally approved by the Board at the aggregate level. Budgets are prepared to provide a basis for funding operations and there is no legal prohibition regarding overexpenditure of the aggregate budget. The budget process begins when the Board's administration prepares a tentative aggregated budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation.
The Board prepares its budget on the modified accrual basis, which is the same basis on which it presents its financial statements. The budget comparison on Exhibit "C" presents actual and budget data for all governmental funds on a combined basis.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits (including certificates of deposit and N.O.W. accounts) in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. The placement ofproceeds from bond issues in certificates of deposit is limited to financial institutions located within this State.
- 7-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXIIlBIT "D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSffiON OF INVESTMENTS Investments made by the Board are stated at cost. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due from Federal, State or other grantors for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The City of Dalton fixed the property tax levy for the 1993 tax year (calendar year) on September 20, 1993 (levy date). Taxes were due on December 20, 1993. The lien date for property taxes was January 1, 1993. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1994 since their collection meets the criteria of GASB codification section P70.103. The City of Dalton Clerk's Office bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board.
The tax millage rate levied for the 1993 tax year (calendar year) for the City ofDalton Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):
- 8-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXHIBIT"D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations

1.J.Amills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value (first-in, first-out). Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

For fiscal year 1994, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.

INTERFUND TRANSACTIONS

The Board has the following types ofinterfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Residual equity transfers are recorded for nonrecurring or nonroutine permanent transfers of equity.

Operating transfers are recorded for all interfund transactions other than residual equity transfers and reimbursements.

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 9-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXHIBIT"D"

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral in an amount of not less than 110 percent of the public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides
an officer holding public funds may, in his discretion, waive the requirement for security in the case of
operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists ofany one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State ofGeorgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1994, the bank balances were $2,397,784.41. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
- 10 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE30 1994

EXHIBIT"D"

Note 2: DEPOSITS AND INVESTMENTS

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

The Board's deposits are classified by risk category at June 30, 1994, as follows:
Risk Category 1 2 3 Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Bank Balance
$ 200,112.50 1,064,060.64 1 133 611.27
$ 2 397 784 4)

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 1994, the carrying amount ofthe Board's total investments was $701,056.16 and consisted entirely offunds in the Local Government Investment Pool administered by the Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool.

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board has established a limited risk management program for Unemployment Compensation. Estimated claims are budgeted by management based on known claims and prior experience. During fiscal year 1994, a total of$1,403.88 was paid in claims.

- 11 -

CITY OF DALTON BOARD OF EDUCATION WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXlilBIT "D"

Note 5: SIGNIFICANT CO:MMITMENTS

At June 30, 1994, the Board had encumbrances in the amount of$204,166.88 for the unperformed portion ofpurchase orders, contracts and other commitments for goods and services associated with lottery programs. Lottery funds in the amount of $203,953.02 are available to fund these encumbrances. Encumbrances outstanding do not constitute expenditures or liabilities in the current year because these commitments will be honored during the subsequent fiscal year. These encumbrances are identified by Lottery Program as follows:

Algebra Classrooms Computers in Classrooms Distant Learning Media Center and Library Equipment Safe Schools Grant

$ 2,315.90 697.95 329.03
138,177.00 62 647.00 $ 204 166 88

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

Note 6: CONTINGENT LIABILITIES

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

The Board is a defendant in various legal proceedings pertaining to a matter incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding is not presently determinable, but is not believed to be material to the general purpose financial statements.

Note 7: RETIREMENT PLANS.

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer public employee retirement system (PERS).

TRS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for service retirement after 30 years ofcreditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service and attainment of age 55, at a reduced benefit. Retirement benefits paid to members are equal to 2% of the average of the member's two consecutive highest paid years of service multiplied by the number of years of

- 12 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXHIBIT"D"

Note 7: RETIREMENT PLANS
creditable service up to 40 years. The normal retirement pension is payable monthly for life. Options are available for distribution ofthe member's monthly pension at a reduced rate to a designated beneficiary on the member's death.
Retirement benefits also include death and disability benefits. A disabled member or surviving spouse is entitled to receive annually an amount equal to the member's service retirement benefit or disability retirement, whichever is greater. The death benefit is the amount that would be payable to the member's beneficiary had the member retired on the date of death on either a service retirement allowance or a disability retirement allowance, whichever is larger. The benefit is based on the member's creditable service (minimum of IO years of service) and compensation up to the time of disability or death.
Members become fully vested after ten years of service. If a member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.
The Board's payroll for employees covered by TRS for the year ended June 30, 1994, was $15,007,588.18; total payroll was $17,418,498.68.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required to contribute 6% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees as advised by their independent actwuy. For fiscal year 1994 that rate for employer contributions was 11.81%. The interest rate assumption (rate ofreturn on investments) was 7.50%.
Total contributions made during fiscal year 1994 amounted to $2,672,851.57, of which $1,772,396.23 was made by the Board and $900,455.34 was made by employees. These contributions represented 11.81% (Board) and 6% (employees) of covered payroll.
TRS FUNDING STATUS AND PROGRESS The amount of the total pension benefit obligation is based on a standardized measurement established by Statement No. 5 ofthe Governmental Accounting Standards Board (GASB) that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of employee services performed to date, and is adjusted for the effects of projected salary increases. A standardized measure ofthe pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess that PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among other PERS and among other employers.
Total unfunded pension benefit obligation ofTRS as ofJune 30, 1993, was as follows:

- 13 -

CITY OF DALTON BOARD OF EDUCATION - WHITFJF.ID COUNTY
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE30 1994

EXHIBIT"D"

Note 7: RETIREMENT PLANS

Total pension benefit obligation

$13,912,014,000.00

Net assets available for benefits, at cost Unfunded pension benefit obligation

12 821 722 000.00
S I 090 292 ooo 00

The measurement ofthe total pension benefit obligation is based on an actuarial valuation as ofJune 30, 1993. Net assets available to pay pension benefits were valued as of the same date. TRS does not make separate measurements ofassets and pension benefit obligation for individual employers.

Total contributions from all employers to TRS for fiscal year ended June 30, 1994 were $521,550,000.00. The Board's contribution for the year ended June 30, 1994 of $1,772,396.23 was actuarially determined and represented .3398% of total contributions made by all participating employers.

Ten year historical trend information is presented in the 1994 TRS Component Unit Financial Report. This information is useful in assessing TRS's accumulation of sufficient assets to pay pension benefits as they become due.

PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA (PSERS)

PSERS PLAN DESCRIPTION Substantially all bus drivers, maintenance, custodial, and lunchroom personnel employed by local school systems are covered by the Public School Employees Retirement System ofGeorgia (PSERS). All employer's contributions are made by the State ofGeorgia.

PSERS provides service retirement, disability retirement and survivors benefits for its members. A member is eligible for normal service retirement after 10 years ofservice and attainment ofage 65. A member applying for service retirement with 10 years of service and retires between the ages of60 and 65 receives a reduced benefit. Monthly retirement benefits paid to members are equal to $8.00 per month multiplied by the number of years of creditable service. Options are available for distribution of the member's monthly pension at a reduced rate to a designated beneficiary on the member's death.

Retirement provisions include death and disability benefits. Disability benefits are the same as if the employee had retired at age 65 as long as the employee has 15 or more years of creditable service. Death benefits are dependent upon the number ofyears of service. Ifthere are less than ten years ofservice, a lump sum refund ofthe employee's contributions and interest are made to the beneficiary. Ifthere are more than ten years of service, the beneficiary shall receive for life half ofwhat the employee would have received upon retirement.

Members become fully vested after ten years of service. Ifa member terminates with less than ten years of service, no vesting ofemployer contributions occurs, but the member's contributions are refunded with interest.

There were 155 employees covered under PSERS for the year ended June 30, 1994.

- 14 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30 1994

EXHIBIT"D"

Note 7: RETIREMENT PLANS
PSERS CONTRIBUTIONS REQUIRED AND MADE Covered employees are required by State statute to contribute $4.00 a month for the nine month school year. Unlike TRS, the Board makes no contnbution to PSERS. The State of Georgia is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS' Board of Trustees.
Total contnbutions from employees ofthe Board made during fiscal year 1994 amounted to $4,692.00. Total
contribution for all school systems made by the State of Georgia to PSERS for fiscal year ended June 30, 1994, was $9,150,000.00.
Note 8: SURETY BONDS
The School Superintendent, Mr. Frank Thomason, is bonded in the amount of$25,000.00 with the Insurance Company ofNorth America, Philadelphia, Pennsylvania, their Bond No. K04304585, on which premium was paid through July 31, 1994.
Additionally, the Superintendent and certain other employees of the City of Dalton Board ofEducation are bonded under a Public Employees Bond written by United Pacific Insurance Company, Federal Way, Washington, their Bond No. U-601-03-03, on which premium was paid to April 7, 1995. Under this agreement, the Public Employee Dishonesty Coverage insures the Board to a maximum of $25,000.00 against loss sustained through fraudulent or dishonest act by employees.

- 15 -

QII:(QE ~ I~ ~Bl2 Qf El:!;\&AIIQt::1-~!IflEI Q~!irl
~MEUt.-11~ a!il eit:iClii !::::IEEI ~Ef~leil BE~tl~i; Bitll:! JUNE30 1994

~
C88h and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodltieo PurohaledFood

SCHOOL FOOD
SERVICES ~

STATE PRESCHOOL HANDICAPPED
PROGRAM

SEVERELY EMOTIONALLY
DISlURBED

DALTON VOCATIONAL SCHOOi.OF
HEALTH OCCUPATIONS
FUND

AFTER SCHOOL PROGRAM

$ 195,640.11 $

8,950.70 $

94,273.71 $

72,021.54 $

0.00

4,411.99

48,819.62

906.00

INNOVATIVE PROGRAM
CENTER
61,278.03

25,701.45 ~

T--

$ 232 966.85 S

LIAall me~ ~I:! EH~Q ~J!D'.
illl!!l.!II.E.
Ca&h"8rnnlft Aoccunls Payable Salaries Payable Expired Grant Balances Payable Deferred R""""""
TotalL.labititles
-~ Fund Balance&
For Continuation d Federal Programs For Inventories
Food Donated Commodities
--Purohaled Food
Un.........cl
T-FundEquity

5,261.72 $ 53,431.61
S 58 693.33 S
$ 25,701.45 ~ 32,914.75 141358.n s
S 174 273.52 $

8 950.70 $

143 093.33 $

72 927.54 S

2,204.56 $ 6,746.14

34,895.72 107,179.22
$

8950.70 $

142074.94 S

668.50 668.50

0.00 $ 0.00 $

1 018.39 S 1 018.39 $

72 259.04 $ 72 259.04 $

0.00 $

61 278.03

48,271.21 2,975.39
10,031.43
61 278.03

0.00 $

0.00

0.00 $

0.00

Total LiabHities and Fund Equity

$ 232 966.85 $

8 950.70 $

143 093.33 $

72927.54 $

0.00 $

61 278.03

See notes to the general purpose financial statements

EXHIBIT''E'' Page1

ELEMENTARY AND SECONDARY EOUCATIOO ACT

APPALACHIAN REGIONAL
COMMISSION GRANT

LbTIERY ~

DRUG-FREE SCHOOi.SAND COMMUNITIES
ACT

EDlJCATION OF CHILDREN IN
STAlE SCHOOLS

CHAPTER1 EDUCATION OF
DEPRIVED CHILDREN

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOW THROUGH

0.00

5,001.68 $

0.00

TITLE IIEISENHOWER MATHEMATICS AND SCIENCE
EDUCATION

36,566.91 $ 97,618.96 $ 62,099.76

71,187.42

10,747.62

36566.91 s 97618.96 s 62099.76 s _ _ _....,o:;::.OO::.S 11181.42 s soo1.sa s _ _ _..;o"'.oo""s _ _~10:.,:1.::.1..,.s.._2

31,194.25 $ 75,350.36 $

1,243.48

4,582.78

4,129.18

14,798.18

2,583.76

~

36 566.91 S 97 618.96 $

50,430.40 2,332.94 7,689.10 1,002.36
61 454.82

12,077.20 13,736.08 S 45,374.14

816.42 2,026.04 2,159.22

71187.42 $ ~

10,747.62 10 747.62

_ ___,o.,.oo.._ s__Q.QQ_ s ----'o"'.oo"'- s__Q.QQ_ s

644.94 s____oes.OOee. s

644.94 s

o.oo s

o.oo s__Q.QQ_ s_ _ __,o"'.oo"-s _ _ __,o,..oo"'o.oo S__Q.QQ_S _ _ __,o"'.oo"-s _ _ __,o,..ooec

36566.91 s 97618.96 s 62099.76 s_ _ _ _.o..o..o. s 11181.42 s ~ s

o.oo s _ _1""0"'1"''..::a.2

CITY OF DAI TON ROABD OF EQI JCATIQN - WHITEIEI P rp. INJY OOMRINING BAI ANCf SHEET pECIAL REVENUE FUND lllNf 30 1994

Ml!rn
Cash and C88h Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
TatalAsaets
LIABILmES AND BIND FOi IITY
~ C8sh0ve!draft AccountsPayal)le Salaries Payable Expired Grant Balances Payable Deferred Rwenue TolalLiabllit:ies
Fund Balances ReoeNOd For Continuation d Federal Programs For lnwtntories Food Oonated Commodities PurohMed Food
Un"'80M!>d U.-;gnated
Tolal Fund Equity
Total Liabilities and Fund Equity

INDIVIDUALS WITH

DISABILmes EDUCATION ACT

Till.EV! B

FLOW

PRESCHOOL

THROUGH

PROGRAM

JOB lRAINING PARTNERSHIP
ACT

30,044.98 $ 15,465.36 $

28.90

30 044.98 s 15 465.36 s _ _-:;;28..9..0.

8,990.59 $ 4,423.57 16,630.82

11,379.83 S 290.33
3,795.20

28.90

s_ _ _ 30 044.98 $ 15465.36

2,,,8"'.90"'

--~o=.oo"- s _ ___,o"'.oo"- s

o.oo s _ _~o=.oo"o.oo s_ ___,oc,.oo"-

s s _ _ 30 044.98

15 465.36

....,28a:.90:::.

See notes to the general purpose financial statements.

- 18-

EXHIBIT"E'' Page2

HOMELESS CHILDREN ANO YOUTH
2,120.17

INCLUSIVE SCHOOLS PROJECT

TOTALS JUNE 30 1994 JUNE 30 1993

0.00 $

375,887.74 $

129,691.78

441,295.72

423,032.98

25,701.45 7 213.30

32,252.52 7148.14

2120.17 $

0.00 $

850 098.21 $

592125.42

1,777.94 342.23
2120.17

250,248.30 73,105.22 $
271,831.06 6,413.86 303.88
601 902.32 $

75,440.98 251,551.51
1,ns.24
328 768.73

0.00 $ 0.00 $
2120.17 $

7,238.35

0.00 0.00 $

25,701.45 7 213.30
32,914.75 $
215 281.14
248195.89 $

32,252.52 7148.14
46,639.01 216 717.68
263 356.69

0.00 $

850 098.21 S 592125.42

- 19-

CITY Of QA! TON BQARQ OF fDlJCATIQN - WHITFlf[ p COL JNTV @UBINING STATEMENT OF REYfNI lfS f;XPE;NQlTljRfS AND CHANGES IN Fl IND BAl ANCES
SPEC1Al RfYENI If EUM) YEAR ENPEP JUNE 30 1994

SCHOOL FOOD
SERVICES _____fb!!::!Q__

STATE
PRESCHOOL HANDICAPPED
PROGRAM

SEVERELY EMOTIONALLY
DISTURBED

DALTON VOCATIONAL
SCHOOi.OF HEALlH
OCCUPATIONS FUND

AFTER SCHOOL PROGRAM

INNOVATIVE PROGRAM CENTER

state Funds Federal Funds Local and other Funds

73,418.00 S 603,664.18 381 674.79

Total Revenues

EXfENPffiffiES

Cunont

lnotruc:tion

Support Services

PupilSeMceo

lmproi.,ement cl Instructional SeNices

Educational Media SeNices

General Administration

Maintenance end Operation d Plant

Student Trenapo,tal:ion Services

Central Support Service6

other Support Services

FoodSeNicesOperation

$ 1,003,341.76

Other Operations d Non-Instructional SeMces

Total E,cpendltureo

S 1003341.76 S

Excess d Revenues OYel' (under) Expenditures

55,415.21 $

QI!:!ER FINAt!!Qlt:Q ~ IRCfS

Operating Ttanafera In

Excess rl Revenue& end other FH111ncing Sources o,,er(u.-J-ureo

55,415.21 $

BIND RAI ANCE JULV 1

118,858.31

Food l""""''Y Donated Commodities (Net)
Residual Equity T,._,

50,525.00 S

1,130,400.00 S 184,680.97 755.00

50 525.00 S 1 315 835.97 $

473,092.50 $ n,361.so 51 488.97

0.00 $ 503,793.08

so1 943.01 s _ _ _--'o"".oo"'-s 503 793.08

45,271.23 S
3,970.03 1,283.74

899,117.18 S
199,255.63 3,142.50
168,205.02 46,157.64

.S3,993.41 S 123,215.09

0.00
6,800.00 495,785.41
1,207.67

50 525.00 S 1315an.91 s

0.00 $

-42.00 $

617 208.50 $ -15,255.43 $

0.00 $ 503 793.08

0.00 $

0.00

0.00 S

-42.00 $

-15,265.43 S

0.00 S

0.00

0.00

1,060.39

87,524.47

48,675.17

0.00

-48 675.17

FUNQ RAI A~ !llNE 30

$ 174273.52 $

0.00 $

1 018.39 S

72 259.04 $

0.00 $ ~

See notes to the general purpo&e financial statements

-20-

EXHIBIT''P' Page1

APPALACHIAN REGIONAL
COMMISSION GRANT

LOTTERY PROGRAMS

DRUG-FREE SCHOOL.SANO COMMUNITIES
ACT

ELEMENTARY AND SECONDARY EDUCATION ACT

EDUCATION OF CHILDREN IN
STATE SCHOOLS

CHAPTER1 EDUCATION OF
DEPRIVED CHILDREN

MIGRANT PROGRAM

CHAPTER2 BLOCK GRANT FLOlv' THROUGH

TITLE IIEISENHONER MATHEMATICS AND SCIENCE
EDUCATION

$ 370,726.46

65,989.17

$

65989.17 S 370726.46 $

81,435.38 S 1 647.32
83 082.70 $

4,380.00 S 376,802.42 $ 31,530.86 $ 4 380.00 $ 376 802.42 S 31 530.86 $

26,995.00 $

60,986.17

26 995.00 $

60 986.17

73,227.52 S 280,595.13
38,373.47 S 6,717.40 1,827.00
27,003.50 15,588.50
621.46

82,200.89 236.87

73 227.52 $ 370 726.46 $

-7,238.35 $

0.00 S

82 437.76 $ 644.94 $

4,380.00 S

311,649.53 $ 40.54

31,530.86

64,183.54

329.03 599.78

$ 26,995.00

14,259.83 46,726.34

4 380.00 S 0.00 $

376 802.42 $ 0.00 $

31 530.86 S 0.00 $

26 995.00 S 0.00.$

60986.17 0.00

-7,238.35 $ 7,238.35

0.00 S 0.00

644.94 S 0.00

0.00 S 0.00

0.00 S 0.00

0.00 S 0.00

0.00 $

0.00

0.00

0.00

_ ___.o"'.oo""s _....!U!2, s _ __.644=.94;;:.S _ _ _-'o'".oo"'"s _ _....::o.:a.ooa.s _....!U!2, s _ _ _..o.,.o.o.. s_ _-o_.oo~

-21 -

QITY Of QA.l TQN RQARQQFEplJCATIQN-WHITFlfl p CQlJNTY
C.OMQINING STATfMfNI OF BEYfNI If fXPENPITl IBFS ANO CHANGE IN Ft JNQ BAJ ANCfS PEQIAL BEYliNUE FlJNP YEAR ENDER HINF 30 1994

~
State Fund& Federal Fund& Local and other Fund&

Tcial Revenues

fXPENPID !BES

Cum!nt

Instruction

SUpportSelvices

T-PupilSelvices
lmpro,ement ~ lnotruotional Selvices
Educational Media Services General Administration Maintenance and Operation d Plant

St.-.

SeMce6

Cenlzal SUpport Selvices

Other SUpport Food Selvices Operation other Operations ct Non-Instructional Services

TCUI Expenditures

Excess d Rwenues CJlo'ef' (under) Expenditures

QTHl;R FINANCING SQl,JBCES

Operating Tnmdefg In

Excess d ReYenues and other Financing Sources
-<..-i-....
A.JNQ BALANCE- JUl Y 1

Food 1 - , . Donated Commodities (Net)
Reaiduol Equity T....r.r

AJNP BALANCE JUNE 30

INDIVIDUALS WITH

DISABILITIES EDUCATIOf,,,I ACT

TITLEVI B

FLOW

PRESCHOOL

THROUGH PROGRAM

JOB TRAINING PARTNERSHIP
ACT

S 119,082.98 S 31,400.36 $

54,549.46 17 038.92
71 588.38

S 103,610.89 S
8,417.42 6,263.57
n1.10

20,381.64 11,018.72 S

88,864.24

---- ---- ----

S 119082.98 S 31400.36 S

88 864.24

0.00 $

0.00 $

-17,275.86

0.00 S 0.00

0.00 S 0.00

17 275.86
0.00 0.00

s------lUl!l. s------lUl!l. s____o_._oo_

See notes to the general pu!p06e financial statements.

-22-

EXHIBJTP
"-2

HOMELESS CHILDREN ANO YOUTH

INCLUSIVE
SCHOOLS PROJECT

TOTALS YEAR ENDED JUNE30 1994 JUNE 30 1993

34,120.17 S 34 120.17 $

$ 3,438.78
3438.78 S

2,098,161.96 S 2,260,210.58
452 605.00

1,560,327.00 1,TT1,676.63
528084.51

4 810 977.54 S 3860088.14

33,551.91 123.26 445.00 $
34120.17 $ 0.00 S

5,324.88
5 324.88 $ -1,886.10 $

2,297,309.30 S 1,892,335.91

555,479.29 44,256.92 28,822.00 775,908.28 74,368.81 15,588.50 329.03 1,221.24
1,003,341.76

362,588.38 139,341.19 26,082.05 495,894.09 58,859.69
2,444.10
860,502.51 69 602.01

4 796625.13 $ 3907 649.93

14,352.41 $

-47,561.79

0.00 $ 0.00

1886.10

19161.96

47 742.39

0.00 S 0.00

33,514.37 $ 263,356.69

180.60 272,208.51

-48675.17

--9,032.42

0.00 $

0.00 S

248195.89 $ 263 356.69

-23-

CITY OF PAI TON RQABQ OF fpt JCATIQN - WHITFIEI Qcot JNTY COMBINING RAI ANCf SHEET CAplTAI pRO.lfCTS FLJNQ
JUNE 30 1994

EXHIBIT"G"

Cash and CUh Equivalents

GEORGIA STATE FINANCING AND

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

93/928-772-104 93J92S-772-105 931928-772-106

ENERGY

TOTALS

~ JUNE 30 1994 JUNE 30 1993

2 517.53 s____e4..4....o..o. s___a_s_so_.ss_ s ~ s

7 012.09 $

28 745.34

UABILmFS ANP i:=1 tNP FQUITY

Accounts Payable

21 733.25

Fund Balances Re&eM!d For State Capjtal outlay Projects
Total Liabilities and Fund Equity

2517.53 s_ _~944=.oo= s_ _~=s=so=.ss=s_..MQ. s 7012.09 $-~'="='2=.09~ 2517.53 s ____9_44_._oo_s _ _ _a.,.s..,so_.ss.._ s ~ s 7 012.09 $ 28 745.34

See notes to the general purpose financial statements

-24-

CIJY QF QA.I TON 8QARQ QF ED! !7&.TIQN -WHIIEIEI DOOWY COMBINING STATFMENT 9f REVENUES fXPfNQITLJRfS ANQ QHANGES IN FUND BAI ANCfS
CAplJAI PRQ.lfCTS A IND
YEAR FNPEP II lNf 30 1994

EXHIBITH"

GEORGIA STATE FINANCING ANO

INVESTMENT COMMISSION

PROJECT

PROJECT

PROJECT

93J92S-n2-104 93192s.n2-1os 93192s.m-1os

ENERGY GRANT

TOTALS YEAR ENDED JUNE30 1994 JUNE30 1993

~

state Funds Federal Funds Local and Other Fund&
Total Revenues

0.00 S

0.00 S

0.00 S

-----"'o.oo= s____o"'.oo=s _ _ _..0=.00 S

1,908.00 $ 1 908.00 S

$ 1,908.00
1 908.00 $

163,297.30 6322.00
169619.30

fXPeNDITLJRfS

Capital Outlay Land and Land lmproYel'n8nts Building and Building lmproYel'n8nts
Total Expenditures

---~o=.oo~s____o"'.oo=s---0~.00 $ ---~o=.oo~s____o"'.oo=s---~0.0~0 S

6284.00 $ 6284.00 $

6284.00 6 284.00 $

40,985.06 273401.76
314 386.84

Excess of RM!f'lues tJvet (Linder) Expet\ditU!'M OTHER FINANCING SOURCES

---~0.00=$ _ _ _~0"'.00=$---0~.0=0 $ -4 376.00 $

-4 376.00 $ -144 767.54

Operating Transfefs In

4 376.00 S

4 376.00 $

95410.79

Excess of Revenues and Other Financing Sources aver (under) Expenditures

0.00 S

0.00 $

0.00 $

0.00 $

0.00 $ -49,356.84

FUND BAI ANCf JUJ Y 1

2 517.53

944.00

3550.56

0.00

7 012.09

56 368.84

FUND BALANCE JUNE 30

3 550.56 $

0.00 $

7 012.09 $

7 012.09

See notes to the general purpose financial statements

-25-

~IIY QE CALIQf:-1 BQABIJ QE ECUkAIIQt:1-Wl::UIEIELIJ kQ!Jf:-IIY Skt:iECL!LE QE EECEBAL EltiAf:-lklAI ASSlllAt:l~E YEAR fNPfP JUNE 3Q 1994

SCHEDULE "1"

FUNDING AGENCY
PROGRAMJGRANT
Agriculture, u. s. Department of
Diract Summer Food Services Program for Children 1993Grant 1994Grant Undistributed by Prcject
Through Gec,gia Depar1ment of Education Food and Nutrition Program Food Services School Breakfast Program 1993Grant 1994Granl National School Luncll Program 1993 Grant 1994 Grant Food Distribution Program (1)

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.559 10.559 $ 10.559

$ 14,540.00

6,302.00 $ 2,836.00

6,302.00 2,836.00
$

9,138.00 (3)

10.553 10.553
10.555 10.555 10.550

83,173.53
437,314.23 74038.42

5,165.85 83,173.53
3,079.33 432,902.24 NIA

83,173.53
437,314.23 74038.42

(2)
913,614.27 (4) SO 589.49 (1)

Total U.S. Department of AgricuRure

$ 609066.18 $

533458.95 $ 603664.18 $ 1 003341.76

Appalachian Regional Commission Diract ARC Area Economic and Human Resources Developnw,I Program 1994Granl

23.002 $

48000.00 $

29422.26 $ 65989.17 $

73227.52

Education, U.S. Department of Diract Poll Grants 1994Grant Through Gec,gia Depar1ment of Education Drui>-Free Schools and Communities Act 1993 Grant
1993 carry-Over
1994Grant Elementary and Secondary Education Act
Chapter 1 Education of Children In State Schools
1993 carry.over
1994 Regular Education of Deprived Children
1993 Regular 1993 Carry-C>wr
1993 carry-C>wr, Supplemental 1994 Regular Severely Emotionally Disturbed 1992 carry-C>wr
Chapter 2 Block Grant - Flow Through 1993 Regular
1993 carry.over
1994Regular Innovative Programs
1993 Regular 1994Regular 1994 Contract

84.063 $ 26,342.00 $

84.186 84.186 84.186

6,388.00 91,267.00

84.009 84.009
84.010 84.010 84.010 84.010
84.009
84.151 84.151 84.151
84.151 84.151 84.151

2,124.00
26,523.00 23,000.00 349,031.00
1,597.00 25,398.00
302,912.00 6,800.00

26,342.00 $ 26,34200 $

46,793.11 6,338.00 14,000.00

6,338.00 75,097.38

26,342.00
6,338.00 75,097.38

4,380.00
85,543.09 26,523.00
279,092.00 8,406.00
25,552.-40 1,597.00
25,398.00 252,349.74 248,958.97

4,380.00
26,523.00 7,761.54
342,517.88
1,597.00 25,398.00 194,081.08 302,912.00
6,800.00

4,380.00
26,523.00 7,761.54
342,517.88
1,597.00 25,398.00 194,081.08 302,912.00
6,800.00

- 26 -

CIIY QF CAI IQt:.,j BQABC QE EC!.!C6IIQN Wt::tlTFIELC CQ!.!t:.,jlY
SCHEDULE OF FEDERAL FINANCIAi ASSISTANCE
YEAR ENDED JUNE 39 1994

SCHEDULE "1"

FUNDING AGENCY
PBOGBAMJGBANT

CFDA NUMBER

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD(NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Education, U. S. Department of

Through Georgla Department of Education

Elomonlary and Secondary Education Act

TIiie II

E - Mathematics and Science

Education

1992 Carry-Over

84.164 $

1993 Regular

84.164

1994 Regular

84.164

1994 Contract 940735

84.164

1994 Contract 941387

84.164

Individuals with Disabilities Education Act

TIiie VI, B

Flow Through

1992 <:ar,y-Over

84.027

1993 Regular

84.027

1993 <:ar,y-Over

84.027

1994 Regular

84.027

PreochoolProgram

1992 C8rTy-Over

84.173

1993 Regular

84.173

1993 C8rTy-Over

84.173

1994Regular

84.173

SaYerely Emotionally Disturbed

1993 Regular

-

-nee 1993 Carry-Over

1994 Regular

B. Mcl<lmoy Homeless

Act

Education for -

Children and Youth

1992 C8rTy-Over

84.027 84.027 84.027
84.196

1993 C8rTy-Over

84.196

Vocational Education Basic Grants to states

High School Program

Basic Grant

1993 Grant

84.048

1994 Grant

84.048

Consumer and Homemaking Education

1994Grant

84.049

Toch-Prap Education

1993Grant

84.243

1994Grant

84.243

Through Georgia Department of Technical

and Adult Education
Vocational Education - Basic Grants to States

Single Parent

1994Grant

84.048

Sex Equity

1994Grant

84.048

Through Hall County Board of Education

d/bla Piedmont Migrant Education Agency

Elementary and Secondary Education Act

Chapter 1

Migratory Education Program

1993 Regular

84.011

1994Regular

84.011

46,700.00 $ 13,571.00
7,200.00 15,000.00
25,396.00 119,642.00
15,935.00 21,690.00 104,586.00 141,891.00
50,000.00
48,882.00 964.00
30,000.00
40,000.00 1,000.00
33690.08

46,700.00 $ 4,221.00

46,700.00 $ 3,538.55 4,761.42 5,986.20

46,700.00 3,538.55 4,761.42 5,986.20

1,005.00 53,395.92 25,396.00 63,642.00
25,647.00 1,202.47
15,935.00
55,488.22 104,586.00
-1,812.47 32,000.00

25,396.00 93,686.98
15,935.00 15,465.36
104,586.00 30,224.71
34,120.17

25,396.00 93,686.98
15,935.00 15,465.36
104,586.00 30,224.71
34,120.17

6,348.19

45,903.47

48,789.28

(5)

450.00

964.00

(5)

6,147.07

25,149.43

30,000.00

(5)

40,000.00

40,000.00

(5)

1,000.00

1,000.00

(5)

27,247.86 33690.08

31530.86

31530.86

Total U. S. Department of Education

$ 1 577 529.08 $

1864615.55 1 552432.41 $ 1431679.13

- 27 -

CIIY OF DALTON BOARD QF EDUCATION~ WHITEIEt D COUNIY SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE YEAR ENDED JUNE 30 1994

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Energy, U.S. Deparlmant of Direct Energy eoo-vation Program for Schools -Hcspitals DE-FG44-90R434336

CFDA ~

AWARDS IN PERIOD

FEDERAL FUNDS RECEIVED IN PERIOD (NET OF REFUNDS)

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

81.052

s

1 908.oo s _ _1'-'908=-"oo~

(5)

Human Resources, U. s. Department of

Through Georgia Department of Human Resources

Developmental Disabilities Basic Support and

Advocacy Grant 1993-94Conlract

93.630 $--=413=7.0~0 $

Labor, u. s. Deparlmant of

Through North Georgla Regional DeYelopment Cerffr Job Training Pllllnship Act

92032307

17.250

93020201

17.250

93CM0206

17.250 $

93040215

17.250

93040217

17.250

93040218

17.250

93040228

17.250

94012802

17.250

$
22,448.92 50,600.00
7,482.30 45,001.00
997.50 12398.82

3438.78 $

3438.78

(5)

2,652.04 10,694.90 $
6,156.92 39,614.35
1,144.18 44,116.50
1,812.50

10,404.06 $ 6,914.92 49,870.26 1,292.18 44,116.50 1,812.50
28.90

10,404.06 (5) 49,870.26 (5) (5) (5)
28.90

Total U. S. Department of Labor

138926.54 $

106191.39 $ 114439.32 $

60303.22

Total Federal Financial -'-nee

$ 2 3TT 658.80 $

r> Major Programs are klentlfoed by an asterisk in fron1 of the CFDA number.

2 339 034.93 $ 2 341 871.86 $ 2 568 551.63

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonelary
assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) ~ltures for the School Breakfast Program were not maintained separately and are included in the 1994
National School Lunch Program.
(3) ~ on this p,ogramtproject _,, not maintained on a program/project basis.
(4) Expendituraa for this p,ogram include Slate, and/or Local- Other Funds.
~ I t - .,., not maintained by fund ooun,e. (5) ~ on this program were not mainlained by fund ooun:e.

See notes to the general purpose financial statements.

28.

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY ANALYSIS OF CASH AND CASH EQUIVALENTS JUNE 30 1994

SCHEDULE "2"

NONINTEREST BEARING ACCOUNTS
Dalton,Whitfield Bank and Trust, Dalton, Georgia
First Union National Bank of Georgia, Dalton, Georgia
Hardwick Bank and Trust, Dalton, Georgia
INTEREST BEARING ACCOUNTS
First Union National Bank of Georgia, Dalton, Georgia
Certificate of Deposit No. 8788168 (3.25%) N.O.W. Account (2.079%) N.O.W. Account (2.25%)

$ 1,015,750.04 1,294.19 112.50
$ 1,017,156.73

$ 7,507.81 156,642.47 39,004.24

203,154.52

$ 1,220,311.25

See notes to the general purpose financial statements. - 29 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY INVESTMENTS JUNE 30 1994

SCHEDULE 3

INVESTMENT POOL
Office of Treasury and Fiscal Services Local Government Investment Pool (4.237%)

$ 701,056.16

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

CITY OF DALTON BOARD OF EDUCATION -WHITFIELD COUNTY ACCOUNTS RECEIVABLE JUNE30 1994

SCHEDULE "4"

Appalachian Regional Commission ARC Area Ecanomic and Human Resources Development Program
Catamount Band Club, lncorporatad
City of Dalton City Wide School Tax
Dalton Education Foundation, lncorpo,aled
Education, Georgia Department of Quality Basic Education Deferred SUmmer Salaries - FY 1994 Food Senlic:es National School Lunch Program Vocational Education Federal Funds Lotla,yProgComputsrs In Classrooms Media Cenl8r and Library Equipment Safe Schools Grant Federal Programs Drug-Free Schools and Communities Act ESEA - Chapter 1 Education of Deprived Children ESEA - Chapter 2 Innovative Programs ESEA-Title II E - Mathematics and Science Education Individuals with Disabilities Education Act Title VI, B - Flow Through Title VI, B - Praschool Program Title VI, B - Severely Emotionally Disturbed Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Other Assembly of a System Leadership Team fD Participate in Yaar One of a Thre&-Year Leadership Development Program State lnnovativa Programs Next Generation Schools
North Georgia Regional Development Center Job Training Partnership Act
Other Reimbursement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

2,636.93
249,276.14 46,422.81

36,566.91 $

36,566.91 2,636.93

249,276.14 46,422.81

1,430,213.00 8,250.38

4,411.99
61,538.96 1,827.00
42,592.00 62,099.76 71,187.42 60,753.03 10,747.62 30,044.98 15,465.36 30,224.71 2,120.17

1,430,213.00
4,411.99
8,250.38
61,538.96 1,827.00
42,592.00
62,099.76
71,187.42
60,753.03
10,747.62
30,044.98 15,465.36 30,224.71
2,120.17

2,412.47 4,980.00 72,987.76

11,190.81 525.00

2,412.47 4,980.00 72,987.76
11,190.81
525.00

See notes fD the general purpcse financial statements.

$ 1 817,179.49 $

441,295.72 $ 2,258,475.21

31

CIIY QF PAI TON ROABP OE EDUCATION -WHITEIEI P COUNTY
SCHEDULE QF STATE REVENUE YEAR ENPEP JUNE 3Q 1994

SCHEDULE "5"

AGENCVJFUNQING
GRANTS Education, Georgia Department of Quality Basic Education
General and ea..... Education Programs
Special Education Programs Remedial Education Program Media Center Programs Staff DeY9loprnent Programs I-Coot Pupil Transportation
Regular Bus Replacement LimilocfEngliah SpNking Middle School lncentiwt
s_,..,., Special 1-..ctionlll Au1stance
In-School Mid-term Adjustment Local Fair Share Dolerrod Summer Salarieo FY 1993 DefemKf Summer Salaries - FY 1994 Food Services Voc:alional Education
Other - Programs Govemor's Emorgoncy Funds (1) lnnovaliw Programs Mentor Teacher Program Nut Gonoration Schools PrNc:hool Handicapped Program s.-ely Emotionally Disturbed Supon,iaion and ANNament of Studsnt and a.ginning Toachers ond ~
T- - CRaretitlilcra.ti.o.nLoltery Programs
Algebra Classrooms Computers in Classrooms Oislanl Looming Madia Center and Library Equipment
- Generation Schools Pre-~garten Program Sale Schools Grant
Technioal and Adult Education, Georgia Department of Adult Education LolteryProgram
Georgia Studsnt Finance Commiasion Tuition
CONTRACTS Education, Georgia Dopartment of Leadership Seminar - Georgia Education Loodership Acadomy

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 7,136,992.00 1,339,212.00 174,n1.00 311,712.00 92,299.00 2,044,628.00
207,520.00 57,-.00
128,031.00 179,318.00 171,497.00 112,114.00 321,905.00 -3,814,632.00 1,355,754.73 1,430,213.00
2,238.75
2,000..00 4,8311.89 5,760.00 196,010.00
2,650.00 26,317.51
88,990.00

73,418.00
50,525.00 1,122,061.00

7,136,992.00 1,339,212.00
114,n1.00 311,712.00
92,299.00 2,044,628.00
207,520.00 57.-.00
128,031.00 179,318.00 171,497.00 112,114.00 321,905.00 -3,814,632.00 -1,355,754.73 1,430,213.00 73,418.00
2,238.75
2,000.00 4,8311.89 5,760.00 196,010.00 50,525.00 1,122,061.00

2,302.09 151,234.96
7,710.03 1,827.00
173,399.38 42,592.00

2,650.00 26,317.51
2,302.09 151,234.96
7,710.03 1,827.00 88,990.00 173,399.38 42,592.00

362,512.00 93,100.00
17,480.50

362,512.00 93,100.00
17,480.50

7 412.47

7 412.47

(1) The pulJ>OSe of these funds is to award City Porlc Elementary School as a 1994 Georgia School of Excellence
See notes to the general purpose financial statements.

$ 8,873,936.89 $ 2,098,161.96 $ 10,en,098.85 32

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE "6" SCHEDULE OF LOCAL AND OTHER REVENUE YEAR ENDED JUNE 30 1994

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

Taxes City Wide School Tax

$ 14,608,395.66

$ 14,608,395.66

Other Compensation for Loss of Assets Donations Dalton Education Foundation, Incorporated Other Indirect Cost Special Revenue Fund Interest Eamed Jury Duty Fees Lost and Damaged Books Reimbursement of Salaries and Benefits Various Sources Sales Lunches.and Breakfast Other Supply Fees Tuition Other

822.74

32,967.81 $

2,402.32

9,884.00 144,299.15
2,457.50 2,691.74

4,602.25 1,513.22

20,576.27

19,820.06
340,028.70 33,171.94

375,559.32
39,736.47 11,752.50 17,038.92

822.74
32,967.81 2,402;32
9,884.00 148,901.40
3,970.72 2,691.74
20,576.27
375,559.32 19,820.06 39,736.47
351,781.20 50,210.86

$ 15,215,115.57 $ 452,605.00 $ 15,667,720.57

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

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE OF EXPENDITURES BY OBJECT GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1994

SCHEDULE "7"

EXPENDITURES
Operating Costs Salaries Employee Benefits Travel of Employees Professional and Technical Services Travel of Board Members Water, Sewer and Cleaning Services Repair and Maintenance Services Rents Insurance Communications Tuition Commodity Hauling Other Purchased Services Supplies Energy Food Usage Books, Textbooks and Periodicals Dues and Fees Interest Expense Federal Indirect Costs Other Expenditures
Nonoperating Costs Land and Land Improvements Building and Building Improvements Equipment

GENERAL FUND

SPECIAL REVENUE
FUND

TOTAL

$ 15,106,435.54 $ 2,312,063.14 $ 17,418,498.68

4,280,267.55

718,270.73

4,998,538.28

74,880.19

47,634.97

122,515.16

716,267.00

392,974.63

1,109,241.63

1,514.21

1,514.21

63,762.80

347.92

64,110.72

117,136.82

7,131.54

124,268.36

18,500.41

1,074.95

19,575.36

73,953.41

2,918.50

76,871.91

106,896.71

15,820.99

122,717.70

128,311.50

29,117.00

157,428.50

3,431.50

3,431.50

81,788.17

51,790.15

133,578.32

1,009,723.53

297,950.75

1,307,674.28

452,562.28

16,696.76

469,259.04

6,434.42

457,112.48

463,546.90

191,874.68

40,870.79

232,745.47

29,430.46

7,366.71

36,797.17

99,179.80

99,179.80

9,884.00

9,884.00

162,906.11

38,966.80

201,872.91

34,967.83 113,542.67 631,784.32

345,200.82

34,967.83 113,542.67 976,985.14

Total Expenditures

$ 23,502,120.41 $ 4,796,625.13 $ 28,298,745.54

See notes to the general purpose financial statements. - 35 -

CITY OF DALTON BOARD OF EDUCATION WHITFIELD COUNTY SCHEDULE OF EXPENDITURES BY OBJECT LOTTERY PROGRAMS YEAR ENDED JUNE 30 1994

EXPENDITURES
Operating Co81s Salaries Employee Benefits Travel of Employees Other Purchased Services Supplies Du.and Fees Other Expenditures
Nonoperating Co81s Equipment

ALGEBRA CLASSROOMS

COMPUTERS IN
CLASSROOMS

DISTANT LEARNING

MEDIA CENTER AND
LIBRARY EQUIPMENT

$

2,302.09

______ $

151,234.96 $

7,710.03 $ _ _ _ _1!.?,,827=.:::00::,_

Total Expenditures

2302.09 $

151 234.96 $ (1)

7 710.03 $ _ _ _ _1:,;827=.;;00~

(1) Expenditures of $8,339.00 were reporlBd in Special Revenue Fund Severely Emotionally Disturbed. (2) Expenditures for this program were reporlBd in the General Fund. (3) Expenditures of $93,100.00 were reporlBd in Special Revenue Fund Dalton Vocational School
of Health Occupations Fund.

See notes to the general purpose financial statements.

36.

SCHEDULE "8"

NEXT GENERATION
SCHOOLS

PRE-KINDERGARTEN PROGRAM

SAFE SCHOOLS
GRANT

D.T.A.E.
EQUIPMENT
AREA
SCHOOLS

TOTAL

$

$

41,945.00

47,045.00

$

88990.00 $

(2)

87,398.09 26,672.69
1,837.81 621.46
47,993.56 174.00 927.14
7,TT4.63 $

42,592.00 $

$ 93,100.00

87,398.09 26,672.69
1,837.81 621.46
92,240.65 174.00 927.14
351,283.62

173 399.38 $

42592.00 $

93100.00 $ (3)

561155.46

- 37 -

CITY OF DALTON BOARD OF EDUCATION -WHITFIELD COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1994

SCHEDULE "9"

Minimum Expenditure Requirements (Total Allotment)
Expenditures on Combined Program Basis Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures for Staff Development Programs in Excess of Total Staff Development Allotment for: Cost of Instruction
Expenditures per Audit (1) (2)

THIRTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

STAFF DEVELOPMENT
PROGRAM

$

9,284,542.00 $

92,299.00

$

12,264,073.18

776,628.75 $

$

13,040,701.93 $

192,695.90 192,695.90

-<490,397.02

$

12,550,304.91 $

-100,396.90 92,299.00

Amount of Underexpenditure for Total Allotment

$

Note: (1) Salary accruals (July and August 1994 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidefines.
(2) Salary accruals (July and August 1993 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

0.00 $

0.00

See notes to the general purpose financial statements. - 39 -

CITY PE QAI TON BOARD PE EQI JCATIQN -WHITFIEI DCOUNTY ANALYS1SPE MIN1UIJLI EXPENDffiJRE REQUIREMENTS - RY PBQGBAU
GENERAL BJND - qt JA! ITV BASIC EQUCAJ!QN PBQGBAMS YJ;AR ENDED JUNE 30 1994

GENERAi AND CAREER fQUCATIQN PBQGRAMS Kinde<garten (") G.-1-3(")
Sub-Total K-3 G.-4-5(") G.-6-8(") G.-9-12(") HighScl,m~(")
v-- Education~(")
Total General and career Education Programs
SPECIAi EP. K'.A.JION PBQGBAMS
Regular Programs Calegaryl(") Category II (") Category Ill(") Category IV (") Itinerant &Jpplemental Su~Total- Regular Categary V (Gifted) (") Total Special Education Programs
BEMED1Al f[X JCATION PBOO&U (") MEDIA GENIER ffiOOBAMS
Total Thirteen Weighted and Media Center
STAFF PsVEI 9PMfNT PROGRAMS (1)
Cost c:J 1118truction
Total Stoff Clew>lopment
() Identifies Thirteen Weighted Programs Note: (1) S2,610.90oltheallotmentforProles&ional
Clew>lopment has been transferred to Cost d ln&truction as authorized by OCGA 20-2-182
See note& to the general purpose financial statements.

ORIGINAL

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

TOTAL

~

ORIGINAL

MID-TERM

REQUIRED

797,055.00 2 074 649.00 2,871,704.00
925,024.00 1,542,289.00
788,576.00 630,916.00 378 483.00 7136 992.00

90 $ 90 90 90 90 90
$

717,349.50 $ 1 867184.10 2,58-4,533.60 $
832,521.60 1,388,060.10
709,718.40 567,824.40 340 634.70 6 423 292.80 $

13,256.00 S 730,605.50

1 867184.10

13,256.00

2,597,789.60

71,080.00

903,601.60

1,388,060.10

75,508.00

785,226.40

30,100.00

597,924.40

340 634.70

189 944.00 $ 6 613 236.80

953,188.00

857,869.20 $

0.00 $

857,869.20

953,188.00 386 024.00 1339212.00 114n1.oo 311712.00

90 $ 90
90 $
90 s

857,869.20 $ 347 421.60 1 205 290.80 $ 157 248.90 $ 280~.80 $

0.00 $

857,869.20

131 961.00

479 382.60

131 961.00 $ 1337251.80

0.00 $
0.00 s

157 248.90 280~.80

$ 8 962 637.00

8,066 373.30 $

321 905.00 $ 8 388,278.30

23,348.90 100 $ 68950.10 100

23,348.90 $ 68 950.10

92 299.00

92,299.00 $

0.00 $

23,348.90 68 950.10

0.00 $

92 299.00

9,054,936.00

8.158,672.30 $

321.905.00 $ 8 480,577.30

(2) Salary accrua~ (July and August 1994 Delened Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program
guidelines

40

SCI-IEDULE""IO''

REQUIRED ALLOTMENT

SALARIES
ACTUAL (2)(3)

OISTRIBLJTION BY RESPECTIVE PORTIONS

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

REQUIRED ALLOTMENT

OPERATIONS ACTUAL

AMOUNT OF UNOEREXPENOITURE
FOR REQUIRED ALLOTMENT

714,116.60 s 1,090,932.70

16,488.90 $

35,357.17

1 815134.40

2 333 524.96

52 049.70

112 840.54

2,529,251.00 $ 3,424,457.86 $

0.00

68,538.60 $

148,197.71 $

0.00

881,569.60

1,504,390.25

0.00

22,032.00

45,086.25

0.00

1,352,499.30

2,304,515.25

0.00

35,560.80

132,323.52

0.00

758,228.20

1,109,224.33

0.00

25,998.20

75,175.88

0.00

576,409.00

700,613.16

0.00

21,515.40

42,958.88

0.00

301 959.00

591 920.48

0.00

38 675.70

100 917.60

0.00

$ 6 399 916.10 $ 9 635121.13 $

0.00

213 320.70 $

544 659.85 s

0.00

63,064.80 $ 160,410.60 531,423.90 78,480.00

261,810.99 192,808.46 797,698.85 102,1n.86

2,n1.10 $ 2,943.00 12,402.90 2,302.20 1,342.80 2 727.90

1,999.66 3,1TT.27 9,481.60 24,429.76

833,379.30 S 1,354,496.16 $

0.00

24,489.90 s

39,088.29 $

0.00

471108.00

482 493.73 $

0.00

8 274.60

13 510.23 $

0.00

1304487.30 $ 1836989.89

32 764.50 $

52 598.52

154 816.20 $

160 637.59 $

0.00

2432.70 $

8 585.93 $

0.00

224 731.80 $

631 324.57 $

0.00

55 809.00 $

170 784.45 $

0.00

8 083 951.40 $ 12,264,073.18 $

0.00

304,325.90 S

776,628.75 $

0.00

8,083951.40 s 12264,073.18 s _ _ _ _..;o..o..o.
(3) Salary accruals (July and August 1993 Deferred Salaries) reported as expendrtures in the prior year General Purpose Financial Statements are included on this analysis as required b'f program guidelines.

23,348.90 $

123,745.80 S

0.00

68950.10

68 950.10

0.00

92,299.00 $

192,695.90 s _ _ _ _..;o;;,;.ooa;,,

396,625.90 $

969,324.65 s _ _ _ _ _o_.oo..,

- 41 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
SCHEDULE OF TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30 1994

SCHEDULE 11

BOARD MEMBER ADDRESS
Mr. Randall T. Maret, Chairman (") 903 Linden Drive Dalton, Georgia 30720
Mrs. JoAnne Shirley, Vice-Chairman (") 104 North Rainsong Road Dalton, Georgia 30720
Mr. Tommy Boggs(")
P. 0. Box 1029
Dalton, Georgia 30722-1029
Mr. Robert Hubbs (") 816 Dogwood Lane Dalton, Georgia 30720
Mr. William G. Steve 3903 Bucks Bluff Rocky Face, Georgia 30740

$

1,395.56

118.65

(") Denotes Board Members Serving as of June 30, 1994 Note: As of June 30, 1994, one position was vacant.

$ _ _ _1..,,s_1_4_.2_1

See notes to the general purpose financial statements.
- 42 -

SECTION II COMPLIANCE

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June29, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City of Dalton Board of Education
COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City of Dalton Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 29, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to City of Dalton Board of Education is the responsibility ofthe Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests indicate that, with respect to the items tested, the City of Dalton Board of Education complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Board had not complied, in all material respects, with those provisions.

94CRL-10

This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-10

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 29, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City ofDalton Board ofEducation

SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the City ofDalton Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 29, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have applied procedures to test the City ofDalton Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1994:

( 1) Political Activity

(5) Allowable Costs/Cost Principles

(2) Civil Rights

(6) Drug-Free Workplace Act

(3) Cash Management

(7) Audit Follow-Up/Resolution

(4) Federal Financial Reports

(8) Administrative Requirements

Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Board's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion.

94CRL-50

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Dalton Board ofEducation had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial instances ofnoncompliance with those requirements, which are described in the Schedule ofFindings and Improper or Questioned Costs. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~~~
Claude L. Vickers State Auditor CLV:cm 94CRL-50


CLAUDE L. VICKERS
STA.TE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 29, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City ofDalton Board ofEducation

SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the City ofDalton Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 29, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

We have also audited the City ofDalton Board of Education's compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(5) Applicable Special Tests and Provisions

(2) Eligibility
(3) Matching, Level ofEffort, and/or Earmarking

(6) Other Requirement Claims for Advances and Reimbursements

(4) Reporting

These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule ofFederal Financial Assistance, for the year ended June 30, 1994. The management of the City of Dalton Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit.

94CRL-80

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; Government Auditing Standards issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City ofDalton Board ofEducation's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the City ofDalton Board ofEducation complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1994.
This report is intended for the information of management, the Federal cognizant audit agency and other
~:z~ Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a
matter of public record.

CLV:cm 94CRL-80

Claude L. Vickers State Auditor

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 29, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofDalton Board ofEducation

SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS

Ladies and Gentlemen:

We have audited the general purpose financial statements of the City ofDalton Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 29, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.

In connection with our audit ofthe fiscal year 1994 general purpose financial statements of the City of Dalton Board of Education and with our consideration of the Board's internal control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A128, "Audits ofState and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1994. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing:

(1) Types of Services Allowed or Unallowed

(2) Eligibility

Our procedures were substantially less in scope than an audit, the objective of which is the expression ofan opinion on the City ofDalton Board ofEducation's compliance with these requirements. Accordingly, we do not express such an opinion.

With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing

94CRL-120

came to our attention that caused us to believe that the City of Dalton Board of Education had not complied, in all material respects, with those requirements.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
ti'~~
Claude L. Vickers State Auditor
CLV:cm 94CRL-120

SECTION III INTERNAL CONTROL

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 29, 1995

Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the City ofDalton B_oard ofEducation
REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City ofDalton Board ofEducation as of and for the year ended June 30, 1994, and have issued our report thereon dated June 29, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements.
We conducted our audit in accordance with generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
In planning and performing our audit ofthe general purpose financial statements of the City of Dalton Board of Education for the year ended June 30, 1994, we considered the internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.
The management ofthe City of Dalton Board of Education is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not
94ICL-3

be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness ofthe design and operation of policies and procedures may deteriorate.

For the purposes of this report, we have classified the significant internal control structure policies and procedures in the following categories:

(I) Cash and Cash Equivalents (2) Investments (3) Inventories (4) Revenue/Receivables/Receipts (5) Procurement

(6) Expenditures/Liabilities/ Disbursements
(7) Employee Compensation (8) General Ledger
(9) General Fixed Assets

For all ofthe internal control categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk.

We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements.

As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories:

(I) Cash and Cash Equivalents

(2) General Fixed Assets

(3) Employee Compensation

A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.

Our consideration of the internal control structure would not necessarily disclose all matters in the internal . control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that all of the reportable conditions disclosed above are also considered to be material weaknesses.

94ICL-3

These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the City of Dalton Board of Education's financial statements and this report does not affect our report thereon dated June 29, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record.
Respectfully submitted,
~~
Claude L. Vickers State Auditor
CLV:cm 94ICL-3

CLAUDE L. VICKERS
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 29, 1995

Honorable Zell Miller, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe City ofDalton Board ofEducation
SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS
Ladies and Gentlemen:
We have audited the general purpose financial statements of the City ofDalton Board of Education as of and for the year ended June 30, 1994, and have issued our report thereon dated June 29, 1995. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We have also audited the City of Dalton Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated June 29, 1995.
We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the City of Dalton Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program.
In planning and performing our audit for the year ended June 30, 1994, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the Board's general purpose financial statements and on its compliance with requirements applicable to major Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated June 29, 1995.
94ICL-7

The management ofthe City of Dalton Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection ofany evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.

For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories:

GENERAL REQUIREMENTS

SPECIFIC REQUIREMENTS

(1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports

(1) Types of Services Allowed or Unallowed
(2) Eligibility
(3) Matching, Level of Effort, and/or Earmarking

(5) Allowable Costs/Cost Principles

(4) Reporting

(6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements

(5) Applicable Special Tests and Provisions
(6) Other Requirement Claims for Advances and Reimbursements

For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk.

During the year ended June 30, 1994, the general purpose expended 61% of its total Federal financial assistance under major Federal financial assistance programs.

We performed tests of controls, as required by 0MB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements, as described above that are applicable to each of the Board's major Federal financial assistance programs, which

94ICL-7

are identified in the Schedule ofFederal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion.
We noted a certain matter involving the internal control structure and its operation that we consider to be a reportable condition under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations.
As described in the Schedule ofFindings and Improper or Questioned Costs, a reportable condition was noted in the following control category:
Administrative Requirements
A material weakness is a reportable condition in which the design or operation ofone or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, we believe that the reportable condition described above is also considered to be a material weakness.
This condition was considered in determining the nature, timing, and extent of the procedures to be performed in our audit ofthe City ofDalton Board ofEducation's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1994, and this report does not affect our report thereon dated June 29, 1995.
This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record.
~=~
Claude L. Vickers State Auditor
CLV:cm 94ICL-7

SECTIONN FINDINGS AND IMPROPER OR QUESTIONED COSTS

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30 1994
PRIOR YEAR
AUDIT FOLLOW-UP/RESOLUTION Audit Distribution Requirements Federal Financial Assistance Finding Resolved Audit Control Number 7721-93-03
The audit report for the year ended June 30, 1993, reported the Board failed to submit a copy of the 1992 audit report to all agencies that provided Federal financial assistance to the Board. During the year under review, the Board submitted copies of the 1992 and 1993 fiscal year audit reports to all agencies as required.
PRIOR YEAR/CURRENT YEAR
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable.Condition - Material Weakness Audit Control Number 7721-93-01
The audit report for the year ended June 30, 1993, noted that the Board has chosen not to maintain a systemwide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. In the year under review, the Board did not establish a General Fixed Assets Account Group within the formal accounting records. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7721-93-02
According to provisions ofP. L. 100-690, all grantees that have been approved or awarded a direct Federal grant are required to certify that a drug-free workplace is maintained. Such certification is a precondition of receiving a direct Federal grant. A provision of certifying a drug-free workplace is to establish a drug-free workplace policy.

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
PRIOR YEAR/CURRENT YEAR
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7721-93-02
The audit report for the year ended June 30, 1993, stated that the Board's Drug-Free Workplace Policy did not contain the requirement that an employee ''Notify employer in writing of his or her conviction for a violation of a criminal drug statue occurring in the workplace no later than five (5) calendar days after such conviction". In the year under review, no procedures were implemented to correct this deficiency. This requirement should be included in the Board's Drug-Free Workplace Policy.
AD:MINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7721-93-04
The audit report for the year ended June 30, 1993, stated that the Board's property management records for the Elementary and Secondary Education Act, Chapter 2, Block Grant - Flow Through program (CFDA 84.151) were incomplete and failed to meet property standards as outlined in Chapter 74 of the Georgia Financial Accounting Handbook for Local School Systems. This condition occurred because management disregarded the provisions ofGFAH. For the year under review, the LEA's property management records again failed to meet those requirements. The records as presented for audit did not contain a manufacturers serial or other identifying number, acquisition cost and date. An inventory system should be implemented that provides for the identification of all equipment purchased as outlined in Chapter 74 of the Georgia Financial Accounting Handbook for Local School Systems. Perpetual inventory records should include historical information regarding additions and deletions made to the equipment inventory during each fiscal year. Periodic physical inventory counts should be made and reconciled to the property records to ensure the accuracy ofthe Board's inventory records.

CITY OF DALTON BOARD OF EDUCATION - WIDTFIELD COUNTY SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS
YEAR ENDED JUNE 30 1994
CURRENT YEAR
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7721-94-01
As ofJune 30; 1994, the City ofDalton Board ofEducation failed to have its bank balances fully collateralized as provided for by the Official Code ofGeorgia Annotated Section 45-8-12 which states, in part, as follows:
"The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for at time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section... The aggregate of the face value of such surety bond, the face or par value of securities pledged, and the amount of deposit insurance shall be equal to not less than 110 percent of the public funds being secured... after the deduction of the amount of deposit insurance"
This noncompliance occurred because of management's failure to adequately monitor the collaterization of balances at individual banks. The Board should implement adequate procedures to monitor the collaterization ofbank balances to ensure compliance at all times with State Laws governing deposits and investments.
EMPLOYEE COMPENSATION Payroll Reporting Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7721-94-02
In the year under review, it was noted that the Board incorrectly calculated payroll withholdings for the Teachers Retirement System and failed to withhold the proper amounts from certain administrative employees. In addition, the Board incorrectly calculated the employers matching cost for these same employees and failed to remit these amounts to the Teachers Retirement System. This noncompliance occurred because management was unaware that deductions should be made on total compensation as specified in the employees contract. Internal controls should be established by the Board to ensure that payroll deductions are based on the total compensation paid as specified in the employee's contract and the proper deductions are withheld and remitted to the Teachers Retirement System.

SECTIONV PERTINENT VIEWS OF RESPONSIBLE OFFICIALS

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS FOR THE YEAR ENDED JUNE 30 1994
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7721-93-01
We concur with this recommendation. The Board is in the process of establishing accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group.
DRUG-FREE WORKPLACE ACT Failure to Include Required Provision in Drug-Free Workplace Policy Federal Financial Assistance Nonmaterial Noncompliance Audit Control Number 7721-93-02
We concur with this finding. It should be noted, however, that we did not receive our FY 1993 Audit Report containing this finding until October 21, 1994, which was after the end ofFY 1994, the time period for this audit.
ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Records Federal Financial Assistance Major Program Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7721-93-04
We concur with this finding. The Board will resolve this finding by submitting a corrective action plan to the Georgia Department ofEducation.
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7721-94-01
We concur with this finding. The Board will resolve this finding by submitting a corrective action plan to the Georgia Department ofEducation.

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY PERTINENT VIEWS OF RESPONSIBLE OFFICIALS FOR THE YEAR ENDED JUNE 30 1994
EMPLOYEE COMPENSATION Payroll Reporting Financial Statements Reportable Condition - Material Weakness Nonmaterial Noncompliance Audit Control Number 7721-94-02
We concur with this finding. The Board will resolve this finding by submitting a corrective action plan to the Georgia Department ofEducation.