J

'..,

CITY OF GAINESVllLE BOAR!> OF-EDUCATION - HALL COUNTY

- TABLEOi< CONTENTS -

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, F;XPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

6

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

9

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

10

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET ,

24

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

, AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

28

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

32 '

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

K

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABll.ITIES

AGENCY FUNDS

34

CITYOFGAThffiS~LEBOARDOFEbUCATION-HALLCOUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERALAWARDS

35

2 SCHEDULE OF STATE REVENUE

37

3 SCHEDULE OF APPROVED LOCALOPTIONSALES TAX PROJECTS

39

ALLOTMENTS AND EXPENDITURES

GENERALFUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

40

5

BY SITE

41

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

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEARFINDINGS AND QUESTIONED COSTS SUMMARYSCHEDULE OF PRIORYEAR FINDINGS AND QUESTIONED COSTS

SECTION IV

FINDINGS AND QUESTIONED COSTS

o

SCHEDULEOF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
April 2, 2002

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
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 ofGainesville Board of Education, as of and for the year ended June 30, 2001, 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 bythe 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 of Education'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:

200lARL-13

* School activity accounts are included in the general-purpose fmancial 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 have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the 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, 2001, 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 April 2, 2002, 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, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be readin 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 fmancial 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 ofStates, 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,
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RWH:gp 200lARL-13

CITY OF GAlNESVlLLE BOARD OF EDUCATION - HALL COUNTY

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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY

. COMBINED BALANCE SHEET

.

ALL FUND TYPES AND ACCOUNT GROUPS

. JUNE 30, 2001

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
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s 2,778,745,96 $ 362,301,68 $

758,592.56

13,483.66

1,744,217.20

3,500,912.09

428,203.77

19,392.40 15,078.93

$ 6,279,658.05 $ 838,460.44 $ 2,502,809.76

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

DEBT SERVICE
FUND

FIDUCIARY FUNDTYPE AGENCY FUNDS

$ 1,934,661.99 $

192,588.95

21,307.21

660,439.88

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LON~TERM

ASSETS

DEBT

TOTALS
(Memorandum Only)
JUNE 30, 2001 JUNE 30, 2000

.$ 6,026,891.14 $ 4,853,662.95

1,779,008.07

5,815,326.88

4,589,555.74

5,211,820.82

19,392.40 15,078.93

22,381.50 11,197.66

$ 194,840.76 37,075,886.24 8,569,339.69
$ 2,595,101.87

194,840.76 37,075,886.24 8,569,339.69
2,595,101.87

194,840.76 32,950,418.22
7,274,030.80
2,500,988.30

4,634,898.13 9,871,989.00 1,073,526.04

4,634,898.13 9,871,989.00 1,073,526.04

7,524,011.70 10,855,670.00
674.418.12

$ 2,595,101.87 $

213,896.16 $ 45,840,066.69 $ 18,175,515.04 $ 76,445,508.01 $ 77,888,767.71

-3-

CITY OF GAINESYILLE BOARD OF EDUCATION - HALL COUNTY COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 2001

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agre,ements Long-Term Debt Agreement General Obligation Bonds Payable
Total liabilities
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For The Jordan Grant For Theater Fund For United Way Homeless Grant For Purpose of Bond Issue For State Capital Outlay Projects
Unreserved Designated for Self-Insurance Undesignated
Total Fund EqUity
Total Liabilities and Fund Equity

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAl

REVENUE

PROJECTS

FUND

FUND

$ 934.567,17 $
3.223.110,21

75.188.43 $
229.659.15 79,00

3,796.23

5,106,80

958.32
348.154.00 262,297.00

$ 4;161 ,473.61 $ 310,033,38 $

611,409,32

$ 19,392.40
15.078.93

$

4,564,33

5.377,47

$ 1,053,831,04

24,056,32 2,084.186,32

493,955.73

837.569.40

$ 2.118,184.44 $ 528,427,06 $ 1,891,400,44

$ 6,279,658,05 $ 838,460.44 $ 2.502,809.76

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

ACCOUNT GROUPS

GENERAL

GENERAL

FIXED

LONG-TERM

ASSETS

DEBT

TOTALS (Memorandum Only) JUNE 30. 2001 JUNE 30, 2000

$

213,896.16

$

213.896.16

$ 1,010,713.92 $ 894,827.75

3,452,769.36

2,648,302.90

79.00

75.64

348,154.00

374,034.00

262,297.00

679,768.25

8,903.03

3,796.23

213,896.16

170,655.71

$ 1,073,526.04

1,073,526.04

674,418.12

9,871,989.00

9,871,989.00 10,855,670.00

7,230,000.00

7,230,000.00 10,025,000.00

$ 18,175,515.04 $ 23,472,327.51 $ 26,326,548.60

$ 2.595,101.87 $

213,896.16 $ 45,840,066.69 $ 18,175,515.04 $ 76,445,508.01 $ n,888?67.71

-5-

CITY OF GAINESYILLE BOARD OF EDUCATION - HALL COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total 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)
Capital Leases 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

$ 14,524,358,22 $
15,038.259.75 814,942.26
$ 30,377,560.23 $

180,980.00 2,951,264.57
456,133.16
3,588,377.73

$ 20,061,311.63 $
974,997.36 1,216,883.10
567,394.81 669,153.59 1,689,443.05 603,264.35 2,448,740.25 1,630,150,98 144,541.12
.25,651.02 926,903.21
65,312.20 57,841.24

1,226,739.64 436,141.42 182,338.46 5,849,19
39,989.51 233,493.96 1,357,251.79

$ 31,081,587.91 $ $ -704,027.68 $

3,481,803.97 106,573.76

$

545,685.QO

$

-219,734.16

$

325,950.84 $

$

~378,076.84 $

2,496,261.28

33,876.28 33,876.28 140,450.04 387,084.85

-2,989.10 3,881.27

FUND BALANCE JUNE 30

$ 2,118,184.44 $

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

528,427.06

EXHIBIT-B-

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,2001

JUNE 30, 2000

$

39,942.20

$ 14,745,280.42 $ 12,767,752.84

2,951,264.57

2,704,866.13

$ 4,123,785.69

19,162,045.44

18,931,139.35

257,907.81

103,687.40

1,632,670.63

1,752,652.76

$

297,850.01 $ 4,227,473.09 $ 38,491,261.06 $ 36,156,411.08

$ 4,269,637.47 81,264.88 $
$ 4,350,902.35 $ $ -4,053,052.34 $

$ 21,288,051.27 $ 18,681,423.57

1,411,138.78 1,399,221.56
567,394.81 675,002.78 1,689,443.05 603,264.35 2,448,740.25 1,670,140.49 144,541.12 233,493.96 1,382,902.81 5,196,540.68

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

3,355,000.00 772,690.00 5,669.52

3,501,577.08 830,531.24 5,669.52

3,033,598.11 958,296.57 6,312.80

4,133,359.52 $ 43,047,653.75 $ 39,653,393.55

94,113.57 $ -4,556,392.69 $ -3,496,982.47

$

185,857.88

$

185,857.88

$

545,685.00

219,734.16 $

704,593.05

-219,734.16

-704,593.05

$

545,685.00 $

0.00

$ -3,867,194.46 $ 5,758,594.90

94,113.57 $ -4,010,707.69 $ 3,496,982.47

2,500,988.30

11,142,929.33

14,639,397.83

-2,989.10 3,881.27

278.36 235.61

$ 1,891,400.44 $ 2,595,101.87 $ 7,133,113.81 $ 11,142,929.33

-7-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAl- (NON-GMP BASISl GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

The notes to the general-purpose financial statements are an integral part of this statement 9-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHffiIT "D" NOTES TO THE GENERAL-PURPOSKFINANCIAL STATEMENTS
JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The City of Gainesville Board ofEducation (School District) 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 School District 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 School District is a primary government and consists of all the

organizations that compose its legal entity,

.'

FUND ACCOUNTING

The School District uses funds and account groups toreport on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a fmancial 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 incl~ded 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 School District, in compliance with generally accepted accountirig principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and account groups presented in this report areas 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.

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 financial resources to be used for the acquisition or construction of major capital facilities.

-10 -

CTIY OF GAINESVILLE BOARDOF EDUCATION - HALL COUNTY EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

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 financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District.

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 using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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 ofaccounting under which:

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 determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations.

- 11 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHmIT "D" , NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING 'POLICIES

Revenue for property taxes is recognized 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 which all eligibility

requirements have been satisfied. ,

'

"

,

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

,A substantial number of personnel ofthe School District were employed for a one hundred and , ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts
for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts are disbursed to the School District 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 isa complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure 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 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 School District'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 ofgeneral circulation in the locality. At the next regular meeting ofthe

Board after advertisement, the Board receives comments onthe 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-l67(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 ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial

-12 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIDIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30.2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) 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 cost. Both participating interest-eaming contractsand money market investments with . a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn 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 of 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.
- 13-

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CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHffiIT "D" ,NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The City of Gainesville Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on June 6, 2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Gainesville City Clerk bills and collects the property taxes for the School District, withholds 1% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $15,038,259.75 and for school bonds amounted to $783,416.57.

Tax millage rates levied for the 2000 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 $3,340,369.12 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $8,906,503.65 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 Sheetat 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 ofpurchase. All purchased general fixed assets are valued at cost where

-.14 -

CITY OF GAINESVILLE BOARDOF EDUCATION - HALL COUNTY EXHmIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
LONG-TERM DEBT AGREEMENT
Prior to January 1, 1994, the City of Gainesville Board of Education was a component unit of the City ofGainesville, 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 construction of major school facilities. The general obligation bonds issued during this time are direct obligations and pledge the full faith and credit ofthe City of Gainesville. However, the City ofGainesville 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 School District issues general obligation bonds to provide funds for' the acquisition and construction ofmajor 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 of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures 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 fmancial 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.
- 15 -

CITY OF GAINESVll..LE BOARD OF EDUCATION - HALL COUNTY EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE30, 2001

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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of 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 ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe dailypool 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.

Ac~eptable security for deposits consists of any one 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 of the bonds for thi~ purp~se,

(6) Industrial revenue bonds and bonds of development 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, 2001, the bank balances were $7;891,264.02. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 16-

CITY OF GAINESVilLE BOARD OF EDUCATION - HALL COUNTY EXHmIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

Category 1 - Cash that is insured (e.g., Federal depository insurarice) or collateralized with

securities held by the School District or by the School District's agent in the

School District's name.

Category 2 - Cash collateralized with securities held by the pledging financial institution's

trust department or agent in the School District'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 School District's name.)

.

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

Risk Category
1 2 3
Total

Bank Balance
$ 329,019.29 7,562,244.73 0.00
$ 7.891,264,02

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 School District or the School District's agent in the School District's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name.
CategoryJ - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name.

At June 30, 2001, the carrying value of the School District's total investments was $1,744,217.20

which is materially the same as fair value. The investments are classified as to risk categories as

follows:

.

Type ofInvestment

Risk Categories

2

3

Carrying Amount

Fair Value

Federated Treasury Obligations

$===O~O~O $ 1737 882.80 $,====O~O~O $ 1,737,882.80 $ 1,737,882.80

Investments not Subject To Categorization:

Mutual Funds Money Market Account
Total Investments

6.334.40

6.334.40

$ I 744 217.20 $ 1.744 217.20

- 17-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHffiIT "0" NOTES TO THE GENERAL-PURPOSE.FINANCIAL STATEMENTS
JUNE30, 2001

Note 3: NON-MONETARY TRANSACTIONS

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

. Note 4: GENERAL FIXED ASSETS .

The foll~w~g is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year:

BalanceJuly 1, 2000 Additions . Deletions BalanceJune 30, 2001

Land

Buildings Eguipment

Total

$ 194,840.76 $32,950,418.22 $7,274,030.80 $40,419,289.78

4,125,468.02 1,317,360.06 5,442,828.08

22,051.17

22,051.17

$ 194.840.76 $37,075.886.24 $8,569339.69 $45.840.066.69

Note 5: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft. of, damage to, and

destruction of assets; errors or omissions; job related illness or injuries to employees; natural

disaster; unemployment compensation and dental care.

.

The School District has obtained commercial insurance for risk oflossassociated with torts, assets,

errors or omissions, job related illness or injuries to employees and natural disaster. The School

"I '

I"

~

District has neither significantly reduced coverage for these risks nor incurred losses (settlements)

which exceeded the School District's insurance coverage in any of the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable,th~t a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2000 2001

$ $

0.00 $ 0.00 $

1.111.00 $ 10,605.27 $

s 1.111.00 $
10,605.27

0.00 0.00

':' 18 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHmIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE30, 2001

Note 5: RISK MANAGEMENT

The School District 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 School District accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred and the amount ofthat loss can be reasonably estimated.

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 207,079.90 $ 207,079.90 $

0.00

$

0.00 $ 236.180.35 $ 236,180.35 $

0.00

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

Position Covered
Superintendent Treasurer

Amount
s 50,000.00
$ 50,000.00

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The City of Gainesville Board ofEducation has entered into various lease agreements as lessee for portable classrooms 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 being acquired under outstanding capital leases as of June 30,2001:

General Fixed Assets

Buildings Equipment

$ 900,000.00 545,685.00

$ 1.445,685.00

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

- 19-

CTIY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE30, 2001

Note 6: GENERAL LONG-TERM DEBT

Purpose

Interest Rates

Amount

General Government - Series 1997

4.00% - 5.00% $ 7.230.000,00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

Balance July 1,2000
Additions Capital Leases
Deductions Debt Retired .
Balance June 30, 2001

, Capital Leases

Long-Term Debt
Agreement

General Obligation
Bonds

Total

$ 674;418.12 $10,855,670.00 $10,025,000.00 $21,555,088.12

545;685.00

545,685.00

146.577.08

983,681.00 2,795,000.00 3,925,258.08

$ 1,073,52604 $ 9,871 989.00 $ 7,230,00000 $18,175,515.04

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items

are as follows:

.

Fiscal Year Ended June 30

Capital Leases

Long-Term Debt
Agreement

General Obligation
Bonds

. Total

2002 2003 2004. 2005 2006 2007 - 2011
Total Principal and Interest

$ 225,087.82 . 245,550.36 245,550.36 245,550.36 173,569.39 111,974.73

$ 980,681,00 980,788.00 983,778.00 984,263.00 984,328.00
4,958,151,00

$ 3,546,710.00 $ 4,752,478.82 3,990,155.00 5,216,493.36 1,229,328.36 1,229,813.36 1,157,897.39 5,070,125.73

s $ 1,247,283.02 9,871 989.00 $ 7,536,865.00 $18.656,137.02

. Deduct: Imputed Interest

173,756.98

Net Present Value of Future Minimum Lease Payments $ 1,073,526.04

Note 7: ON-BEHALF PAYMENTS

The

School

District

has

recognized

revenues ,

and

expenditures

in

the

amount

of $389.,822,52

for

health insurance and retirement contributions paid on the School District's behalfby the following

State Agencies.

'

- 20-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. ioo I

Note 7: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $305,472.45

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $40,376.07

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 $43,974.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

Gainesville High School Gym

$ 1.738.163,67

The amount described in this note is 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 School District believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 10: SUBSEOUENT EVENTS

On September 18, 2001, the voters ofHall Countyvoted in favor ofa Special Purpose Local Option . Sales Tax referendum for educational purposes. The imposition ofthe tax approved by the voters as stated in part on the Official Ballot of Hall County, is as follows:

- 21 -

CITY OF GAINESVll..LE BOARD OF EDUCATION -HALL COUNTY EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE30, 2001
Note 10: SUBSEQUENT EVENTS
"Shall a one percent sales and use tax for educational purposes be continued in Hall County for a period of time not to exceed five years, beginning with the calendar quarter following the calendar quarter in which the sales and use tax for educational purposes presently in effect expires, and for the raising ofnot more than $159,000,000 ... for the following purposes: ... for the Gainesville City School District, (i) paying a portion of the payments, including principal and interest, due on the Gainesville City School District's Series 1991 and 1993 Bonds, with a maximum payment amount of $2,000,000; (ii) acquiring, constructing and equipping two new elementary schools, constructing and equipping additional classrooms, instructional and support space, remodeling, renovating and equipping existing classrooms, instructional and support space, acquiring furnishings, equipment and fixtures for new and existing facilities, and acquiring and conducting site preparation of real estate for school district purposes, with the estimated cost ofsuch projects to be financed from funds raised by the Sales Tax being $23,462,770; and (iii) payment of any general obligation debt of the Gainesville City School District issued in conjunction with the imposition of the Sales Tax.
Ifthe imposition ofthe tax is approved by the voters in Gainesville City School District, such vote shall also constitute approval ofthe issuance ofgeneral obligation debt ofthe Gainesville City School District in the maximum aggregate principal amount of $16,100,000 for the purposes set forth in item (ii) above for the Gainesville City School District and for the purpose ofpayment of a portion of the interest on such debt."
Note 11: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts 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 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 School District who are covered byTRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with Statestatute 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:
- 22-

CTIY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY EXHmIT "D"
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

Note 11: RETIREMENT PLANS
Fiscal Year
2001 2000 1999

Percentage Contributed
100% 100% 100%

Required Contribution
$ 2,061,498.43 $ 1,967,166.99
s 1,979,548.08

- 23-

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

ASSETS
Cash and Cash Equivalents
Investments
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 Deferred Revenue
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
See notes to the general-purpose financial statements. ~ 24-

SCHOOL FOOD
SERVICES FUND

$

492,209.42

LOTIERY PROGRAMS

72,555.11 $

160.00

19,392.40 15,078.93

========== $

599,235.86 $

160.00

$

$

29,828.33

76,282.19

$

106,110.52 $

160.00 1'60.00

$

19,392.40

15,078.93

458,654.01 $

0.00

$

493,125.34 $

0.00

========= $

599,235.86 $

160.00

EXHIBIT"E"

FEDERAL PROGRAMS

ATHLETIC FUND

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

21,818.06 $

514,027.48 $

318,185.14

13,483.66

13,483.66

$

355,488.66

428,203.77

561,530.40

19,392.40 15,078.93

22,381.50 11,197.66

$

355,488.66 $

35,301.72 $ 990,186.24 $ =====:9::1:..3=,=2=9=4=.=7=0=

$

151,565.80

45,360.10

153,376.96

79.00

5,106.80

$

355,488.66

$

151,725.80 $

170,758.91

75,188.43

124,758.97

229,659.15

230,616.33

79.00

75.64

5,106.80

$

461,759.18 $

526,209.85

$

2,736.10

$

19,392.40

15,078.93

22,381.50 11,197.66

$

0.00 $

35,301.72

493,955.73

350,769.59

$

0.00 $

35,301.72 $

528,427.06 $

387,084.85

$

355,488.66 $

35,301.72 $ 990,186.24 $ ======9=1=3=,=2=9=4=.7=0==

-25 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEARENDED JUNE 30, 2001

FUND BALANCE JUNE 30

$ 493,125.34 $=========0=.0=0=

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

EXHIBIT"F"

FEDERAL PROGRAMS

ATHLETIC FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ $ 1,845,974.34
- - - - - - $--.:..1=6.9:,7:3;2~.=2.4:-

s 1.845,974.34 $

169,732.24 $

180,980.00 $ 2,951,264.57
456.133.16
3,588.377.73 $

172,767.49 2,704,866.13
454.277.56
3,331.911.18

s 1,143,044.64
436,141.42 182,338.46
5,849.19 39,989.51 74,688.50 $

$ 1,882,051.72 $

$

-36.077.38 $

s
158,805.46 158,805.46 $
10,926.78 $

1,226,739.64 $
436,141.42 182,338.46
5,849.19 39,989.51 233,493.96 1.357.251.79
3,481.803.97 $
106.573.76 $

1,135,865.56
376,945.53 197,139.97
4,866.50 25,741.25 263,290.76 1,294,196.46
3.298.046.03
33,865.15

33,341.28

33.876.28

14.770.08

s

-2,736.10 $

10,926.78 $

140,450.04 $

48,635.23

2,736.10

24,374.94

387.084.85

337,935.65

-2,989.10 3,881.27

278.36 235.61

$

0.00 $

35,301.72 $

528,427.06 $

387,084.85

- 27-

CITY OF GAINESVILLE BOARD OF EDUCATION HALL COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

ASSETS Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EqUITY LIABILITIES
Cash Overdraft Accounts Payable 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

$

837,569.40

------

$

-

-

-

'

-

1,744,217.20
'-'-"-'-=";';'-='-

$

837,569.40 $ 1,744,217.20

$

78,976.84

958.32

348,154.00

262,297.00

~

690,386.16

$ 1,053,831.04

$

837,569.40

0.00

$

837,569.40 $ 1,053,831.04

$

837,569.40 $ 1,744,217.20

See notes to the general-purpose financial statements. - 28-

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00 $

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

0.00 $

837,569.40 $

997,070.27

1,744,217.20

5,815,326.88

$

0.00 $======0.=00== $ 2,581,786.60 $ 6,812,397.15

$

78,976.84

958.32

348,154.00 $

374,034.00

262,297.00

679,768.25

$

690,386.16 $ 1,053,802.25

$ 1,053,831.04 $ 4,668,935.55 356,682.95

$

0.00 $

--=.;O,:.:.OO~

837,569.40

732,976.40

$

0.00 $

s . --=-O.:.:.OO~

1,891,400.44 $ 5,758,594.90

$

0.00 $=====O,:=OO=. $ 2,581,786.60 $ 6,812,397.15

'. 29-

CITY OF GAIN~ COMBINING STATEMENT OF F.~

.: BOARD OF EDUCATION - HALL CC,:~/ ;-y .' '[.:S, EXPENDITURES AND CHANGfJ;: jill FUND BALANCES .. :ITAL PROJECTS FUND . j ENDED JUNE30. 2001

REGULAR

BOND PROCEEDS

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

EXHIBIT"H"

GEORGIA STATE . FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

. 7,318.10 $

32,624.10 $

39,942.20 $

359,479.80

257,907.81

494,557.35

$

7,318.10 $

32,624.10 $

297,850.01 $_---"8'5~4=,0"3'7-.1'5~

$

0.00 $

136,528.97 $ 4,269,637.47 $ 6,164,533.89

81,264.88

76,229.97

$

0.00 $

136,528.97 $ 4,350,902.35 $ 6,240,763.86

$

7,318.10 $

-103,904.87 $ -4,053,052.34 $ -5,386,726.71

$

445,954.06 $

689,822.97

$

-34,135.15 $

-225,961.03

-260,096.18

$

-34,135.15 $

-225,961.03 $

185,857.88 $

689,822.97

$

-26,817.05 $

-329,865.90 $ -3,867,194.46 $ -4,696,903.74

26,817.05

329,865.90

5,758,594.90

10,455,498.64

$

0.00 $======0'=00== $ 1,891,400.44 $ 5,758,594.90

- 31 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

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, 2001

JUNE 30, 2000

$ 2,005,962.14 $ 2,005,962.14 $ 1,942,387.75

$ 71,380,86

589,059.02

660.439.88

659,703.12

$ 71,380.86 $ 2,595,021.16 $ 2,666,402.02 $ 2,602,090.87

Total Liabilities and Fund Equity

$ 71,380.86 $ 2,595,021.16 $ 2,666,402.02 $ 2,602,090.87

{.

See notes to the general-purpose financial statements.

- 32-

CITY OF GAINESVILLE BOARD OF EDUCATION -HALL COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30.2000

$ 783,416.57 $ 3.340,369.12 $ 4,123,785.69 $ 4.071,742.30

103,687.40

103,687.40

118,376.60

$ 783,416.57 $ 3,444,056.52 $ 4,227,473.09 $ 4,190,118.90

$ 359,000.00 $ 423.680.00 878.40

2.996.000.00 $ 349.010.00 4,791.12

3,355,000.00 $ 772.690.00 5.669.52

2,870,000.00 906.958.50 6,312.80

$ 783,558.40 $ 3.349,801.12 $ 4,133,359.52 $ 3,783,271.30

$

-141.83 $

94.255.40 $

94,113.57 $ 406.847.60

222.54

2.500.765.76

2,500,988.30

2.094.140.70

FUND BALANCE JUNE 30

$====80=.7=1= $ 2,595,021.16 $ 2,595.101.87 $ 2,500,988.30

See notes to the general-purpose financial statements.

- 33-

ClTYOF C . COMBINING ;:.

.; VILLE BOARD.OFEDUCATfON- HAL:.Lc.;,. ,<'{ ,.\\lENT OF,CHANGES"'IN';ASSETS.ANDUt".l" ?:lES
:~RY FUND rmE" ~AGENCY FUNDS .~AR ENDED JUNE 30)2001

EXHIBIT "K"

SPECIAL ACCOUNT
ASSETS Cash and Cash Equivalents

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

3.706.07 $

153.31 $

1,473.13 $

2,386.25

LIABILITIES Funds Held for Others
STUDENT ACTIVITIES ACCOUNT ASSETS
Cash and Cash Equivalents Investments

$

3,706.07 $

153.31 $

1,473.13 $====2,=38=6.=25=

$ 161,518.09 $ 572,094.20 $ 545,648.07' $ 187,964.22

0.00

21,307.21

21,307.21

$ 161,518.09 $ 593,401.41 $ 545,648;07 $ 209,271.43

LIABILITIES FundsHeld for Others

$ 161,518.09 $ 593,401.41 $ 545,648.07 $ 209,271.43

FLEX SPENDING ACCOUNT
ASSETS Cash and Cash Equivalents

$

5,431.55 $

27,189.26 $

30,382.33 $==~=2,=23:8.=48,

LIABILITIES Funds Held for Others

$

5,431.55 $ 27,189.26 $ 30,382.33 $====2,=23=8.=48=

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents Investments

$ 170,655.71 $ 599,436.77 $ 577,503.53 $

0.00

21,307.21

192,588.95 21.307.21

$ 170,655.71 $ 620,743.98 $ 577,503.53 $ 213,896.16

LIABILITIES Funds Held for Others .

$ 170,655.71 $ 620,743.98 $ 577,503.53 $ 213,896.16

See notes to the general-purpose financial statements.

- 34'- .

CITY OF GAINESVILLE BOARD OF EDUCATION HALL COUNTY SCHEDULE OF EXPENDITURES OF fEDERAL AWARDS YEAR ENDED JUNE 30, 2001

SCHEDULE 1

CIIYOF GAINESVlI;I BOARDOF;EDUCA1:ION HALL cOUNTY
SCHEDULE ~FEXPEN(;)ITURES'6FFEDERA[!;o;WARDS YEARENi>EDJONEi:fO; 2001

SCHEDULE "1"

FUNDING AGENCY

, . ,.

PROGRAM/GRANT

Transportation,U. S. Depanbnentof Pass-Through FromThe Georgia Depanbnent of Public Safety D.R.I.V.E. Program

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

20.600

NlA $ '4,283.00 $ _ _--4-",2=8=3.=00_

Total FederalFinancial Assistance

$ 2,951,264.57 s: 3,239,303.51

NlA = Not Available

Notesto the Schedule of Exoenditures of Federal Awards

(1) The amountsshownfor the FoodDistribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/orconsumed by the systemduring'thecUrrent fiscal year.
(2) expenditures for the SchoolBreakfast Program werenot maintained separatelyand are included in the 2001 National SchoolLunch Program.
(3) Expenditures for this programInclude State,and/orOtherFunds. expenditures are not mainta,ined. by fund source.

Major Programs are identified by an asterisk(0) in front of the CFDAnumber.

The School Districtdid not provideFederal Assistance to any SUbrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grantactivityotthe City of !3ainesville ~oard ot EducationandIs p~sented on the modified accrualbasis of accounting Which is the baslsot accounting .used II' the presentation otthe gentjral-purpose financial statements.

See notes to the general-purpose financial statements.

36

, '.
CITY Of GAINESVILLE BOARD Of EDUCATION - HALL COUNTY SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE .'Z'

AGENCYIFUNDING

GRANTS
Community Affairs. Georgia Department of
Govemor's Emergency funds (1)

Education. Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

Kindergarten Program - Early Intervention Program

Primary Grades (1-3) Program

Primary Grades - Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

.

High School General Education (9-12) Program

Vocationel Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category III

Category IV

Gifted Student - Category VI

Remedial Education Program

Altemative Education Program

English Speakers of Other Languages (ESOL)

Media Center Program

Staff and Professional Development

Indirect Cost

Categorlcal Grants

Pupil Transportation

Regular

Bus Replacament

Nursing Services

Principal Supplements

Vocational Supervisors

Deferred Summer Salaries (Prior Year)

Deferred Summer Salaries (Current Year)

Food Services

Vocational Education

Other State Programs

Appranticeshlp Program

At-Risk Summer School Program

Health Insurance

Innovative Programs

Mentoring Program

Mentor Teachers

Preschool Handicapped Program

Remedial Summer School

Special Education Low Incidence Grant

Teachers' Retirement

Lottery Programs

Computers in the Classroom

Exceptional Growth-Capital Outlay

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

Office of Treasury and Fiscal Services Public School Employees Retirement

CONTRACT Education. Georgia Department of Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

12.500.00

$

12.500.00

393,356.00 881.816.00 2.004.578.00 878.597.00 1.032,452.00 1.702.810.00 1.440.530.00 483.886.00
4.894.00 162.688.00 437,827.00 121.175.00 228,143.00 154.931.00 131.545.00 840.988.00 332,407.00
89.357.00 1.947,458.00
287.458.00 80.314.00 96.128.00 17,799.00 22,371.00
-1,901.224.00 2.058,759.75
s 97.820.00
11.388.00
35.000.00 3,570.87
305.472.45 2.629.17 3,500.00 3.097.00
74.054.00 5.341.91 14,819.00
40.376.07
83,160.00 $ 32.624.10

393.356.00 881.816.00 2.004.578.00 878.597.00 1.032,452.00 1,702.810.00 1.440,530.00 483.686.00
4.894.00 162.668.00 437,827.00 121.175.00 228.143.00 154.931.00 131.545.00 840.988.00 332,407.00
89.357.00 1.947.458.00
287.458.00 80.314.00 96,128.00 17.799.00 22.371.00
-1.901.224.00 2.058.759.75
97,820.00 11.388.00
35,000.00 3.570.87
305,472.45 2.629.17 3.500.00 3,097.00
74,054.00 5,341.91 14.819.00
40.376.07
83.160.00 32.624.10

43.974.00

7.316.10

7,318.10 43.974.00

37,832.00

37.832.00

s 14.524,358.22 $ 180,980.00 $ 39.942.20 $ 14,745.280.42
(1) The purpose of the funds Is to provide funds to Gainesville High School to assist with the purchase of equipment and a washing machine and for renovations to the Annex Building
and the training room.
See notes to the general-purpose financial statements.
-37 -

CITY OF GAINESYILLE BOARDOF EDUCATION - HALLCOUNTY SCHEDULE OF APPROYED LOCAL OPTION SALES TAX PROJECTS
YEARENDEDJUNE30, 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

Payments of a portionof the previously incurred obligation debts of capitaloutlay projectsof the City of Gainesville SchoolDistrld are specifically 1986, 1991, 1993 bondsbecoming due January" 1998 throughand inclUding December 31,2002

$ 2,038,737,00 $ 2,038,737,00 $ 359,000,00 $

765,000,00

Ongoing

Construction of additional classrooms, instructional and supportspaces,as well as, remodeling and renovating existingclassrooms, instructional and supportspacesand to providefumishings, equipment and fixturesfor such areasat exi~ting elementary and middleschools

4,105,931,00

4,105,931,00

136,528,97

2,946,701,06 Ongoing

Acquisition, construdion and equipping of new academicwing, renovation of existinginstructional and supportspaces,construction of a new gymnasium at the high school

14,080,332,00 14,080,332.00 4,124,813.43

7,655,783,44 Ongoing

$ 20,225,000,00 $ 20,225,000,00 $ 4,620,342.40 $ l',367A84,50

(1) The SchoolDistrict'soriginalcost estimate as specified In the resolution calling for the imposition of the LocalOption Sales Tax,

(2) The SchoolDistrid's currentestimate of total cost for the projeds, Includes all cost from projectinception to completion,

(3) The voters of Hall Countyapproved the imposition of a 1% salestax to fund the aboveprojectsand retire associated debt. Amounts expended for theseprojectsmayinclude salestax proceeds, state,localproperty taxes and/orother funds over the life of the projects.

(4) In additionto the expenditures shownabove,the SchoolDistrid incurred interestand otherexpense to provideadvance fundingfor the above projeds as follows:

Prior Year

$ 1,424,713,30

Current Year

353,801,12

Total

$ l,n8,514,42

See notesto the general-purpose financial statements,

- 39-

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM 'LEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

category I

category II

category !II

category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

528,451.00 $ 1,184,668.00 2,693,034.00 1,180,345.00 1,387,039,00
2,287,627.00 1,935,269,00
649,804.00 976,096.00

903,979.62 $ 866,n3.81 2,918,406,41 1,082,024.47 1,9n,456,82
120.50 2,408,926.46 2,484,383.96
605,890.95

306,498.00 . 208,141.00 176,723.00 1,129,792.00

304,822.08 906,010.25 167,313.29 364,193.53 116,489.83 114,518.42 895,301.55

65,241.20 $ 969,220,82

19,781.98

886,555.79

188,478.46

3,106,884.87

136,578.50

1,218,602.97

75,931.90

2,053,388.72

3,434,29

3,554.79

313,416.48 . '2,722,342.94

744,537.22

3,228,921.18

99,290.52

705,181.47

2,475.99 16,551.17 42,433.38
337.94 8,050.78 3,666.53 52,307.62 5,550.08

2,475.99 321,373.25 948,443.63 167,651.23 372,244.31 120,156.36 166,826.04 900,851.63

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

14,643,487.00 $ 16,116,611.95 $ 1,n8,064.04 $ 17,894,675.99

Media Center Program Staff and Professional Development

446,569.00 120,045.00

444,824.81 66,588.38

100,522.92 68,533.60

. 545,347.73 135,121.98

TOTAL aBE FORMULA FUNDS

$

15,210,101.00 $ 16,628,025.14 $ 1,947,120.56 $ 18,575,145.70

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements.

-40 -

CITY OF GAINESVILLE BOARD OF EDUCATION - HALL COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Centennial Elementary School Enota Elementary School Fair Street Elementary School Gainesville High School Gainesville Middle School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,757,832.00 $

3,136,520.59

3,544,835.00

3,886,398.94

1,996,361.00

2,650,068.84

3,350,583.00

4,612,687.30

2,817,153.00

3,480,119.17

176,723.00

40,840.05

88,041.10

$

14,643,487.00 $ 17,894,675.99

See notes to the general-purpose financial statements. - 41 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATEAUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 2, 2002

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 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 fmancial statements ofCity ofGainesville Board ofEducation as ofand for the year ended June 30,2001, and have issued our report thereon dated April2, 2002. 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 of Education'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
2001YB-I0

control over financial reporting. Our consideration ofthe 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 ofone 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 ofthe 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 2001YB-1O

Ru ell W. Hinton State Auditor

RUSSELL W. HINTON
STATEAUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta, Georgia 30334-8400
April 2, 2002

Honorable Roy E. Bames, 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 CIRCULAR A-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 U.S. 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, 2001. City of Gainesville Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to each ofits major Federal programs is the responsibility ofCity ofGainesville Board of Education's management. Our responsibility is to express an opinion on City ofGainesville Board of Education'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 A133, 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 Federalprogram occurred. An audit includes examining, on a test basis, evidence about the City of Gainesville 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.
200ISA-1O

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, 2001.

hiternal 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-133.

Our consideration ofthe internal control over compliance would notnecessarily 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 ofthe 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 2001SA-IO

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, 2001
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS No matters were reported.

SECTIONN FINDINGS AND QUESTIONED COSTS

CITY OF GA.INESVILLE BOARD OF EDUCATION - HALL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the 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 ofthe 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 Major 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 .51O(a) ofOMB Circular A-l33 The City ofGainesville Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Maior 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
a The City ofGainesville Board ofEducation qualified as low risk auditee based on a waiver
granted by the U. S. Department of Education.
IT . FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
No matters were reported.
-I -

CITY OF GAINESVlLLE BOARD OF EDUCATION ..HALL COUNTY SCHEDULE OFFINDINGS AND'OUESTIONEDCOSTS YEAR ENDED JUNE 30, 2001
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
- 2-