City of Dalton Board of Education, Whitfield County, report on audit of the financial statements for the fiscal year ended June 30, 2001

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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 INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTIJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

30

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

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

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

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

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

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

R. "'Ell W. HI"ll~
STATE AUDITOR
('1)4' 656-2'7~

DEPARTMENT OF AUDITS AND ACCOUNTS
~54 Wd,htnglOn Street, S W. SUIIC ~ 14
Atldnta. Georg,. 30114-1!400
Apnl 23, 2002

Honorable Roy E Bames, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the City of Dalton Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladles and Gentlemen
We have audJ.ted the accompanymg general-purpose finanCial statements ofthe CIty ofDalton Board of Educatton, as of and for the year ended June 30, 2001, as hsted m the table of contents These general-purposc finanCial statements are the responsibilIty ofthe City ofDalton Board ofEducatton's management Our responslblhty IS to express an 0plmon on these general-purpose finanCial statements based on our audit
We conducted our audIt m accordance WIth auditing standards generally accepted m the Umted States of Amenca and the standards apphcable to finanCial audJ.ts contained m Government Audltmg Standards, Issued by the Comptroller General ofthe Umted States Those standards reqUIre that we plan and perform the audit to obtain reasonable assurance about whether the finanCial statements are free ofmatenal misstatement An audIt mcludes exammmg, on a test basiS, eVidence supportmg the amounts and dJ.sclosures m the finanCial statements An audIt also mcludes assessmg the accountmg pnnclples used and Significant esttmates made by management, as well as evaluatmg the overall finanCial statement presentalIon. We beheve that our audit proVides a reasonable basIS for our opmlon
As descnbed m the notes to the general-purpose finanCial statements, the Board of EducatIon's finanCial statements have been prepared usmg certain accounlIng praelIces and pohcles wluch, m our 0plmon, vary m some respects from generally accepted accounting pnnclples These vartances are descnbed as follows

2001ARL-13

* The general-purpose financial statements of the Board of EducatIOn did not contam a
General Fixed Assets Account Group to account for property and eqUIpment owned by the Board of Education winch should be meluded to conform to generally accepted account1Og pnnclples
* School actiVity accounts mamtamed at the mdlvldual schools are not meluded m the
general-purpose financial statements To conform to generally accepted accountmg pnnclples. these accounts should be mcluded m the general-purpose finanCIal statements
The aggregate effects on the general-purpose finanCial statements of these vanances or omiSSIons have not been detenruned, but are belIeved to be matenal
In our opmlOn, except for the effects on the general-purpose financIal statements of the matters referred to m the precedmg paragraph, the general-purpose finanCIal statements referred to above present fairly, mall matenal respects, the fmanclal POSitIon ofthe City ofDalton Board ofEducatIOn as of June 30, 2001, and the results of ItS operations for the year then ended, m conformity WIth accountmg pnnclples generally accepted In the Umted States of Amenca.
In accordance WIth Government Audltmg Standards, we have also ISSUed our report dated Apnl 23, 2002, on our consideratIOn ofthe City ofDalton Board ofEducatIOn's 10ternal control over finanCial reportmg and our tests of Its complIance WIth certam proVISIOns oflaws, regulations, contracts and grants That report IS an mtegral part of an audit performed m accordance With Government Audltmg Standards and should be read m conjunction With this report m consldenng the results of our audit
Our audit was performed for the purpose of formmg an opmlon on the general-purpose finanCial statements of the City of Dalton Board of Education taken as a whole The accompanymg combmmg and mdlvldual fund statements (Exlublts E through I) and the finanCial schedules (Schedules I through 5), winch meludes the Schedule ofExpendltures ofFederal Awards as reqUIred by U S Office of Management and Budget Circular A- 133, Audits ofStates, Local Governments, and Non-Profit OrganizatIOns, are presented for purposes of additional analysIs and are not a required part ofthe general-purpose finanCial statements Such mformal1on has been subjected to the audltmg procedures apphed in the audIt of the general-purpose finanCial statements and m our opmlOn, except for the effects of the matters referred to m the t1urd paragraph, such mformatlOn IS fmrly stated, 10 all matenal respects, m relal10n to the general-purpose finanCial statements taken as a whole
200 IARL-13

A copy oftins report has been filed as a permanent record III the office ofthe State Auditor and made avaIlable to the press ofthe State, as proVIded for by Official Code ofGeorgJa Annotated Secllon SO6-24
Respectfully submItted,
&l).~
RWHogp 200 IARL-13

CITY OF DALTON BOARD OF EDUCAnON - WHITFIELD COUNTY

C!JY OF DALTON BOARP OF EPUCATION - WHITFIELD COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30 2001

~ Cash and Cash EqUIvalents Investments Accounts REtCelvsble Due from Other Funds Inventones
Food Donated Commodllles Purchased Food
Amoont to be Provided In Future Vears
For Peyment 01 Cepltal Lease Agreements
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

378.57200

$ 3.601.335 80 $

61.661 77

13.456.07918

3.557,553 94

1.330.78547

1,457.34980

41.98586

43.96774 10,801 76

$ 7.200:875 60 $ 1:447,21674 $ 15.292,00098

liABILITIES AND FUNp EQUID'
LIABILITIES
cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retalnages Payable
Due to Other Funds Deferred Revenue
capital Lea Agre.ments
Totaillablibes
FUND EQUITY
Fund Balances ReseMld For Continuation of Federal Programs For Expired Grant Balances/aueSlJOl1ed Costs Forlnventones Food Donated Commodities Purchased Food For SPLOST Protects Unreserved Designated for local capital Outlay U n d 1gna1ed
Total Fund Equity

$ 1.690.73924 $ 1,571.73616 3,495,227 73

484.91764 151.73782 $ 430.01690
9.186 92

41.985 86 534 55

98.91762
396.454 63 140.429 95

$ 6.757.70513 $ 1.118.37969 $

637.80240

S

43.96774

10.801 76

$ 10.314.21463

$

443.17047

274.06755

2.164.28377 2.175.699 98

$

443.17047 $ 328.83705 $ 14.654.196 58

TOllllllablhtles and Fund Equity

$ 7,200,875 60 $ 1[447,21674 $ 15,292.00098

The notes to the generB~urpose finanoal statements are an Integral part of tilts &tatemenl -2-

EXHIBIT "N

FIDUCIARY FUND TYPE AGENCY
FUND

s

13,390 75

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

s

378,57200 S

679.254 n

17,119,07675

24,849,593 58

6,359,079 96

6,582,01232

41,985 86

36,04679

S

12,700,000 00

43,96774 10,801 76
12,700,000 00

36,098 53 7,03599
16,840,000 00

S

13,390 75 S

12,700,000 00 S 36,653:484 07 S ~9,030,041 98

S

13,390 75

S 2,189,04763 S

264,02430

1,822,39360

1,924,460 48

3,925,244 63

3,692.422.22

9,186 92

5,60231

398,454 83

869,566 04

140,429 95

84,830 10

41,985 86

36,046 79

534 55

S

12,700,000 00

12,700,000 00

16,840,000 00

S

13,390 75 S

12,700,000 00 S 21,227,277 97 S 23,716,95224

S

4,190 41

36,534 98

S

43,96774

10,801 76

10,314,21483

2,164.283 n
2,892,938 00

36,098.53 7,035 99
19,535,540.28
1,072,330 83 4,621,358 92

S 15,426,206 10 S 25,313,089 74

S

13,39075 S

12,700,000 00 S 36,653:484 07 S 49,030.041 98

-3-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
ygAB ENDED JUNE 30 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Tetal Revenues
EXPENDITURES
Current Instruction Support SllfVIces Pupil services Improvement of Instructlonel services Educational Mad.. SllfVIces General Admlnostrabon SChool Admlmstrallon Business Admlnlstrebon Maintenance end Operabon of Plant Student Transportation Services Central Support SllfVIces Other Support servlC8S Food ServIces Operatlon Communrty servoces Operabons
Capital OUUay Debt service
Pnnapal Interest
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES)
CaPItal Leases Operabng Transfers In Operatln9 Transfers OUt
Total Other Flnancln9 Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Fmanang Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodlbes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 20,356,651 49 $
19,558,233 58 1,022,758 28
S 40,937,643 35 $

2,799,534 25 3,922,611 94
404,46791
7,126,61410

$ 27,640,33253 $

1,072,74728 1,737,229 09 1,010,726 85
507,348 11 2,201,283 35
539,372.53 3,573,608 99 1,493,11238
625,367 86 2,364 75

114,908 39 224,74932

250,00000 282,206 24

S 41,275,35767 S

S

-337,71432 $

3,497,40744 855,886 02 939,43313 43,064 52 130,16789 179,564 39 52,87628
24,204 69 1,734,254 43
7,458,858 59 -330,244 49

$ $ -1,385,881 35
$ -1,385,881 35 $

285,88135 285,881 35

$ -1,723,595 67 $ 2,186,786 14

-44,383 14 361,56521

3,76577 7,869 21

FUND BALANCE JUNE 30

$

443,17047 $

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

-4-

328 ,83705

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

S

638,46290 S 23,792,64664 S 25,025.496 67

3.922,611 94

4,550,194 27

4.926,422 93

24,466.656 51

24.510,67651

653,221 19

2.260,447 36

3,951.92463

S 6,416,10702 S 54,462,364 47 S 56,036,29206

S 31,137.73997 S 26.977.90714

S

1,94204

11 ,263.564 79

1.926,633 30 2.676.682 22 1,053,791 37
637,51560 2,360,64774
541,31457
3,626.465 27 1,493,11236
625,36768 26.56944 1,734,254 43 114,906 39 11,468.314 11

2,155,996.2{) 3.596.752 72 1,103,940 40
710.366.21 2,117,91446
850.271 30 3,179,02666 1,399.033 73
560.72365 16,61169
1,577,44096 65,01712
13,779,66216

3,690.00000 493,160 00

4,140,000 00 775,36624

3,725,00000 645,665 00

S 15,648.666 63 S 64,380,683 09 S 62,283,553 64

S -9.230,559 61 S -9,696,51662 S -4,245,261 76

S 6,720.000 00

S 1,100,000 00 S 1.365,681 35

1,056,456 36

-1,365.66135

-1,056,456 36

S 1,100,00000 S

000 S 6.720,00000

S -6,130.55961 S -9.696.51862 S 2,474.73824

22,764,756 39

25,313,089 74

22.640,493 52

3,76577 7.66921

-2.09760 -4442

S 141654,196 56 S 15,4261206 10 S 2513131089 74
-5-

CITY OF DALTON BOARD OF EDUCATION WHITFIELD COUNTY
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - INON-GMP BASIS)
GENERAL AND SPECIAL REVENUE FUNpS
YEAR ENPED JUNE 30 2001

EXHIBIT "CO

GENERAL FUND

ACTU"L (BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds T,xes Other Funds

$ 18.114.858 00 $ 20.356.651 49

19.888.800 QO 1.076.76772

19.558.233 58 1.022.75828

Total Revenues

$ 39.080.425 72 $ 40.937.64335

EXPENDITURES

CAmeot Instrucbon Support Service. Pupil 5ervlces Improvement of Instructlonal $efVlces Educabonal Med~ S8NUS General Ai:Jmlnlstrabon SChool Ai:JmlnIStrsUon Bualness Adminll;tratlon Maintenance and Operation of Plant Student Tmnoporlatlon SeMces Central Support SeIVlC8. Other Support Servk:es Food ServICe. Opemtlon Community $erv'lCes Operabons
capttal QuUay DebtSeMce

$ 26.594.393 66 $ 27.640.33253

1.311.44300 1.582.857 72 1.020.630 00
525.52800 2.470.034 00
442.133 00 3,298,426 34 1.538.002 00
664.294 00 5150 00

1.072.747 28 1.737.229 Q9 1.010.726 85
507.34811 2.201.283 35
539.37253 3.573.608 99 1.493.11238
625.36786 2.364 75

94.3110 00 364.895 00

114.908 39 224,74932 532.206 24

Total Expendrtwws

$ 39.912.066 72 $ 41.275.35767

Excess of Revenues over (under) Expenditures

$ -1131.661 00 $ -337,71432

OTHER FINANCING SOURCES IUSES)

Other Sources Other U&e~
Total Other FinanCing Sources (U&eI)

$ 371.53100 1.138.53100 $ 1.385.88135
$ 767.000 00 $ -1.385.881 35

Excess of RevenU96 and Other Flnanclng Sources
over (under) Expenditures and Other Financing Uses

$ .1.598.66100 $ -1.723.59567

FUND BALANCE JULY 1t 2000

3.371759 99

2.166 766 14

Adjustments

SPECIAL REVENUE FUND

ACTUAl.

(BUDGET

BUDGET

BASIS)

$ 2.719.792 20 $ 2.799.534 25

4.627.96302

3.922 611 94

360.31600

404.46791

$ 7.708.071 22 $ 7.126.61410

$ 3.366.573 66 $ 3.497.407 44

628.87090 1.741.66782
37.151 QO 260.30864 153.34200

855.886 02 939.433 13
43.064 52 13016769 179.564 39

33.643 QO 50000

52.87628

57.34300 1.495.471 00

24.204 69 1.734.25443

$ 7.775.071 22 $ 7.456.858 59 $ -67.00000 $ 3311.244 49

$ 67.000 00 $ 28588135 $ 87.000 00 $ 285.881 35

$

000 $ -44.363 14

387.39322

318.431169

3.61444

FUND BALANCE JUNE 30 2001

$ 1,n3,09899 $ 443.17047

$ 383,77878 $ 274.06755

The nOtes to the general-purpose f1nanaal statements are an Integral part of thIS statement 7

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
NOTES TO TIlE GENERAL.PURPOSE FINANCIAL STATEMENTS
JUNE 30. ZOO 1

EXHIBIT "D"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City ofDalton Board of EducatIon (School DIstrIct) 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 Supenntendent appomted by the Board The School DIstrIct IS orgaruzed as a separate legal entIty as defined by generally accepted accountIng pnnclples and has the power to levy taxes and set Its budget WIthout approval by the CIty Government or any other entity Accordmgly, the School' DIstrIct IS a pnmary government for accountmg purposes
FUND ACCOUNTING
The School DIstrIct uses funds and an account group to report on Its finanCIal posItion and the results of Its operations. Fund accounting IS deSIgned to demonstrate legal complIance and to aId financIal management by segregatIng transactIons related to certam governmental funCtIOns or actIVItIes A fund IS a separate accountmg entIty WIth a self-balancmg set of accounts. An account group IS a financIal reportIng deVIce deSIgned to prOVIde accountabIlIty for certaIn assets and habIlltIes that are not recorded m the funds because they do not dIrectly affect expendable aVaIlable finanCIal resources
General FIxed Assets are recorded as expendItures m the vanous funds at the tIme of purchase A General FIxed Assets Account Group IS not presently maIntaIned by the School DIstrIct To conform to generally accepted accountIng pnnclples, a General FIxed Assets Account Group should be maIntaIned for reportIng the cost of assets acqUIred by governmental fund types
Although "school actIVIty accounts" are maIntaIned at the IndIVIdual schools, neIther the assets, lIabIlItIes and fund eqUIty, nor the revenues, expendItures and changes m fund balances of these accounts are reflected In these finanCial statements. To conform to generally accepted accountIng pnnclples, these accounts should be recorded m the general-purpose finanCIal statements
The general-purpose finanCial statements account for all State, Federal, Taxes and Other funds under control of the School DIStrICt, In complIance WIth generally accepted accountIng pnnclples applIcable to governmental urnts, unless otherwIse dIsclosed In these notes Funds and the account group presented In thIs report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School DIstrIct's educatIOnal activIties. Governmental Fund Types Include.
GENERAL FUND - the fund used to account for all finanCIal resources of the School DIstrIct except those requIred to be accounted for In another fund These transactions relate to resources obtaIned and used for ServICes proVIded by a board of educatIon

-8-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COIDlT)'
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMEmS
JUNE 3D. 2001

EXHIBIT"D"

Note J. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specIfic revenue sources (other than for major capital projects) that are legaJly restncted to expendItures for specified purposes These funds are receIved pnmanly from the GeorgIa Department of Education and from the FederaJ government to accomphsh specific educatIOnal objectIves
CAPITAL PROJECTS FUND - the fund used to account for finanCial resources to be used for the acqUISItion or constructIOn of major capItal faclhtles
FIDUCIARY FUND TYPE - the funds used to accounl for assets held by a government urnt m a trustee capacIty or as an agent for mdlVlduaJs, pnvate orgaruzatlOns, other government umts and/or other funds ThiS fund mcludes
AGENCY FUND - the fund used to account for assets held m a fidUCiary capacity for other funds, governments, or mdlVlduaJs.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A finanCial reportmg deVIce used to account for capItal lease obhgatlons.
BASIS OF ACCOUNTING
The accountmg and finanCial reportmg treatment apphed to a fund IS determmed by Its measurement focus All governmental funds are accounted for using a current finanCial resources measurement focus WIth t1us measurement focus, only current assets and current hablhtles generaJly are mcluded on the balance sheet Operating statements ofthese funds present mcreases (I e , revenues and other financmg sources) and decreases (I.e, expenditures and other finanCing uses) m net current assets TheIr reported fund baJance IS consIdered a measure of available spendable resources
Liabilllles which are expected to be financed from available spendable resources are reported as habilltles m the governmental funds Other hablhtles, wluch are not expected to be fmanced from avaIlable spendable resources, are reported m the General Long-Term Debt Account Group.
Agency funds are purely custodial In nature and do not Involve measurement ofresults ofoperatIons
Governmental funds are accounted for usmg the modified accruaJ basIS ofaccountmg under wluch
Revenues are recognIzed when susceptible to accrual (I e., when they become both measurable and avaIlable) "Measurable" means the amount of the transactIOn can be deternuned and "aVailable" means collectible Wlthm the current penod or soon enough thereafter 10 be used to pay habihtles of the current penod The School DIstnct conSIders receivables collected W1t1un sixty days after yearend to be avaIlable and therefore susceptible to accruaJ Nonexchange transactions, m whIch the School Dlstnct gIves (or receives) vaJue WIthOUt directly receIVIng (or gIvmg) equal value In exchange, mclude property taxes, locaJ optIOn sales taxes, Intergovernmental grants and donatIOns
-9-

CITY OF DALTON BOARD OF EDUCATION. WHITFIELD COUNTY
NOTES TO 11fE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2oo!

EXHlBlT"D"

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue for property taxes IS recogruzed In the fiscal year for which the taxes are leVIed Revenue from sales taxes IS recognized In the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donatIons IS recognized In the fiscal year In wluch all elIglblhty reqwrements have been satIsfied.
Expenditures are generally recogruzed when the related fund IIablhty IS inCurred
A substantial number of personnel of the School Dlstnct were employed for a one hundred and nmety day penod beginning In August 2000 and endmg in early June 200 1 Employment contracts for these employment penods typically specify that compensatIon be paId In twelve equal monthly payments beglnrung In September 2000 and endmg In August 2001. State grants to fund the State's share of these contracts are disbursed to the School Dlstnct III the same twelve month penod In accordance With generally accepted accountIng pnnclples, salary and frInge benefit expenditures and the related revenue from the State to fund these contracts are recorded III the fiscal penod covered by these financial statements
Agency funds are accounted for using the modIfied accrual basiS ofaccountIng m recogruzmg assets and hablhtIes.
BUDGET
The City ofDalton Board of EducatIon's budget IS a complete financial plan for the School Dlstnct's fiscal year and IS based upon estImates of expenditures together With probable fundmg sources. There IS no statutory prOhIbitIon regardlllg overexpendJture ofthe budget at any level The budget for all governmental funds IS prepared by fund, function and object The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basIS other than generally accepted accountIng pnnclples
The budget process begins when the School Dlstnct's adrmrustratIon prepares a tentatIve budget for the Board's approval After approval ofthIS tentatIve budget by the Board, such budget IS advertIsed at least once III a newspaper of general Circulation in the localIty At the next regular meeting of the 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, III accordance With prOVISions of the Quahty BasiC Education Act, OCGA Section 20-2-167(c), to the Georgia Department of EducatIOn The Board may Illcrease or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end
The Statement of Revenues, ExpendJtures and Changes In Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facJ1ltate companson With the budget, the follOWing adjustments have been made to fund balance as reflected on Exlublt "B" ofthJs report.

- 10-

CITY OF DALTON BOARD OF EDUCATION - WHITFIEW COUNTY
NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 200!

EXHIBIT "0"

Note 1 SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1,2000

$ 361,56521

Adjustments Inventones - July 1,2000 Food Donated Conunodltles Purchased Foods

-36.09853 -7,035.99

Fund Balance July I, 2000 (Budget BasiS)

$ 318,43069

Excess of Revenues and Other FInancing Sources over (under) ExpendItures and Other FInanCIng Uses

-44.363 14

FUND BALANCE JUNE 30, 2001 (Budget BasIS)

$ 274067.55

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents COnsist ofcash on hand, demand depoSits and short-term mvestments With onglnal matuntJes of three months or less from the date of acqulsItlon In authonzed finanCial Institutions Georgia Laws OCGA 45-8-14 authonze the School Dlstnct to depOSit ItS funds m one or more solvent banks or InSured Federal saVIngs and loan assoclatlons

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the School Dlstnct In nonpamclpatIng Interest-earmng contracts (such as cernficates ofdepoSit) and repurchase agreements are reported at cost PamcIpatmg Interest-eammg contracts and money market Investments With a matunty at purchase ofone year or less are reported at amortized cost. Both participatIng Interest-eamIng contracts and money market Investments With a matunty at purchase greater than one year are reported at fair value The OffiCial Code of Georgia Annotated Sectlon 36-83-4 authonzes the School DIstnct to Invest ItS funds In selectIng among optlons for Investment or among InstJtutlonal bIds for depOSits. the Inghest rate ofreturn shall be the obJectlve, given eqUIvalent conditIOns of safety and hqUldlty Funds may be Invested In the follOWIng

(I) ObhgatJons ISSUed by the State of Georgia or by other states,

(2) OblIgatlons ISSUed by the Umted States govenunent,

- 11 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "D"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(3) OblIgatIons fully msured or guaranteed by the Umted States government or a Umted States government agency,

(4) OblIgatIons of any corporatIon of the Umted States government,

(5) Pnme banker's acceptances,

(6) The Local Government Investment Pool admllustered by the State of GeorgIa, Office of Treasury and FIscal Services,

(7) Repurchase agreements, and

(8) OblIgatIons of other polItIcal subdIVISIOns of the State of GeorgIa

RECEIVABLES

ReceIvables COnsiSt of grant reJrnbursements due on Federal, State or other grants for expendJtures made but not reJrnbursed and other receivables disclosed from mformatlon aVailable ReceIvables are recorded when eIther the asset or revenue recogmllon cntena has been met ReceIvables recorded on the general-purpose finanCIal statements do not mclude any amounts which would necessItate the need for an allowance for uncollectible receIvables

PROPERTY TAXES

The City of Dalton, GeorgIa fixed the property tax levy for the 2000 tax year (calendar year) on October 2,2000 (levy date) Taxes were due on December 20,2000 (lIen date) Taxes collected wlthm the current fiscal year or wltlun 60 days after year-end are reported as revenue m fiscal year 2001. The Dalton CIty Clerk bJlls and collects the property taxes for the School Dlstnct and remits the balance of taxes collected to the School Dlstnct Property tax revenues dunng the fiscal year ended June 30, 2001 for mamtenance and operatIons amounted to $19,558,23358

The tax mJllage rate leVied for the 2000 tax year (calendar year) for the CIty of Dalton Board of EducatIon was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operallons

~mJlls

SALES TAXES

SpecIal Purpose Local OptIOn Sales Tax IS to be used for capItal outlay for educatIOnal purposes Special Purpose Local Option Sales Tax revenue dunng the fiscal year amounted to $4,928,422.93 and was recorded m the CapItal Projects Fund. The State WIll termmate collection of thIS tax once an additIOnal $2,374,659.16 has been collected or on June 30, 2002, wluchever occurs first

- 12 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUJ\'E 30. 2001

EXHIBIT"D"

Note I' SUMM.A rry OF SIGNIFICANT ACCOUNTING POLICIES
The City of Dalton BUlldmg Authonty (CIty Government) sold general obhgatlOn bonds to proVIde advance fundmg for CapItal Outlay Projects assocIated WIth Issuance of a SpecIal Purpose Local Option Sales Tax (SPLOST). In fiscal year 2001, the School Dlstnct proVIded $4,915,366 24 of SPLOST proceeds to the CIty of Dalton BUlldmg Authonty for debt seTVIce on SaId general obhgatlon debt
INVENTORIES
FOOD INVENTORIES Inventones of donated food commodIties used m the preparation of meals arc reported on the Combmed Balance Sheet at theIr Federally asSIgned value. Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-In, first-out) Donated food commodItIes are recorded as revenues and expendItures at the tIme commodIty Items are recetved Purchased foods mventones are recorded as expendItures at the tIme ofpurchase The mventones reported on the balance sheet for donated food commoditIes and for purchased foods are equally offset by reservatIOns of fund balance wtuch mdlcates that these amounts do not constItute "aVaIlable spendable resources" even though they are a component of net eurrent assets
COMPENSATED ABSENCES
Compensated absences represent obhgatIons of the School Dlstnct relatIng to employees' nghts to receIve compensatIon for future absences based upon sCTVIce already rendered. ThIs obhgatIon relates only to vestIng accumulatIng leave m winch payment IS probable and can be reasonably estImated No habillty has been recorded m the mdlVldual funds for the current portIon of tins obhgatlOn as tins amount IS deemed Immatcnal to the general-purpose financIal statements.
AdditIonally, the dollar value of accumulated compensated absences at June JO, whIch Will be payable from future resources has not been recorded m the General Long-Term Debt Account Group as thIS liabIlity IS also deemed to be Immatcnal to the farr presentatIon of these fmanclal statements
INTERFUND TRANSACTIONS
The School Dlstnct has the followmg types of mterfund transactIons
Reimbursements of expenditures InItIally made from a fund that are properly apphcable to aIlother fund are recorded as expenditures m the relmbursmg fund aIld as reductIOns of expenditures m the fund that IS reunbursed
Operating transfers are recorded for all mterfund transaCtiOns other thaII reimbursements
MEMORANDUM ONLY - TOTAL COLUMNS
Total colurnI1S on the general-purpose fmaIlclal statements are captIoned "MemoraIJdum Only" to mdlcate that they are presented only to faCIlItate finaIlclal aIlalysls Data m these columns do not
- 13-

gTY OF DALTON BOARD OF EDUCATJOI' - WHITFIELD COUNTy NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200 I

EXHlBIT"D"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
present finanCial posItion or results ofoperations m confollnIty With generally accepted accountmg pnnclples Neither are such data comparable to a consohdatJon, Interfund ehmmatlons have not been made m the aggregation of thiS data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS OffiCial Code of Georgia Annotated (OCGA) Section 45-8-12 prOVides that there shall not be on depOSit at any time m any depoSitory for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of Insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deductJon ofthe amount ofdepoSit msurance Ifa depOSitory elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daIly pool balance. OCGA Section 45-8-11 (b) proVides an officer holdmg pubhc funds may, m hiS discretion, WaIve the reqUIrement for secunty m the case ofoperatmg funds placed m demand depOSit checkmg accounts
Acceptable secunty for depoSits consIsts of anyone of or any combmatlon of the followmg.
(I) Surety bond Signed by a surety company duly qualified and authonzed to transact busmess Wlthm the State of Georgia,
(2) Insurance on accounts proVIded by the Federal DepOSit Insurance CorporatIOn,
(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgatlons of the Uruted States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of mdebtedness or other obhgatlons of the counties or munlclpahtles of the State of GeorgIa,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, provldmg that the statute that created the authonty authonzed the use of the bonds for thiS purpose,
(6) Industnal revenue bonds and bonds of development authontJes created by the laws of the State of GeorgIa, and
(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgatlons of a subSidiary corporation of the Uruted States government, which are fully guaranteed by the Uruted States government both as to pnnclpal and mterest or debt obligations ISSUed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage AsSOCiation, and the Federal NatJonal Mortgage AsSOCiation
- 14-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
NOTES TO THE GENERAkPURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHmrr"D"

Note 2 DEPOSITS AND INVESTMENTS

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $420,909 30 The amounts of the total bank balances are classified mto three categones of credIt nsk'

Category I - Cash that IS Insured (e.g., Federal depOSitory Insurance) or collateralIzed With secuntles held by the School DistrIct or by the School DistrIct's agent In the School DistrIct's name
Category 2 - Cash collateralIzed With secuntles held by the pledgIng fmancIaI Institution's trust department or agent m the School DistrIct's name
Category 3 - Uncollaterahzed depOSits (This mcludes any bank balance that IS collateralIZed WIth secunlies held by the pledging finanCial mslItutlon, or by ItS trust department or agent but not In the School DistrIct's name)

The School DistrIct's depOSIts are clasSified by nsk category at June 30, 2001, as follows

Risk Category

Bank Balance

I

$ 206,54868

2

000

3

214,36062

Total

$ 420,909.30

CATEGORIZATION OF INVESTMENTS Investments are classified as to nsk by the three categones descnbed below.

Category 1 - Insured or registered, or secunlies held by the School DistrIct or the School DIStrICt'S agent m the School DistrIct's name
Category 2 - Unmsured or unregistered, With secuntles held by the counterparty's trust department or agent m the School DistrIct's name
Category 3 - Umnsured or unregistered, With secunlies held by the counterparty, or by Its trust department or agent but not In the School DIstrIct's name

At June 30, 2001, the carryrng value of the School DistrIct's total Investments was $17,057,414 98 which IS matenally the same as farr value. The mvestments are clasSIfied as to nsk categones as follows

- 15 -

Cln' OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

EXHIBIT"D"

Note 2 DEPOSITS AND INVESTMENTS

Type of Investment
U S Government Repurchase Agreements
Total
Local Government Investment Pools
Totallnvcstrne1lts

Risk Categoncs
2

$ 7,904,36009 $ 7,76\ 08688

000 $

$15665 446 97 $

000 $

CarryIng

Fair

3

Amount

Valye

000 $ 7,904,360 09 $ 7,904,360 09 776108688 7,76108688

OQQ 515,665,44697 515,665,446 97

\ 39\ 9680\ 1.391 96801 SI? 057 414 98 Sp 957 414 98

The carrymg amounts shown above mcludes amounts mamtamed m an mvestment pool by the State ofGeorgIa, Office ofTreasury and Fiscal Services m winch the School DIstrict owns no Identifiable secuntIes The mvesnnent policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (pnmary Llqwchty Portfolio) does not proVide for mvestment m denvatlves or Similar mvestments A descnptlon ofthe Pnmary LiqUidity Portfoho IS as follows:

The Pnmary LiqUidity Portfolio conSlsts of Georgia Fund 1, winch IS a combmatlOn local and state government mvestment pool, and Fund 6 Georgia Fund 1 IS a stable net asset value Investment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool IS not registered With the Secuntles and Exchange ComnnsslOn as an Investment company but does operate Georgia Fund 1 In a manner consistent With Rule 2a-7 of the Investlnent Company Act of 1940 and IS considered to be a 2a-7 like pool. The pool's pnmary objectIves are safety of Capital, mvestment mcome, liqwdllyand dlverslficatlo" wlnle mamtammg pnnclpal ($1 00 per share value) Net asset value IS calculated weekly to ensure stability The pool dlstnbutes earmngs (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1 00 per share Pooled cash and cash eqwvalents and mvestments are reported at cost which approximates fau value The pool does not Issue any legally bmdmg guarantees to support the value of the shares PartIcipation m the pool IS voluntary and depOSits COnsist of funds from local governments, operating and trust funds ofGeorgia's state agencies, colleges and umVersltles, and current operatIng funds of the State of Georgia's General Fund

Investlnents m Georgia Fund 1 and Fund 6 are directed toward short-term mstruments such as D, S Treasury obligations, Secuntles ISSUed or guaranteed as to pnnclpal and mterest by the D S Government or any of Its agencies or mstrumentalltles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average matunty for Georgia Fund 1 on June 30, 2001, was 39 days The average mvestment duration for Fund 6 on June 30, 2001, was 6 months,

Note 3 NON-MONETARY TRANSACTIONS

The School Dlstnct receives food commodities from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally asSigned value, See Note 1 -Inventories

- 16 -

CITY OF DALTON BOARD OF EDUCATION - WHITfIEW COUND' NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200 I

EXHIBIT"D"

Note 4 RISK MANAGEMENT

The School DIstrIct IS exposed to vanous nsks of loss related to torts, theft of, damage to, and destrucllon ofassets, errors or omissions; Job related Illness or mJunes to employees, natural disaster and unemployment compensatIOn

The School Dlstnct has obtamed commercia] Insurance for nsk of loss associated With torts, assets, errors or omiSSions and Job related Illness or InJunes to employees The School Dlstnct has neither slgruficantly reduced coverage for these nsks nor Incurred losses (settlements) which exceeded the School Dlstnct's msurance coverage In any of the past three years

The School Dlstnct has elected to self-Insure for all losses related to natural dIsaster The School Dlstnct has not expenenced any losses related to thIs nsk m the past three years

The School Dlstnct IS self-Insured With regard to unemployment compensatIOn chums The School Dlstnct accounts for cl3.lms wlthm the same fund that the employee's saJary and benefits were paId CI3.lms are accounted for With expenditure and habllity bemg reported when It IS probable that a loss has occurred, and the amount of that loss can be reasonably eslJmated

Changes In the unemployment compensallon cl3.lms habllity dunng the last two fiscal years are as foIlows

Begmmng of Year Ll8blhty

Claims and Changesm EstJmates

Claims Paid

End of Year L1ablhty

2000 2001

$

000 $

000 $

000 $

000

$

000 $

7,37852 $

7,37852 $

000

The School Dlstnct has purchased surety bonds to proVIde addll10naJ msurance coverage as follows

PositIOn Covered

Amount

Supenntendent All Other Employees

$ 100,000,00 $ 25,00000

Note 5 OPERATING LEASES

City of Dalton Board ofEducalJon has entered Into vanous leases as lessee for pupIl transportatIOn and eqUIpment These leases are consIdered for accountmg pUrposes to be operatIng leases Lease expendItures for the year ended June 30, 2001, amounted to $1,074,570 00, Future mmunUID lease payments for these leases are as follows'

Year EndIng

Amount

2002

$ 1.056,770,00

- 17 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUND'
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMHITS
JUNE 30, 2001

EXHffiIT"D"

Note 6 GENERAL LONG-TERM DEBT

CAPITAL LEASES The City ofDalton Board of Education entered mto two agreements WIth the City ofDalton Bwldmg Authonty for the pwpose of acqwnng, constructmg and eqUlppmg bwldmgs and facilities Under the terms ofthe agreements the School Dlstnct Will assure that payments ofpnnclpal and mterest on the City ofDalton BUlldmg Authonty Revenue Bonds (Dalton PublIc School System ProJect), Senes 1997 and Senes 2000 are made m a timely manner through July I, 2003, and March 1, 2015, respectively

These lease agreements qualify as capital leases for accountmg pwposes and, therefore, have been recorded at the present value ofthe future mllllIl1UID lease payments as ofthe date of their mceptlon

The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2001, were as follows

Balance July 1, 2000
Deductions Payments
Balance June 30, 2001

Capital Leases

City of Dalton BUildIng Authonty

1997 Issue

2000 Issue

Total

$ 10,120,000.00 $ 6,720,00000 $ 16,840,00000

3,890,000 00

250,000 00 4,140,00000

$ 6,230'(){)O,QQ $ 6,470 000 QQ $ 12.ZQQ,OQQ,OO

At June 30, 2001, payments due by fiscal year whIch mcludes pnnclpal and mterest for these Items are as follows

Fiscal Year Ended June 30

Capital Leases

City of Dalton BUlldmg Authonty

1997 Issue

2000 Issue

Total

2002 2003
2004 2005 2006 2007 - 2011 2012 - 2015

$ 4,388,660 00 $ 662,64750 $ 5,051,307 50

2,234,160.00

661,90250 2,896,062 50

660,277 50

660,277 50

657,757.50

657,75750

659,327.50

659,327.50

3,297,777.50 3,297,77750

2,635,50000 2,635,50000

Total Prmclpal and Interest $ 6,622,820,00 $ 9,235,190 00 $ 15,858,010 00

Deduct: Imputed Interest

392,82000 2,765,19000 3,158,010 00

Net Present Value of Future Muumum Lease Payments $ 6,23000000 $ 6,47Q,OOQ,QQ $ 12,700,000 00

- 18 -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHffiIT"D"

Note 7 SHORT-TERM DEBT

The School Dlstnct Issues tax antIcipation notes m advance of property tax COllectIOns, deposltlng the proceeds m Its General Fund This short-term debt IS to provIde cash for operations until property tax collectIons are receIved by the School Dlstnct Article IX, SectIOn V, Paragraph V of the Constitution of the State of GeorgIa hnnts the aggregate amount of short-term debt to 75 percent ofthe total gross mcome from taxes collected ill the precedmg year and reqUIres all short-term debt to be repaid no later than December 31 of the calendar year ill which the debt was Incurred

Tax AntiCIpation Notes

Begmnmg Balance

AddItions

Payments

Endmg Balance

$,_ _--lo0"l0IllO $6.000 000 00 $6.000 000 00 $,_ _.....O."'.OIJ/.O

Note 8 ON-BEHALF PAYMENTS

The School Dlstnct has recogrnzed revenues and expenilltures In the amount of $623,757.65 for health msurance and retirement contnbutlons paid on the School Dlstnct's behalfby the followmg State AgenCies

GeorgIa Department of EducatIOn Paid to the GeorgIa Department of Commuruty Health For Health Insurance of Non-Certified Personnel In the amount of $519,953 10

Paid to the Teachers RetIrement System of GeorgIa For Teachers Retirement System (TRS) Employer's Cost In the amount of $24,437.55

Office of Treasury and FIscal Sel'Vlces Paid to the PublIc School Employees Retirement System For PublIc School Employees RetlTement (PSERS) Employer's Cost In the amount of $79,367.00

Note 9 SIGNIFICANT COMMITMENTS

The followmg IS an analysIs of slgrnficant outstandmg constructIOn or renovatIon contracts executed by the School DIstrict as of June 30, 2001

- 19-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 30. 200 I

EXHIBIT"D"

Note 9 SIGNIFICANT COMMUMENTS

PrOJect
99-772-091 Dalton High School HVAC New Clly Park New Elementary

Unearned Executed Contracts
S 5, 108,024 07 27,14375
3,370,64097 106.539.31
$ 8.612.348.10

The amounts descnbed In this note are not reflected In the general-pwpose financial statements

Note 10 CONTINGENT LIABILITIES

Amounts received or receivable pnnclpally from the Federal government are subject to aullit and review by grantor agencies TIus could result In requests for reunbursement to the grantor agency for any expenllitures wluch are disallowed under grant terms The School Dlstnct believes that such disallowances, If any, Will be Immatenal to Its overall financial pos!Uon

Note II SUBSEOUENT EVENTS

On November 6,2001, the voters of Wlutfield County voted In favor ofa Special Purpose Local OptIon Sales Tax referendum (Commencmg upon the expiratIon ofthe current I percent sales and use tax) The ImpOSition ofthe tax approved by the voters, as stated on the OffiCial Ballot Wlutfield County, IS as follows.

"Shall a special one percent sales and use tax be Imposed In Wlutfield County for a penod of time not to exceed 20 calendar quarters and for the ralSlng ofnot more than $77,582,518 of wluch an amount not to exceed $24,050,581 shall be received by the City of Dalton Public School System for the purposes of proViding funds to payor to be applied toward the cost of the retirement ofpreViously Incurred debt With respect to capital outlay projects ofthe City of Dalton Public School System consisting of the $6,720,000, the City of Dalton BUilding Authonty (Georgia) Revenue Bonds (Dalton Public School System ProJect), Senes 2000, the maximum amount ofdebt service to be pllld on such bonds from sales and use tax proceeds not to exceed $6,870,000, and certain capllal outlay projects for the City of Dalton Public School System consisting of additiOns, renovatIOns and mollifications at eXIstIng schools and other faCIlities, including the acqUiSItIon of any furruture, fixtures and eqUipment necessary or deSirable therefor, and system-Wide technology Improvements, the maxImum cost of such projects to be funded from sales and use tax proceeds not to exceed the balance of sales and use tax proceeds to be received by the City ofDalton Public School System (collectively, the "City Project")? If the ImpOSition of the tax IS approved by the voters In the City of Dalton Public School System, such vote shall also constitute approval of the Issuance of general obligation debt of the City of Dalton Public School System m the pnnclpal amount of $15,000,000 to pay all or a portion of the City ProJect."

"20,,

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHffiIT"D"

Note 12 ACCUMULATED EMPLOYEES' LEAVE

The School Dlstnct's admIDlstraltve staff and certaIn other full-hme employees earn up to one and one-thIrd days per month of vacation leave Upon separalton, an employee WIll be paId for earned, but not used, vacatIOn days dunng the prevIous twelve months Vacation days, not used by December 31, followmg the fiscal year m whIch they are earned, WIll be forfeited See Note 1 Compensated Absences

Note 13 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, admInIstrative and clencal personnel employed by local school dlstncts are covered by the Teachers Retirement System of Georgia (TRS), which IS a cost-shanng mulhple employer defined benefit pensIOn plan TRS proVides Service renrement, disability retirement and SurvIVOrs benefits for Its members m accordance WIth State statute The Teachers Reltrement System of Georgia Issues a separate stand alone finanCIal audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School DIStnCt who are covered by TRS are requIred by State statute to contnbute 5% of theIr gross earnmgs to TRS The School Dlstnct makes monthly employer contnbutlons to TRS at rates adopted by the TRS Board of Trustees m accordance WIth State statute and as adViSed by their mdependent actuary The reqUIred employer contnbutlOn rate IS 11 29% and employer contnbutlOns for the current fiscal year and the precedmg two fiscal years are as follows

Fiscal Year

Percentage Contnbuted

ReqUIred ContnbutlOn

2001 2000 1999

100% 100% 100%

$ 2,923,583 78 $ 2,699,914 92 $ 2,614,157 59

- 21 -

CITY OF DAlTON BOARD OF EDUCATION - WHITFIELD COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventones Food Dona1ed Commodrtles Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds Deferred Revenue
Total L,abdrtJes
FUND EQUITY
Fund Balances Reserved For Conbnuabon of Federal Programs For Inventones Food Donated Commod,bes Purchased Food Unreserved Undeslgnated
Total Fund EqUity
TotalLJab,hbes and Fund Equity
See notes to the general-purpose financial statements - 22-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

254,03721 $

24,23985

61,661 77

16,31597

62,564 81

43,96774 10,801 76

$

386,764 45 $ _~_86il,8:;:04r.;.;.::6~6

$

3,15864 $

27,24589

14,881 48

59,558 77

41,98586

$

60,02618 $

86,804 66

$

43,96774

10,801 76

271,98877 $

000

$

326,758 27 $

000

$

386,764 45 $ _ _~8:::6~,8;;:;04;:,,66~

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

5,77417 $

284,05123 $

358,88026

61,661 77

58,061 99

$ 1,251,904 69

1,330,78547

1,085,51833

43,96774 10,801 76

36,09853 7,03599

$ 1,251,904 69 $

5,77417 $ 1,731.26797 $ 1.545,59510

$

768,96887

117,44713 $

355,57665

7,29871

534 55

$ 1,249,82591 $

$ 3,88596 1,888 21
5,77417 $

768,96887 $ 151,73782 430,01690
9,18692 41.98586
534 55
1,402,430 92 $

622,904 58 129,92973 389,54650
5.60231 36,04679
1,184,029 89

$

2,07878 $

$

2,07878 $

$

4,19041

$
000 000 $

43,96774 10,80176
274,06755
328,83705 $

36,098.53 7,03599
314,24028
361,56521

$ 1,251.904 69 $

5,77417 $ 1,731,26797 $ 1.545,59510 - 23-

CITY OF DALTON BOARD OF EDUCATION WHITFIELD COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support ServiceS Pupil Services Improvement of Instructional SeMceS Educabonal Media Services General Admlnlsbrabon School Admlmsbrabon Maintenance and Operabon of Plant Student Transportabon SeMceS Other Support SeMceS Food Services Operabon
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Translers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCing Uses
FUND BALANCE JUbY 1
Food Inventory - Net Change In Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the genera~purpose finanCial statements 24

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

S

118,43800 S

1,193,03934

389,46677

S 1,700,944 11 $

677,68995 677,68995

$

641,16725

79,77507 21204

34,75509

$ 1,734 ,254 43

$ 1,734 ,254 43 $

$

-33,31032 $

2,18109
758,09054 -80,400 59

$

S

$

33,31032 $

348,43361

3,76577 7,86921

80,40059 80,400 59
000 000

$

326?58 27 S~~_.....O;:.:O:::O:..

EXHIBIT"F"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTAlS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,973,51451 $ 2,729,572 60 15,001 14
$ 4,718,08825 $

29,89179 $ 29,891 79 $

2,799,534 25 $ 3,922,611 94
404,46791
7,126,61410 $

2,575,349 55 4,550,194 27
396,57003
7,522,11385

$ 2,830,613 49 $
772,64247 938,42448
43,064 52 95,41260 179,564 39 52,87628
22,02360

$ 4,934,621 83 $

$

-216,53358 $

25,626 70 $ 3,46848 79661
29,891 79 $ 000 $

3,497,40744 $
855,88602 939,433 13
43,064 52 130,16769 179,564 39
52,87628
24,204 69 1,734,254 43
7,456,858 59 $
-330,244 49 $

3,098,811 35
604,57437 1,834,628 43
27,641 65 162,61965 166,86142
40,46553 2,00000
12,76920 1,577,440 98
7,527,81258
-5,69873

$

205,48076

$

205,48076

$

-11,05282 $

13,13160

$

2,07878 $

$

285,88135 $

$

285,881 35 $

36,80120 -1937
36,78183

000 $ 000

-44,36314 $ 361,56521

31,08310 332,62413

3,76577 7,86921

-2,09780 -4442

000 $

328,837 05 $_"",,"3;;;;6_1.,5.;;;6.5.2~1_

- 25-

CITY OF DALTON BOARD OF EDUCATION WHiTfiELD COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

ASSETS Cash and Cash EqUIvalents InveS1ments Accounts RBCBfVable
Total Assets
LIABiliTIES AND FUND EQUITY L1ABllmES
Cash Overdraft Accounts Payable Contracts Payable Reta,nages Payable
Total Liabilities FUNp EQUITY
Fund Balances Reserved For SPLOST Projects Unreserved Designated for local Capital Outlay Undes,gneted Total Fund Equity
Total l,ab,hbes and Fund EqUIty

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$ 3,248,03061

1,091,953 14

_ _ _ _ _ _ $ _ _!!:63~6!>:!,4~62,,-9!!!0!...

$ 4,339,983 75 $ _ _~63~6~,4~6~2~90;;"

$

532,80750

3,65540

100,000 00

$

636,46290

S 2,164,28377

2.175,699 98 $

000

$ 4,339,98375 $

000

See notes to the genara~purposefinancial s1atements
26

EXHIBIT "G"

SPECiAl PURPOSE LOCAL OPTION SALES TAX

TOTAlS

JUNE 30, 2001

JUNE 30, 2000

$ 3,248,03061 $ 3,249,218 11

$ 12,364,12604

13,456,07918

22,003,92545

820,88690

1,457,349 80

2,480,447 19

$ 13,185,01294 $ 18,161,45959 $ 27,733,59075

$ 2,336,651 11 $ 2,869,458 81 $ 3,197,366 27

95,26222

98,917 62

797,06995

398,454 83

398,454 83

869,58604

40,429 95

140,429 95

84,83010

$ 2,870,79811 $ 3,507,261 01 $ 4,948,83236

$ 10,314,21483 $ 10,314,21483 $ 19,535,54028

2,164,28377

1,072,330 83

000

2,175,69998

2,176,887 48

$ 10,314,21483 $ 14,654,19858 $ 22,784,758 39

$ 13,185,01294 $ 18,161,45959 $ 27,733,590 75

- 27-

CITY OF DAlTON BOARD OF EDUCATION - WHITFIELD COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2001

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support ServiceS Business AdmInistration
capital Outlay Land and Land Improvements BUilding and Building Improvements EqUipment
Debt SeMce Principal Interest
Total Expendrtures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other FinanCIng Sources (Uses)
Excess of Revenues and Other FinanCIng Sources over (under) Expendrtures and Other FinanCIng Uses
FUNP BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

636,46290

$

1,493 14

$

1,493 14 $

636,46290

$

1,18750

9,54000 $

5,847,64291

$

10,72750 $

5,847,64291

$

-9,234 36 $ -5,211,18001

$ 1,100,000 00 $

5,211,18001

$ 1,100,00000 $

5,211,18001

$ 1,090,765 64 $

000

3,249,218 11

000

$ 4,339,983 75 $~~_ _,;;,O,;;,OO:;.,

See notes to the general-purpose finanCial statements - 28-

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

636,46290 $ 5,728,16610

$ 4.928,422 93

4,928,42293

5,028,394 69

851,72805

853,221 19

2,015,398 79

$ 5,780,15098 $ 6,418,10702 $ 12,771,95958

$

754 54 $

1,94204 $ 219,61245

5,372,405 68 33,97620

11,229,588 59 33,97620

829,61490 12.151,44536
619,672 40

3,890,000 00 493,16000

3,890,000 00 493,180 00

3,725,000 00 645,88500

$ 9,790,296 42 $ 15,648.666 83 $ 18,191,23011

S -4,010,14544 $ -9,230,55981 $ -5,419,27053

$ 6,720,000 00

$ 6.311.18001

3,412,54948

S -5,211,18001

5,211,18001

-2,434,18529

$ -5,211,18001 S 1,100,00000 $ 7,698,364 19

S -9,221.32545 $ -8,130,55981 S 2,279,093 66

19,535,540.28

22,764,758 39 20.505,664 73

S 10,314,21483 $ 14,654,19858 $ 22?84,758 39

29-

CITY OF DAlTON BOARD OF EDUCATION - WHITFIELD COUNTY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIPUCIARY FUND TYPE - AGENCY FUNP YEAR ENPED JUNE 30. 2001

EXHIBIT .,.

FAMILY CONNECTION
ASSETS Accounts ReceIVable

BAlANCE JULY 1. 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

000 $

13:390 75 $

000 S

13.39075

LIABILITIES

Cash Overdraft

$

000 $

13.390 75

$

13,390 75

Funds Held for Others

34,681 17 $ _ _-,34=,68=1~17!....

000

Total Llllblllbes
$

000 $

48,07192 $

34,681 17 $ _ _,,"1:.::3~,3::::90::.7:.:5;:.

See notes to the genera~purposefinanCIal statements

- 30-

CIJY OF DALTON BOARD OF EDUCATION - WHITfIELP COUNTY SCHEDULE OF EXPENDITURES OF fEDERAl, AWARDS YEAR ENDED JUNE 30 2Q01

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agricunulll. U S Department of
CMd Nutrition Cluster Pass-Through From Georgaa Depanment of EducatIOn
F~andN~DnP~m
Food SoMCeS
School Breakfast Program National SChoo' lunch Program
Total ChDd Nutrttlon Cluster
Other Programs Pass-Throu9h From Geo<gla Department of Edueatlon Food and NutntJon Program Food SoMCeS Stale Administrative Expense. for Chifd NutnUon Food Dlslnbution Progrem (1)
Total U S Department of AgnaJhuIll
Corporallon for Nabonal and Community _ Pa...Through From Geo<g.. Department at Educallon Learn and Serve Amenca SChcx:ll and Community Based Programs
Educallon. U S Department of DIrect Blllngual Educatkln Cluster Elementary and Secondary EducatIOn Act Program DevekJpment and tm.P'ementatiOn Grant Sys_-WICle Improvement Grants
Total eaingual EducabOn Cluster
Special Education CIu8ter Pass-Through From Georgaa Department of EducatkJn IndIViduals with Dlsablllbes EduC8!:XJn Ad. Part B - Spedal Education
Flow Through Gapaaty Bulki,ng Improvement
Preschool Soverely Emotionally Dls1urt>od
Total Spoaal Educallon Cluster
Other Programs Pass-Through From Geor'glB Department of Education Advanced Placement Incenttve Program Elementary and Secondary Educabon Act "Iltlo I Grants to Local EdueatlonaJ Agencies Title II Eisenhower ProfesslOllal Devetopment T1lIo VI Innovative Education Program Strategies Class Size Reduction Title VII Emergency Immigrant Educatron

CFDA NUMBER

PAS&THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

1Q S5J 10555

NtA

$ 224,45349

(2)

NtA

88783557 $

1.653.504 15 (3)

$ 1.112.289 06 $

1,653.504 ,5

1Q 560 1Q 550

NlA

3.Q06 38

NlA

80.750 28

300638 80.750 28

$ 1.196.04572 $

1.737.260 81

901 Q04

NlA

$ 149.622 Q1 $

162191 92 (3)

84288 84 291

$ 60.000 00 $ 70.00Q 00
$ 130.000 00 $

6O.00QOO 7Q,ooo QQ
13Q,000 QQ

84 027 84Q27 84 173 84027

NlA

$ 244.899 24 $

NtA

7,30300

NlA

20.398 39

NlA

188.891 54

$ 439,492 17 $

291.35948 (3) 7.3030Q
20.398 39 188.891 54
485.95241

84330

NlA

84 Q1Q

NlA

84 281

NlA

84298

NlA

84 34Q

NlA

84162

NlA

43 347 57
682,69545 432.3Q790 170.444 19
87,n965 114.56501

45.621 39 (3)
762.491 94 (3) 457.764 25 (3) 17Q.444 19 104.792 65 (3) 11701829 (3)

- 31 -

CITY OF DALTON BOARP OF EDUCATION WHITFIELD COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 3Q 20Ql

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education. U S Department of Other Programs Pass-Through From GeorgIa Department of Education Elementary and secondary Education Ad Title X
Fund for the Improvement of Educabon Goals 2000
State and Local Education Systemic Improvement Grants
safe and Drug.Free Schools and Communities Stewart B McKinney Homeless Alisl:stance Act
Education for Homeless Children and Youth Vocational Educabon Basic Grants to States
HtgII SChoo! Program BaSIC Grant
Pass-Through From Hal County Boanl ~ Educa\Jon d/b/a Piedmont Migrant EducabOn Agency Elementary and secondary Education Act
TIde I Migrant Education
Total U S Department of Educalion
Defa".., U S Department 01 DlIBct Defanse AclMty for NontradltJonal EducalJOn Support Troops to Teacheni

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84 215
84 276 84186 84196
84 048

NJA

S 58,55162 S

58,551 62

NJA

119,392 81

NJA

n,Q1951

119,39281 lQ2,557 51 (3)

NJA

44,993 00

44,993 60 (3)

NJA

31,561 17

31,561 17

84 Qll

NJA

116,04516

117,44562

S 2 548 195 21 S 2,748,58745

$ 28 749 00 S _ _-,2"8,,,,7.;,4.::.9.::.00,,-

Total Federal Financial Aaalstance

$ 3,922.611 94 S 4.676.78918

NlA II Not AvaUable

Notes to the Schodulo of Expeodltures of Federal Award'

(1) Tho amounts sIlo.n for tho Food Dtslnbubon Program represents the Federally a.signed valua of noomonetary aSSIstance for donated commodities received and/or consumed by the systam during the current flacal year
(2) ExpencUtures fOf the School BllNJkfnst Program 'Mtr8 not mallltaJned leparately and are Inctuded '" the
2001 Nabonal School Lunch Program (3) Expenchtures for this progmm Indude State. end/or Other Funds
Expernhtures are nol. maintained by fund source
Major Programs are ldanlJfled by an tensll rl m front at the CFDA number

The School DIstrict did not provide Federal A.&5lstance to any Subraclptent

The accompanYlIlg schedule of expenditures of Federal awards inCludes the Federal grant actlvtty of the CIty of Dalton Board of Educabon and IS presented on the modified acaual baSIS of accounting which Is the basiS of accounting used in the presentation of the genera~urpose financial statements

See notes to the genel1l~rpose financial statements

- 32

Cfl)' OF DALTON BOARP OF EpUCATION - WHITFIELD COUNTt SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCVIfUNDING

GRANTS Educabon, Georgia Department of Oualrty Basoc Educabon
D.-ect Instruebonal Cos1
KIndergarten Program KIndergaJ1en Program ~ Earty InlervenbOn Program Primary ~ (l-3IPrognlm Pr1mary Gmdee - Early Intervention (1-3) Program lJppe< EIern<Inta<y Grades (4-0) Prognlm
Middle School (6-8) Program Hogh School Gonenll Educabon (9-12) Progrom
VSO_ CIIbon_ aI 18bD oltlt_ory..(.9.-12) P _

Category I

Category II

Category III

Ca1egory rv

Category V

Gofted Student Category VI

Remedial EdUCation Program

Allemallvo Prognom

EngU.h Speak... aI Otho< ~ (ESOl)

Modi. Conte< Program

Sta1l ond _

DeveIopmont

IndJrect Cos!

Ca1ogofiClll Gnlnto

PupilTranoport8bon

R a..a..

gRepIacernont

NurslllQ SeIVlC8S

Pn""pal Supplemenl> Deferred Summer Salar1el (PnorYear) Deterred Summer Salaries (Current Year)

FoodS"-'

Voc:aoonal EducatJon

Other State Programs

App<onliceBlup Program

AJ..Rlsk Summer SdlooI Program

Ex1e""""Day-T~
Health Insurance

_ngPrognlm

Mentor Teac:he1'J _ _ Handicapped Prognlm

Bernechal Summer School - , . EmotJonalty D<aturbed Spoaal Educabon Low IIlQdence Grant Teachers'Retlrement
Lottery Program. AppIIod T _ L e b s Computers in the Classroom

Geofva State Finanong and Investment
eomm....,.,
BelmbuT'Mment on ConsbUCbon PI'Of8d8

Office of Sdlool Reaclilless
~"""Prognom
Office of Tl98sury and Flxal SeMen
PublIC Sd100l emplOyees R8ti:rement

CONTRACTS Chikhen's Trusl Fund ComrmaUln Second SlOp Violence Prevention

EduCBbon, GeorgIa Department cA Reading Fd'S1 Program

See notes to tha generaI-purpose finanaal statement&.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

S 1.234,699 00
57,758 00 3113,7904 00
125 636 00 1489,91900 2,322,708 00 1,~e1600
493 848 00
64,300 00 327,14400 650=00 253,58ll 00
8B 11700 BB7,00200 176,56900 189,758 00 1969 80100 461=00 130,76500
2.no 92000

247.236 00 BB,209 00 123 588 00
24,~7900 -2,55121500
2972,97178
S
2703000

11843800

35,000 00 8,50707
16,88341 51Q,95310
700000 14,87000 62 73B 00
748158
1500000 24,43755

196174937

74,859 98 11031400

$ 1,234 699 00 57758 00
3,11379400 125 636 00
1,48991900 2.322,708 00 1825,81600
493 B46 00
64,300 00 327144 00 850 205 00 253,586 00
8811700 BB7 002 00 176,569 00 169 758 00 1,989,60100 461.,27200 130,70500 2,n092000
247,236 00 8e 209 00
123,5BB 00 24579 00 ~2 551 21~ 00 297297178 11843800 27030 00
35 000 00 850707
1688341 51995310
7,00000 14,67000 52 738 00
7,48158 1,981 74937
15,000 00 2~ 0437 55
7485998 110,31400

79,387 00

S 636,462.90
49251597

636,46290 4Q2 51~ 97
79 367 00

1176514 29.89179

11,76514 291 89179

$ 20,356 &5'\ 49 , 2799 534 25 , 636 4e2.90 , 23 792,648 64

-33 -

CITy OF DALION BOARD OF EpUCATION - WHITFIELD COUNTY SCHEPULE OF ApPROVED LOCAL OpTION SALES TAX pROJECTS
yEAR ENDEQ JUNE 39 2001

SCHEDULE "3"

PROJECT

ORIGINAl ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

New elementary school. parj(rng areas, grounds, tumLShlOgs. eqUipment and fixtures

S 5,968,3ol6 00 S 8,876,796 00 S 1,541,n228 S 5963,448 25 Ongolng

New middle school. parj(lng areas, grounds. flJrlllshlOgs, equipment and fixtures

9,789,266 00 18,156 483 00

5841,64291

9,675,34516 OngoJng

Renovatlons and mochflcallons of eXIsting schools. mcJudlng conversoo of Datton Junior Htgh School to an intermedIate achoO', renovabon of Brookwood School. Westwood Sdlool and Danon High end the upgrading of communlcallOns equipment and a fiber opbc networj(

5.202,42700

9,597,81800

3,864,609 60

2,849,854 92 Ongomg

S 20 960.039 00 S 36 1631.09700 S 11.25412479 S 18A88 648 33

(1) The SChool Dtstnet's original cost estimate IiIS specffied In lhe reaoIutron calling for the fmposrtlon of the Local OpbOn Sales Tax..

(2) The School Dtstncfa current estlmate of total cost for the projects tIcludes,lI cost from protect mception to complebon

(3) The voters 01 the CUy of Danon and Whitfield County approved the ImpoSItion of a 1% sales lax to fund the above Protects Amounts expended for these prqects may Include lIIales tax proceeds. state. lOCal property taxes end/or otIler funds over the life of the projects

(4) In eddrtlon to the expenditures shown above. the School D1stric1 has Incurntd' mteresl to provlde advance tunchng for the above pI'OtElets 8S follows

Prlor Years

S 1,799,360 00

Current Year

n5,36624

Total

S 2[574.726 24

See notes to the general-purpose financial statements

35

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY GENERAL FUND - aUALITY BASIC EDUCATlQN PRDGRAM raBEI
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENpED JUNE 3D 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct IlUItructionai Program.

KIndergarten Program

$

KlOd8ruarten ProgramaEarty IntervenbOn Program

Pnmary Grades (1-3) Program

Primary Grades-Early Intervention (13) Program

Upper Elementary Grades (4-5) Program

Middle SChool (6-8) Program

Htgll SChool General Education (9-12) Program

Vocational LaboraUllY (9-12) Program

Students ..uti Dl6abUI\IoB

category I

category II

Category III

category IV

category V

Gifted Student Category VI

Remedial Educabon Program

A1tomlOtrve Education Program

English Speake", of Other Languogos (ESOL)

1.571,43300 $ 73.509 00
3.963.004 00 159.899 00
1.896.258 00 2.956.16900 2.323.508 00
628.53000 2015.17400
874.36500 227.26900 216.055 00 2.532.21600

1.751.55169 $ 52.84907
4.67354665 148.06120
2.533.164 65 3.451.150 78 2.699.03746
661.288 30
73.230 20 472.31642 1.388.228 84 225.396 22
69.04726 893.192 43 308,41118
1.913.499 92

61.51581 S 972 14
287.246 58 1.67472
n 115.813
71.64752 217 10238 158 810 48
5,408 58 18.836 95 119.72392
7.10392 18828
18.353 60 4.44993 216.055 00 104,454 78

1.813.077 50 53.82121
4.960.79323 149,73592
264897842 3.522.798 30 2.916.13984
820.098 78
78,638 78 491.15337 1.507.952 76 232.500 14 69.23554 911.546 03 312.86111 216.055 00 2.017.954 70

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

19,437.38900 S 21.313.98227 S 1.409.358 36 $ 22.723.340 63

Mod.. Conter Program Staff and ProfeaslOI18l Development

587.07400 166,42800

861.92026 145.76295

138.828 56 284.804 90

1.000.74882 430,55785

TOTAL aBE FORMULA FUNDS

s

(1) Comprised of Stale Funds ptuB Local Frvo MUI Shara

see nol88 to the generaJ..pul'JX)S8 fll8ncaal statements

- 36-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (aBEl
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Par!< Creak Elementary SChool Westwood Elementary School Dalton Middle SChool City Par!< School Brookwood Elementary School Roan Elementary SChool Dalton High SChool Mountalnbrook Psychoeducabonal Program Central Office (A1lemallve Educabon Program)
TOTAL
(1) Compnsed of State Funds plus Local FIVe Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

1,840,206 00 $

2,152,91689

2,386,326 00

2,854,19608

4,035,51400

4,585,817 65

2,135,96000

2,499,334 70

1,704,032 00

2,250,401 28

2,153,902 00

2,720,581 31

4,965,394 00

5,413,602 94

29,73978

216,05500

216,750 00

$

19,437,38900 $ 22,723,34063

Sae notes to the general-purpose finane>al statements 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Rll,-,U I \\'. Hlf'o,TOI'
STATE AUDITOR
("CA\~217.

DEPARTMENT OF AUDITS AND ACCOUNTS
254 \\rJ.~hmglOn Street S v.,' SUite' ~ 14 Allanla. Georgia J0114H400
Apnl 23, 2002

Honorable Roy E Barnes, Governor Members of the General Assembly Members of the State Board of EducatIOn
and Supenntendent and Members of the City of Dalton Board of Educallon
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
LadJes and Gentlemen
We have audIted the financIal statements of CIty ofDalton Board of EducatIOn as ofand for the year ended June 30,2001, and have ISSUed our report thereon dated Apnl 23, 2002 This report was qualified for vanous departures from generally accepted accounllng pnnclples, as Idenllfied In the audItor's report on the general-purpose financial statements We conducted our audIt In accordance WIth audJtmg standards generally accepted m the Uruted States of Amenca and the standards applIcable to fmanclal audIts contaIned m Government Audltmg Standards. Issued by the Comptroller General of the Umted States
ComplIance
As part of obtalrung reasonable assurance about whether CIty of Dalton Board of Educallon's finanCial statements are free of matenal mIsstatement, we performed tests of ItS complIance WIth certam proVIsIOns oflaws, regulatIOns, contracts and grants, noncomplIance WIth winch could have a dIrect and matenal effect on the determmatIon of fmanclal statement amounts However, provldmg an opinIOn on complIance WIth those proVISIons was not an objectIve of our audIt, and accordmgly, we do not express such an opInIOn The results of our tests disclosed no mstances ofnoncomplIance that are required to be reported under Government AudIting Standards
Internal Control Over Fmanclal Reportmg
In planrung and performmg our audIt, we conSIdered City of Dalton Board of Education's mternal control over finanCial reportIng In order to determIne our auditIng procedures for the purpose of expreSSIng our opmlOn on thc finanCIal statements and not to proVIde assurance on the Internal
200 IYB-40

control over financIal reporting However, we noted certaIn matters involving the Internal control over financIal reporting and Its operatIon that we consider to be reportable conditIons Reportable conditIons Involve matters coming to our attentIon relatIng to sigruficant defiCiencIes In the desIgn or operatIon of the Internal control over financIal reporting that, In ourJudgment, could adversely affect City of Dalton Board of EducatIon's abillty to record, process, summanze and report financial data conSIstent WIth assertJons of management In the financIal statements Reportable conditIOns are descnbed In the accompanYIng Schedule ofFindings and QuestIOned Costs as Items FS-7721-0I-01 and FS-7721-01-02
A matenal weakness IS a condItion In which the deSIgn or operatIon of one or more of the Internal control components does not reduce to a relatIvely low level the nsk that mIsstatements In amounts that would be matenal In relatIon to the finanCIal statements being audIted may occur and not be detected WIthin a tImely penod by employees In the nonnal course of perfonnlng theIr asSIgned functions Our conSIderatIOn of the Internal control over financIal reportIng would not necessanly dIsclose all matters In the Internal control that mIght be reportable conditIOns and, accordingly, would not necessanly disclose all reportable conditIons that are also conSIdered to be matenal weaknesses All of the reportable conditIons descnbed above are conSIdered to be matenal weaknesses
This report IS Intended solely for the Infonnatlon and use ofthe management, members ofthe CIty of Dalton Board of EducatIon, Federal awarding agencies and pass-through entItIes and IS not Intended to be and should not be used by anyone other than these specIfied partIes
Respectfully submItted,
~~
R ell W. Hinton State AudItor
RWHgp 2001 YB-40

RU"'t:.11 \V. H'''TON
STATE AUDITOfl
(4().t)656-2114

DEPARTMENT OF AUDITS AND ACCOUNTS
254 \\'.l<;hmgton Slreet, S W. SUite:! 14 AII"nla. GeorgIa J0314-1!400
Apnl 23, 2002

Honorable Roy E Barnes, Governor Mernbers ofthe General Assembly Members of the State Board of EducatIon
and Supenntendent and Members of the CIty of Dalton Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII OMB CIRCULAR A-133
Ladles and Gentlemen
Comphance
We have audIted the comphance ofCIty ofDalton Board ofEducatIon With the types ofcomphance reqwrements descnbed m the US Office of Management and Budget (OMB) Ctrcular A-J33 Compliance Supplement that are apphcable to each of Its major Federal programs for the year ended June 30, 2001 City of Dalton Board of Education's major Federal programs are IdentIfied m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and Questioned Costs Comphance With the reqUirements of laws, regulatIOns, contracts and grants apphcable to each of Its major Federal programs IS the responsIbilIty of City of Dalton Board of EducatIOn's management Our responslblhty IS to express an opInIOn on CIty of Dalton Board of EducatIOn's comphance based on our audit.
We conducted our audit of comphance III accordance WIth auditIng standards generally accepted m the Umted States ofAmenca, the standards apphcable to finanCial audits contamed m Government AudlUng Standards, ISSUed by the Comptroller General of the Umted States, and OMB Circular A133, Audas of States. Local Governments. and Non-Profit OrganizatIOns. Those standards and OMB Circular A-133 reqUire that we plan and perform the audIt to obtam reasonable assurance about whether noncomplIance WIth the types ofcomplIance requIrements referred to above that could have a direct and matenal effect on a major Federal program occurred. An audIt mcludes exanunmg, on a test basiS, eVidence about the Clly of Dalton Board of Education's complIance With those reqUirements and performmg such other procedures as we considered necessary m the CircumstanCes We beheve. that our audit proVIdes a reasonable basiS for our opuuon Our audit does not proVide a legal determmatlOn on City of Dalton Board of EducatIOn's complIance With those reqUirements
2001SA-30

In our opmIOn, the City of Dalton Board of EducatIOn complted, m all matenal respects, wIth the reqwrements referred to above that are appltcable to each of ItS major Federal programs for the year ended June 30, 200I.
Internal Control Over Compltance
The management of CIty of Dalton Board of EducatIOn IS responsIble for establIslnng and mamtammg effectIve Internal control over complIance with requirements of laws, regulations, contracts and grants applIcable to Federal programs. In planmng and performmg our audit, we conSIdered CIty ofDalton Board ofEducation's Internal control over complIance WIth requIrements that could have a dIrect and matenal effect on a major Federal program In order to determme our audltmg procedures for the purpose of expressing our 0plnJon on complIance and to test and report on Internal control over compltance In accordance WIth OMB CIrcular A-133
We noted certain matters involVing the mternal control over complIance and Its operation that we conSIder to be reportable condttlons Reportable conditions Involve matters coming to our attention relating to slgruficant defiCiencies In the desIgn or operation ofthe Internal control over complIance that, In our Judgment, could adversely affect the CIty of Dalton Board of Education's ablhty to admlnJster a major Federal program In accordance WIth applIcable reqwrements oflaws, regulations, contracts and grants Reportable condltlons are described In the accompanymg Schedule ofFlndtngs and Questioned Costs as Items FA-7721-01-01, FA-7721-01-02 and FA-772 1-01-03
A matenal weakness IS a condItion In whIch the deSign or operatlon of one or more of the Internal control components does not reduce to a relatIvely low level of nsk that noncomplIance With the applIcable reqUIrements oflaws, regulatIons, contracts and grants that would be matenal m relation to a major Federal program being audIted may occur and not be detected WIthin a tlmely penod by
employees In the normal course of performing therr asSIgned functions. Our conSIderatIon of the
Internal control over complIance would not necessanly dIsclose all matters In the Internal control that mIght be reportable conditIOns and, accordtngly, would not necessanly dtsclose all reportable condttIons that are also consIdered to be matenal weaknesses However, we belteve none of the reportable condItIOns descnbed above IS a matenal weakness
ThIs report IS Intended solely for the information and use ofthe management, members ofthe City of Dalton Board ofEducatIOn, Federal awarding agencIes and pass-through entities and IS not Intended to be and should not be used by anyone other than these specIfied parties
Respectfully submItted,
~~:~ ~;~L\1).4:Lk State Auditor
RWH.gp 2001SA-30

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

CITI' OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7721-99-03 FS-7721-99-04 FS-7721-00-0 I FS-7721-00-02

Further ActIOn Not Warranted Further ActIOn Not Warranted Further Action Not Warranted Unresolved - No Corrective ActIOn Implemented

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Fmdmg Control Number. FS-7721-00-02

GASB Statement 34 Will be Implemented ill July 2002, therefore no action Will be taken m Fiscal Year 2001

PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-772 1-99-01 FA-772 1-00-01 FA-772 1-00-02 F A- 7721-00-03 FA-772 1-00-04 FA-7721-00-0S FA-772 1-00-06

Further ActIon Not Warranted Further ActIOn Not Warranted Further Actlon Not Warranted PreVIOusly Reported CorrectIve Actlon Implemented PrevIOusly Reported Correctlve ActIon Implemented Unresolved - No Corrective ActIOn Implemented Unresolved - No Correctlve ActIOn Implemented

CORRECTIVE ACTIONIRESPONSES

SPECIAL TESTS AND PROVISIONS Failure to invite Pnvate Schools to PartiCIpate Fmdmg Control Number: FA-7721-00-0S

AsSistant Supenntendent for teaclung and leammg IS now responsible for letters to pnvate schools The letters WIll be sent by thiS person m a timely marmer each fall. Fiscal Year 2002 Will reflect that actIOn has been taken

-I-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2001
PRIOR YEAR FEDERAL AW.I\RD FINDINGS AND OUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES SPECIAL TESTS AND PROVISIONS Inadequate Controls Over Accountmg FunctIons for Central Warehouse Inventory Fmdmg Control Number FA-772I-OO-06 The mventory correctIve actIon plan Will require regular morutonng by the director of school food services and school food ServiceS secretary. The mformatIon IS sent to school food servIces bookkeeper for entry mto the general ledger Fiscal Year 2002 entnes WIll be evaluated to analyze successful CAP
-2-

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY
SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

I Type of Report Issued on the Fmanclal Statements The auditor's opinion on the City of Dalton Board of EducalJon's financIal statements was quahfied for vanous departures from generally accepted accountmg pnnclples

2 Reportable CondllJons m Internal Control DIsclosed by the Audit of the Fmanclal Statements The audJt report for the CIty of Dalton Board of Educahon disclosed financial statement reportable condJhons related to the followmg control categones

ExpendJturesILlablll tlesIDlsbursements RevenueslRecelvableslRecelpts General FIxed Assets

Investments General Ledger

All of the reportable condllJons descnbed above are consIdered to be matenal weaknesses.

3 NoncomplIance Matenal to the FmancIaI Statements The audJt of the CIty ofDalton Board ofEducalJon dJsclosed no Instances ofnoncomplIance that were deemed to be matenal to the fmanclal statements.

4 Reportable Condlhons m Internal Control Over Malor Programs The audJt report for the City ofDalton Board ofEducatIOn dJsclosed reportable condJlJons ill mternal control over major programs for the followmg complIance reqwrements

Reportmg

Special Tests and ProvIsIOns

None ofthe reportable condJlJons descnbed above are conSIdered to be a material weakness.

5. Type of Report Issued on ComplIance for Malor Programs The audItor's opmlOn on the CIty ofDalton Board ofEducahon's report on complIance With requIrements applIcable to major programs was unqualIfied

6 AudIt FmdJngs ReqUIred to be Reported by Sechon 510ra) ofOMB CIrcular A-l33 The CIty of Dalton Board of EducatIon's audIt dIsclosed audIt findmgs requIred to be reported by sectIon 510(a) of OMB CIrcular A-133. These audIt findmgs are mcluded m sectIon IV of tlus report

7 MaJor Programs Federal awards audIted as major programs are as follows: 10 553 Food and NutritIon Program - Food Serv1Ces - School Breakfast Program 10.555 Food and NutritIon Program - Food Servtces - NatIOnal School Lunch Program 84010 Elementary and Secondary Education Act - TItle I - Grants to Local EducatIOnal AgenCIes

-I -

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
7 MaJor Programs 84.027 IndIvIduals WIth DlsablhtIes Education Act - Part B - SpecIal EducatIOn Flow Through 84 173 IndlVlduals WIth Dlsablhlles EducatIOn Act - Part B - SpecIal Educallon Preschool 84 027 IndIVIduals WIth DlsabIlllles Educallon Act - Part B - SpecIal Educallon CapacIty BUlldmg Improvement 84 027 IndiVIduals WIth DlsablhtIes EducatIon Act - Part B - SpecIal EducatIon Severely EmotIonally DIsturbed 84 281 Elementary and Secondary Educallon Act - Title II - EIsenhower ProfeSSIOnal Development 84 298 Elementary and Secondary Educallon Act - TItle VI - lnnovallve EducatIOn Program StrategIes 94 004 Learn and Serve Amenca - School and Commumty Based Programs
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00.
9 Low RIsk AudIlee The City of Dalton Board of Educallon dId not quahtY as a low nsk audltee as defined by SectIOn .530 ofOMB ClTcular A-133.
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
INVESTMENTS REVENUEIRECEIVABLEIRECEIPTS EXPENDITURESfLIABlLITIESIDISBURSEMENTS GENERAL LEDGER Inadequate Accounllng Procedures Reportable Condlllon - Matenal Weakness Fmdmg Control Number FS-7721-01-01
Accountmg procedures for CIty ofDalton Board ofEducatIOn were msufficlent to proVIde adequate mternal controls over several control categones as noted below
Investments
Investment account balances were not properly reconcIled to the general ledger ExtensIve procedures were performed by the audItors to ensure proper recordmg of mvestment balances Adjustments totalmg $2,049,430 72 were necessary to reconCile the general ledger to the mvestment account statements
-2-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
n FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
INVESTMENTS
REVENlnVREVENlnVRECE~TS
EXPENDITURESILlABILITIESIDISBURSEMENTS GENERAL LEDGER Inadequate AccountIng Procedures Reportable ConditIon - Matenal Weakness Fmdmg Control Number FS-7721-01-01
Revenue!RecelvablelRecelpts
Accounts Receivable per books were not properly documented and reconCiled ExtenSive audll procedures were performed by the auditors to ensure accounts receivable balances were proper and correct Adjustments totalmg $1 05,956 46 were made to the generailedger m order to balance accounts receIvable WIth SUbSidiary detatls.
ExpendlturesILlablhtlesIDlsbursements
Accounts payable per books were not properly documented and reconCiled. Extensive audit procedures were performed by the audItors to ensure accounts payable balances were proper and correct Adjustments totalmg $257,282 16 were made to the general ledger m order to balance accounts payable WIth SUbSIdiary details
These defiCienCIes occurred because ofmanagernent's failure to establIsh procedures to analyze and reconCile balances on the general ledger WIth supportIng records The School DIstrict should establIsh procedures to ensure that a1l general ledger balance sheet accounts are reViewed on a monthly basiS and detailed records supportmg the general ledger are complete, accurate and rehable
Management's Response
Investments A Journal entry was made In May 2002, m the amount of$2,039,920 90 to correct the fund balance. The dIstnct IS waItmg on further direction from the audllors regardIng the remaInIng balance of $9,450.00
RevenuelRecelvablelRecelpts: A Journal entry was made m October 2001, m the amount of $105,506 46 to correct a postmg error. A Journal entry was made 10 Apnl 2002, In the amount of $450 00 to correct a c1encal error.
ExpendlturesILlablhlJes!Dlsbursements AppropnateJournal entnes were made In May of2002, to correct entnes as detected by the auditor.
In the future, closmg work wl1l be performed by the bookkeeper and dIscussed WIth the DIrector of BUSiness ServICes and Fmance pnor to the year end clOSing of the books
-3-

CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General FIxed Assets Account Group Reportable CondItIOn - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-7721-0I-02
The City of Dalton Board of EducalJon did not malntam a system-Wide General FIXed Assets Account Group Wltlnn the formal accountmg records as reqwred by generally accepted accounlJng pnncipies T1us condllJon results m the general-purpose finanCIal statements ofthe School DIStnCt being Incomplete and not m accordance WIth generally accepted accounting prmclples. Appropnate actIon should be taken by the School DIStnCt to establish accountmg controls and procedures to proVide for mamtenance ofa General FIXed Assets Account Group. These subsI<iIary records should mclude an Inventory of land, bUildIngs and equipment owned by the School Dlstnct and should Include, but may not be IIInlted to, date acqUIred, acqwSIlJon cost, eslJmated replacement cost, location and descnption. DelaJled records should be mamtamed ofall addIlJons and delelJons to the General FIXed Assets Account Group.
Management's Response'
GASB S 34 WIll require fixed asset trackIng effectIve July I, 2002 Therefore, the dlstnct lured an mdependent party to complete the InItial valuatIon of assets. The dIstnct's software vendor (SSUI) has a module for fixed asset tracking.
ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
REPORTING F3.1lure to File Accurate ComplelJon Reports Reportable CondItIOn U S Department of EducatIon Through GeorgIa Department of EducatIon Finding Control Number FA-7721-01-01
A review of the School Dlstnct's accountIng records revealed that completIOn reports were not supported by expenditure records for the follOWIng programs'
-4-

CITY OF DALTON BOARD OF EDUCAnON - WHITFIELD COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001

ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

REPORTING FaJiure to FJie Accurate CompletIOn Reports Reportable Condition U S Department of Education Through Georgia Department of Education Fmdmg Control Number. FA-7721-01-01

Actual Program ExpenciJtures per Expenditures Completion Report

Special Education Cluster Individuals With DlsabJiltles Educatlon Act Part B - Special Education Flow Through (CFDA 84 027) Preschool (CFDA 84.173) Capacity Bwldmg Improvement (CFDA 84 027)

Total SpecIal Education Cluster

$ 319,060.87

Elementary and Secondary Education Act Title I Grants to Local Educatlonal AgenCIes (CFDA 84.010) Title II EIsenhower ProfesSional Development (CFDA 84.281) Title VI Class SIze Reductlon (CFDA 84.340) TItle VII Emergency Imnugrant Education (CFDA 84.162)

$ 762,49194 $ 452,282.30 $ 104,792.65 $ 117,018.29

$ 244,899.24 20,398.39 7,30300
$ 272,600 63
$ 682,69545 $ 432,30790 $ 87,77965 $ 114,565.01

These vanances occurred because management reported expenciJtures from an mcorrect general ledger These errors caused defiCIts m the respective funds, wluch had to be funded by general fund Procedures should be estahhshed by the School DIstrict to ensure that completIOn reports are supported by the expendIture records. as reqwred

MaTlagement's Response:

Transfers from the general fund were not paId to cover cost that exceeded grant revenues pnor to completion reports bemg submItted to the DOE The transfers were made VIa JOurnal entries as dJrected by the auciJt department m May 2002.

-5-

CITY OF DALTON BOARD OF EDUCAnON - WHITFIELD COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2001

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

SPECIAL TESTS AND PROVISIONS FaJlure to inVIte Pnvate Schools to ParticIpate Reportable CondItIon Repeated From Pnor Year U S Department ofEducation Through GeorgIa Department ofEducatIon Fmdmg Control Number. FA-7721-01-02

The School Distnct could not proVIde documentatIon of timely contact WIth appropnate pnvate schools offiCIals to determme whether they mtended to participate m the Elementary and Secondary EducatIon Act -TItle I - Grants to Local EducatIonal AgenCIes (CFDA 84.010) The School Dlstnct IS reqUIred by 34 CFR 200.34 whtch states, m part, as follows

"An LEA may receIve funds under thts part only If It Implements programs, actiVIties, and procedures for the mvolvement ofparents ofpartIcipating pubhc and pnvate school chtldren."

Thts noncomphance occurred because ofthe School Dlstnct's failure to momtor the Title I Program

requirements as set forth m guldelmes ISSUed by the GeorgIa Department ofEducation and 34 CFR

200.34. Procedures should be estabhshed to ensure that all eligIble pnvate schools are mVlted to

mclude theIr ehgIble students III the partICIpation of TItle I programs as reqUIred.
,

I

I

Management's Response'

I

I

The Fiscal Year 2000 audIt was conducted late durmg FIscal Year 2001 Therefore, thts findmg m

I

Fiscal Year 2001 could not be avoided The problem was corrected m FIscal Year 2002 by haVIng

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the ASSIstant Supermtendent for Teachtng and LearnIng responsible for letters to pnvate schools

The Fiscal Year 2002 audIt WIll reflect that the practice IS m place to assure tImely dIstnbutlon of

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letters.

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SPECIAL TESTS AND PROVISIONS

Inadequate Accountabihty of Central Warehouse Inventones

Reportable CondItIon

Repeated From Pnor Year

U. S Department of Agnculture

Through GeorgIa Department of Education

Fmdmg Control Number: FA-7721-0l-03

A reVIew ofthe CIty ofDalton Board ofEducatIon's mternal control pohCles and procedures over the
Chtld Nutntlon Cluster Program (CFDA Nos. 10.553 and 10.555) noted that the storage faclhty dId
not mamtam adequate inventory records, mcluding but not hnuted to, begIMmg balance, receIpts, dIsbursements and losses. The School Dlstnct did not reconcile the physIcal endIng Inventory count

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CITY OF DALTON BOARD OF EDUCATION - WHITFIELD COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
SPECIAL TESTS AND PROVISIONS Inadequate AccountabIlity of Central Warehouse Inventones Reportable ConditIOn Repeated From Pnor Year U S. Department of Agnculture Through Georgia Department of EducatIOn FmdmgControlNumber. FA-7721-01-03
balance to the commodity records In addllIon, analytical procedures to compare receIpts, usageidlstributlOn and endlng mventory for the current audlt penod to the prevIous audlt penod could not be performed due to defiCiencIes m mventory records The Code of Federal RegJIlatlons section 250.16 states in part:
n Accurate and complete records shall be mamtamed WIth respect to the receIpts, dlstnbulloniuse and mventory of donated foods...n
The weakness IdenlIfied in the Child NutnlIon Cluster Program was the result of management's failure to establish appropnate controls over accOuntabJ1lty of commodllles The School DIstrict should revIew the procedures m place, deSIgn poliCIes and procedures that would enhance accountabJ1lty of commodll1es relallve to the above control category and Implement these poliCIes and procedures to ensure adequate mternal control over the Cluld NutnlIon Cluster Program
Management's Response'
The Fiscal Year 1999 audit reqUired a CAP from the Director ofSchool Nutnl10n The plan reqUIreS regJIlar momtonng by the DIrector ofSchool Nutntlon. The mventory IS conducted by the Drrector's secretary and sublll1tted to the SNP bookkeeper for adjustment to the ledger. The SNP bookkeeper Jomed the Business ServJ.ces and Fmance Department on July 1, 2001 (FIscal Year 2002) T1us transfer has facIlitated a chango:: m the attention given to the records They FIscal Year 2002 ledger does reflect a posll1ve change in the record keepmg of the SNP mventones The Fiscal Year 2002 entries WIn be evaluated to analyze the success of the CAP.
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