City of Pelham Board of Education, Mitchell 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 PELHAM BOARD OF EDUCATION
MITCHELL COUNTY, GEORGIA

REPORT ON AUDIT



OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton - State Auditor


CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY
-TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF M

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM



Page
32 34 35 37 38

SECTIONTI
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 CIRCULARA-133

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


SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF 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
May 10,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducati.on
and Superintendent and Members of the City of Pelham Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe City ofPelham 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 of the City of Pelham 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 fmancial 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 opm w n.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2000ARL-13A

* The general purpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confmm to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Pelham Board of Education as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in confmmity 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 10, 2001, on our consideration ofthe City ofPelham Board ofEducation'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 perfonned 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 Pelham Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits G through L) and the financial schedules (Schedules 1 through 5}, which includes the Schedule ofExpenditures ofFederal Awards as required
by U.S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a
required part ofthe general purpose financial statements. Such infmmation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our
2000ARL-13A

opinion, except for the effects of the matters referred to in the third paragraph, such infonnation 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 50-
6-24.
Respectfully submitted,

RWH:gp
2000ARL-13A


W. Hinton Sta(e Auditor


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CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNIT

-





CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 2000


ASSETS

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

Cash and Cash Equivalents

$

361,783.16 $

164,059.64 $

146,208.47

Investments

1,859,000.00

483,000.00

Accounts Receivable

126,817.08

127,560.22

132,295.11

Prepaid Items
Inventories Food Donated Commodities Purchased Food

29,528.79
'

3,858.00 2,599.52

Amount to be Provided in Future Years For Payment of Capital Lease Agreements

Total Assets

.
$ 2,377,129.03 $

298,077.38 $ ...,_,...:7~6.:..!1~50~3,;.;;:.5~8

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Salaries Payable Funds Held for Others Capital Lease Agreements
Total Liabilities
FUND EQUITY

$


883.67 $
1,800.00

29,343.23 104,165.30

$
-

2,683.67 $ _ __:..:13:,:3;,:,5:.:.08:.:.5::::3~

Fund Balances Reserved For Bus Replacement Funds For Endowment Corpus For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated

$

28,995.00

$

3,858.00

2,599.52

$

122,807.10 2,222,643.26

158,111.33

728,311.56 32,149.00
1,043.02

Total Fund Equity

$ 2,374.445.36 $

164,568.85 $ _ _7!_!6~1.1.!:,5~0~3.~58:!..



Total Liabilities and Fund Equity

$ 2,377,129.03 $

.._ - - -

--- -

2981077.38 $ ......,.....,:7,.;;:,6.:..1o5~0;,;;:.3;.:;5:.8 :;;.,

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

TOTALS

{Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

5,267.04 $

677,318.31 $ 11171,792.50

20,000.00

2,362,000.00

830,000.00

909.59

387,582.00

368,983.24

29,528.79

27,048.07

3,858.00 2,599.52

7,181.92 5,466.55
44 960.14

$

0.00 $

26,176.63 $ 3,462,886.62 $ 2,455,432.42

$

30,226.90 $

104,387.95

105,965.30

110,880.50

$

119.78

119.78

194.78

44 960.14

-

$

119.78 $

136,311.98 _$ ----=2~6;..::;0....,,4=-23::.:=..37'-

$

$ -------'0"-'-.0""'0"-

$

0.00 $

$
20,000.00

28,995.00 $
20,000.00

25,158.00 20,000.00
3,050.55

6,056.85
26,056.85 $

3,858.00 2,599.52 728,311.56 . 32,149.00
122,807.10 2,387,854.46
3,326,574.64 $

7,181.92 5,466.55 194,315.58
108,868.67 1,830,967.78

2,195,009.05

$

0.00 $

26,176.63 $ 3,462,886.62 $ 2,455,432.42

- 3-




CITY OF PELHAM BOARD OF EDUCATION- MITCHELL 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 Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USE$)
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

$ 7,007,111.76 $

319,673.19

7,138.91

1,288,710.42

616,698.90

151,879.58

107,418.93

$ 7'782,829. 15 $ _ _1!J.7,~1c:;:5~,8~02:.:;.5::::4::....

$ 5,245,263.05 $
317,129.66 128,679.41 174,872.74 136,181.58 519,800.54 115,771.03 508,601.35
31,545.16 48,255.51 10,058.56
9,572.65 23,205.00

819,629.98 33,361.72 57,079.28 58,820.22
12,122.29
21,944.35 612,588.59
40,000.00 1,922.83

$ 7,268,936.24 $ 1,657,469.26

$

513,892.91 $ _ __:5::.::8J.:3:,:.::.33:::.:.:..:28:;_

$ $ _ _..:.-1:...:3~6~3.~81!....

988.81

$

-1 363.81 $ _ _ _:::..:98::.::::8.:;::.8~1

$

512,529.10 $

1,861 ,916.26

59,322.09 111,437.71

-3,323.92 -2,867.03

FUND BALANCE JUNE 30
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 Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 7,326,784.95 $ 6,860,881.77

1,295,849.33

1,110,256.40

$

592,350.15 $

144,750.71

1,353,799.76

1,204,050.01

17 818.09

277,116.60

197,476.96

$

610,168.24 $

144 750.71 $ 10,253,550.64 $ 9,372,665.14

$ 6,064,893.03 $ 5,743,099.98

$

44,000.00

350,491.38 185,758.69 174,872.74 195,001.80 519,800.54 115,771.03 520,723.64
31,545.16 48,255.51 32,002.91 612,588.59
9,572.65 67,205.00

312,414.25 174,215.37 154,608.39 170,519.95 520,091.82 136,772.59 499,973.89 26,031.61 43,185.74 23,799.18 607,981.87
4,682.16 659,160.68

$

90,000.00

54,075.00

675.71

130,000.00 55,997.83
675.71

132,330.99 ()3,187.52 675.80

$

44.000.00 $

144 750.71 $ 9.115.156.21 $ 9.272.731.79



$

566.168.24 $

0.00 $ 1.138.394.43 $

99.933.35

$

375.00

$ _ _____.:3::..:.7..:::.5~00:::....

$

566,543.24 $

194,960.34

$

1,363.81 $

17,586.62

-1 363.81

-17.586.62

$

0.00 $

0.00

0.00 $
0.00


1,138,394.43 $
2,168,314.31

99,933.35 2,070,391.11

-3,323.92 -2.867.03

-2,161.59 151.44

$

761,503.58 $ _ _ _......;;;oo;,;,OO;;... $ 3,300,517.79 $ _

-5-




CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - !NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds



$ 6,790,231.58 $ 7,007,111.76

27,079.00

7,138.91

484,000.00

616,698.90

21,500.00

151,879.58

Total Revenues EXPENDITURES

$ 7,322,810.58 $ 7,782,829.15



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 Community Services Operations
Capital Outlay Debt Service

$ 5,820,009.58 $ 5,245,263.05

346,675.00 170,399.00 175,281.00 172,671.00 560,283.00 174,204.00 601,044.00 87,759.00 65,627.00
12,550.00

317,129.66 128,679.41 174,872.74 136,181.58 519,800.54 115,771.03 508,601.35 31,545.16 48,255.51
10,058.56

19,000.00

9,572.65 23,205.00

Total Expenditures

$ 8,205,502.58 $ 7,268,936.24

Excess of Revenues over (under) Expenditures

$ -882,692.00 $ 513,892.91

OTHER FINANCING SOURCES CUSESl

Other Sources Other Uses

$ _ _-...:1..,,3:.::::6~3.::;8.:....1

Total Other Financing Sources (Uses)

$ _ _-_,_1~3:::::63~.8~1:..

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

$ -882,692.00 $ 512,529.1 0

FUND BALANCE JULY 1, 1999

1,706,836.65 1,861,916.26

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

178.86

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 315,162.19 $ 319,673.19 1,309,611.00 1,288,710.42


98,904.00

107,418.93

$ 1,723,677.19 $ 1,715,802.54

$ 911,242.07 $ 819,629.98

34,556.00 53,386.98

33,361.72 57,079.28

59,466.14

58,820.22

12,115.00

12,122.29

22,242.00 630,669.00

21,944.35 612,588.59

41,922.83

$ 1,723,677.19 $ 1,657,469.26

$

0.00 $ 58,333.28

$

988.81

$ _ _....::9:.:::.88:::.::::..81~

$

0.00 $ 59,322.09

107,380.55

111,437.71

-3,036.99

-3,323.92 -2,867.03

FUND BALANCE JUNE 30, 2000

$

The notes to the general purpose financial statements are an integral part of this statement. -7-

.
CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30. 2000

EXHIBIT "D"

OPERATING REVENUES Donations
OPERATING EXPENSES Current Support Services Other Support Services Community Services Operations Total Operating Expenses Operating Income
NONOPERATING REVENUES Interest Eamed Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

C.M.AND BERNICE C. STRIPLING PELHAM FFA SCHOLARSHIP TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999


$

1,000.00 $

1,000.00 $ _ ____:.1.1::9:...:.1::.;4:.:::.86~

$

2,234.00 $

2,234.00 $

1,000.00

433.45

433.45

$

2,667.45 $

2,667.45 $ _ ____:.1..r.::O:.:::O~O.~O~O

$

-1,667.45 $

-1,667.45 $

914.86

1,029.56

$

-637.89 $

1,029.56 -637.89 $

1 244.52 2,159.38

26,694.74

26,694.74

24,535.36

-

$

26,056.85 $

26,056.85 $ = =

74

--------

~-----~

The notes to the general purpose financial statements are an integral part of this statement.
-8-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "E"

C.M.AND BERNICE C. STRIPLING PELHAM FFA SCHOLARSHIP
TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

Cash Flows from Operating Activities:

Cash Received from Donations

$

Cash Paid for Scholarships


Net Cash Provided (Used) by Operating

Activities

$

1,000.00 $
-2 667.45
-1 667.45 $

1,000.00 $
-2,667.45

1,914.86 -1 000.00

-1 667.45 $ _ _ _.:.9.:..14.:..:.;.8:.:6:..

Cash Flows from Investing Activities: Interest Received on Investments

$

1 166.00 $

1.166.00 $ _ _____.;.1.~...:1..;;;.50=.::;.00~

Net Cash Provided (Used) by Investing Activities

$

1,166.00 $

1z166.00 $ _ ____:.;1L.:-15:;:.:0:.:_;0:.:0:;_

Net Increase (Decrease) in Cash

$

-501.45 $

-501.45 $

2,064.86

Cash and Cash Equivalents - July 1

5 648.71

5 648.71

Cash and Cash Equivalents - June 30

$

5,147.26 $

5 147.26 $ """======5=6=48==71=

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

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City of Pelham Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes. 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 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.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confomt to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, 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 presented in this report are as follows:
GOVERNMENTAL FUND TYPES -are used to account for all or most of a 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.
- 11-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY EXHIDIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

'
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 for the City of Pelham, Georgia, General Obligation School Bonds, Series 1993.

FIDUCIARY FUND TYPES -the funds 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. These funds include:
NONEXPENDABLETRUSTFUND C. M. and Bernice C. Stripling Pelham FFA Scholarship Trust Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide a scholarship to the most outstanding graduating student in the Agricultural Education (Future Farmers of America) Program at Pelham High School.
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
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.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and ljabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
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:
- 12-

CITY OF PELHAM BOARD OF EDUCATION -MITCHELL COlJNfY EXHffiiT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 detennined 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.

A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period 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 were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis ofaccounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The City ofPe1ham 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. Ther~ 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 ofbudget 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.
- 13-

CITY OF PELHAM BOARD OF EDUCATION -MITCHELL COUNTY EXHffiiT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 associatio1:1-s, 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 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 ofthe 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
- 14-

CITY OF PELHAM BOARD OF EDUCATION - MITCHELL COUNTY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

.
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 infonnation 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 ofPelham fixed the property tax levy for the 1999 tax year (calendar year) on October 15, 1999 (levy date). Taxes were due on December 20, 1999. 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 City of Pelham City Clerk bills and collects the property taxes for the Board of Education.

The tax millage rate levied for the 1999 tax year (calendar year) for the City of Pelham Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations



7.5 mills

SALES TAXES
Local Option Sales Tax revenue during th-e fiscal year amounted to $3 74,104.89 and was recorded in
the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the
Board.

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 $737,100.86 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $1,714,115.24 has been collected or on June 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

- 15-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 2000, are recorded as prepaid items.

LONG-TERM DEBT AGREEMENT

The City ofPelham, Georgia (City Government) issued General Obligation Bonds to provide funds for the acquisition and construction of major capital facilities. The general obligation bonds are direct obligations and pledge the full faith and credit of the City Government. In accordance with the bond validation (Civil Action File No. 93-V-743) "...the City of Pelham shall provide for the assessment and collection ofan annual tax sufficient in amount to pay the principal ofand interest on said debt by the levy ofan annual tax upon all property subject to taxation for school bond purposes within the corporate limits of the city... ".

Although not required by formal agreement to do so, during fiscal year 2000, the Board paid

$144,750.71 for debt service on the City Government's general obligation bonds. However, as

discussed above, the debt associated with those general obligation bonds is the liability ofthe City

Government; therefore that debt is not recorded on the financial statements ofthe City of Pelham

Board ofEducation.
-

INTERFUND TRANSACTIONS



The Board has the following types of interfund transactions:
-
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable
to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses 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, results ofoperations or cash flows 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.

- 16-

CITY OF PELHAM BOARD OF EDUCATION -MITCHELL COUNTY EXHffiiT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000
Note 2: DEPOSITS
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 daily pool 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 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 this purpose,
(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 30,2000, the bank balances were $3,459,484.74. The amounts ofthetotal bank balances are classified into three categories of credit risk:
- 17-

'
CTIY OF PELHAM BOARD OF EDUCATION -MITCHELL COUNTY EXHIDIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 2: DEPOSITS

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.)

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

Risk Category

Bank Balance

1

$ 300,149.82

2

894,774.62

3

2,264,560.30

Total

$ 3,459.484.74

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 Federally assigned value. See Note 1- Inventories

Note 4: 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.

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. 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 has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

- 18-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims 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:

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1999
2000

$

4,480.00 $

$

0.00 $

327.00 $
360-.16 $

4,807.00 $._ ___,0=.0=0 360.16 $._ ___,0=.0=0

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00 .


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

-

Position Covered

Amount

Superintendent

Each Principal

Office Manager/Bookkeeper

Personnel/Payroll Clerk

Accounts Payable Clerk

Secretary/Bookkeeper



$ 100,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $113,071.18 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

- 19-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY EXHffiiT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000
Note 5: 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$90,585.16
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$8,235.02

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$14,251.00
Note 6: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant tenns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (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 of the 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 t}:teir 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:
-20-

CITY OF PELHAM BOARD OF EDUCATION -MITCHELL COUNTY EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 7: RETIREMENT PLANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 628,682.34 $ 631,106.21 $ 585,690.63




-21-

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable

Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

189,338.97 $

26,893.82

1,259.87

3,858.00 2,599.52

Total Assets

$

197,056.36 $ ===2=6..,,8=9=3.=82==

LIABILITIES AND FUND EQUITY

LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable



$

5,277.67 $

5,406.94



27,209.84

21,486.88

Total Liabilities

FUND EQUITY

-

$

32,487.51 $ ---=2:=6.z.=8,;.:::.93=..:.::.:82=-

Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated

$

3,858.00

2,599.52

158'111.33 $ _ _ _ _0=.,:;::,;00::._

Total Fund Equity

$

164,568.85 $ _ _ ___:0:..:;.0:::..::0:....

Total Liabilities and Fund Equity

$ -----1-9-7-,0-5-6-.-3-6

$ ------

- -2-6,-893.82

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

EXHIBIT "G"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

216,232.79 $

152,120.84

$

126,300.35

127,560.22

177,682.02


3,858.00 2,599.52

7,181.92 5,466.55

$

126,300.35 $

$

52,173.15 $

52,173.15 $

95,922.17

18,658.62

29,343.23

24,210.95

55,468.58

104,165.30

110,880.50

$

126,300.35 $

1851681 68 $ _ __:2::::3:...:..1 0..:.;13:.:,6::,:2:.,_

Z..::::l

$

3,858.00 $

7,181.92

2,599.52

5,466.55

$ _ _ ___;o:;.;...o;;;..;;o;....

158,111.33

98,789.24

$

0.00 $

164,568.85 $ _ _1.:....:1~1.~..:4.:,37:....:.:....71:.....



$

126,300.35
----

$

350,250.53 $ ="""""3=4==2=,4=-51_.3...3....

-23-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL 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 Maintenance and Operation of Plant Other Support Services Food Services Operation
Debt Service Principal

Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

49,176.00 $

270,497.19

515,315.75

107,418.93

$

671 '91 0.68 $ _ ____,!2:.!7.!::.0..:::::.4~97!..:.1..:..::9~

$
. $
$

$

178,686.93

26,982.85

11 '142.90 12,122.29

612,588.59

40,000.00 1,922.83

612,588.59 $ _ __..:2:.:.7..!::.0...::8:~:,57:..:.:::::..:80~

59,322.09 $

-360.61



360.61

$

59,322.09 $

0.00

111,437.71

0.00

-3,323.92 -2,867.03

FUND BALANCE JUNE 30

$

164,568.85 $

0.00

----------

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

EXHIBIT "H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30,2000

JUNE 30, 1999

$

319,673.19 $

279,612.99

$

773,394.67

1,288,710.42

1,106,814.82

107 418.93

98,838.76



$

773,394.67 $ 11715,802.54 $ 1,485,266.57

$

640,943.05 $

819,629.98 $

702,005.71

6,378.87

33,361.72

27,075.03

57,079.28

57,079.28

15,384.06

47,677.32

58,820.22

40,204.19

12,122.29

16,394.51

21,944.35

21,944.35

13,307.07



612,588.59

607,981.87

40,000.00

42,330.99

1,922.83

5,422.52



$

774,022.87 $ 1,657,469.26 $ 1,470,105.95

$

-628.20 $

58,333.28 $

15,160.62

628:20

988.81

17,586.62

$

0.00 $

59,322.09 $

32,747.24

0.00

111,437.71

80,700.62

-3,323.92 -2,867.03

-2,161.59 151.44

$

0.00 $

164,568.85 $ ===1=1=1=4=37=..7.1.==

-25-

CITY OF PELHAM BOARD OF EDUCATION -MITCHELL COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects
- Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

1,043.02 $

0.00

$

1 043.02 $ -----

0.00
-- -----



$

1,043.02 $ _ _ _ _0:::..:~00::...

$

1,043.02 $ _ _ _ _.::.:0~00~

$

1 043.02 $ .

- - - -0-.0-0



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

EXHIBIT "I"

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

32,149.00 $

113,016.45 $

146,208.47 $

169,154.63

483,000.00

132,295.11

483,000.00

105,982.71

$

32,149.00 $

728,311.56

$

761 ,503.58

~-

$ - -275,1- 37.34

$

80,177.00



$

728,311.56 $

728,311.56 $

194,315.58

$

32,149.00

32,149.00

0.00

0.00

-

1 043.02

644.76

$

32,149.00 $

728,311.56 $

761,503.58 $ _ _1.;..;;9'-"4=,9-=-60=.;;;..34.;....

$

32,149.00 $

728,311.56 $

761,503.58 $ ............;2;;.;7.;;;5.!.1;,.;;;,37;.,;,;;;,34==



-27-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30. 2000


REVENUES
Taxes Other Funds

Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements

Building and Building Improvements Equipment
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

REGULAR

BOND PROCEEDS

$

0.00

$ _ _ ____.:::2.::::.;3:,26:::,_

$

23.26 $ _ _ ____:0~.0:::,::0:._

$

0.00 $

0.00

$

0.00 $ _ _ ____:0~.0:::.::0:._

$

23.26 $ _ _ ____:0~.0:::.::0:._

$

1,019.76

- - - - - - $ _ _ _-:.::6:!:44!.:.7~6:.,_

. $

1 019.76 $ ----~6:::.,44:!,:..:...;76:::,_

$

1,043.02 $

0.00

-644.76

644.76 .

FUND BALANCE JUNE 30

$

1,043.02 $ =====o..o..o==



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

EXHIBIT "J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30,2000

JUNE 30, 1999

$

OoOO $

592,350015 $

592,350015 $

553,732041 .

17 794083 0

17,818009

7,642082

$

OoOO $

610,144098 $

61 0. 168024 $ _____:5:::.::6:..:.1J.3;.:: :..75::..:0:.;23~

$

0000

$

7,280096

$

44,000000 $

44,000000

581,139072

57,740000

$

0000 $

44,000000 $

44,000000 $ _____:6::..;4:.::;6.z...1.:.,.:::.60::..:0.:..:68~

$

OoOO $

566,168024 $ ---~-8'-'-4.r..:..7,.;;;.85;;;.;.4..;.;5;;_

$

32,149o00

$

____________ $ ____~-3=2~,1~4~90~00~

33,168076 -32,793016

$

32,149o00 $

-32 z149oOO $ _______;:;3"-75:,.:o.=.,;OO;_

-

$

32,149000 $

533,995098 $

566,543024 $

OoOO

194,315058

194,960034

-84,785.45 279,745079

728,311056 $

761,503o58 $==1=9=4=,9.6.0.=0=34...,

0
-29-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000

EXHIBIT "K"


ASSETS
Cash and Cash Equivalents Investments Held by Trustee Accounts Receivable

NONEXPENDABLE TRUST FUND
ENDOWMENT FUND C.M.AND BERNICE C. STRIPLING
PELHAM FFA SCHOLARSHIP TRUST FUND

AGENCY FUND


TOTALS JUNE 30, 2000 JUNE 30, 1999

$



5,147.26 $
20,000.00 909.59

119.78 $

5,267.04 $
20,000.00 909.59

5,843.49 20,000.00
1,046.03

Total Assets

$

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

Total Liabilities and Fund Equity

26,056.85 $


$

119.78 $

119.78 $ _ ____.:1~94-"'"-78:::..


20,000.00
6,056.85 $ 26,056.85 $
$

$
0.00 0.00 $

20,000.00 $

20,000.00

6,056.85

6 694.74

26,056.85 $ _--=.;26:...;,6::.:::94..:.:c:...74.:....

$ =....,;;;26:.~,,8;;;;;8=:9..5..2=

See notes to the general purpose financial statements.

-30-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE -AGENCY FUND YEAR ENDED JUNE 30. 2000

EXHIBIT "L"

REMEMBRANCE GIFT FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

$

194.78 $

100.00 $

175.00 $ ===1:..:,1~9,:,:78~

~----------

$

194.78 $

100.00 $

175.00 $ -

119.78 -

-


-

-

-



0

- See notes to the general purpose financial statements. - 31 -

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
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
Total Child Nutrition Cluster

10.553 10.555

N/A $ 105,801.95

N/A

374,599.34 $

$ 480,401.29 $

(2)
577674.13 (3)
577,674.13

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

34 914.46

34 914.46

$ 515,315.75 $ _ _..::::6.!.!12:,:.5~8~8~.5~9

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 Part C - Special Education Special Education Capacity Building Improvement
Total Special Education Cluster

84.027 84.173
84.173

N/A $ 104,578.20 $

N/A

19,827.00

N/A

4,040.00

$ 128,445.20 $

104,578.20 19,827.00
4 040.00
128,445.20

Other Programs Direct Impact Aid 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 Ill Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Mitchell County Board of Education Elementary and Secondary Education Act Title I
Grants to Local Educational Agencies
Total U.S. Department of Education

84.041
84.010
84.281 84.318 84.298 84.340 84.276 84.048
84.010

7,138.91

(4)

N/A

155,685.56

156,243.55 (3)

NIA

20,053.91

20,081.70 (3)

NIA

125,000.00

125,029.93 (3)

NIA

9,029.00

9,036.46 (3)

NIA

27,638.00

27,638.00

NIA

95,955.00

95,958.70 (3)

NIA

16,908.00

16,909.33 (3)

NIA

194,680.00

194,680.00

$ 780,533.58 $ _ _..!.7.:.;:74:.:,0~2=2~.8:!..7

Total Federal Financial Assistance N/A =Not Available

-32-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL 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.
(4) Funds earned on this program do not require reporting of expenditures.
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 Pelham 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.

-33-

-
-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000

SCHEDULE "2"

AGENCY/FUNDING

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

Educational Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

At-Risk Summer School Program

Health Insurance

-

Preschool Handicapped Program

Remedial Summer School Program

Teachers' Retirement

Year 2000 Project Funding

Lottery Programs

Assistive Technology

Computers in the Classroom

Office of School Readiness Pre-Kindergarten Program

Office of Treasury and Fiscal Services Public School Employees Retirement

CONTRACT Educ!3tion, Georgia Department of Reading Challenge Grant

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,554,688.00
702,781.00 142,595.00 152,196.00 42,504.00 991,447.00

$ 3,554,688.00
702,781.00 142,595.00 152,196.00 42,504.00 991,447.00

25,633.00 3,837.00
15,000.00 136,420.00 120,184.00
67,310.00 - 76,170.00
13,742.00 28,842.00 -116,924.00 878,605.00
$
1,572.00

49,176.00

25,633.00 3,837.00
15,000.00 136,420.00 120,184.00 67,310.00
76,170.00 13,742.00 28,842.00 -116,924.00 878,605.00 49,176.00
1,572.00

7,991.90 90,585.16 17,955.00
3,852.68 8,235.02 3,702.00

7,991.90 90,585.16
137,,895525..60- 80
8,235.02 3,702.00

11 '142.34 53,000.00

11 '142.34 53,000.00

206,354.85

14,251.00

206,354.85 14,251.00

23,937.00

23,937.00

$ 7,007,111.76 $ 319,673.19 $ 7,326,784.95

-~~--

---~

See notes to the general purpose financial statements. -34-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

The repayment of principal and interest on outstanding City of Pelham General Obligation School Bonds, Series 1993, coming due on February 1, 1998 and semiannually thereafter as set forth in Exhibit "B" attached hereto and, by this reference thereto, incorporated herein, the maximum amount of debt to be retired not to exceed $1,612,300.00

$ 1,612,300.00 $ 1,612,300.00 $

144,750.71 $

295,363.23

The acquisition, construction and equipping of capital outlay Projects for the Pelham School System consisting of a new pre-kindergarten building on the campus of the Pelham Elementary School and additions, expansions, improvements, renovations, modifications and equipping of existing school facilities of the Pelham School System, in an amount not to exceed $2,121,273.00

2,121,273.00 2,121,273.00

44,000.00

804,066.68

188,750.71 $ 1,099,429.91

(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 each project. Includes all cost from project inception to completion.
(3) The voters of the City of Pelham approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

I

See notes to the general purpose financial statements.

-35-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL 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 Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,628,430.00 $ _ ____:.;15::.;1:.z..1,:..:4.::.3:.0:.:.:::_0

$

4,721,490.21

288,697. 14 $ ---=25~6:..z.;,6;.::0..:.4:.::.8.;;..0

$

5,010,187.35

-20,180.96 $ _ _..:.4.:.9::-,=-90::.!.,0~0;.::6..:.:3:.;.::..9

$

0.00 $ =======0.=00;;,

See notes to the general purpose financial statements.
- 37 -

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS- BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

GENERAL AND CAREER EDUCATION PROGRAMS

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 II () Category Ill ()

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

$

320,776.00

$

288,698.40 $

0.00

1,046,692.00

942,022.80

$ 1,367,468.00 90 $ 1,230,721.20 $

0.00



410,202.00 90

369,181.80

816,975.00 90

735,277.50

415,963.00 90

374,366.70

76,170.00

260,230.00 90

234,207.00

283,850.00 90

255,465.00

$ 3,554,688.00

$ 3,199,219.20 $ _ _..:..76::...:..:17..;:;0~.0=-0

$

645,367.00

$

580,830.30 $

0.00

$

645,367.00 90 $

580,830.30 $

0.00

57,414.00 90

51,672.60

$

702,781.00

$

632,502.90 $ ------=-0~.00=-

$

142,595.00 90 $

128,335.50 $ _ _ _.......;;.0;.;..0.;..0

$ 4,400,064.00

$ 3,960,057.60 $ _ _..:..76::...:..:17_;:;0~.0=-0

$

121,342.00 90 $

30,854.00 100

$ _ _1:.:::5~2,~196=.0~0

$

109,207.80 $ 30,854.00

0.00

140,061.80 $ _ _ _.......;;.0;.;..0..;..0

Total Fourteen Weighted and Media Center Programs $ 4,552,260.00

$ 4,100,119.40 $===76::.;.;.;17=0=.0=0

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (') Identifies Fourteen Weighted Programs.

$

13,795.00

$

13,795.00 $

0.00

28,709.00

28,709.00

0.00

$

42,504.00

100

$

42,504.00
-------- -----

$ - - - - - - -0.0-0

See notes to the general purpose financial statements.

38 - .

SCHEDULE "5"


EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

288,698.40 $

325,063.56 $

8,109.81 $

333,173.37

942,022.80

1,008,397.74

37,549.86

1 ,045,94 7.60

$ 1,230,721.20 $ 1,333,461.30 $

45,659.67 $ 1,379,120.97 $

0.00

369,181.80

393,877.85

29,812.54

423,690.39

0.00

735,277.50

936,307.48

40,091.04

976,398.52

0.00

450,536.70

438,689.29

63,179.99

501,869.28

0.00

234,207.00

315,268.68

17,791.49

333,060.17

0.00

255,465.00

289,784.46

41,526.67

331,311.13

0.00

$ 3,275,389.20 $ 3,707,389.06 $

238,061.40 $ 3,945,450.46

$

580,830.30

$

328,677.28 $ 301,260.68

6,975.05 $ 5,396.12

335,652.33 306,656.80

$

580,830.30 $

629,937.96 $

12,371.17 $

642,309.13

0.00

51,672.60

57,626.43

1,322.69

58,949.12

0.00

$

632,502.90 $

687,564.39 $

13,693.86 $ _ __:7..::0..:..!1,::::25::::8:.::.2=.5

$

128,335.50 $

186,252.14 $

4,849.54 $ _ _1:.:9.:.!1.:.:10::.:1.:.::.6:::.8

0.00

$ 4,036,227.60 $ 4,581,205.59 $

.
256,604.80 $ 4,837,810.39

$

109,207.80 $

140,284.62

$

140,284.62

0.00

30,854.00 - - - - - - $ _ _..:3:::.2.:::09:::2:::.34::.:.

32,092.34

0.00

$

140,061.80 $

140,284.62 $

32,092.34 $ _ _1:.,:.7.:.2.::37.:..:6:.:.96::.

4,721,490.21

$

288,697.14

---------~--

$ - -5-,0-10-,1-8--7- .3--5

$ - ----

0.00
. - -----

$

13,795.00

28,709.00

$ ====4=2,=504;,;;,;;.0.:.0

$

38,827.05 $

38,827.05

3,887.70

3,887.70

$ -----4-2-,7-1-4-.7-5 $

42,714.75 $ -- -----------0-.00

39


SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS

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 10, 2001

Honorable Roy E. Barnes, Governor . Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the City ofPelham 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 ofPelham Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated May 10, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United _States of America 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 Pelham 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 perfmming our audit, we considered City ofPelham Board ofEducation'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-40A

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect City ofPelham Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7841-00-02.
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. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the City of Pelham Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

""." oO. w .
Ru ell W. Hinton State Auditor
RWH:gp
2000YB-40A


RussELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 10,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the City of Pelham 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 ofCity ofPelham Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major Federal program for the year ended June 30, 2000. City ofPelham Board ofEducation's major Federal program is identified in the accompanyi_ng Schedule ofFindings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major Federal program is the responsibility of City of Pelham Board of Education's management. Our responsibility is to express an opinion on City of Pelham 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 Nol]-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 of Pelham Board of Education'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 ofPelham Board of Education's compliance with those requirements.
2000SA-10A

In our opinion, the City of Pelham Board of Education complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 2000.

Internal Control Over Compliance

The management of City of Pelham 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 ofPelham Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detemtine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control overcompliance in accordance with OMB Circular A-133.

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 Pelham Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,



-

IJJ.

Russell W. Hinton

State Auditor

RWH:gp
2000SA-10A




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

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL 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

FS-7841-97-01 FS-7841-98-0 1 FS-7841-98-02 FS-7841-99-01

Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses


CORRECTIVE ACTION/RESPONSES

EMPLOYEE COMPENSATION Salary Overpayment Amount: $412.27 Finding Control Number: FS-7841-98-0 1

We concur with this finding. The overpayment has been explained to the employee by the Superintendent. He has been asked to repay the $412.27. This employee voluntarily resigned on February 9, 1999, before the overpayment was discovered. He refuses to repay the balance of$412.27.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7841 ,;.99-0 1

We concur with this finding. Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.



SECTION IV FINDINGS AND QUESTIONED COSTS

-


CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
1. Type ofReport Issued on the Financial Statements The auditor's opinion on the City ofPelham Board ofEducation's financial statements was qualified for various departures 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 ofPelham Board of Education disclosed a financial statement reportable condition related to the following control category.
'
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe City ofPelham Board ofEducation disclosed no instances ofnoncompliance 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 ofPelham 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 ofPelham Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
-
6. Audit Findings Required to be Reported by Section .51 O(a) of OMB Circular A-133 The City ofPelham 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 a major program are as follows: 84.010 Elementary and Secondary Education Act- Title I- Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The City ofPelham Board ofEducation was auditeQ. as a low risk auditee based on a waiver granted by the U.S. Department of Education.
- 1-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUNALENTS Uncollateralized Deposits Nonmaterial Noncompliance Finding Control Number: FS-7841-00-01

The City of Pelham Board of Education failed to have its bank balances fully collateralized as.

provided for by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as

follows:

.

"The collecting officer or officer holding the public funds may not have a deposit at any one time in any depository for a time longer than ten days a sum ofmoney belonging to the public body when such depository has not given bond to the public body as set forth in this code section. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of the deposit insurance."

This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with state laws governing deposits and investments.

Management's Response:

We concur with this recommendation. We have contacted the financial institutions involved and requested that they provide appropriate collateral statements for all Board deposits on a monthly basis.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7841-00-02

The City of Pelham Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an

-2-

CITY OF PELHAM BOARD OF EDUCATION- MITCHELL COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition- Material Weakness Repeated From Prior Year Finding Control Number: FS-7841-00-02
inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

-

-



- 3-