City of Social Circle Board of Education, Walton County, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY
OF - TABLE cONTENts -

SECTION I

FINANCIAL

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

EXHmITS

GENERALPURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM .

28

5

BY SITE

29

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY
- TABLE OF coNtENts -'
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ,REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL
L

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w., Suite 214 Atlanta. Georgia 303348400
May 9, 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 Social Circle Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
.Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe City ofSocial Circle Board of Education, as of and for the year ended June 30, 200 l, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe City ofSocial Circle Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
OpInIOn.
As described in the notes to the general-purpose financial statements, the Board of Education'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:

200lARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education 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 of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits 'Yere not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform 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 Social Circle 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 ofAmerica.
In accordance with Government Auditing Standards, we have also issued our report dated May 9, 2002, on our consideration of the City of Social Circle 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 read in conjunction with this report in considering the results of our audit.
olir audit was performed for the.purpose of forming an opinion on the general-purpose financial statements of the City of Social Circle Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the .Schedule of Expenditures of Federal Awards as required by U; S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing
2001ARL-13

procedures applied in the audit ofthe general-pwpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 200lARL-13

Rus 11 W. Hinton State Auditor

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNlY

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

127,124,89 $

154,245,74

2,100,000,00

, 35,006.34

42,357.47

4,024.43 2,213.79
$ 2,262,131.23 $ ===20~2;&,84~1';;;,43;;;.,

Total Liabilities and Fund Equity

$ 2,262,131.23 $ ===20~2;,8~4.:=1.4~3~

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

184,265.12 $

465,635.75 $

833,464.91

2,840,000.00

4,940,000.00

2,990,000.00

145,445.05

222,808.86

261,466.08

4,024.43 2,213.79

6,001.09 1,786.26

$. 3,169,710.17 $ 5,634,682.83 $ 4,092,718.34

$

110,204.40 $

90,250.67

67,958.88

51,591.50

5.00

1,195.43

$

566,891.95

566,891.95

235,317.32

378,939.11

378,939.11

25,612.45

18,792.42

$

945,831.06 $ 1,142,791.76 $

403,967.37

$

1,136.01

$

4,024.43

2,213.73

$

126,165.06

126,165.06

2,097,714.05

2,097,714.05

6,001.09 1,786.26 453,540.35 1,969,193.78

0.00

2,261 ,773.80

1,257,093.48

$ 2,223,879.11 $ 4.491,891.07 $ 3,688,750.97

$ 3,169,710.17 $ 5,634,682.83 $ 4,092.718.34

-3-

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

FUND BALANCE JUNE 30

$ 2,172,240.32 $ ..........a9~5~7,.:,,7.;,;1.:;;:;64~

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

-4-

EXHIBIT-B-

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 2,486,899.31 $ 9,215,121.47 $ 6,202,775.48

658,097.73

549,319.85

877,827.03

2,191,415.92

1,848,372.59

122,006.37

1,176,525.87

1,091 ,898.06

$ 3,486,732.71 $ 13,241,160.99 $ 9,692,365.98

$ 5,782,692.97 $ 4,773,772.34

$ 3,685,587.73

149,808.96 142,762.18 173,286.54 402,193.43 582,401.18
1,000.00 524,444.81 360,187.72
227.00 188,027.61 438,489.63 3,690,949.73

319,171.19 147,529.03 157,128.15 306,865.87 526,611.02
1,000.00 591,689.70 309,855.34
1,415.00 186,283.26 473,858.64 606,581.14

$ 3,685,587~73 $ 12,436,471.76 $ 8,401,760.68

$ -198,855.02 $

804,689.23 $ 1,290,605.30

$

18.50

-18.50

$

0.00

$' -198,855.02 $ 2,422,734.13

804,689.23 $ 3,688,750.97

1,290,605.30 2,398,761.20

-1,976.66 427.53

-451.43 -164.10

$ 2,223,879.11 $ 4,491,891.07 $ 3,688,750.97 -5-

'.; l,.,

'"

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL.- /NON-GAAPBASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT C

FUND BALANCE JUNE 30, 2001

$ 1,052,349.48 $ 2,172,240.32

$ 78,130.15 $=~95~,,;,,77:::1~.64~

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

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The City ofSocial Circle 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 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 ofpurchase. A General Fixed Assets Account Group is not pres~ntly maintained by the School District. 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 conform 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 School District, 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 of the 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.

- 8 -.'

~. '.....
CITY OF SOCIAL CIRCLE BOARD OF EDUCAnON -WALTON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "D"

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.
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 fmancial 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.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when suscepti1;>le to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. 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. 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 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 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period 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 were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001.
- 9-
1'I,1,1
I' i:1
II

CITY OF SOCIAL CIRCLE BOARD OFEDUCAnON - WALTON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "0"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. 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.

BUDGET

The City of Social Circle Board of Education's budget is a 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 on the tentative budget, makes revisions as

.necessary and adopts a final school budget. Thisfinal 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 demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial 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-earning contracts and money market inyestments 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 institutionalbids for deposits, the highest rate ofreturn shall be the

objective, given equivalent conditions of safety and liquidity. Funds may be invested in the

following:

.

- 10 - .

CITY OF SOCIAL CIRCLE BOARD OF EDUCAnON - WALTON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001 .

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of

Treasury and Fiscal Services,'

.

(7) Repurchase agreements, arid

(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 of Social Circle fixed the property tax levy for the 2000 tax year (calendar year) on October 20,2000 (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 Social Circle City Clerk bills and collects the property taxes for the School District and remits the taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $1,313,588.89..

The tax millage rate levied for the 2000 tax year (calendar year) for the City ofSocial Circle Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

13.49 mills

- 11 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCAnON - WALTON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $877,827.03 ($855,699.48 from Walton County and $22,127.55 from Newton County) and was recorded in the Capital Projects Fund. The State will tenninate collection ofthe tax within Walton County once an additional $2,372,884.02 has been collected or on December 31, 2002, whichever occurs first. The State will tenninate collection of the tax within Newton County once an additional $4,971,860.88 has been collected or on December 31, 2004, 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 inveiitories 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. .

COMPENSATED ABSENCES

Compensated absences represent obligations of the .school District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.

Additionally, the dollar value of accumulated compensated absences at June 30, which will be
payable from future resources has not been recorded in the General Long-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair present~tion ofthese financial statements.

INTERFUND TRANSACTIONS

The School District has the following type 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.

- 12-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE.30, 2001
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
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 ofsuch 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 anyone ofor 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 of the State of Georgia, and
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CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

Note 2: DEPOSITS

(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 Coope~atives, 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 $5,820,479.69, The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e,g., Federal depository insurance) or collateralized with securities held by the 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:
Category3 - 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

'Bank Balance

1

$ 100,000.00

2

5,720,479.69

3

0.00

Total

$:>.820.479.69

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: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to,' and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

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CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 200i

EXHmIT "D"

Note 4: RISK MANAGEMENT

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The School 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 that 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 $

1,186.00 $

1,186.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

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

Position Covered

Amount

Superintendent Curriculum Director Each Principal

$ 5,000.00 $ 5,000,00 $ 5,000,00

Note 5: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $97,841.18 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Conimunity Health For Health Insurance of Non-Certified Personnel In the amount of $71,493.55

Paid to the Teachers Retirement System of Georgia

For Teachers Retirement System (TRS) Employer's Cost

In the amount of$9,723.63

.

- 15 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCAnON - WALTON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001

EXHIBIT "0"

Note 5: ON-BEHALF PAYMENTS

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 $16,624.00

'. .

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction orrenovation contracts executed by the School District as of June 30, 2001, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

GSFIC 99-786-093

. $ 4.464,165,75 $ 2,737.486.69

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

Note 7: 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 School District believes that such disallowances~ if any, will be immaterial to its overall financial position.

Note 8: SUBSEQUENT EVENTS

In the subsequent period, voters authorized the imposition of a one percent sales tax for capital outlay for educational purposes and debt retirement as follows: .

"Shall a one percent (1 %) sides and use tax for educational purposes be imposed, levied and collected in Walton County, Georgia by Walton County School District and the City ofSocial Circle School District. .. for a period of time not to exceed five years (20 calendar quarters), beginning immediately upon the expiration ofthe one percent sales and use tax for educational purposes which was approved by a majority of the voters of Walton CoUIlty, Georgia in September, 1997, and for the raising of not more than $46,410,000 ($6,020,000), for the purpose in the City of Social Circle School District of providing funds to pay the costs of . adding to, renovating, repairing, improving, furnishing and equipping existing educational buildings, properties and facilities of the City of Social Circle School District, including, but not limited to the completing the construction and equipping of a new school built to accommodate grades 6 - 12 and, to the extent there are sufficient monies available and enrollment demand requires it, the acquisition, construction and equipping of a new elementary/primary school, including the acquisition of any necessary land, and paying expenses incident thereto?
- 16-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY NOTES TO THE GENERAL-PURRQSE.fINANCIAL STATEMENTS JUNE 30, 2001

EXHffiIT "0"

Note 8: SUBSEOUENT EVENTS

If the imposition of the tax is approved by the voters of Walton County, Georgia, such vote shall also constitute approval ofthe issuance ofgeneral obligation debt of$15,000,000 ofthe City of Social Circle School District in the aggregate principal amount of $5,000,000 for the above purpose."

Note 9: ACCUMULATED EMPLOYEES' LEAVE

Twelve month employees earn vacation leave at the rate of twelve days per year. Vacation leave may be accumulated from year to year, to a maximum oftwenty-four days. Employees will be paid at their most recent rate ofpay, for vacation leave earned but not taken at the time of resignation, retirement or termination of employment, up to a maximum of twelve days. See Note 1 Compensated Absences

Note 10: 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 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 ofAudits and Accounts.

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 574,349.44 $ 524,113.13 $ 540,835.52

- 17 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

106,600.19 $

28,132.62

257.71

4,024.43 2,213.79

Total Assets

$

113,096.12 $===2=8,,==,1=32=.=62=

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.
- 18-

$

1,030.42 $

9,336.42

16,294.06

18.796.20

$

17,324.48 $

28,132.62

$

4,024.43

2,213:73

89,533.48 $

0.00

$

95,771.64 $

0.00

$

113,096.12 $ ===2=8,,==,1=32;;;,;.=62=

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

19,512.93 $

154,245.74 $

108,662.28

42,099.76

42,357.47

54,049.13

4,024.43 2,213.79

6,001.09 1,786.26

$

61,612.69 $

202,841.43 $ ==1...7..0..=:.4=98=..=76=

$

16,142.97

$

17,444.25 $

27,811.09

28,333.82

25,371.02

60.461.28

46,949.40

5.00

5.00

1,195.43

18,792.42

18,792.42

$

61,612.69 $

107,069.79 $

92,621.62

$

1,136.01

$

4,024.43

2,213.73

6,001.09 1,786.26

$

0.00

89,533.48

68,953.78

$

0.00 $

95,771.64 $

77,877.14

$

61,612.69 $

202,841.43 $ ==1..7...0..=.4,;;,98=.7...6=

- 19-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Toteil 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
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 20-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

35,102.00 $

192,717,09

257,884.45

145,362.79

$

438,349.24 $

192,717.09

$

182,158.56

942.53 106.46

2,800.00 1,000.00 1,407.81

$

417,769.60

1,018.10 3,283.63

$

417,769.60 $

192,717.09

$

20,579.64 $

0.00

$

20,579.64 $

0.00

76,741,13

0.00

-1,976.66 ' 427.53

95,771,64 $ ====O=.=OO~

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

227,819.09 $

257,154.72

$

400,213.28

658,097.73

549,319.85

145,362.79

145,404.90

$

400,213.28 $ 1,031,279.61 $

951.879.47

$

286,583.62 $

468,742.18 $

318,802.42

16,943.19 59,776.23
3,479.66
26.40 227.00 34.313.19

17.885.72 59,882.69
6,279.66 1,000.00 1,407.81
26.40 227.00 35.331.29 421,053.23

47.247.26 77,098.39 3,563.74 17.885.17
1.000.00 2,362.53
1,415.00 42.840.83 425,973.53

$

401,349.29 $ 1,011 .835.98 $

938,188.87

$

-1,136.01 $

19.443.63 $

13,690.60

18.50

$

-1,136.01 $

19,443.63 $

13.709.10

1.136.01

77,877.14

64,783.57

-1,976.66 427.53

-451.43 -164.10

$

0.00 $

95.771.64 $ ===7.7..=.8:.77=.:.14=

- 21 -

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

203,545.11

$ 203,545.11 $ 441,398.76

2,840,000.00

2,840,000.00

2,050,000.00

... $

145,445.05

145,445.05

194,847.09

$

3,043,545.11 $

145A45.05 $ 3,188,990.16 $ 2,686,245.85

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

19,279.99 $

19,279.99

$

2,581.95

$

566,891.95

566,891.95

235,317.32

378,939.11

378,939.11

25,612.45

$

945,831.06 $

19;279.99 $ 965,111.05 $ 263,511.72

$

126,165.06 $ 126,165.06 $ 453,540.35

$

2,097,714.05

2,097,714.05

1,969,193.78

0.00

0.00

0.00

0.00

$

2,097,714.05 $

126,165.06 $ 2,223,879.11 $ 2,422,734.13

Total Liabilities and Fund Equity

$

3,043,545.11 $

145,445.05 $ 3,188,990.16 $ 2,686,245.85

See notes to the general-purpose financial statements.

22 -

,.

. ~ ~f:1::

. : , ' t:";M':;

.. _.

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30,2001

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL . PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

REVENUES

State Funds Taxes Other Funds
Total Revenues

$

2,486,899.31

$ 2,486,899.31 $ 254,170.00

$

877,827.03

877,827.03

810,037.56

122,006.37

122,006.37

95,954.76

$

2,608,905.68 $

877,827.03 $ 3A86,732.71 $ 1,160,162.32

EXPENDITURES

Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures

$

3,641,543.41 $

$ -1,032,637.73 $

44,044.32 $ 3,685,587.73 $ 833,782.71 $ -198,855.02 $

606,581.14 553,581.18

OTHER FINANCING SOURCES (USES)

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

$

1,161,158.00

$ 1,161,158.00 $ 1,398,521.00

$ -1,161,158.00

-1,161,158.00

-1,398,521.00

$

1,161,158.00 $ -1,161,158.00 $

0.00 $

0.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $
FUND BALANCE JULY 1

128,520.27 $ 1,969,193.78

-327,375.29 $ -198,855.02 $ 553,581.18

453,540.35

2,422,734.13

1,869,152.95

FUND BALANCE JUNE 30

$

2,097,714.05 $

126,165.06 $ 2,223,879.11 $ 2,422,734.13

see notes to the general-purpose financial statements.

- 23-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture. U. S. Department of Child Nutrition Cluster II Pass-Through From Georgia Department o(Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553 . . 10,555

NlA $ 52.102.52

NlA

181.801.31 $

(2) 393.788,98 (3)

Total Child Nutrition Cluster

$ 233.903.83 $

393.788.98

Other Programs

Pass-Through From Georgia [)epartment of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

NlA

23.980.62

23,980,62

Total U. S. Department of Agriculture

$ 257.884.45 $

417.769.60

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

84.027 84.173 84.027

NlA $ 75.960,11 $

N/A

4.934.67

N/A

3.047.00

75.960.11 4.934.67 3,047.00

Total Special Education Cluster

$ 83.941.78 $

83.941.78

Other Programs Pass-Through From Georgia Department of Education Charter Schools Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title" Eisenhower Professional Development TItle III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education

84.282
84.010 84.281 84.318 84.298 84.340 84.186
84.048

NlA

2.783.01

2.783.01

N/A

- 134.653,84

134.653.84

N/A

10.970.54

12.106.55

NlA

120.683.11

120.683.11

N/A

7.496.00

N/A

17.527.00

N/A

6.462.00

7,496.00 17.527.00 6,462.00

NlA

15.696.00

$ 400,213.28 $

15.696.00 401.349.29

Total Federal Financial Assistance
NlA = Not Available

- 24-

$ 658.097.73 $-===-=08.19....1..1.8,;;;.8;,;,,9

'Of'
CITY OF SOCIAL CIRclE BOARD OF EDUCATION - wALtON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2001

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 induded in the 2001 National School Lunch Program.
(3) Expenditures for this program indude State. and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are Identified by an asterisk (*) In front of the CFDA number.
The School District did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards indudes the Federal grant activity of the City of Social Clrde 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.

- 25-

CITY OF SOCIAL CIRCLE BOARD OF EpUCATION - WALTON COUNTY SCHEDULE OF StATE REVENUE . YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCYIFUNDING
GRANTS 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Other State Programs Altemative Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teachers PayforPertormance Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Program Computers in the Classroom
Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education. Georgia Department of Georgia's Reading Challenge Reading First Program
Human Resources, Georgia Department of Children's Trust Fund'

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 254.762,00 113,582.00 687,930,00 175.804.00 485,774,00 740,754,00 517,443,00 371,198.00 755.579,00 46,937,00 41,674,00 130,554.00 38,294.00
1,019,451,00

126,002.00 37.872.00 46,387,00
6.139.00 14,236.00 534,091.00
$ 20,819.00

35.102.00

58,446.00 1,896.70
71,493,55 5,000.00 4,400,00 1,467.00
102,000.00 19,552.00 2.822,35 9,723.63

28,561,00

$ 254,762.00 113,582,00 687.930.00 175,804.00 485,774,00 740,754.00 517,443.00 371,198,00 755,579.00 46.937.00 41,674.00 130,554.00 38,294.00
1,019,451,00
126,002.00 37.872,00 46,387,00
6,139.00 14.236.00 534,091.00 35,102.00 20.819.00
58,446.00 1.896.70
71,493.55 5,000.00 4,400.00 1,467.00
102,000.00 19,552.00 2,822.35 9,723.63
28,561.00

$ 2,486,899.31

2,486.899.31

164,156.09

164,156.09

16,624.00

16.624,00

19,826.00 21.200.00
669.84

19,826,00 21.200.00
669,84

See notes to the general-purpose financial statements,

$ 6,500,403.07 $ 227,819.09 $ 2,486.899,31 $ 9,215,121.47 - 26-

,., ~.

~!

.,



CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY

SCHEDULE Of APPROVED LOCAL OPTION SALES TAX PROJECTS

YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT
Adding to, renovating, repairing, improving and equipping the existing educational buildings, properties and facilities of the City of Social Circle School District, including, but not limited to, the acquisition, construction and equipping of a new school to accommodate grades 612, The acquisition, construction and equipping of a new cafeteria at the l1uilding which will become the new Social Circle Elementary School and the re-roofing and renovation of all existing school buildings and facilities in the City of Social Circle School District to comply with all regulations and pay expenses incident thereto,

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 5,000,000,00 $ 10,748,500,00 $ 3,685,587,73 $ 790,767,32 Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. The School District has two Local Option Sales Tax and all of the above projects were authorized by each referendum.
(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion.
(3) The voters of Walton and Newton Counties approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

See notes to the general-purpose financial statements.

- 27-

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION WALTON COUNTY GENERAL FUND - oUALlTY BASIC EDUCATION PROGRAM (aBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION
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 School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student Category VI Remedial Education Program Alternative Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS . FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

273,506.00 $ 330.959.54 $

6.095.61 $ 337,055.15

121.939.00

44,759,64

4.374,94

49.134.58

738,543.00

820,374,55

26,012.35

846.386.90

188,738.00

127.057.70

15.251.18

142,308.88

521,514.00

530.233.49

28.618.19

558.851.68

795.254.00

842.817,29

36.718.45

. 879.535.74

555.513,00

746,797.57

50.791.85

797,589.42

398.508.00

285,978.21

14,719.29

300.697.50

811.169.00

40.028,30

40,028,30

285.288.79

1,582.28

286.871.07

165,164.53

18.505.34

183.669.87

5,499.24

5,499.24

16,730.44

16.730.44

50.391,00

73.652.50

1.099.95

74.752.45

44.740.00

80.436.33

49.13

80,485.46

62.746,00

85.644,61

1.819.45

87,464.06

$

4,562,561.00 $ 4,481.422.73 $ 205.638.01 $ 4,687.060,74

140.160,00 41.111,00

138.069.32 13.788.09

30.750.46 27.348.62

.168.819.78 41.136.71

TOTAL aBE FORMULA FUNDS

$

4.743.832.00 $ 4,633.280.14 $ 263.737.09 $ 4.897.017,23

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

See notes to the general-purpose financial statements,

28

. . ~ '~"."

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM CgBE) . ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Social Circle Middle School Social Circle High School Social Circle Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

984,919,00 $

1,006,804.76

1,251,915.00

1,376,410.62

2,262,981.00

2,287,516.68

62,746.00

16,328.68

$

4,562,561,00 $

4,687,060,74

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

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

......

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 303~4-8400
May 9, 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 Social Circle 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 of City of Social Circle Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 9,2002. 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 ofthe United States.
Compliance
As part ofobtaining reasonable assurance about whether City ofSocial Circle Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our 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 Social Circle Board of Education's internal control over fmancial 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-41
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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 ofSocial Circle Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7861-0101.
A material weakness is a condition in which the design or operation of one or more ofthe 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, we consider item FS-7861-01-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, meInbers ofthe City of Social Circle 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-41

.
Ru ell W. Hinton State Auditor

RllSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
May 9, 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 Social Circle Board of Education

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

Ladies and Gentlemen:

Compliance

We have audited the compliance of City of Social Circle Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. City of Social Circle Board of Education's major Federal programs are identified in the Summary ofAuditor'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 ofSocial Circle Board of Education's management. Our responsibility is to express an opinion on City of Social Circle 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 of the United States;. and OMB Circular A-

133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and

OMB Circular A-B3 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 ofSocial Circle Board ofEducation's compliance with those

requirements and performing such other procedures as we considered necessary in the circumstances.

2001SA-1O
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We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detennination on City of Social Circle Board of Education's compliance with those requirements..

In our opinion, the City ofSocial Circle Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable toe~ch of its major Federal programs for the
year ended June 30, 2001.

Internal Control Over Compliance

The management of City of Social Circle 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 perfonning our audit, we considered City of Social Circle 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 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 of performing 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 Social CircleBoard 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,

.-.

~.~

Rus 11 W. Hinton State Auditor

RWH:gp 2001SA-IO

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON 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

FS-7861-99-01 FS-7861-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7861-00-01

The City ofSocial Circle Board ofEducation does not presently maintain a General Fixed

Assets Account Group but is planning on implementing the accounting of one during

Fiscal Year 2002.

.

SECTIONN FINDINGS AND QUESTIONED COSTS

CITY OF SOCIAL CIRCLE BOARD OF EDUCAnON - WALTON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofSocial Circle 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 ofthe Financial Statements The audit report for the City of Social Circle 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 of the City of Social Circle Board of Education disclosed no instances of noncompliance that were deemed to be material to the fmaricial statements.
4. Reportable Conditions in Internal Control Over Major'Programs The audit report for the City of Social Circle 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 ofSocial Circle Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .5lO(a) ofOMB Circular A-133 The City ofSocial Circle Board ofEducation's audit did not disclose audit findings required to be reported by section .5lO(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: lO.553 Food and Nutrition Program- Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for tYPe "A" programs was $300,000.00.
9. Low Risk Auditee The City of Social Circle Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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CITY OF SOCIAL CIRCLE BOARD OF EDUCATION - WALTON COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7861-01,-01 The City of Social Circle Board of.Educatiort 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 fmancial statements ofthe 'School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. Subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. ,Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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