City of Valdosta Board of Education, Lowndes County, Georgia, report on audit of the financial statements, year ended June 30, 2000

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIDITS

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 HJNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

I

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

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

29

.5

BY PROGRAM

30

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY -TABLEOFCONTENTS-
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 CIRCULARA-133
SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

'. -',;" ~'. , , '.j

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w.. Suite 214 Atlanta. Georgia 30334-8400
June 25, 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 Valdosta 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 of the City of Valdosta Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Valdosta Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased
foods inventory at June 30, zooo, nor could we satisfy ourselves as to the accuracy of the amounts
stated as inventories through alternative procedures.

2000ARL-13A

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.

* 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 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 of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe 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 Valdosta Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 25, 2001, on our consideration of the City of Valdosta 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.

2000ARL-13A

Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Valdosta 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 procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect ofadjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth 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,
k)~
Ru ell W. Hinton Stat Auditor
RWH:jb 2000ARL-13A

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items Inventories
Consumable Supplies Food
Donated Commodities Purchased Food
Total Assets

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

768,561.70 $

30,914.34

6,342,459.80

900,111.56

321,132.39

556,541.92

9,918.69

105,358.80

120,166.14 64,038.70

$ 7,537,512.69 $ 1,681,691.35

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Inventories . Consumable Supplies Food Donated Commodities Purchased Food For SPLOSTProjects Unreserved Designated for Self-Insurance . Undesignated
Total Fund Equity

$

880,171.54 $

19,550.00

4,100,000.00

148,921.12 402,456.43
584.72

$ 4,999,721.54 $

44,460.00 596,422.27

$

523,288.75

$

22,959.64

105,358.80

120,166.14 64,038.70

100,000.00 1,809,143.60

878,104.60

$ 2,537,791.15 $ 1,085,269.08

. Total Liabilities and Fund Equity

$ 7,537,512.69 $ 1,681,691.35

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

EXHIBITnA"

TYPES CAPITAL
PROJECTS FUND

TOTALS

(Memorandum Only)

JUNE 30. 2000

JUNE 30.1999

$

26,050.62 $

825.526.66 $

414.651.46

5.675.617.86

12.918,189.22

13,434,625.95

1.183.867.69

2,061,542.00

1,741,257.71

9,918.69

. 105,358.80
120.166.14 64,038.70

51.907.38
124.206.80 103,753.47

$ 6.885,536.17 $ 16,104,740.21 $ 15,870,402.77

$

267,566.56 $ 1,296,659.22 $ 1,767,222.74

422,006.43

323,958.08

4,100,000.00

3,800,000.00

584.72

17,076.63

481,189.85

481,189.85 .

249,051.26

384,915.88

384,915.88

88,849.79

44,460.00

141,439.00

$ 1,133,672.29 $ .6,729,816.10 $ 6.387 ,597.50

J

$

523,288.75 $

429,596.75

22,959.64

64,720.48

105,358.80

51,907.38

$ 5,326,929.79

120,166.14 64,038.70 5,326,929.79

124,206.80 103,753.47 5,765,968.45

424,934.09

100,000.00 3,112,182.29

100,000.00 2,842,651.94

$ 5,751,863.88 $ 9,374,924.11 $ 9,482.805.27

$ 6,885,536.17 $ 16,104,740.21 $ 15,870,402.77

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
. Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 24,631,740.35 $ 51;434.78
11,152,443.22 742,271.19
$ 36,577,889.54 $

388,287.79 5,531,513.83
873,456.17
6,793,257.79

$ 23,995,396.64 $
1,925,683.66 . 2,014,664.57
314,225.45 310,702.81 2,350,472.98 708,533.47 3,185,756.63 835,512.70
34,129.21 124,880.05

47,942.89

$ 35.847,901.06 $

$

729;988.48 $

3,199,685.71
107,627.56 161,838.82
18.59 144,293.67 20,614.06
53~380.32
63,772.15 2,732,627.37
281,346.49
6,765,204.74
28.053.05

$

$

-139.00

$

-139.00 $

139.00 139.00

$

729,849.48 $

28,192.05

1,807,941.67

1,100.832.46

-4,040.66 -39,714.77

FUND BALANCE JUNE 30

$ 2,537,791.15 $

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

1,085.269.08

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$ 25,020,028.14 $. 24,443,512.55

. 5,582,948.61

5,191,375.54

$ 7,277,739.95

18,430,183.17

16,200,819.46

280,311.61 .

1,896,038.97

1,797,924.89

$ 7,558,051.56 $ .50,929,198.89 $ 47,633,632.44

$

97,356.53 $ 27,292,438.88 $ 27,124,835.19

8,282,862.29

2,033,311.22 2,176,503.39
314,244.04 454,996.48 2,371,087.04 708,533.47 3,185,756.63 888,893.02 .
34,129.21 188,652.20 2,732,627.37 281,346.49 8,330,805.18

1,831,792.81 2,203,226.66
312,801.18 438,120.28 2,455,344.59 615,795.67 2,899,620.52 962,451.26
55,635.35 156,649.16 2,661,041.70 364,735.61 4,140,314.48

$ 8,380,218.82 $ 50,993,324.62 $ 46,222,364.46

$

-822,167.26 $

-64,125.73 $ 1,411,267.98

$

139.00 $

10,235.58

-139.00

-10,235.58

$

0.00 $

0.00

s

s -822,167.26

-64,125.73 $ 1,411,267.98

6,574,031.14

9,482,805.27

8,062,687.68

-4,040.66 -39,714.77

8,558.45 291.16

$ 5,751,863.88 $ 9,374,924.11 $ 9,482,805.27 -5-

""

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CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL- INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2000

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 23,646,559.00 $ 24,631.740.35

30,000.00

51,434.78

11,226,530.00

11,152,443.22

444,167.00

742,271.19

Total Revenues

$ 35,347,256.00 $ 36,577,889.54

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
Capital Outlay

$ 24,123,699.18 $ 23,995,396.64

1,896,840.55 1,237,256A3
983,384.24 336.961.12 2,422.057.56 671,029.45 3.377.784.75 813,793.45 164,894.30
28,684.00

1,925,683.66 2.014,664.57
314,225.45 310,702.81 2,350,472.98 708.533.47 3,185,756.63 835,512.70
34.129.21 124,880.05

47.380.00

47,942.89

Total Expenditures

$ 36,103,765.03 $ 35,847.901.06

Excess of Revenues over (under) Expenditures

$ -756,509.03 $ 729,988A8

OTHER FINANCING SOURCES IUSES)

Other Sources Other Uses
Total Other Financing Sources (Uses)

$

3,500.00

$

$

3,500.00 $

-,139.00 -139.00

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

-753.009.03. $

729.849.48

FUND BALANCE JULY 1 1999

1,795.975.24

1,807;941.67

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

-61,368.55

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 359,987.44 $ 388,287.79

5,054,932.75

5,531,513.83

535,449.36

873,456.17

$ 5.950,369.55 $ 6,793,257.79

$ 2,897.858.36 $ 3,199,685.71

89,464.00 345,175AO
153,088.00 31.800.00

107,627.56 161,838.82
18.59 144,293.67 20,614.06

51,600.00 2.744.00
96,290.00 2,710,879.81

53.380.32
63,772.15 2,732,627.37
281,346.49

$ 6,378,899.57 $ 6,765,204.74

$ -428,530.02 $

28,053.05

$

139:00

$

139.00

$ -428,530.02 $

28.192.05

1,079,757.68

1.100.832.46

-56,438.34

-4,040.66 -39.714.77

FUND BALANCE JUNE 30 2000

$ 981,597.66 $ 2,537:79 1.15

$ 594,789.32 $ 1.085,269.08

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

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHffiIT"D"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

. REPORTING ENTITY

The City of Valdosta Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.

FUND ACCOUNTING (. . . -
The Board uses funds 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 inthese 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 ofa Board's educational activities, Governrhental 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 ~d 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.

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CITY OF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30; 2000

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 financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other fmancing 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 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 orsoon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual ate property taxes, local option . sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts; During fiscal year 2000~ a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

-9-

, CITY OF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000

EXHIBIT"D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET ' , "
The City ofValdosta Board ofEducation's budget isa 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 ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the .. Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary, and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and
money market investments with a maturity at purchase ofone yearor less are reported at amortized
cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated , Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity, Funds may be invested in the following:
(1) Obligations issued by the State of Georgia orby other states,
(2) Obligations issued by the United States govermrient, '
(3) Obligations fully insured or guaranteed by the United States government or a United, States government agency,
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CITY OF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.2000' "

EXHmIT"D"

. Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(S) Prime banker's acceptances,

. (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) .. Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Lowndes County Board of Commissioners fixed the property tax levy for the 1999 tax year

(calendar year) on December 10,1999 (levy date). Taxes were due on February 10, 2000. The lien

date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within

60 days after year-end are reported as revenue in fiscal year 2000. The Lowndes County Tax

Commissioner bills and collects the property taxes for the Board of Education and remits taxes

collected to the Board.

.

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

School Operations

12.57 mills

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 $7,277,739.95 and.was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $23,649,126.88 has been collected or on September 30, 2002, whichever occurs first.

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CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY . NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
. 'JUNE 30, 2000

EXHIBIT liD"

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INVENTORIES

CONSUMABLE SUPPLIES

I'

Inventories of consumable supplies are reported oil the Combined Balance Sheet at average cost.

o. The Board uses the consumption method to account for consumable supplies whereby an asset is

recorded at time ofpurchase and expenditures are recorded when consumed. Reported inventories

are equally offset by a reservation of fund balance which indicates that they do not constitute

"available spendable resources" even though they are a component of net current assets.

FOOD INVENTORIES

Inventories of donated food commodities used in the preparation of meals are reported on the C~mbined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported

on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded

as revenues and expenditures at the time commodity items are received. Purchased foods inventories

are recorded as expenditures at the time ofpurchase, The inventories reported on the balance sheet

for donatedfood commodities and for purchased foods are equally offset by reservations of fund

balance which indicates that these amounts do not constitute "available spendable resources" even

though they are a component of net current assets.

.

PREPAID ITEMS

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

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements-ofexpenditures initially made from a fundthat 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 fmancial statements are.captioned "Memorandum Only" to 'indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present fmancial 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.

, - 12 -

CITY OF VALDOSTA BOARD OF EDUCA nON - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1600

sxarsrr-n-

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS

Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on

,

,

deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not

been secured by surety bond, by guarantee of insurance, 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
11 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 11 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 fordeposits consists of anyone of or any combination of the following:

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

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

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

States or of the State ofGeorgia,

,

(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

(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 $2,756,843.87. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 13-

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

EXHffiIT "0"

Note 2: DEPOSITS AND INVESTMENTS

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

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

Risk Category

Bank Balance

1

$ 116,388.08

2

2,640,455.79

3

0.00

Total

$ 2.756.843.87

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $12,918,189.22 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be 'categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or .similar investments, A description of the Primary Liquidity Portfolio is as follows: .

The Primary Liquidity Portfolio consists ofGeorgia Fund 1,which is a combination local and state
government investment pool, and Fund 6, Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule Za-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary obj ectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value).' Net asset value is calculated weekly to ensure stability, The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

. - 14-

CITY OF VALDOSTA BOARD OF,EDUCATION - LOWNDES COUNTY
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 ' ': '

EXHIDIT"D"

Note 2: DEPOSITS AND INVESTMENTS

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days, The average investment duration for Fund 6 on June 30, 2000, was .80 year,

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of

assets; errors or omissions; job related illness or injuries to employees; natural disaster and

unemployment compensation,

,

The Board has obtained commercial insurance for risk ofloss associated with assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years,

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

The Board is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the Board, 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 ofthat loss can be reasonably estimated,

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

1999 2000

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

6,275.00 $

$

6,275.00 $

0.00 $

Claims Paid

End of Year Liability

0.00 $ 6,275.00 $

6,275.00 0.00

- 15 -

, CITY OF VALDOSTA BOARD OF EDUCAnON - LOWNDES COUNTY , NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS .JUNE 30, 2000

EXHIBIT"D"

Note 4: RISK MANAGEMENT

a The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a
, , public entity risk pool organized on July 1, 19~)2, to develop, implement, and administer program

of workers' compensation self-insurance for its member organizations. The Board pays' an annual

premium to the Fund for its general insurance coverage, Additional insurance coverage is provided

through an agreementby the Fund with the United States Fidelity and Guaranty Company to provide

coverage for potential losses sustained bythe Fund in excess of$350,000:00 loss per occurrence,up

to the statutory limit.

'.

,-

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

Position Covered

.Amount

Superintendent Business Services Director Payroll Clerk Purchasing Agent ,All Other Employees

$ ,20,000.00 $ 10,000,00 $ 10,000.00 $ 10,000,00 $ 5,000.00

Note 5: LOANS PAYABLE

At June 30, 2000, short-term debt (temporary loans) amounts to $4,100,000.00 with interest accruing

at 4.6 percent. Article IX, Section V;Paragraph V ofthe Constitution ofthe State ofGeorgia limits

the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected

in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe

calendar

year

in
.

whic.h

the .'

loan

was

made:

,'.

.

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $482,967.,19 for health. insurance and retirement contributions paid on the Board's behalfby the following State Agencies,

Georgia Department ofEducation . Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$337,351.61
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost . In the amount of $35,~2,58
Office ofTreasury and Fiscal Services _. Paid to the Public School Employees Retirement System
For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $11 0,173,00
- 16 - ,

. . " ',"

'--,1

't,.. '"1, ~

CITY OF VALDOSTA BOARD OF EDUCATION - LoWNDES COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 . "

EXHIBIT"D"

Note 7: .SIGNIFICANT COMMITMENTS

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

Project

Unearned Executed Contracts

New Elementary School

$ 354,318.85

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

Note 8: 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 fmancial position.

.Note 9: 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 can be obtained from the Georgia Department of Audits and Accounts,

, TRS CONTRIBUTIONS REQUIRED AND MADE

Employees of the Board who are covered by TRS are required by State statute to contribute 5% of

their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates

adopted by the TRS Board of Trustees in accordance with State statute and as advised by their

independent actuary. The required employer contribution rate is 11.29% and employer contributions

for the,current fiscal ye.ar and the preceding two fiscal years are as follows:

.

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%.

$ 2,810,844.79 $ 2,845,817.38 $ 2,608,156.59

- 17 -

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

ASSETS

Cash and Cash Equivalents
. ",.
Investments

Accounts Receivable

Prepaid Items

'.. ~ . ' ..

Inventories

Food

Donated Commodities

Purchased Food

Total Assets-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL . PROGRAMS

$

80,095.07 $

1,385.00

848,760.52

37,383.21

$

519,158.71

120.166.14 64,038.70

$ 1,150,443.64 $

1,385.00 $ =====5~1=9=,1=5=8=.7=1==

. Total Liabilities andFund Equity $ 1,150,443.64 $
See notes to the general purpose financial statements. ; -18-

1.385.00 $ ====5=19~,1=5=8=.7=1=

EXHIBIT "E"

OTHER PROGRAMS

$

16,388.08 $

ATHLETIC FUND

TOTALS JUNE 30, 2000 JUNE 30, 1999

29,945.15 $

127,813.30 $

184,002.16

51,351.04

900,111.56

834,304.38

556,541.92

429,901.41

9,918.69

9,918.69

120,166.14 64,038.70

124,206.80 103,753.47

$

16,388.08 $

s 91,214.88 $ 1,778,590.31

1,676,168.22

$

96,898.96

148,921.12 $

186,985.22

402,456.43

323,958.08

584.72

16,554.46

$

44,460.00

44,460.00

47,838.00

$

44,460.00 $ 693,321.23 $ 575,335.76

$

22.959.64 $

64,720.48

120,166.14 64,038.70

124,206.80 103,753.47

$

16,388.08 $

46,754.88

878,104.60

808,151.71

$

16,388.08 $

46,754.88 $ 1,085,269.08 $ 1,100,832.46

$

16.388.08 $

s 91,214.88 $ 1,778,590~31

1,676,168.22

-19 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2000

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

, FEDERAL ' PROGRAMS

REVENUES

State Funds Federal Funds Other Funds

$

192,688.00 $

2,017,782.58

562,441.05

182,369.74 $

13,230.05

3,513,731.25

Total Revenues

$ 2,772,911.63 $

182,369.74 $ 3,526,961.30

EXPENDITURES

Current Instruction Support Services Pupil Services' Improvement of Instructional Services Educational Media Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation Ehterprise Operations

$ $ 2,693,369.27

182,369.74 $ 3,017,315.97
107,627.56 161,838.82
18.59 144,293.67
20,614.06 53,380.32 63,772.15

Total Expenditures' , Excess of Revenues over (under) Expenditures

$ 2,693,369.27 $

$

79,542.36 $

182,369.74 $ 3,568,861.14

0.00 $

-41,899.84

OTHER FINANCING SOURCES

Operating Transfers In

139.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

79,542.36 $
963,379.55

0.00 $
0.00

-41,760.84 64,720.48

Food inventory- Net Change in Period Donated Commodities Purchased Food

-4,040.66 -39,714.77

FUND BALANCE JUNE 30

$

999,166.48 $

0.00 $ ===2=2~,95~9=.64=

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

EXHIBIT"F"

OTHER PROGRAMS

ATHLETIC FUND

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$ 388,287.79 $ 339,095.27

5,531,513.83

5,104,039.26

$

38,758.32 $ 272,256.80

873,456.17

931,201.13

$

38,758.32 $ 272,256.80 $ 6,793,257.79 $ 6,374,335.66

$ 3,199,685.71 $ 2,762,585.50

107,627.56

118,922.90

161,838.82

225,341.65

18.59

1,893.54

144,293.67

119,542.30

20,614.06

59,415.09

53,380.32

55,201.90

63,772.15

54,321.47

$

39,258.10

2,732,627.37

2,661,041.70

$ 281,346.49

281,346.49

364,735.61

$

39,258.10 $ 281,346.49 $ 6,765,204.74 $ 6,423,001.66

$

-499.78 $

-9,089.69 $

28,053.05 $

-48,666.00

139.00

10,235.58

$

-499.78 $

.-9,089.69 $

28,192.05 $

-38,430.42

16,887.86

55,844.57

1,100,832.46

1,130,413.27

-4,040.66 -39,714.77

8,558.45 291.16

$

16,388.08 $

46,754.88 $ 1,085,269.08 $ 1,100,832.46

- 21 -

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

EXHIBIT "Go

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets "

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2000 JUNE 30, 1999

'$

4,998.79 $

21,051.83 $

26,050.62 $

88,593.48

. 426,453.83

5,249,164.03

5,675,617.86

5,847,451.89

1,183,867.69

1,183,867.69

1,067,938.32

$

s 431,452.62 $ 6,454,083.55 $ 6,885,536.17

7,003,983.69

Total Liabilities and Fund Equity. $

431,452.62 $ 6,454,083.55 $ 6,885,536.17 $ 7,003,983.69

See notes to the general purpose financial statements.

--22 -

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

EXHIBIT "H"

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES
Taxes Other Funds
Total Revenues

s s $ 7,277,739,95

7,277,739,95

6,613,587,76

.$

21,958.25

258,353.36

280,311.61

206,356.35

s

s 21,958,25 $ 7,536,093,31

7,558,051.56 $ 6,819,944.11

EXPENDITURES

Current Instruction Support Services Student Transportation
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

s

s 97,356.53

s 97,356.53

269,308.20

54,620.00

$ 396,068.32 9,018.53

303,924:93 7,206,434.02
367,416,49

699,993.25 7,215,452.55
367,416.49

967,456.60 2,672,164,17
416,362.31

Total Expenditures

$ 405,086.85 $ 7,975,131.97 $ 8,380,218.82 $ 4,379,911.28

Excess of Revenues over (under) Expenditures $ -383,128,60 $ -439,038.66 $ -822,167.26 $ 2,440,032.83

FUND BALANCE JULY 1

808,062.69

5,765,968.45

6,574,031.14

4,133,998.31

FUND BALANCE JUNE 30

$ 424,934.09 $ 5.326,929.79 $ 5,751,863.88 $ 6,574,031.14

See notes to the general purpose financial statements.

- 23

'City OF VALDOSTA BOARD OF EPUCATION - LOWNpES COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U, S, Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

.,

School Breakfast Program National School Lunch Program

Total Child Nutrition Cluster

10,553 10.555

N/A $

480,464,81

(2)

N/A

1,389,961,16 $ 2,546,012.66

$ 1,870,425,97 $ 2,546,012.66

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

10,550

N/A

147,356.61

147,356.61

$ 2,017,782.58 $ 2,693,369.27

Corporation for National and Community Service Pass-Through From Georgia Department of Education Leam and Serve America School, and Community Based Programs:

'94.004

N/A '$

15,000,00 $

15,000.00

" Ed'ucation, U, S. Department o! Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Capacity BUilding and Improvement Preschool
Total Special Education Cluster

84.027 84.173 ' 84.173

N/A $ N/A N/A
$

391,459.64 $ 14,440,00 45,415,28
451,314,92 $

391,522,58 (3) 14,440,00 45,415.28
451,377.86

Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act Title I Grants to Local EduCational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocational Education Basic Grants to States Hig!:' School Program Basic Grant
Pass-Through From Berrien County Board of Education d/b/a Southem Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Total U. S. Department of Education

84.041 84.332
84,010 84.281' 84.318 84.298 84.340 84.276 84.186
84.048
84.011

51,434.78

(4)

N/A

31,973.68

31,973.68

N/A

' 2,064,131.66

2,064,156,26 (3)

N/A

40,080.88

46,006,36

N/A

99,366,51

~03,807,86

NlA

56,500.19

56;500.19

N/A

274,270.00

274,321,09 (3)

NlA

186,117.04

186,117,04

NlA

39,000,00

39,000.00

NlA

94,791.75

94,791.75

N/A

27,470.10

27,470.10 '

$ 3,416,451,51 $ 3,375,522.111

- 24

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice. U.S. Department of Office of Juvenile and Delinquency Prevention Pass-Through From Child and Youth Coordinating Council of Georgia Juvenile Justice and Delinquency Program Pass-Through from Lowndes County Board of Commissioners Title V Prevention Grants
I Total U. S. Department of Justice
Labor. U. S: Department of Pass-Through From South Georgia Regional Development Center Job Training Partnership Act CY99-IIB-4 CYOO-IIB
Total U. S. Department of Labor
Defense. U. S. Department of Direct . Department of the Navy R.O.T.C. Program Teachers and Teachers Aid Placement Assistance Program
Total U. S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.540 16.546

N/A

$

57,549.87 $

70,779.92 (3)

N/A $

8,630.19

8,630.19

66,180.06 $ _ _-:.7::9",-4'-1''0'''.'1-'1-''-

17.250 17.250

N/A . $ N/A
$

5,568.97 $ 22.500.00

5.568.97 22.500.37 (3)

28,068.97 $ _ _~=28=,0:6;9;.3:4..

$

39,465.49 $

39.465.49

31,394.01
$ 39,465.49 $ _ _,..7..0:...8:=59=."5"0-

Total Federal Financial Assistance .
= N/A Not Available

========== $ 5.582,948.61 $

6,262,230.41

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State. and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

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

The Board did not provide Federal Assistance to any Subrecipienl.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Valdosta 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 VALDOSTA BOARD OFEDUCATION - LOWNDES COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs I Staff Development Programs Indirect Cost . Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors. Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Educ;ation Other State Programs Altemative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Preschool Handicapped Program Remedial Summer School Program Special Education Support Cost Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom

$ 15,893,335.00 . 2,921,485.00 673,980.00 683,270.00 183,190.00 4,089,611.00
365,301.00 104,582.00 555,747.00 409,599.00 103,879.00 328,443.00
66,420.00 86,527.00 -4,282,363.00 1,421,004.00
$ 140,000.00
145,755.00 35.000.00 32,505.51 750.00
337,351.61 5,000.00 9,400.00
110,583.00 11,269.65 29,000.00 .35,442.58

s 15,893,335.00 . 2,921,485.00 673,980.00 683,270.00 183,190.00 4,089,611.00

192,688.00

365,301.00 104,582.00 555,747.00 409,599.00 103,879.00 328,443.00
66,420.00 86,527.00 -4,282,363.00 1,421,004.00 192,688.00 140,000.00

145,755.00 35,000.00 32,505.51 750.00
337,351.61 5,000.00 9,400.00
110,583.00 11,269.65 29,000.00 35,442.58

24,319.74 158,050.00

24,319.74 158,050.00

Office of the Govemor Abstinence Education Grant Georgia Challenge Program

25,qOO.00

13,230.05

13,230.05 25,000.00

Office of Treasury andFiscal Services Public School Employees Retirement

110,173.00

110,173.00

CONTRACT Education. Georgia Department of Aquatic Altematives

500.00

500.00

$ 24,631,740.35 $

388,287.79 $ 25,020,028.14

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

.... ~, ;- ~n
CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30,.2000

SCHEDULE "3"

PROJECT
For the raising of not more than $41,930,941.00 for the purposes of additions and renovations to Valdosta High School, construction of a new elementary school, construction of a new Valdosta Middle School, additions and renovations to Southeast Elementary School, Lomax-Pinevale Elementary scnoot, W. G. Nunn Elementary School, West Gordon Elementary School, S. L. Mason Elementary School, Newbern Middle School, making system-wide technology improvements, and acquiring new school sites for the construction of new schools and expansion of existing schools, student transportation services, improvements to school driveways and parking lots, equipping system-wide new construction, additions, and renovations

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

$ 41,930,941.00 $ 41,930,941.00 $ 7,975,131.97 $

AMOUN~
EXPENDED IN PRIOR YEARS
5.443.450.90

(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 tota.1 cost for each project. Indudes all cost from project inception to completion.
(3) The voters of the City of Valdosta approved the imposition of a 1% sales tax to fund the above project. Amounts expended for these projects 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-

'I '.'t'"
CITY OF VALDOSTA BOARD OF EDUCATION - LO~NDES COUNTY
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 3D. 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

$

20,499,380.00 $

560,715.00

$

21,476,970.31

886,029.25 $

$

22,362,999.56

748,634.05

-255,893.07

$

22,107,106.49

$

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

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

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

GENERAL AND CAREER EDUCATION PROGRAMS

Kindergarten (*)

.'...

, Grades 1 - 3 (*)

Sub-Total- K-3

Grades 4 - 5 (*)

Grades 6 - 8 (*)

Grades 9 - 12 (*)

High School Laboratories (*)

Vocational Education Laboratories (*)

Total General and Career Education Programs

SPECIAL EDUCATION PROGRAMS

Regular Programs Category II (*) Category'lII (*) Category IV (*) Category V (*)

Sub-Total- Regular

Category VI (Gifted) (*)

Total Special Education Programs

REMEDIAL EDUCATION PROGRAM C*)

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations

Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$ 1,825,123.00

$ 1,642,610.70 $

4,780,271.00

4,302,243.90

$ 6;605,394.00 90 $ 5,944,854,60 $

~ r , 1,981,270.00 90 3,334,872.00 90 2,342,388.00 90

1,783,143.00
... 3,001,38,4.80 ,,"
2,108,149.20

943,747.00 90

849,372,30

685,664.00 90

617,097.60

$ 15,893,335.00

$ 14,304,001.50 $

0,00
0.00 106,930.00
79,220,00 71,727.00 257,877.00

$ 2,461,029.00

$ 2,214,926.10 $

69,433,00

$ f,461 ,029.00 90 $ 2,214,926,10 $

460,456.00 90

414,410.40

$ 2,921,485,00

$ 2,629,336.50 $

$

673,980.00 90 $

606,582.00 $

$ 19,488,800.00

$ 17,539,920.00 $

69,433,00
69,433.00 0,00
327,310.00

$

549,577.00 90 $

494,619.30 $

0.00

133,693,00 100

133,693.00

$

683,270.00

$

628,312,30 $

0,00

Total Fourteen Weighted and Media Center Programs $ 20,172,070.00

$ 18,168,232.30. $

327,310.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Profess,ional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

59,476,00

123,714.00

$

59,476,00 $

,123,714.00

1,133,00 0,00

$

183,190.00 100 $

183,190,00 $

1,133.00

\\ ., - 30 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,642,610.70 $ 1,758,583.21 $

26,202.59 $ 1,784,785.80

4,302,243.90

4,592.792.26

184,662.02

4,777,454.28

$ 5,944,854.60 $ 6,351,375.47 $

210,864.61 $ 6,562,240.08 $

0.00

1,890,073.00

2,487,758.01

97,423.08

2,585,181.09

0.00

3,001,384.80

3,829,424.67

119,084.45

3,948,509.12

0.00

2,108,149.20

2,725,300.46

119,326.55

2,844,627.01

0.00

928,592.30

1,167,184.93

43,967.36

1,211,152.29

0.00

688,824.60

628,119.82

102,218.91

730,338.73

0.00

$ 14,561,878.50 $ 17,189,163.36 $

692,884.96 $ 17,882,048.32

$ 2,284,359.10 $

474,117.11 $ 1,404,414.90
432,321.12 29,385.31

4,067.41 $ 32,560.95 6,372.20

478,184.52 1,436,975.85
438,693.32 29,385.31

$ 2,284,359.10 $ 2,340,238.44 $

43,000.56 $ 2,383,239.00

0.00

414,410.40

498,119.35

8,654.76

506,774.11

0.00

$ 2,698,769.50 $ 2,838,357.79 $

51,655.32 $ 2,890,013.11

$

606,582.00 $

647,681.29 $

4,093.77 $

651,775.06

0.00

$ 17,867,230.00 $ 20,675,202.44 $

748,634.05 $ 21,423,836.49

$

494,619.30 $

801,767.87

$

801,767.87

0.00

133,693.00

$

137,395.20

137,395.20

0.00

$

628,312.30 $

801,767.87 $

137,395.20 $

939,163.07 .

$ 18,495,542.30 $ 21,476,970.31 $

886,029.25 $ 22,362,999.56 $

0.00

$

60,609.00

123,714.00

184,323.00

$

146,911.96 $

146,911.96

37,411.04

37,411.04

$ 184,323.00 $ 184,323.00 $ ========0=.00-

31

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 30334-X400
June 25, 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 Valdosta 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 Valdosta Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 25, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether City of Valdosta Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective 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.
2000YB-40A

Internal Control Over Financial Reporting
In planning and performing our audit, we considered City ofValdosta Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 ofV aldosta Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-792l-00-0 l, FS-792l-00-02 and FS-792l-00-03.
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, ofthe reportable conditions described above, we consider item FS-792l-0003 to be a material weakness. .
This report is intended solely for the information and use of management, members of the City of . Valdosta 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:jb 2000YB-40A

Ru sell W. Hinton State Auditor

RUSSELL W. HINTON
STATEAUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
June 25, 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 Valdosta Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of City of Valdosta Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. City ofValdosta Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofCity ofValdosta Board ofEducation's management. Our responsibility is to express an opinion on City of Valdosta Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Valdosta 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 Valdosta Board ofEducation's compliance with those requirements.
2000SA-10A

In our opinion, the City of Valdosta Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The mariagement of City of Valdosta Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofValdosta Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to 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 toa 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 Valdosta 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,
w~~
Ru ell W. Hinton State Auditor
RWH:jb 2000SA-IOA

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

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7921-98-01 FS- 7921-99-01 FS- 7921-99-02

Further Action Not Warranted Unresolved - See Corrective Action/Response Unresolved - See Corrective Action/Response

CORRECTIVE ACTIONIRESPONSES

GENERAL LEDGER Failure. to Include all Bank Accounts in Accounting Records Finding Control Number: FS- 7921-99-01

We acknowledge the audit finding for failure to record the financial activity and ending balances for the Banquet Fund. As of July 1, 2000, the Banquet Fund balances and activity have been incorporated in the Board's formal accounting records.

GENERAL FIXED ASSETS Failure to maintain General Fixed Assets Account Group Finding Control Number: FS-7921-99-02

The City of Valdosta School System acknowledges the audit finding concerning the

General Fixed Assets and concurs that this is a matter that the local school system should

plan to resolve. Unfortunately up to this date, staffing limitations and budgetary

constraints have not allowed us to pursue the recording of general fixed assets in an

appropriate manner on the financial statements. We will continue to try to resolve this

problem.

.

SECTION IV FINDINGS AND QUESTIONED COSTS

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

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofValdosta Board ofEducation's financial statements was qualified for a scope' limitation and 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 Valdosta Board of Education disclosed fmancial statement reportable conditions related to the following control categories.

General Ledger General Fixed Assets

Procurement

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the City of Valdosta Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the City ofValdosta Board ofEducation 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 Valdosta 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 ofValdosta Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: iO.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 RiskAuditee The City ofValdosta Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education..

- 1-

CITY OF VALDOSTA BOARD OF EDUCATION ~ LOWNDES COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED 'COSTS

PROCUREMENT Failure to Follow Board's Procurement Policy Reportable Condition' .' Nonmaterial Noncompliance Finding Control Number: FS- 7921-00-01

. Areview of the Board's Capital Projects' expenditures indicatedthat the Board failed to adhere to

local Board policy which requires bids for all service contracts valued at '$3,000.00 or more when it

paid a vendor $396,068.32 for services relating to removal of an underground fuel tank at Valdosta

High School. This condition occurred because management failed to follow Board Policy DJED

dated September 9, 1996, which states that bids shall be invited on equipment, materials or services

which exceed $3,000.00. Procedures should be implemented to ensure compliance by management

with the Board's purchasing policies.

.

.

Management's Response:

Tlie contract to removethe underground storage tanks at Valdosta High School was reported to be of
material andemergency status. Therefor, we acted accordingly and one ofthe Board of Education members (at that time) contacted a company engaged in the business of removal and regulation compliance. They were given the job of eliminating the problem. Looking back on the matter, we now realize the problem could have been better managed by following proper procedure and steps have been taken to ensure same in the future. Time will be taken to assess problems and competitive bids taken.

GENERAL LEDGER Failure to Include all Bank Accounts in Accounting Records Reportable Condition Repeated From Prior Year Finding Control Number: FS':7921-00-02

The Board failed to record the financial activity and ending balances of the Banquet Fund account

within the Board's formal accounting records. Audit procedures were performed on this account and

the financial statements were adjusted to include these transactions and balances.

"

"

".

This condition occurred because ofmanagement's failure to incorporate this account and its related financial transactions in the Board's accounting records. Corrective action should be taken by the Board to ensure that all the Board's financial accounts and activities are included in the formal accounting records.

-2 -

CITY OF VALDOSTA BOARD OF EDUCATION - LOWNDES COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Include all Bank Accounts in Accounting Records Reportable Condition Repeated From Prior Year Finding Control Number: FS-792l-00-02
Management's Response:
This problem has been completely resolved and is included in the accounting records for FYE 6-3001.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-792l-00-03
The City of Valdosta Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings, and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location, and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
We agree with this finding. However two things should be noted. This is the same condition with probably every school system in the State of Georgia. Under new requirements recently adopted by SDE we are working toward resolving this problem prior to 6-30-02.
It is worthy to note the Valdosta City School system had 95% ofthe work done to comply with this requirement 15 years ago; however, we were directed by the school finance officials to drop the project until such time all schools in Georgia could comply with a State required procedure.
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
No matters were reported.
-3-