City of Gainesville Board of Education, Hall County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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CITY OF GAINESVILLE SOARD OF EDUCATION

HALL COUNTY, GEORGIA

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REPORT ON AUDIT



OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30,2000

Russell W. Hinton .state Auditor


CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY - TABLE OF CONTENTS -

Page

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUPS

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION



COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

K

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

30

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

34

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

35

5

BY PROGRAM

36

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

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS S .u.Y.l.L"U'-Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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


SECTION I FINANCIAL

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RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
May 8,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly . Members of the State Board of Education
and Superintendent and Members ofthe City of Gainesville Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe City of Gainesville Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe City ofGainesville Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our

OpInIOn.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using a certain accounting practice and policy which, in our opinion, varies in some respects from generally accepted accounting principles. This variance is described as follows:

2000ARL-13A

* School activity accounts are included in the general purpose financial statements as
agency funds. To conform to generally accepted accounting principles, the activity of these accounts should be included in the general purpose financial statements in the appropriate fund and fund type.
The aggregate effects on the general purpose financial statements ofthis variance or omission has not been determined, but is believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matter referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Gainesville Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 8, 2001, on our consideration of the City of Gainesville Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations,
an contracts and grants. That report is an integral part of audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
-
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Gainesville Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matter referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,


RWH:gp 2000ARL-13A

R sell W. Hinton State Auditor

~

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CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY


,


CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINED BALANCE SHEET
Al...L FUND TYPES A~~D ACCOU~~~ G~OUDS JUNE 30, 2000

ASSETS

Cash and Cash Equivalents

Investments

Accounts Receivable

Inventories Food Donated Commodities Purchased Food

General Fixed Assets

,

Land

Buildings

Equipment

Amount Available in Debt Service Fund

Amount to be Provided in Future Years For Payment of: Bond Debt Long-Term Debt Agreement Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,697,225.56 $

147,426.23 $

997,070.27

5.815,326.88

3,990,587.30

561,530.40

22,381.50 11,197.66

Total Assets

$ 5,687,812.86 $

742,535.79 $_6~ ,81~ 2,39~ 7.1~ 5

Total Liabilities and Fund Equity

$ 5,687,812.86 $

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

-2-

742,535.79 $ 6,812,397.15

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

$ 1,841,285.18 $

170,655.71

659,703.12

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30,1999

$ 4,853,662.95 $ 3,601,799.45

5,815,326.88

10,196,188.17

5,211,820.82

4,692,104.78

$

194,840.76

32,950,418.22

7,274,030.80

"
$

2,500,988.30

22,381.50 11,197.66
194,840.76 32,950,418.22
7,274,030.80
2,500,988.30

22,103.14 10,962.05
194,840.76 27,181,464.06
7,034,368.87
2,094,140.70

7,524,011.70 10,855,670.00
674,418.12

7,524,011.70 10,855,670.00
674,418.12

10,265,859.30 11,840,181.00
838.0 16.23

$ 2,500,988.30 $

$

170.655.71

$

$

674,418.12

10,855,670.00

10,025,000.00

894,827.75 $
2,648,302.90 75.64
374,034.00 679,768.25
3.796.23 170.655.71 674,418.12 10,855,670.00 10,025,000.00

872,548.17 2,554,790.80
14,561.49
260,057.11 3,796.23
178,005.96 838,016.23 11,840.181.00 12,360,000.00

,

$

170,655.71

$ 21,555,088.12 -$ 26,326,548.60 $ 28,921,956.99

-

$ 40,419,289.78

$ 40,419,289.78 $ 34,410.673.69

$ 2.500,988.30

2,736.10 2,500,988.30

2,094,140.70

0.00
$ 2,500,988.30

0.00
$ 40,419,289.78

22,381.50 11,197.66
4.71 4,564.33
186.17 4,668,935.55
356.682.95

22,103.14 10.962.05
4,564.33 8,690.93 10,299,866.24 36,249.00

27.110.37 3,548,141.69

19,063.81 2,143,757.63

$ 51.562,219.11 $ 49,050,071.52

$

170,655.71 $ 40,419,289.78 $ 21,555,088.12 $ 77,888,767.71 $ 77,972,028.51

-3-

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

REVENUES

State Funds Federal Funds Taxes Other Funds

Total Revenues

EXPENDITURES

Current

Instruction

Support Services

Pupil Services

Improvement of Instructional Services

Educational Media Services

General Administration

School Administration



Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Central Support Services

Other Support Services

Food Services Operation

Capital Outlay

Debt Service

Principal

Interest

Paying Agent Fees

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

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

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

. $ 12,235,505.55 $
14,859,397.05 685,441.25

172,767.49 2,704,866.13
454,277.56

$ 27,780,343.85 $_....3:,3:3!1.,I9.1:1~.1~8~~

$ 17,545,558.01 $
1,106,062.75 1,159,449.20
503,498.81 530,107.40 1,429,963.41 401,732.39 1,946,392.56 1,278,905.20
77,807.87
39,976.25 173,152.30
87,368.14 51,338.07

1,135,865.56 376,945.53 197,139.97 4,866.50
25,741.25 263,290.76 1,294,196.46

$ 26,331,312.36 $_....3:,2:9!8.,I0.4:6=.0=3=~ $ 1,449,031.49 $ _ _~3~3~,:8 6:5...1.5.

$
$ _---.:.===-
$

14,770.08 14,770.08

$

744,438.44 $

1,751,822.84

48,635.23 337,935.65

278.36 235.61

FUND BALANCE JUNE 30

$ 2,496,261.28 $ .......~~;3;87:,;0;8;4..8;5~

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

-4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum OnlyL..)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

359,479.80

$ 12,767,752.84 $ 11,466,665.27

2,704,866.13

2,717,140.36

$ 4,071,742.30

18,931,139.35

16,595,585.91

494,557.35

118,376.60

1,752,652.76

1,845,939.86

$

854,037.15 $ 4,190,118.90 $ 36,156,411.08 $ 32,625,331.40



$ 6,164,533.89 76,229.97 $
$ 6,240,763.86 $ $ -5,386,726.71 $

$ 18,681,423.57 $ 18,190,595.34

1,483,008.28 1,356,589.17
503,498.81 534,973.90 1,429,963.41 401,732.39 1,946,392.56 1,304,646.45 77,807.87 263,290.76 1,334,172.71 6,337,686.19

1,544,260.02 1,319,168.54
487,861.12 545,884.52 1,432,513.96 353,420.90 1,861,407.39 1,200,196.64 92,466.57 199,418.53 1,215,237.76 3,962,635.54

2,870,000.00 906,958.50 6,312.80

3,033,598.11 958,296.57 6,312.80

2,967,353.32 639,545.76 5,944.85

3,783,271.30 $ 39,653,393.55 $ 36,017,910.76

406,847.60 $ -3,496,982.47 $ -3,392,579.36

-

$

689,822.97

$

689,822.97

$

704,593.05 $

725,864.79

-704,593.05

-725,864.79

$

0.00 $

0.00

$ -4,696,903.74 $
10,455,498.64

406,847.60 $ -3,496,982.47 $ -3,392,579.36

2,094,140.70

14,639,397.83

18,024,666.94

278.36 235.61

5,177.92 2,132.33

$ 5,758,594.90 $ 2.500,988.30 $ 11,142,929.33 $ 14.639,397.83

-5-

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

EXHIBIT "C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Total Expenditures
- Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS),--_

$ 11,374,966.06 $ 12,235,505.55

14,761,068.00 357,314.85

14,859,397.05 685,441.25

$ 26,493,348.91 $ 27,780,343.85



$ 17,378,474.06 $ 17,545,558.01

1,193,695.82 1,173,603.87
492,267.29 546,023.62 1,306,107.80 320,460.34 1,806,328.92 1,255,742.93
80,922.00

1,106,062.75 1,159,449:20
503,498.81 530,107.40 1,429,963.41 401,732.39 1,946,392.56 1,278,905.20
77,807.87

39,629.98 201,395.00

39,976.25 173,152.30 138,706.21

$ 25,794,651.63 $ 26,331,312.36

$ 698,697.28 $ 1,449,031.49

-704,593.05

Total Other Financing Sources (Uses) $ -705,728.40 $_~~~-7~0:4,!59.3..0.5.

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

U~s

$

-7,031.12 $

744,438.44

FUND BAj"ANCE JULY 1,1999
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

1,283,356.71 267.44

1,751,822.84


SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS),---

$ 164,767.37 $ 172,767.49 2,486,731.74 2,704,866.13

164,315.00

454,277.56

$ 2,815,814.11 $ 3,331,911.18

$ 1,198,584.03 $ 1,135,865.56

375,912.64 219,620.85

376,945.53 197,139.97

5,407.53

4,866.50

34,390.00
78,349.00 1,111,499.00

25,741.25
263,290.76 1,294,196.46

$ 3,023,763.05 $ 3,298,046.03
$ -207,948.94 $ _~=::3:.3:,.8.6.5..:1.5:~

$ 15,905.40 $ 14,770.08
$ 15,905.40 $_-..1:4.,7.7:0~.0=8~

$ -192,043.54 $ 48,635.23

310,918.88

337,935.65

234.72

278.36 235.61

FUND BALANCE JUNE 30, 2000

$ 1,276,593.03 $ 2,496,261.28

$ 119,110.06 $ 387,084.85

The notes to the general purpose financial statements are an integral part of this statement.
-6-

CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Gainesville Board of Education (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
School activity accounts used to record the operations ofthe individual schools are included in the general purpose financial statements as agency funds. To conform to generally accepted accounting principles, the financial activity of these accounts, should be recorded in the general purpose financial statements by appropriate fund and fund type.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to
governmental units, unless otherwise disclosed in these notes. Funds and the account groups
presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational
activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for fmancial resources to be used for the acquisition or construction of major capital facilities.
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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D"
1\,'OTES TO THE GENERAL Pl TRPOSE FINA1\,'CIAL STATEI\IE1\'TS JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.

FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a
trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:

AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.

ACCOUNT GROUPS





GENERAL FIXED ASSETS ACCOUNT GROUP - A fmancial reporting device used to account for all general fixed assets acquired or constructed for use by the Board.

..
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its measurement

focus.

All

governmental .

funds

are

accounted

for

us.ing

a

current

financial

resources

measurement

focus. With this measurement focus, only current assets and current liabilities generally are



included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues

and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current

assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.

Governmental funds are accounted for using the modified accrual basis of accounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.

Expenditures are generally recognized when the related fund liability is incurred.

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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.

Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.

BUDGET

The City of Gainesville Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting 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, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS

.

Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of

deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and

money market investments with a maturity at purchase ofone year or less are reported at amortized

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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE Fl1\'ANC'IAL STATEME"!\'TS JUNE 30, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State 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 reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The City of Gainesville Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 19, 1999 (levy date). Taxes were due on January 24, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Gainesville City Clerk bills and collects the property taxes for the Board ofEducation, withholds 1.0% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.
- 10-

CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANC'IAL STATEMENTS JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tax millage rates levied for the 1999 tax year (calendar year) for the City of Gainesville Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

7.00 mills .35 mills

7.35 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,269,260.86 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $12,246,872.77 has been collected or on September 30, 2002, whichever occurs first.

INVENTORIES

-

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

GENERAL FIXED ASSETS

General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Infrastructure assets are not capitalized by the Board.

LONG-TERM DEBT AGREEMENT

-

Prior to January 1, 1994, the City of Gainesville Board of Education was a component unit of the City of Gainesville, Georgia and was thereby not authorized to issue debt. Accordingly, the City of Gainesville, Georgia issued General Obligation Bonds to provide funds for the acquisition and

- 11 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JlJNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

construction of major school facilities. The general obligation bonds issued during this time are direct obligations and pledge the full faith and credit of the City of Gainesville. However, the City of Gainesville Board ofEducation is required by House Bill 841 ofthe 1993 Session ofthe General Assembly to levy taxes for remittance to the City of Gainesville, Georgia in the amounts necessary to retire this outstanding debt.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

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

"

"

MEMORANDUM ONLY - TOTAL COLUMNS

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

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate 0 f the market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

- 12-


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

Note 2: DEPOSITS AND INVESTMENTS

balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of anyone of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or

municipalities of the State of Georgia,

-

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

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

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

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $6,450,011.34. The amounts ofthe total bank balances are classified into three categories of credit risk:

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

-13 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GE1\TERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

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

Risk Category

Bank Balance

1

$ 587,138.15

2

5,653,301.31

3

209,571.88

Total



$ 6,45Q.Ql1.34

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

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

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

At June 30, 2000, the carrying value of the Board's total investments was $5,815,326.88. The investments are classified as to risk categories as follows:

Type of Investment

Risk Catego~n....,,e,..s

_

Carrying

I

2

3

Amount

Fair Value

Federated Jreasury

Obligations

$

Federal Loan Home Bank-

Bonds

United States Treasury

Notes

0.00 $ 2,150,726.36

$ 2,150,726.36 $ 2,150,726.36

$ 1,292,786.00 1,292,786.00 1,292,786.00

2.371,814.00 2,371,814.00 2,371,814.00

Total

$==~O.Q~O $ 2.1.5Q,726.3 $ 3,GMJiill).OO $ 5,815,326.36 $ 5,815,326.36

Investments Not Subject to Categorization:

Mutual Funds Money Market Account

.52

.52

Total Investments

$ 5,815,326..$& $ 5,&15,326,&&

- 14-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMPHS JUNE 30. 2000

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: GENERAL FIXED ASSETS

The following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year:



Land

Buildings



Total

Balance July I, 1999

$ 194,840.76 $27,181,464.06 $ 7,034,368.87 $34,410,673.69

Additions

5,768,954.16 499,119.46 6,268,073.62

Deletions

259.457.53

259,457.53

Balance June 30, 2000

$ WMQ.76 $32,95Q,4J 8.22 $ 7,27!l.QJ~,~ $~Q,!lJ 9,289.78

Note 5: RISK MANAGEMENT

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

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims WIthin the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

1999 2000

Beginning of Year
Liability_

Claims and Changes in Estimates

Claims Paid

End of Year
Liability_

$

2,618.75 $

1,812.25 $

4,431.00 $

$

0.00 $

1,111.00 $

1,111.00 $.

--0"'-,=0-"0= --0"'-.=0-"0=

- 15 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATE!\lENTS
JUNE 30, 2000

Note 5: RISK MANAGEMENT

The Board has established a limited risk management program for dental insurance claims. A premium is charged by the General Fund to each user fund on the basis ofemployee participation in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated.

Changes in the dental claims liability during the last two fiscal years are as follows:

1999 2000

Beginning
of Year
Liability_

Claims and Changes in Estimates

Claims Paid

End of Year
Liability

$

0.00 $ 188,013.65 $ 188,013.65 $

...0.>.:.0.:.:0:=

$

0.00 $ 207,079.90 $ 207,079.90 $_ _~0= .00

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

Position Covered

Amount

Superintendent Treasurer

Note 6: GENERAL LONG-TERM DEBT




$ 50,000.00 $ 50,000.00

CAPITAL LEASES The City of Gainesville Board ofEducation has entered into various lease agreements as lessee for buses and facilities. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. The following is an analysis of the carrying value of general fixed assets acquired under outstanding capital leases as of June 30, 2000:

General Fixed Assets

Buildings Equipment

$ 900,000.00 412,172.00


GENERAL OBLIGATION DEBT OUTSTANDING . General Obligation Bonds currently outstanding are as follows:

$J.31f .174.QQ

. - 16-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 6: GENERAL LONG-TERM DEBT

_ _ _ _"""'P-=urp~o~se:::.__

_

Interest Rates

Amount

General Government - Series 1997

4.00% - 5.00% $10,025,000.00

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

Balance July I, 1999
Deductions Debt Retired Payments
Balance June 30, 2000

Capital

Leases

Long-Term Debt
Agreements

General Obligation
Bonds

Total

$ 838,016.23 $11,840,181.00 $12,360,000.00 $25,038,197.23

163,598.11

2,335,000.00 2,335,000.00

984,51 1.00

1.148,109.11

$ 674A18J2 $lQ.855,67Q,00 $J0,025,000.00 $,2J ,555.Q88, U

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

Fiscal Year Ended June 30
2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital Leases

Long-Term Debt
Agreements

General Obligation
Bonds

Total Debt

$ 111,974.71 $ 983,681.00 $ 3,144,010.00 $ 4,239,665.71

122,154.24 980,681.00 3,546,710.00 4,649,545.24

122,154.24 980,788.00 3,990,155.00 5,093,097.24

122,154.24 983,778.00

1,105,932.24

122,154.24 984,263.00

1,106,417.24

234,128.97 4,946,692.00

5,180,820.97

995,787.00

995,787.00

$ 834,720.64 $lQ.855,6Z0.00 $JMQ,875.QQ $22,3Zl.~6.5M

160,302.52

$ @t4lll2

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $369,036.81 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$288,935.41

- 17 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JlJNE 30, 2000

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $38,443.40

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$41,658.00

Note 8: SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

Funding Available From State

Enota Elementary School Gainesville High School Gainesville Middle School

$ 79,008.55 770,495.50 6.486.91 $ 39,942.40

$ 85~J990.9Q $ 39.942.-40

The amounts described in this note are not reflected in the general purpose financial statements.
-
Note 9: CONTINGENT LIABILITIES

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

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement

- 18-

CITY OF GAINESVILLE BOARD OF EDUCAnON - HALL COUNTY EXHIBIT tiD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 10: RETIREMENT PLANS

System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE
Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,967,166.99 $ 1,979,548.08 $ 1,758,013.22

- 19

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities

FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

293,810.20

120,108.66 $

13,624.49

22,381.50 11,197.66

$

447,498.02 $====~~~~



$

13,252.25

$

19,458.85

372.24

68,065.36

$

87,524.21 $ _ _~.1..3::,:6.::2:;4:;..4.:9::.:~






$

22,381.50

11,197.66





326,394.65 $

---0-..0:0~~

$ 359,973.81 $

---0-..0:0~~

$

447,498.02 $==~ 13,~ 62~ 4.4~ 9

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

EXHIBIT "E"

FEDERAL PROGRAMS

ATHLETIC . FUND

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

24,374.94 $

318,185.14 $

410,960.95

$

427,797.25

561,530.40

435,607.17

22,381.50 11 ,197.66

22,103.14 10,962.05

$

427,797.25 $

24,374.94 $

879,633.31

$

157,506.66

104,927.88

162,550.97

75.64

$

170,758.91 $

163,869.73

124,758.97

148,193.87

230,616.33

215,396.19

75.64

14,237.87

.

$

526,209.85 $ _---=...;..,;.,.;=_:.;~

$

2,736.10

$

2,736.10

22,381.50 $ 11,197.66

22,103.14 10,962.05

0.00 $ _ _..2..4:,:3..7:4~=..9.:4...

350,769.59

304,870.46

$

387,084.85 $ _---'=33.:7.,.9=35=.6=5_

$

427,797.25 $

- 21 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures

Excess of Revenues over (under) Expenditure~
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

80,280.00 $

991,793.45

272,339.65

92,487.49

$ 1,344,413.10 $ _ _..9.:2::.,=4.t8..7:.:.:4:,9;~:"-

$

92,487.49

$ 1,294,196.46

$ 1,294,196.46 $ _ _.9..2:,4::8:7:.4:=9~~

$

50,216.64 $

0.00

$

50,216.64 $

309,243.20

278.36 235.61


0.00 0.00

$

359,973.81 $===.......=o==;0;.0~0~

See notes to the general purpose financial statements. - 22-

EXHIBIT "F"

FEDERAL PROGRAMS

ATHLETIC FUND

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 1,713,072.68
------$
$ 1,713,072.68 $

$

172,767.49 $

181,937.91

2,704,866.13

454,277.56

181,937.91 $ 3,331,911.18 $

294,462.69 2,717,140.36
420,272.08
3,431,875.13

$ 1,043,378.07
376,945.53 197,139.97
4,866.50 25,741.25
77,035.34 $

$ 1,725,106.66 $

$

-12,033.98 $

$ 1,135,865.56 $ 1,243,547.42

186,255.42
186,255.42 $

376,945.53 197,139.97
4,866.50 25,741.25
263,290.76 1,294,196.46

3,298,046.03 $

397,584.06 206,863.44
3,793.01 30,809.16 25,755.94 199,418.53 1,157,674.66 41,627.60
3,307,073.82

-4,317.51 s.

33,865.15 $ 124,801.31

-

14,770.08

14,770.08

24,132.29

$

2,736.10 $

-4,317.51 $

48,635.23 $

148,933.60

0.00

28,692.45

337,935.65

181,691.80

278.36 235.61

5,177.92 2,132.33

$

2,736.10 $

24,374.94 $

23




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

ASSETS Cash and Cash Equivalents Investments

Total Assets



LIABILITIES AND FUND EqUITY
LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

732,976.40 $

264,093.87

5,371,205.88

$

732,976.40 $ 5,635,299.75

$

374,034.00

592,330.20

966,364.20

$ 4,668,935.55

732,976.40

0.00

$

732,976.40 $ 4,668,935.55

$

732,976.40 $ 5,635,299.75

See notes to the general purpose financial statements. - 24-

EXHIBIT "G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTIERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

997,070.27 $

519,367.58

$

===:::.... 114,255.10 $ _ _329,865.90

5,815,326.88

10,196,188.17



$

114,255.10 $

329,865.90 $ 6,812,397.15 $ 10,715,555.75

$ _ _--=8;.7.,;4.3..8..L0.5;=~
87,438.05

$

374,034.00

679,768.25 $

$ 1,053,802.25 $

260,057.11 260,057.11



$ 4,668,935.55 $ .10,299,866.24

$

26,817.05 $

329,865.90

356,682.95

36,249.00

0.00

-

0.00

732,976.40

119,383.40



$

329,865.90 $ 5,758,594.90 $ 10,455,498.64

$

114,255.10 $

329,865.90 $ 6,812,397.15 $ 10,715,555.75





- 25-

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

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Building and Building Improvements Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00 $ _ _4=9...4:.=,5:..5.:.7.:.::3.::5:..-

$

0.00 $ _---:==4:9..4.:,.5.:5:7:..:3::5..-

$ 6,125,488.04

$

76,229.97

$

76,229.97 $ 6,125,488.04

$

-76,229.97 $ -5,630,930.69

$

689,822.97

$--6= 89,=822=.97~

$

613,593.00 $ -5,630,930.69

119,383.40

10,299,866.24

$

732,976.40 $ 4,668,935.55

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTIERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

65,862.90 $

293,616.90 $

359,479.80

494,557.35 $_---'6:4:3.,7.6=9~.8=2=-

$

65,862.90 $

293,616.90 $

854,037.15 $ _---'6:4:3.,.76=9~.=8=2-

$

318.32

$

39,045.85 $

0.00 $ 6,164,533.89

3,638,367.45

76,229.97

71,507.02 444.51

$

39,045.85 $

--::.;O.:=.OO~ $ 6,240,763.86 $ 3,710,637.30

$

26,817.05 $

293,616.90 $ -5,386,726.71 $ -3,066,867.48

$

689,822.97 $

967,246.07


-1,482,663.04

$

689,822.97 $ _-..:::~.-:.5..1.;5.:,:4;:1.:6::..9:.7...

$

26,817.05 $

293,616.90 $ -4,696,903.74 $ -3,582,284.45

0.00

36,249.00

10,455,498.64

$

26,817.05 $

329,865.90 $ 5,758,594.90 $ 10,455,498.64

- 27-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

1,942,387.75 $ 1,942,387.75 $ 1,778,790.21

$ 101,325.11

558,378.01

659,703.12

603,960.25

$ 101,325.11 $

2,500,765.76 $ 2,602,090.87 $ 2,382,750.46

LIABILITIES AND FUND EqUITY

LIABILITIES Cash Overdraft

$ 101,102.57

$

101,102.57 $_-=28:8,.60=9.=76~

FUND EqUITY

Fund Balances Reserved For Debt Service Unreserved Deficit Undesignated
Total Fund Equity

$

222.54 $

2,500,765.76 $ 2,500,988.30 $ 2,284,007.20

0.00 _ _ _ _~O.~OO~

0.00

-189,866.50 0.00

$

222.54 $

2,500,765.76 $ 2,500,988.30 $ 2,094,140.70

Total Liabilities and Fund Equity

$ 101,325.11 $

2,500,765.76 $ 2,602,090.87 $ 2,382,750.46

See notes to the general purpose financial statements.

28

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT S::RV:CE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT"J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30,1999

REVENUES

Taxes Other Funds
Total Revenues

$ 802,481.44 $

3,269,260.86 $ 4,071,742.30 $ 3,701,947.08

118,376.60

118,376.60

36,031.58

$ 802,481.44 $ 3,387,637.46 $ 4,190,118.90 $

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 162,000.00 $
449,511.00 881.40

2,708,000.00 $
457,447.50 5,431.40

2,870,000.00 $
906,958.50 6,312.80

2,340,000.00 1,029,311.00
5,944.85

$ 612,392.40 $ 3,170,878.90 $ 3,783,271.30 $ 3,375,255.85

$ 190,089.04 $

216,758.56 $ 406,847.60 $ 362,722.81

OTHER FINANCING SOURCE-

Operating Transfers In

701,732.50

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 190,089.04 $

216,758.56 $ 406,847.60 $ 1,064,455.31

FUND BALANCE JULY 1

-189,866.50

2,284,007.20

2,094,140.70

1,029,685.39

-FUND BALANCE JUNE 30

$

222.54 $ 2,500,765.76 $ 2,500,988.30 $ 2,094,140.70






See notes to the general purpose financial statements.

- 29-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000

EXHIBIT "K"

SPECIAL ACCOUNT ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY1,1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 3D, 2000

$

$

220.19 $

====-======= 1,079.20 $

3,706.07

220.19 $

3,706.07

STUDENT ACTIVITIES ACCOUNT
ASSETS Cash and Cash Equivalents

$ 173,440.88 $ 580,054.33 $ 591 ,977.12 $ -====;,,;,&~===

LIABILITIES Funds Held for Others
FLEX SPENDING ACCOUNT ASSETS
Cash and Cash Equivalents

$ 173,440.88 $ 580,054.33 $

,

LIABILITIES Funds Held for Others

$ ==-=_ _0.,.00.... $ 30,320.04 $

24,888.49 $ = .....=5=,4==3=1~.5=5==

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

178,005.96 $ 610,594.56 $ 617,944.81 $ ......=1=7=0=,6-55~.7=1=

LIABILITIES Funds Held for Others

$ 178,005.96 $ 610,594.56 $ 617,944.81 $=============

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

CITY OF GAINESVILLE BOARD OF EDUCATION HALL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutrition Program Summer School Food Service Program for Children

Total Child Nutrition Cluster

10.553
10.555 10.559

NlA $ 217,030.89

(2)

N/A

692,635.16 $ 1,212,069.06 (3)

N/A

16,877.56

16,877.56

$ 926,543.61 $ 1,228,946.62

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture

10.550

N/A

65,249.84

65,249.84

$ 991,793.45 $_....:..1l~,:2.9..4.:,1..9::6=.:4::6..

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool

84.027 84.173

N/A $ 200,230.93 $

NlA

29,511.57

200,230.93 29,511.57

Total Special Education Cluster

$ 229,742.50 $

229,742.50

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grant Title VI Innovative Education Program Strategies Class Size Reduction Title VII Immigrant Education Safe and Drug-Free Schools Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education Basic Grants to States High School Program Basic Grant Pass-Through From Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Total U. S. Department of Education

84.010 84.281 84.318 84.298 84.340 84.162 84.186 84.196
84.048
84.011

N/A

983,434.65

983,434.65

N/A

23,816.08

.23,816.08

NlA

115,829.24

115,829.24

N/A

31,783.87

N/A

87,393.58

31,783.87 87,393.58

N/A

65,942.41

NlA

23,734.21

65,942.41 23,734.21

NlA

18,197.00

18,197.00

NlA

35,083.77

49,853.85 (3)

N/A

98,115.37

95,379.27

$ 1,713,072.68 $_~~1~,7~25:,1:0:6..66.

Total Federal Financial Assistance N/A = Not Available

31 -

$ 2,704,866.13 $ _~:.3:,0.1;9:,3.0:3..1~2~

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

SCHEDULE "1"

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



See notes to the general purpose financial statements.

- 32

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs

Special Education Programs

Remedial Education Program

Media Center Programs

Staff Development Programs

Indirect Cost

Pupil Transportation

Regular

Bus Replacement

Limited English Speaking

Middle School Incentive Program



Special Instructional Assistance

In-School Suspension

Mid-term Adjustment

Counselors Grades 4 and 5

Technology Specialist

Local Five Mill Share

Deferred Summer Salaries (Prior Year)

Deferred Summer Salaries (Current Year)

Food Services

Vocational Education

Other State Programs

Apprenticeship Program

At-Risk Summer School Program

Environmental Science Program

Health Insurance

Mentoring Program

Mentor Teacher Program

Preschool Handicapped Program

Remedial Summer School Program

Special Education Low Incidence Grant

Teachers' Retirement

Lottery Programs

Computers in the Classroom

Exceptional Growth-Capital Outlay

Technology Installation

$ 8,813,937.00
1,132,805.00 106,083.00 360,946.00 89,168.00
2,173,162.00
261,531.00 77,748.00
776,713.00 291,175.00 542,491.00
73,636.00 812,279.00
33,824.00 57,685.00 -4,122,201.00 -1,727,907.00 1,901,224.00
$
13,805.65
35,000.00 8,226.67 1,500.00
288,935.41 3,500.00 2,106.00
68,255.00 4,722.59 15,000.00
38,443.40

$ 8,813,937.00
1.132,805.00 106,083.00 360,946.00 89,168.00
2,173,162.00

80,280.00

261,531.00 77,748.00
776,713.00 291,175.00 542,491.00
73,636.00 812,279.00
33,824.00 57,685.00 -4,122,201.00 -1,727,907.00 1,901,224.00 80,280.00 13,805.65

35,000.00 8,226.67 1,500.00
288,935.41 3,500.00 2,106.00
68,255.00 4,722.59 15,000.00
38,443.40

78,863.00
$
13,624.49

293,616.90

78,863.00 293,616.90
13,624.49

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

65,862.90

65,862.90

Office of Treasury and Fiscal Services Public School Employees Retirement

41,658.00

41,658.00

CONTRACTS Education, Georgia Department of Implementation of and operation of one or more after school programs for Grades 4-8 Georgia's Reading Challenge Grant

60,000.00

60,000.00

OTHER Education, Georgia Department of Reimbursement for a Substitute

53.83

53.83

$ 12,235,505.55 $ 172,767.49 $ 359,479.80 $ 12,767,752.84

See notes to the general purpose financial statements.

- 33-

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

SCHEDULE "3"

PROJECT
Payments of a portion of the previously incurred obligation debts of capital outlay projects of the City of Gainesville School District are specifically 1986, 1991, 1993 bonds becoming due January 1, 1998 through and induding Deoember 31,2002
Construction of additional dassrooms, instructional and support spaoes, as well as, remodeling and renovating existing classrooms, instructional and support spaoes and to provide fumishings, equipment and fixtures for such areas at existing existing elementary and middle schools
Acquisition, construction and equipping of new academic wing, renovation of existing instructional and support spaoes, construction of a new gymnasium at the high school

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 2,038,737.00 $ 2,038,737.00 $ 365,000.00 $ 400,000.00

4,105,931.00

4,105,931.00

286,015.94 2,660,685.12

14,080,332.00 14,080,332.00 5,878,517.95 1,777,265.49

-
$ 20,225,000.00 $ 20,225,000.00 $ 6,529,533.89 $ 4,837,950.61

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.


(2) The Board's current estimate of total cost for the projects. Indudes all cost from project inoeption to completion.



(3) The voters of Hall County approved the imposition of a 1% sales tax to fund the above projects and retire

associated debt. Amounts expended for these projects may indude sales tax prooeeds, state, local property



taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board incurred interest and other expense to provide advanoe funding for the above projects as follows:

Prior Year

$ 961,834.40

Current Year

462,878.90

Total

$ 1,424,713.30



see notes to the general purpose financial statements.

- 34-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

11,072,954.00 $ _ _--=3=2:.=3.,!.4.:1...8:...:0:.;0=.

$

14,711,534.33

905,437.53 $ _ _-=8:.3.3:;,1:.7.2<..6.;8~~

$

15,616,971.86

-125,832.17 15,491,139.69

Amount of Underexpenditure for Total Allotment

$


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

Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.
(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.


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

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL CQUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUr,D . QUALITY BASIC EDUCL.Timj PROGRAr,1S YEAR ENDED JUNE 30, 2000

GENERAL AND CAR~ER EDUCATION PRQGRAMS Kindergarten (.) Grades 1 - 3 (.) Sub-Total - K-3 Grades 4 - 5 (.) Grades 6 - 8 (.) Grades 9 - 12 (.) High School Laboratories (') Vocational Education Laboratories (') Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (.) Category II (.) Category III (.) Category IV (.) Sub-Total- Regular Category VI (Gifted) (.) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM c:l
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$ 1,090,921.00

$

981,828.90

2,784,094.00

2,505,684.60 $ _-==35.9,:18.3=.0~0

$ 3,875,015.00 90 $ 3,487,513.50 $

359,183.00

1,007,444.00 90

906,699.60

1,747,497.00 90

1,572,747.30

300,000.00

1,009,890.00 90

908,901.00

662,877.00 90

596,589.30

511,214.00 90

460,092.60

$ 8,813,937.00


$ 7,932,543.30 $

659,183.00

$

852,810.00

$

767,529.00 $

0.00

$

852,810.00 90 $

279,995.00 90

$ 1,132,805.00

$

$

106,083.00 90 $

$ 10,052,825.00

$

767,529.00 $
251,995.50
1.019,524.50 $ 95,474.70 $
9,047,542.50 $

0.00
000 000 659,18300

$

294,236.00 90 $

264,812.40 $

66,710.00 100

66,710.00

$

360,946.00

$

331,522.40 $

000 -= 0.0~0

Total Fourteen Weighted and Media Center Programs

$ 10,413,771.00

$ 9,379,064.90 $ _....6.io5iio9ii,i.1.8..3...0.0..

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development
Total Staff Development Programs
(') Identifies Fourteen Weighted Programs.
(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

See notes to the generaI purpose financial statements.

$

28,975.00

60,193.00

$

28,975.00 $

60,193.00

$

89,168.00 100 $

89,168.00 $

(2) Salary accruals (July and August 1999 Deferred
Salaries) reported as expenditures in the prior
year General Purpose Financial Statements are included on this analysis as required by program guidelines.

0.00 0.00
-=0..0..0.

36 -


SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

981,828.90 $ 1,454,724.44 $

54,017.87 $ 1.508,742.31

2,864,867.60

3,711,653.09

177,208.87

3,888,861.96

$ 3,846,696.50 $ 5,166,377.53 $

231.226.74 $ 5,397.604.27 $

0.00

906.699.60

1,835,699.84

93.811.55

1.929,511.39

0.00

1,872.747.30

2.281,036.61

144,557.1'7

2,425,593.78

0.00

908.901.00

1,620.610.40

177,940.62

1.798.551.02

0.00

596,589.30

916,760.27

48.090.15

964,850.42

0.00

460,092.60

610,422.27

46,842.66

657.264.93

0.00

$ 8,591,726.30 $ 12,430,906.92 $

742,468.89 $ 13,173,375.81

$

767.529.00

$

$ 339.766.94 842.633.87 171,777.85

3.200.78 $ 8,331.97 66,265.35
219.69

3.200.78 348,098.91 908,899.22 171.997.54

$

767.529.00 $ 1.354.178.66 $

78.017.79 $ 1.432,196.45

0.00

251,995.50

392.145.30

8.200.73

400,346.03

0.00

$ 1,019.524.50 $ 1,746.323.96 $

86,218.52 $ 1.832.542.48

$

95,474.70$

119,790.13 $

4,485.27 $ _---1:24=.2=75=.40.

0.00



s 9,706,725.50 $ 14.297,021.01 $

833,172.68 $ 15,130.193.69

s

264.812.40 $

414.513.32

-

$

414.513.32

0.00

66,710.00

$ _ _.7.2:..2:6:4:.8.5=~

72.264.85

0.00

$

331.522.40 $

414.513.32 $

72.264.85 $ _ _4= 86.7~ 78.~ 17

$ 10,038.247.90 $ 14,711,534.33 $

905,437.53 $ 15,616,971.86 $

0;,.;0,;0;;,

$

28.975.00

60,193.00

$ _.....8.9..,.1.6..8-.-00-

$

s 74.392.58

74.392.58

24,497.56

24,497.56

$

s 98,890.14

98,890.14 $



0...0.0..

37


SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

-




RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

C!f..'? ~o

~ "" ~"~.f

- : I ~...

lIIl'
,~

W
sa -,.

X~i~i.: -

'..-:'l.' :-,

ff .. - -r .;.. ..-~ .
'(, <t-. . ' t;

.:}I ,.~-5.0..0'-.:... .- >'t-

. '~.. i'" L .-.. ~ ~ ... , """'T--''.-="'- - - - -

l77b

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400

May 8, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the City of Gainesville Board of Education

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Ladies and Gentlemen:

We have audited the financial statements ofCity ofGainesville Board ofEducation as ofand for the

year ended June 30, 2000, and have issued our report thereon dated May 8,2001. This report was

qualified for a departure from generally accepted accounting principles, as identified in the auditor's

report on the general purpose financial statements. We conducted our audit in accordance with

auditing standards generally accepted in the United States ofAmerica and the standards applicable to

financial audits contained in Government Auditing Standards, issued by the Comptroller General of

the United States.

.

Compliance



As part of obtaining reasonable assurance about whether City of Gainesville Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly,
we do not express such an opinion. The results ofour'tests disclosed no instances ofnoncompliance
that are required to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered City of Gainesville Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal

2000YB-IOA

control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.

This report is intended solely for the information and use of management, members ofthe City of Gainesville Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.



Respectfully submitted,

",---......

RWH:gp
2000YB-IOA

R ssell W. Hinton State Auditor

-
RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 8,2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

and



Superintendent and Members of the

City of Gainesville Board of Education

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133

Ladies and Gentlemen:

Compliance

We have audited the compliance of City of Gainesville Board of Education with the types of
compliance requirements described in the US. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year
ended June 30, 2000. City of Gainesville Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Gainesville Board of Education's management. Our responsibility is to express an opinion on City ofGainesville Board ofEducation's compliance based on our audit. -

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and
OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City ofGainesville Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion, Our audit does not provide a legal determination on City ofGainesville Board ofEducation's compliance with those requirements.

2000SA-10A

In our opinion, the City of Gainesville Board of Education complied, in all material respects, with
the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of City of Gainesville Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Gainesville Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the City of Gainesville Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,


RWH:gp
2000SA-IOA

Ru sell W. Hinton State Auditor


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

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS No matters were reported.



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SECTION IV FINDINGS AND QUESTIONED COSTS


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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FI1\1)INGS A1\1) QUESTIO~ED COSTS YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
1. TYPe of Report Issued on the Financial Statements The auditor's opinion on the City of Gainesville Board of Education's financial statements was qualified for a departure from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Gainesville Board of Education did not disclose any reportable conditions related to the financial statements.
3. Noncompliance Material to the Financial Statements The audit of the City of Gainesville Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the City of Gainesville Board of Education did not disclose any reportable conditions in internal control over major programs.
5. TYPe of Report Issued on Compliance for Major Programs The auditor's opinion on the City ofGainesville Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 OW of OMB Circular A-133
The City of Gainesville Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Summer School Food Service Program for Children

8. TYPe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The City of Gainesville Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
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CITY OF GAINESVIL,LE BOARD OF EDUCATION - HALL COUNTY
SCHEDULE OF FI1\"TIINGS A?\1) QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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