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

'.
CITY OF TRION BOARD OF EDUCATION - CHATIOOGA COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

21

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

22

2 SCHEDULEOFSTATEREVENUE

24

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

25

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

27

5

BY PROGRAM

28

CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY -TABLE OF CONTENTS-
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-l33
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

RUSSELL W. H,NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
February 22,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Trion Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe City ofTrion Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe City ofTrion 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.: We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the 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.
2000ARL-13

* 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 conforin 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 Board did not record the revenues and expenditures associated with Federal donated
commodities in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
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 ofthe City ofTrion Board ofEducation as of June 30, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated February 22,2001, on our consideration of the City of Trion Board of Education's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, 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.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements ofthe City ofTrion Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through H) 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 of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the
2000ARL-13

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 2000ARL-13

R sell W. Hinton State Auditor

CITY OF TRION BOARD OF EDUCAnON - CHAITOOGA COUNTY

CITY OF TRION BOARD OF EDUCATION - CHATIOOGA COUNTY COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000

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

GENERAL FUND

GOVERNMENTAL SPECIAL REVENUE FUND

$

749,568,54 $

3,656,34

165,404,59

156.896,00

8.002,69 4.068,35

===;;;. $

914,973,13 s _ _ 172,623,38

LIABILITIES AND FUND EqUITY
LIABILITIES
Accounts Payable' Salaries Payable Expired Grant Balances Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Designated for Self-Insurance Designated for Equipment Purchases Undesignated
Total Fund EqUity

$

s 31,499,76

45,175,63

48,706,84

15,313,37

$

31,499,76 $

109,195,84

$

1,533,18

8,002,69 4,068,35

$

4,789,70

878,683,67

$

883,473,37 $

10.000.00. 39.823,32
63,427,54

Total Liabilities and Fund Equity

$ 914.973,13 s _ _=17=2,=62:3:,3:8..

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

EXHIBIT "A"

FUND TYPES CAPITAL
PROJECTS FUND
$ 298,515,50 $
28,279.48

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

439,533,94 $ 1,491,274.32 $ 2,499,836.41

113,117.94

463,698.01

378,338.20

8,002.69 4,068.35

6,088.49 4,060.77

s s $ 326,794.98

552,651.88 $ 1,967,043.37

2,888,323.87

s 6,068.00
47,566.94 $ 53,634.94

$

82,743.39 $

105,973.81

48,706.84

50,241.16

15,313.37

4,876.88

47,566.94

$

194,330.54 $

161,091.85

$
s 552,651.88

1,533.18 $ 552,651.88

8,428.07 129,161.84

$ 273,160.04
0.00
s $ 273,160.04

0.00 552,651.88 $

8,002.69 4,068.35
273,160.04
4,789.70 10,000.00 918,506.99
1,772,712.83 $

6,088.49 4,060.77 1,292,355.35 155,714.14
4,789.70 10,000.00 1,116,633.66
2,727,232.02

s 326,794.98 $

552,651.88 $ 1,967,043.37 $ 2,888,323.87

- 3-

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

REVENUES

....

Slate 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 Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest

Total Expenditures Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

Proceeds from General Obligation Bonds Par Value
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

$ 5,053,832,97 $
. ~ 883,423, 18 216,620,11

38s;562.20 338,082,18
277,713,52

$ 6,153,876,26 $ 1,001,457,90

-,

$ 4,373,305,64 $
238,883,62 ' 194,411,23 165,015.35 209,304,01 447,223,25 128,068,57 553,637,34
1,647,18 9,022,50
26,193.51

538,325.98
55,864,17 4,330,00 2,920,59 5,014.42
407,198,36

$ 6,346,712,20 $ 1,013,643,52

$

-192,835,94 $

-12,185,62

.,

$

$

-2,212,49

$

-2,212.49 $

$

-195,048.43 $

1,078,521,80

2,212,49
2,212.49
-9,973,13 71,478,89
1,914,20 7,58

FUND BALANCE JUNE 30

$

883,473,37 $ _'_....;::6;3:,,4;~2;7,,;5:4;:_

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

$ 5,439,495.17 $ 5,061,613.43

336,082.18

376,705.87

$

331,081.55 $

449,326.21

1,663,830.94

1,248,122,21

70,085.04

12,460.83

576,879,50

378,583.85

$

401,166,59 $

461,787:b4 $ 8,018,287.79 $ 7,065,025.36

$ 1,576,076.04 $
$ 1,576,076.04 $ $ -1,174,909.45 $

$
4,000.00 34,297.00 38,297.00 $ 423,490.04 $

4,911,631,62 $
238,883,62 250,265.40 169,345,35 209,304.01 450,143.84 128,068.57 558,651.76
1,847.18 9,022,50 407,198.36 26,193.51 1,576,076,04
4,000.00 34,297,00
8,974,728.76 $
-956,440.97 $

4,695,337.32
269,303.90 212,222.70 163,356,59 120,306,34 386,841.19 114,929.62 344,107.57
1,300.08 6,015.08 379,979.09
13,568.03
6,707,267.51
357,757.85

$ -1,174,909.45 $ 1,448,069.49

$ 1,300,000,00

$

2,212.49

-2,212.49

$

0.00 $ 1,300,000.00

423,490.04 $ 129,161,84

-956,440.97 $ 2,727,232,02

1,657,757.85 1,067,838.38

1,914.20 7.58

1,489.46 146.33

$

273,160.04 $

552,651.88 $ 1,772,712.83 $ 2,727,232.02

5

CITY OF TRION BOARDOF EDUCATION - CHATTOOGA 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"

The notes to thegeneral purpose financial statements are an integral part 01 this statement. -6-

CITY OF TRION BOARD OF EDUCAnON - CHATfOOGA COUNTY EXHIBIT"D" NOTES TO THE GENERAL PURPOSEFINANCIAL STATEMENTS
JUNE 30. 2000
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The City ofTrion Board ofEducation (Board) was established under the laws ofthe State ofGeorgia 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. 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 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 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.
-7-

CITY OF TRION BOARD OF EDUCATION: CHATtOOGA COUNTY EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000

Note I: 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.

BASIS OF ACCOUNTING

The accounting and financial reporting treatment applied to a fund is determined by its rrieasurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, -onlycurrent 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 f u n d s . ' , ,

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

Revenues lire recognized when susceptible to accrual (i.e., when they become both measurable and

available). "Measurable" means the amount of the transaction can be determined and "available"

, means collectible within the current period or soon enough thereafter to be used to pay liabilities of

the current period. Those revenues considered susceptible to accrual are property taxes, local option

sales taxes, intergovernmental grants and investment income.

,r.: .

,,

, 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 arid 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 of the 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 of the 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

-8-

CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY EXHffiIT "D" NOTES TO THE GENERALPURPOSE FINANCIALSTATEMENTS
JUNE 3D. 2000
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Trion Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level 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.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The City ofTrion fixed the property tax levy for the 1999 tax year (calendar year) on September 30, 1999 (levy date). Taxes were due on January 20, 2000. The lien date for property taxes was January I, 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 ofTrion City Clerk bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board.
-9-

CITY OF TRION BOARD OF EDUCAnON, CHATIOOGA COUNTY EXHIBIT "D" . NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations

2.78 mills

SALES TAXES

.' .

Local Option Sales TaXrevenue during the fiscal year amounted to $656,063.45 and was recorded in

the 'General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the

Board.

' )"

.1

.. ';

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 $780,407.76 and was recorded in the Capital Projects and Debt Service Funds. The-State will terminate collection of this tax once an additional $916,357.56 has been collected or on December 31, 2003, whichever occurs first.

v .,
The City of Trion (City Govemnient) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with-issuance of a Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2000, the Board ofEducation provided $38,297.00 ofSPLOST proceeds to the City Government for debt service on said general obligation debt.

INVENTORIES

FOOD INVENTORIES s 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). The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of purchase. Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservations of fund balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. .The Federally assigned value of donated commodity items received and consumed has not -been reflected as revenues and expenditures in the general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

,I

t ".

,.

. . ",

.".,~

,

,. '-~.

- 10-

"
CITY OF TRION BOARD OF EDUCAnON - CHATrOOGA COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. :2000
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations 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
COLLATERALIZATlON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a 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 I 10 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 of or any combination of the following:
(I) 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,
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CITY OF TRION BOARD OF EDVCAnON: CHATIOOGA COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS .JUNE 30. 2000

Note 2: DEPOSITS

..

(6) Industrialrevenue bonds and bonds of development authorities created by the laws of the

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 $1,782,061 :94. The amounts ofthe total bank balances are

classified into three categories of credit risk:

, .. '

...

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

securities held by the Board or by the Board's agent in the Board's name.

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



trust department or agent in the Board's name.

Category 3 :,.;Uncollateralized deposits.' (This includes anybank 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
I 2
3

I ' ,- '., '

"

,

, 'e

. Bank Balance
$ 652,783.08 660,080.81 469,198.05

Total

: .. '/

J

, $ 1.782,061.94

Note 3: NON-MONETARY TRANSACTIONS

,"_ I

,

The Board receives food commodities from the United States Department ofAgriculture (USDA) for

school breakfast and lunch programs. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

l.'

The Board is exposed to various risks ofIoss 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. . . , . '" .

" I' ,

, ",J

I ~:.

I ,- 12 -

. ,- -, .'~ "."'," ., .
CITY OF TRION BOARD OF EDUCAnON - CHAnOOGA COUNTY EXHIBIT "D" NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS
JUNE 30, iooo

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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 all natural disasters, except flood coverage. The Board has not experienced any losses related to these risks in the past three years.

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

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

1999 2000

Beginning of Year Liabilitv

Claims and Changes in Estimates

$

0.00 $ 1,934.00 $

$

1,934.00 $

0.00 $

Claims Paid

End of Year Liability

0.00 $ 1,934.00 $

1,934.00 0.00

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

Position Covered

Amount

Superintendent All Other Employees

$ 5,000.00 $ 50,000.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $64,146.83 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$51,539.83

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$12,607.00

- 13 -

CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000

Note 6: SIGNIFICANT COMMITMENTS

an The following is analysis ofsignificant outstanding construction or renovation contracts executed
by the Board as of June 30, 2000: ,"
," ,

J,. Project

Unearned Executed Contracts

.. Trion City Elementary School Pre-K Addition

$ 34.231.75

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

The Board is a defendant in a legal proceeding pertaining to matters incidental to the performance of
r,outine Board operations: The ultim, at,e disposition ofthis proceeding is not presently determinable,
but is not believed to be material to the general purpose financial statements.

.

'

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

,

1

'j'

,

. <-[- 14-

, . L'~' ;".,_ : _.

.'.; ..

..:-..,'.

. ..~. .<'

CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 8: RETIREMENT PLANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 481,675.38 $ 483,971.70 $ 430,307.78

- 15 -

1;1

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

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

66,516,04 $

53,984,98

250,00

8,002,69 4,068,35

$

78,587,08 $==5~ 4,23~ 4,9~ 8

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Designated for Equipment Purchases Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general purpose financial statements,
- 16-

$

998,84 $

22,768,10

15,693,88

31,466,88

$

16,692,72 $

54,234,98

$

8,002,69

4,068,35

10,000,00

39,823,32 $

0,00

$

61,894,36 $

0,00

$

78,587,08 $==~5, 4,2g34~,98~

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

120,501,02 $

116,113,81

$

156,646,00

156,896.00

98,946.83

8,002.69 4,068.35

6,088.49 4,060.77

$

156,646.00 $

289,468.06 $=~ 22= 5,20~ 9.9~ 0

$

116,844.68 $

116,844.68 $

21,408.69

45,175.63

. 1,546.08

48,706.84

15,313.37

15,313.37

50,422.75 48,190.22 50,241.16
4,876,88

$

155,112.82 $

226,040.52 $

153,731.01

$

1,533.18 $

1,533.18 $

8,428.07

8,002.69 4,068,35

6,088.49 4,060.77

10,000.00

10,000.00

0.00

39,823.32

42,901.56

$

1,533.18 $

63,427.54 $

71,478.89

$

156,646.00 $

289,468.06 $=~ 22~ 5,20~ 9.9~ 0

-17

CITY OF TRION BOARD-OF EDUCATION - CHATTOOGA COUNTY

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

SPECIAL REVENUE FUND

/

YEAR ENDED JUNE 30, 2000

FUND BALANCE JUNE 30
See notes to the general purpose financial statements. - 18

$

61,894,36 $===~ 0,0~ 0

I.

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

385,662.20 $

356,345.51

$

244,132.63

338,082.18

376,705.87

1,302.95

277,713.52

252,575.64

$

245,435.58 $ 1,001,457.90 $

985,627.02

$

194,358.79 $

538,325.98 $

480,981.09

55,854.17 4,330.00

55,854.17 4,330.00 2,920.59 5,014.42 407,198.36

50,001.33 53,221.20
3,993.00
6,852.46 379,979.09

$

254,542.96 $ 1,013,643.52 $

975,028.17

$

-9,107.38 $

-12,185.62 $

10,598.85

2,212.49

2,212.49

$

-6,894.89 $

-9,973.13 $

10,598.85

8,428.07

71,478.89

59,244.25

1,914,20 7.58

1,489,46 146,33

s

1,533.18 $

63.427.54 $==7~ 1,4~ 78,8~ 9

- 19-

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

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

SPECIAL

_BOND _

PURPOSE LOCAL OPTION

TOTALS

PROCEEDS

.. SALES TAX

JUNE 30, 2000 JUNE 30, 1999

$ 53.634,94 $

244.880,56 $ 298.515,50 $ 1.434.680.80

28.279,48

28.279,48

21.136,91

$ 53.634,94 $

326.794,98 $ 1.455.817,71

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Retainages Payable
Total Liabilities
FUNDEQUIIY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$ 6.068,00 47,566,94
$ 53.634,94

$

$

0,00

$

0,00 $

$

6.068,00 $

47.566,94

$

53.634,94 $

7.748,22 7.748,22 .

"
"
273.160,04 $
.~ ;"
0,00 273,160,04 $

,$ 273.160,04

1.292.355,35 155.714,14

0,00

0,00

273,160,04 $ 1A48,069A9

Total Liabilities and Fund EqUity

273,160,04 $ 326,794,98 $ 1A55,817,71

See notesto the general purpose financial statements. " -20-

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

EXHIBIT "H"

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes OtherFunds
Total Revenues

$

331,081,55 $ 331,081,55 $

174,072,84

$

70,085,04

70.085,04

2,550,85

$

70,085,04 $

s s 331,081,55

401,166,59

176,623,69

EXPENDITURES

Current Instruction Support Services Business Administration
Capital Outlay Salaries Employee Benefits Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures

s
s 1,418,071,92
158,004,12
s 1,576,076,04 $ s -1.505,991,00 $

0,00

s

s 1,418.071.92
158.004,12

s s 0,00

1,576.076,04

s 331,081,55 $ -1,174.909,45

5.986,17 9,000.00 7,336,00
561,26 5.670,77
28.554,20 148.069.49

OTHER FINANCING SOURCES (USES>

Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out

s 1.300,000,00

$ 213,635,65

s 213,635,65

s -213,635,65

-213,635,65

Total Other Financing Sources (Uses) $ 213,635,65 $ -213,635,65 $

s 0,00

1,300,000,00

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

$ -1.292,355,35 $

117,445,90 $, -1,174,909.45 $ 1,448,069,49

FUND BALANCE JULY 1

1,292,355,35

155,714,14

1,448,069.49

0,00

FUND BALANCE JUNE 30

s

0,00 $

s 273,160,04

273,160,04 $ 1,448,069,49

See notes to the generalpurpose financial statements.

- 21 -

CITY OF TRION BOARD OF EDUCATION CHATIOQGA COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2000

SCHEDULE"1"

FUNDING AGENCY PROGRAM/GRANT

Agriculture, U. S. Department of

Child Nutrition Cluster

, Pees-Tnrouqh From.Georgia Department of Education

Food and Nutrition Program

Food Services

r-

Scnocl Brea~~st Program>

National School Lunch Program

Total Child Nutrition Cluster
-Other Programs Pass-Tbrougf From Georgia Department of Education ,,, Food and Nutrition Program Food Distribution Program (1)

f\ ,";,

Total U._S. Department of Agriculture
..

~ducation, U: S. Department of

Special Education Cluster

- P~~s.T~roughFrom Georgia Department of Education -, Individuals with Disabilities Education Act

Part B Special Education

Flow Through

Preschool

Capacity Building Improvement

Total Special Education Cluster

~ther Programs

PassThrough From Georgia Department of Education

Comprehensive S~hool Reform Demonstration Project

Elementary and Secondary Education Act

Title I

Grants to local Educational Agencies

'Titlell

"

Eisenh0:-verProfessional Development

C

Title VI

Innovative Education Program Strategies

Class Size Reduction

Title X

Charter Schools

Vocational Educencn- Basic Grants to States

Tech Prep Education

Total U. S. Department of Education

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10,555

NlA S
NIA
S

10,908,96
83,040,59 S
93,949.55 S

(2) 407,198.36 (3)
407,198.36

10.550

NlA
S

11 )
93,949.55 S

(1) 407,198.36

84,027 84.173 84.173

NIA S NIA NIA
S

72,124.15 S
7,120.00_ 2,286.77
81,530.92 S

72,124.15 7,120.00 2,286.77
81,530.92

' 84332
84.010 84.281 84.298 84.340 84.282 84.243

NIA .:

50,000.00

NIA

, . 26,578.00

NIA

6,095.71

NlA

4,330.00

NIA

9,170.00

NIA

60,000,00

NIA

6,428.00

S

244.132.63 S

50,000.00
26,862.15 6,095.71 4,330.00 9,170.00
68,823.23 (3) 7,730.95 (3)
254,542.96

Total Federal Financial Assistance N/A = Not Available

s

338,082.18 S_-6:61~ .74~ 1.3~ 2

,22,

CITY OF TRION BOARD OF EDUCATION CHATIOOGA COUNTY SCHEPULE OF EXPENDITURES OF FEpERAL AWARDS YEAR ENDEp JUNE 30 2000
Notes to the Schedule of Expenditures of Federal Awards
(1) Commodities valued in the amount of $12,066.43 were received during the current fiscal year and were not recorded in the Board's financial statements.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Trion 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.

SCHEDULE .,.

See notes to the general purpose financial statements.

- 23

CITY OF TRION BOARD OF EDUCATION - CHATIOOGA 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 Middle School Incentive Program In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Health Insurance Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Assistive Technology Computers in the Classroom
Office of SChool Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public scnocj Empioyees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 3,121,916.00 400,664.00 68,074.00 126,943.00 31,030.00 791,905.00 116,767.00 37,815.00 43,052.00 13,108.00 28,642.00 -354,011.00 451,886,00 $

$
""1 ., .
33,760.00

, 3,121,916.00
400,664.00 68,074,00 126,943,00 31,030.00
791,905.00 116,767.00
37,815.00 43,052.00 13,108,00 28,842.00 -354,011.00 451,886.00 33,760.00

1,959.55 51,539.83 88,000,00 HI,988.00
1,747.59

1,959.55 51,539.83 88,000.00 19,988.00
1,747.59

9,568.10 53,000.00

9,568,10 53,000.00

289,334.10

289,334.10

12,607.00

12,607.00

$ 5,053,832.97 $ 385,662.20 $ 5,439,495.17

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

.' ..

CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY

SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

YEAR ENDED JUNE 30. 2000

.

SCHEDULE "3"

PROJECT
Adding to. renovating, repairing, improving and equipping existing school buildings and other buildings. facilities and grounds useful or desirable in connection therewith, acquiring instructional and administrative technology improvements for existing schools and acquiring any necessary property therefore, both real and personal

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2}

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 2,000,000.00 $ 2,000,000.00 $ 1,576,076.04 $

19,554.20

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

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

(3) The voters of the City of Trion approved the imposition of a 1% saies tax to fund the above project and retire associated debt. Amounts expended for this project may inciude sales tax proceeds, state, iocal property taxes and/or other funds over the life of the project.

(4) In addition to the expenditures shown above, the Board has incurred interest to provide advance funding for the above project as follows:

Current Year'

$ 34,297.00

See notes to the generai purpose financial statements. - 25-

CITY OF TRION BOARD OF EDUCATION - CHATIOOGA 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

$

3,760,651.00 $

102,236.00

$

4,081,050.30

213,572.28 $

$

4,294,622.58

190,084.69

-36.488.56
$ ---'=4","2-58'-,1'3=4,=02-

$

0.00 $====,;;;;;0,.;0;0"

See notes to the general purpose financial statements. - 27 -

,.;.. :

-:

. CITY OF TRION BOARp OF EpUCA TION . CHATIOOGA COUNTY

ANALYSIS OF MINIMUM EXPENPITURE REQUIREMENTS - BY PROGRAM

GENERAL FUND QUALITY BASIC EPUCATION PROGRAMS

YEAR ENDED JUNE 30 2000

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

S

285,655.40 S

354,717.28 S

14,071.21 S

368,788.49

751,112.10

759,428.53

41,057.67

800,486.20

S 1,037,767.50 S 1.114,145.81 S

55,128.88 S 1,169,274.69 $

0.00

394,209.50

471,599,08

22,910.16

494,509.24

0.00

636,840.00

723,253.05

21,078.24

744,331.29

0.00

368,224.20

553,457.99

51,085.03

604,543.02

0,00

246,875.40

329,592.43

8,688.54

338,280.97

0.00

168,859.80

252,822.34

20,942.69

273,765.03

0,00

S 2,852,776.40 $ 3,444,870.70 $

179,833.54 $ 3,624,704.24

$ ) 294,963.30 $

1,094.96 36,254.67 S 225,607,92
20,251.25 5,703.92

$ 240.88 6,726.29 543.81 378.02

1,094.96 36,495.55 232,334.21 20,795.06
6,081.94

$

294,963.30 S

288.912.72 S

7.889.00 S

296,801.72

0.00

65,634.30

105.333.12

1,506.50

106,839.62

0.00

S

360,597.60 $

394,245.84 $

9.395.50 S

403,841.34

S

61,266.60 $

101,989.79 S

855.65 S

102,845.44

0.00

S 3,274,640.60 S

3,941,106.33 S

190.084.69 $ 4,131,191.02

S

93,110.40 $

139.943.97

$

139,943.97

0.00

23,487.00

S

23.487.59

23,487.59

0.00

$

116,597.40 S

139,943.97 S

23.487.59 $

163.431.56

$ 3.391.238.00 . $ 4,081.050.30 $

213.572.28 S 4,294.622.58 S

0.00

s

10,083.00

20,947.00

s~o=:31;,0;30=,0=0

s

25.890.49 $

25,890.49

5,272.51

5,272.51

$

31.163.00 $

31,163.00 S

~0:.0:0.

29 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W, Suite 214 Atlanta, Georgia 30334-&400
February 22, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Trion 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 Trion Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated February 22,2001. 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 generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States,
Compliance
As part ofobtaining reasonable assurance about whether City ofTrion 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards,
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Trion Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

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 our judgment, could adversely affect City of Trion Board of Education'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-7911-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. 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 noted 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 Trion 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,

RWH:gp 2000YB-40

Rus ell W. Hinton State Auditor

254 Washington Street, S.w.. Suite 214

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

Atlanta, Georgia 30334-X400
February 22,2001

I

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 Trion Board of Education

REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-l33

Ladies and Gentlemen: .

Compliance

We have audited the compliance of City of Trion Board of Education with the types of compliance

u.s. requirements described in the

Office of Management and Budget (OMB) Circular A-I33

Compliance Supplement that are applicable to each ofits major Federal programs for the year ended

June 30, 2000. City of Trion Board of Education's major Federal programs are identified in the

accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of

laws, regulations, contracts and grants applicable to each of its major Federal programs is the

responsibility ofCity ofTrion Board ofEducation's management. Our responsibility is to express an

opinion on City of Trion Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-l33, Audits of States. Local Governments. and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 Trion 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 of Trion Board of Education's compliance with those requirements.

2000SA-10

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

RWH:gp 2000SA-1O

Ru ell W. Hinton State Auditor

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

CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS- 7911-98-0 I FS-7911-99-01

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-7911-99-01

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

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF TRION BOARD. OF EDUCATION CHATTOOGA COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Trion Board of Education'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 of Trion 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 of Trion Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the fmancial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City of Trion 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 of Trion Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The City of Trion Board of Education's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-l33.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The City of Trion Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-I33.
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CITY OF TRION BOARD OF EDUCATION - CHATTOOGA COUNTY SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS c,

GENERAL FIXED ASSETS .. Failure to Maintain General Fixed Assets Account Group
Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-791I-00-OI ': .
.,
The City ofTrion 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 ofthe Board being incomplete and not in accordance with generaJly accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an 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 aJl additions and deletions to the General Fixed Assets Account Group.

Management's Response:

The Trion City Board of Education did not maintain a system-wide General Fixed Assets Account

Group within the formal accounting records. The Board will be unable to comply with this

requirement due to limitations of manpower and costs involved in establishing and maintaining

., . general fixed assets accounting. . .

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ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
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No matters were reported. . .

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