{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2007-h2008","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2008-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceaed with fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Dooly County Board of Education, Vienna, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (Dooly County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed January 20, 2023).","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 20, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dooly County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dooly County--Auditing--Periodicals","Education--Georgia--Dooly County--Finance--Statistics--Periodicals"],"dcterms_title":["Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2008"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOOLY COUNTY BOARD OF EDUCATION VIENNA, GEORGIA REPORT ON AUDIT \nOF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n8 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n9 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n30 \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n31 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 23, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Dooly County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Dooly County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Dooly County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions. \n \n2008ARL-11 \n \n In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Dooly County Board of Education, as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe Dooly County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated September 23, 2009, on our consideration of the Dooly County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dooly County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n~~~ Russell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008ARL-11 \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n1,915,193.84 \n \n3,758,241.81 \n \n607,556.89 1,003,593.34 \n703,338.80 61,574.23 20,396.13 \n369,734.00 22,882,500.00 \n \n$ =====3=1,=3=22=,1=2=9=.0===4 \n \n$ \n \n548,234.74 \n \n1,389,631.39 \n \n65,910.86 \n \n19,346.00 \n \n555,000.00 8,860,000.00 \n \n$ \n \n11,438,122.99 \n \n$ \n \n16,445,405.71 \n \n99,314.00 365,246.67 606,143.80 2,377,903.50 -10 007.63 \n \n$ \n \n19,884,006.05 \n \n$ ====3=1='3=22=,=12=9=.0===4 \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2008 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year (Restated) \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n8,399,584.27 $ \n \n299,644.05 494,078.68 308,834.06 427,144.60 1,017,103.35 165,352.12 1,183,016.08 1,012,371.72 \n64,232.97 80,924.32 \n \n96,207.35 794,664.81 863,034.77 181,908.00 \n \n$ 15,388,101.15 $ \n \n82,634.29 \n82,634.28 26,605.11 191,873.68 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n7,421,221.76 \n \n123,635.75 211,571.96 187,987.20 468,063.91 478,013.57 \n6,875.14 530,785.68 503,619.98 $ \n966.50 26,862.96 \n \n754,514.65 933,646.33 \n \n$ 11,647,765.39 $ \n \n$ 51,174.00 51 174.00 $ \n \n-895,728.22 \n-176,008.30 -282,506.72 -120,846.86 \n40,919.31 -539,089.78 -158,476.98 -652,230.40 -457,577.74 -63,266.47 -54,061.36 \n-13,573.07 -40, 150.16 97,216.67 -181,908.00 \n-3,497,288.08 \n \n$ \n \n3,639,593.20 \n \n21,559.14 \n \n1,694,699.85 40,232.13 \n289,910.00 168,276.63 249 110.24 \n \n$ \n \n6 103 381.19 \n \n$ \n \n2,606,093.11 \n \n17,277,912.94 \n \n$ ===19='=88=4=,0=0=6=0=5 \n \n-3- \n \n DOOLY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2008 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,235,132.19 $ 605,638.65 $ 74,423.00 $ 1,915,193.84 1,366,516.06 1,860,004.95 531,720.80 3,758,241.81 \n \n86,358.95 1,003,593.34 \n703,338.80 61,574.23 20,396.13 \n \n298,093.60 \n \n384,452.55 1,003,593.34 \n703,338.80 61,574.23 20,396.13 \n \n$ 4,476,909.70 $ 2,763,737.20 $ 606,143.80 $ 7,846,790.70 \n \n$ 387,518.74 $ 1,389,631.39 65,910.86 19,346.00 \n \n160,716.00 \n \n$ 1,862,406.99 $ 160,716.00 \n \n$ 548,234.74 1,389,631.39 65,910.86 19,346.00 \n$ 2,023,122.99 \n \n$ 99,314.00 \n \n$ 99,314.00 \n \n344,850.54 \n \n344,850.54 \n \n$ 606,143.80 \n \n606,143.80 \n \n20,396.13 \n \n20,396.13 \n \n$ 2,377,903.50 \n \n2,377,903.50 \n \n20,620.79 \n \n20,620.79 \n \n2,129,321.25 \n \n225,117.70 \n \n2,129,321.25 225,117.70 \n \n$ 2,614,502.71 $ 2,603,021.20 $ 606,143.80 $ 5,823,667.71 \n \n$ 4,476,909.70 $ 2,763,737.20 $ 606,143.80 $ 7,846,790.70 \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 5,823,667.71 \n \n$ 309,734.00 60,000.00 \n1,150,870.00 24,683,170.00 \n3,266,836.00 -6,218,376.00 \n \n23,252,234.00 \n \n223,104.34 \n \n$ -7,040,000.00 -2,375,000.00 \n \n-9,415,000.00 \n \n$ 19,884,006.05 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,790,294.00 \n \n40,232.13 $ 1,694,699.85 \n \n8,671,029.34 \n \n3,317,820.05 \n \n191,873.68 \n \n48,485.49 \n \n103,363.20 $ \n \n249,110.24 \n \n$ 16,427.94 \n \n3,790,294.00 1,734,931.98 8,671,029.34 3,317,820.05 \n191,873.68 168,276.63 249,110.24 \n \n$ 16,308,844.93 $ 1,798,063.05 $ 16,427.94 $ 18,123,335.92 \n \n$ 9,368,118.83 \n \n$ 9,368, 118.83 \n \n305,494.04 494,078.68 308,834.06 393,048.38 $ 1,019,405.87 161,812.12 1,051,135.73 893,643.72 68,406.71 \n80,924.32 96,207.35 794,664.81 960,085.39 \n \n38,326.00 3,540.00 \n133,602.15 177,438.00 \n510,876.28 \n \n305,494.04 494,078.68 308,834.06 431,374.38 1,019,405.87 165,352.12 1,184,737.88 1,071,081.72 \n68,406.71 80,924.32 96,207.35 794,664.81 960,085.39 510,876.28 \n \n$ 540,000.00 181,908.00 \n \n540,000.00 181,908.00 \n \n$ 15,995,860.01 $ 863,782.43 $ 721,908.00 $ 17,581,550.44 \n \n$ 312,984.92 $ 934,280.62 $ -705,480.06 $ 541,785.48 \n \n$ \n \n86,004.00 \n \n$ 979,554.43 $ 1,065,558.43 \n \n$ -1,065,558.43 \n \n-1,065,558.43 \n \n$ \n \n86,004.00 $ -1,065,558.43 $ 979,554.43 $ \n \n0.00 \n \n$ 398,988.92 $ -131,277.81 $ 274,074.37 $ 541,785.48 \n \n2,217,357.86 2,734,299.01 332,069.43 5,283,726.30 \n \n-1 844.07 \n \n-1,844.07 \n \nFund Balances - Ending \n \n$ 2,614,502.71 $ 2,603,021.20 $ 606,143.80 $ 5,823,667.71 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \nFood Inventories are expensed on the District-wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \n \n$ 541,785.48 \n \n$ 2,357,619.36 -702.326.00 \n \n1,655,293.36 \n \n-129,141.66 \n \n540,000.00 -1.844.07 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 2,606,093.11 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2008 \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 414,485.24 23,634.37 \n$ 438,119.61 \n$ 438,119.61 \n \nThe notes to the basic financial statements are an integral part of this statement. -8 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dooly County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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 School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dooly County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n-9- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \n- 10 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nRESTATEMENT OF PRIOR YEAR NET ASSETS \nFor fiscal year 2008, the School District restated for errors and omissions to Capital Assets. In fiscal year 2007, the School District failed to remove Accumulated Depreciation related to capital asset deletions. The result is an increase in Net Assets at July 1, 2007, of$307,959.00. These changes are in accordance with generally accepted accounting principles. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dooly County Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on September 21, 2007 (levy date). Taxes were due on December 20, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax are reported as revenue in the governmental funds for fiscal year 2008. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $3,768,734.86. \n \nThe tax millage rate levied for the 2007 tax year (calendar year) for the Dooly County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14,942 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,694,699.85 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 12 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the District-wide financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Construction in Progress \n \nAll \n \nNIA \n \n$ 5,000.00 \n \n15 years \n \n$ 5,000.00 15 to 80 years \n \n$ 5,000.00 5 to 12 years \n \nAll \n \nNIA \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. \n \nIn the District-wide and fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond premiums and discounts, as well as issuance costs, should be deferred and amortized over the life ofthe bonds using the straight-line method. The effect ofthis deviation is deemed to be immaterial to the fair presentation of the basic financial statements. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the Statement ofNet Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \nDEFICIT NET ASSETS \n \nThe School District reported a deficit net assets balance at June 30, 2008, as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Activities \n \n$ 10,007.63 \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION 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 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 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(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 or securities guaranteed 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. \nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $3,723,059.66. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \n \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 2 3 \nTotal \n \n$ \n \n0.00 \n \n3,357,722.25 \n \n0.00 \n \n$ 3,357,722.25 \n \nCATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2008, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less than \n1 Year \n \nDebt Securities U.S. Agencies Implicitly Guaranteed \n \n$ 531,720.80 $ 531,720.80 \n \nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \n \n2,674,666.10 \n \nTotal Investments \n \n$ 3,206,386.90 \n \nThe Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \n \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the School District will not be able to recover the value ofthe investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nAt June 30, 2008, $531,720.80 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings \nAl \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \n$ 531,720.80 $ 531,720.80 \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in FNMA Discount Note. This investment is 16.58% of the School District's total investments. \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \nTotal Capital Assets Not Being Depreciated \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \nTotal Capital Assets, Being Depreciated, Net \nGovernmental Activity Capital Assets - Net \n \nBalances July 1, 2007 (Restated) \n \nIncreases \n \nDecreases \n \nBalances June 30, 2008 \n \n$ 309,734.00 7,759,880.64 $ \n$ 8,069,614.64 $ \n \n$ 309,734.00 \n \n60,000.00 $ 7,759,880.64 \n \n60,000.00 \n \n60,000.00 $ 7,759,880.64 $ 369,734.00 \n \n$14,918,145.00 $ 9,765,025.00 $ \n \n3,035,746.00 \n \n231,090.00 \n \n1,089,485.00 \n \n61,385.00 \n \n0.00 $ 24,683,170.00 3,266,836.00 1,150,870.00 \n \n2,827,667.00 1,936,783.00 \n751,600.00 \n \n401,292.00 258,621.00 42,413.00 \n \n3,228,959.00 2,195,404.00 \n794,013.00 \n \n$ 13,527,326.00 $ 9,355,174.00 $ \n \n0.00 $ 22,882,500.00 \n \n$21,526,940 64 $ 2,415,174 QQ $ 1,152,880 64 $ 23,252 234 QQ \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ 563,088.00 \n \n$ \n \n2,491.00 \n \n1,356.00 \n \n1,014.00 \n \n105,406.00 \n \n2,458.00 \n \n112,725.00 26,513.00 \n \n$ 702,326.00 \n \n- 18 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and Qualified Zone Academy Bonds (QZAB) escrow account are restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \n \nDistrict-wide Capital Projects SPLOST \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ \n$ 380,520.95 \n \n74,423.00 \n \n$ 531,720.80 $ 1,860,004.95 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2008, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nGeneral Fund Debt Service Fund \n \n$ 86,004.00 979,554.43 \n \nTotal \n \n$ 1,065,558.43 \n \nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to (1) the General Fund for reimbursement for bus purchase expenditures and to (2) the Debt Service Fund for Bond principal and interest payments. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEndofYear Liability \n \n2007 2008 \n \n$ \n \n0.00 $ \n \n3,737.50 $ \n \n3,737.50 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n1,920.00 $ \n \n1,920.00 $ \n \n0.00 \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ 95,000.00 $ 100,000.00 \n \n- 20 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT\"H\" \n \nNote 9: OPERATING LEASES \n \nDooly County Board ofEducation has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2008, for governmental funds amounted to $37,140.00. Future minimum lease payments for these leases are as follows: \n \nYear Ending \n \nGovernmental Funds \n \n2009 2010 2011 \n \n$ 37,140.00 6,270.00 740.00 \n \nTotal \n \n$ 44,150.00 \n \nNote 10: LONG-TERM DEBT \n \nCAPITAL LEASES The Dooly County Board of Education entered into an agreement dated July 1, 2006, with the Georgia School Board Association for the construction and subsequent lease ofsix new classrooms, an administrative suite, and a corridor which connects the Dooly County High School building to the gymnasium. Under the terms of the agreement, the School District will make annual payments through fiscal year 2024. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value ofthe future minimum lease payments as of the date of its inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2005A General Government - Series 2005B General Government - QZAB - Series 2005C \n \n3.26% 3.26% 0.00% \n \n$ 4,215,000.00 825,000.00 \n2.000.000.00 \n \n$ 7,040,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \n \n- 21 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 10: LONG-TERM DEBT \n \nG.O. Bonds Capital Leases \n \nBalance Julx 1, 2001 \n \nGovernmental Funds \n \nAdditions \n \nDeductions \n \nBalance June 30, 2008 \n \nDue Within One Year \n \n$ 7,580,000.00 $ 2,375,000.00 \n \n0.00 $ 540,000.00 $ 7,040,000.00 $ 555,000.00 2,375,000.00 \n \n$ 2 255 QQQ,QQ $ \n \nQ.Q0 $ 54Q,Q00.00 $ 2,415,Q00.0Q $ 555,Q0Q,QQ \n \nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n2009 2010 2011 2012 2013 2014 - 2018 2019 - 2023 2024 -2028 \nTotal Principal and Interest \nFiscal Year Ended June 30 \n2009 2010 2011 2012 2013 2014 - 2018 \nTotal Principal and Interest \n \nGSBA Ca12ital Lease \n \nPrinci12al \n \nInterest \n \n$ \n$ 135,000.00 140,000.00 820,000.00 \n1,040,000.00 240,000.00 \n \n118,006.26 118,006.26 118,006.26 118,006.26 111,593.76 449,956.30 226,056.28 \n12,300.00 \n \n$ 2,375,000.00 $ 1,271,931.38 \n \nGeneral Obligation \n \nDebt \n \nPrinci12al \n \nInterest \n \n$ 555,000.00 $ 575,000.00 \n2,595,000.00 620,000.00 640,000.00 \n2,055,000.00 \n \n164,304.00 146,211.00 127,466.00 108,069.00 87,857.00 135,616.00 \n \n$ 7,040.000.0Q $ 769,523.00 \n \n- 22 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 11: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $326,607.74 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$313,785.14 \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $10,495.60 \nOffice 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 $2,327.00 \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNote 13: SUBSEQUENT EVENTS \nThe voters ofDooly County approved, in a special election held on September 16, 2008, to authorize the reimposition of a 1% sales tax, for a period of time not to exceed 20 calendar quarters, commencing upon the expiration ofthe special 1% sales and use tax currently being levied in Dooly County, and for the raising ofnot more than $9,500,000.00. At this time, the voters also authorized the Dooly County School District to issue General Obligation Bonds in an amount not to exceed $3,000,000.00. The proceeds of the bonds are to be used, in whole or in part, for renovating, extending, repairing and equipping existing schools, including capitalized interest through and including May 1, 2011, and the costs of issuing the debt. \n \n- 23 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 14: POSTEMPLOYMENT BENEFITS \n \nGeorgia Retiree Health Benefit Fund \n \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (\"GRHBF\"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: \n \nTeachers Non-Certificated Employees \n \n18.534% of state-based salaries $162.72 per month \n \nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $1,273,226.50, which equaled the required contribution. \n \nNote 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 24 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2008 \n \nEXHIBIT \"H\" \n \nNote 15: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2008 2007 2006 \n \n100% 100% 100% \n \n$ 741,803.13 $ 737,624.44 $ 703,836.00 \n \n- 25 - \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n3,625,000.00 $ \n \n3,625,000.00 $ \n \n3,790,294.00 \n \n40,232.13 \n \n8,145,406.00 \n \n8,051,169.00 \n \n8,671,029.34 \n \n3,597,480.00 \n \n3,241,792.00 \n \n3,317,820.05 \n \n41,500.00 \n \n41,500.00 \n \n191,873.68 \n \n23,000.00 \n \n23,000.00 \n \n48,485.49 \n \n337 644.00 \n \n313 632.00 \n \n249 110.24 \n \n$ 15 770 030.00 $ 15,296,093.00 $ 16 308 844.93 \n \n$ \n \n9,471,601.00 $ \n \n9,511,052.21 $ \n \n9,368,118.83 \n \n352,509.00 656,907.00 305,507.00 357,100.00 1,065,436.00 158,689.00 996,301.00 855,331.00 \n88,601.00 96,525.00 97,235.00 118,730.00 954 077.00 \n \n337,678.54 553,856.00 305,507.00 418,764.00 1,070,302.86 158,539.00 1,017,848.86 939,925.08 \n88,601.00 91,322.00 97,235.00 897,244.00 965,328.80 \n \n305,494.04 494,078.68 308,834.06 393,048.38 1,019,405.87 161,812.12 1,051,135.73 893,643.72 \n68,406.71 80,924.32 96,207.35 794,664.81 960 085.39 \n \n$ 15 574 549.00 $ 16 453 204.35 $ 15,995,860.01 \n \n$ \n \n195 481.00 $ -1157111.35 $ \n \n312,984.92 \n \n$ \n \n103,500.00 $ \n \n103,500.00 $ \n \n-102 000.00 \n \n-102 000.00 \n \n86,004.00 \n \n$ \n \n1 500.00 $ \n \n1 500.00 $ \n \n86 004.00 \n \n$ \n \n196,981.00 $ -1,155,611.35 $ \n \n398,988.92 \n \n2,217,357.86 \n \n2,235,909.92 \n \n2,217,357.86 \n \n16 210.41 \n \n-19361.01 \n \n-1 844.07 \n \nFund Balances - Ending \n \n$ \n \n2 430,549.27 $ \n \n1,060,937.56 $====2=6=14=5=0=2=.7==1 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n- 27 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Southwest Georgia United Empowerment Zone Program, Inc. Empowerment Zone Programs \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States \nOther Programs Direct Safe Schools/Healthy Students Impact Aid Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Migrant Education Rural Education Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Federal Financial Assistance \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n. 10.553 . . 10.555 \n \nNIA NIA $ \n$ \n \n(2) 849,956.85 \n849,956.85 \n \n10.550 10.772 \n \nN/A N/A \n$ \n \n62,849.47 \n36 797.19 949,603.51 \n \n84.027 \n. 84.184 \n84.041 \n84.048 84.365 84.318 84.367 84.011 84.358 84.186 84.298 84.010 \n \nN/A $ \n \n324,323.92 \n \n859,156.45 (3) \n \nN/A \n \n25,525.22 \n \nN/A \n \n11,242.69 \n \nNIA \n \n63,642.78 \n \nN/A \n \n153,624.13 \n \nN/A \n \n21,806.62 \n \nN/A \n \n49,347.81 \n \nN/A \n \n11,146.23 \n \nN/A \n \n3,290.00 \n \nN/A \n \n843,529.36 \n \n$ 2,366,635.21 \n \n$ \n \n50,525.06 \n \n$ 3,366,763.78 \n \n- 28- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($270,472.31) were not maintained separately and are included in the 2008 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $8,153.02, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County 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 fund financial statements. \n \nSee notes to the basic financial statements. \n \n-29- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Charter Schools Communities in Schools - America Reads Comprehensive Academic Performance System Health Insurance Middle School Remediation and Intervention Grant Teachers' Retirement Virtual Schools Grant \nOffice of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Human Resources, Georgia Department of High School Based Summer Learning Program Family Connection \n \nSee notes to the basic financial statements. \n \n-30- \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n453,228.55 \n \n423,363.00 113,896.00 927,105.00 663,998.00 314,707.00 414,615.00 881,347.00 594,635.00 318,820.00 \n483,084.00 -717.00 \n103,268.00 62,955.00 55,258.00 \n151,644.00 48,573.00 27,861.00 \n319,196.00 356,984.00 355,062.00 \n331,823.00 51,174.00 35,802.00 42,803.00 8,663.00 \n207,528.00 289,910.00 \n48,344.00 105,356.53 -136,147.00 \n70,000.00 26,412.00 84,192.00 313,785.14 \n2,345.00 10,495.60 \n550.00 \n2,327.00 \n \n56,783.52 50,000.00 \n \n$ \n \n8,671,029.34 \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"4\" \n \nPROJECT \nTo finance the renovation, completion, construction, additions, improvements and expansion of new and existing school buildings and facilities; acquiring any property necessary or desirable therefore, both real and personal, including buses, maintenance vehicles, technology software and hardware, system-wide safety and security equipment, and music, physical education/athletic; and ROTC equipment; finance the acquisition, construction and equipping of a new high school gymnasium. \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 1,000,000.00 $ 10,736,730.88 $ 1,131,694.43 $ 8,416,928.00 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategoryV \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n502,916.00 $ 537,458.62 $ \n \n143,672.00 \n \n93,168.24 \n \n1,081,039.00 1,086,709.80 \n \n775,587.00 \n \n566,540.97 \n \n378,927.00 \n \n431,485.42 \n \n480,422.00 1,041,639.00 \n707,777.00 368,447.00 560,478.00 \n121,965.00 75,075.00 64 539.00 \n \n218,379.25 1,118,735.57 1,065,822.83 \n356,206.38 \n22,826.54 189,075.62 425,954.96 115,875.61 \n77,454.29 104,661.62 \n51,162.01 79 486.27 \n \n15,108.93 $ 1,252.25 \n10,863.13 5,839.96 4,838.76 \n \n552,567.55 94,420.49 \n1,097,572.93 572,380.93 436,324.18 \n \n2,915.16 26,633.68 23,026.31 19,693.73 \n \n221,294.41 1,145,369.25 1,088,849.14 \n375,900.11 \n \n48.98 667.49 1,369.78 \n48.98 48.98 455.91 50,578.15 120.32 \n \n22,875.52 189,743.11 427,324.74 115,924.59 \n77,503.27 105,117.53 101,740.16 \n79,606.59 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n6,302,483.00 $ 6,541,004.00 $ 163,510.50 $ 6,704,514.50 \n \nMedia Center Program Staff and Professional Development \n \n178,697.00 32 900.00 \n \n278,189.56 \n \n18,764.03 \n \n296,953.59 32,161.70 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n6,514,080.00 $ 6,819,193.56 $ 182,274.53 $ 7,033,629.79 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 23, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Dooly County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dooly County Board of Education as of and for the year ended June 30, 2008, which collectively comprise Dooly County Board of Education's basic financial statements and have issued our report thereon dated September 23, 2009. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Dooly County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dooly County Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified a certain deficiency in internal control over financial reporting that we consider to be a significant deficiency. \n2008YB-41 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Dooly County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Dooly County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Dooly County Board of Education's internal control. We consider item FS-6461-08-01 in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Dooly County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we consider item FS-6461-08-01 to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, 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 of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management ofDooly County Board ofEducation in a separate letter dated September 23, 2009. \nDooly County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Dooly County Board of Education's response and, accordingly, we express no opinion on it. \n2008YB-41 \n \n This report is intended solely for the information and use of management, members of the Dooly County Board of Education, others within the entity, 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. \n \nRWH:as 2008YB-41 \n \nRespectfully submitted, \n.J.. - ~: :;~ n w. W. Hinton, CPA, CGFM \nState Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nSeptember 23, 2009 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofDooly County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2008. Dooly County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe 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 of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2008SA-10 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dooly County Board ofEducation's compliance with those requirements. \nIn our opinion, the Dooly County 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, 2008. \nInternal Control Over Compliance \nThe management of Dooly County 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 Dooly County 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 ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Dooly County Board of Education's internal control over compliance. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement ofa Federal program will not be prevented or detected by the entity's internal control. \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \n2008SA-10 \n \n This report is intended solely for the information and use of management, members of the Dooly County 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. \nRespectfully submitted, \n~~~~ Russell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2008SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6461-07-01 FS-6461-07-02 \n \nUnresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-6461-07-01 \n \nThe School District intends to develop and implement adequate controls over the financial statement reporting process to ensure that activity is properly recorded and verify that financial statements properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6461-06-02 \n \nPreviously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was unqualified. \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Dooly County Board of Education disclosed a financial statement significant deficiency related to the following control category. \nFinancial Reporting \nThe significant deficiency described above is considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Dooly County Board ofEducation did not disclose any significant deficiencies in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dooly County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Dooly County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.184 Safe Schools/Healthy Students Grant \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Dooly County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n- 1- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6461-08-01 \n \nCondition: \n \nThis is a repeat finding (FS-6461-07-01) from fiscal year ended June 30, 2007. The School District did not have adequate controls in place to ensure that all required activity was included in the financial statement information presented for audit. \n \nCriteria: \n \nChapter 22 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration indicates that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \n \nQuestioned Cost: NIA \n \nInformation: \n \nDuring the audit, the following correcting entries were proposed and accepted by the client to properly present the entity's financial statements as follows: \n \n Entries were necessary to properly reflect Capital Assets on the District-wide statements. \n \n An entry was necessary to properly report the QZAB Investment account at fair market value on the District-wide and the Governmental Fund Statements. \n \n Reclassification entries were posted to improve financial statement presentation. \n \n The Notes to the Basic Financial Statements required auditor rev1s1on. \n \nCause: \n \nThe School District did not implement an adequate system ofinternal control over the financial reporting process. \n \n-2- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2008 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6461-08-01 \n \nEffect: \n \nThe School District did not comply with the requirements of the Georgia Department ofEducation regarding financial reporting. Several adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should implement controls over the financial statement reporting process to ensure that all required activity is included in the financial statement information. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-3- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2008 \n \nFinding Control Number: FS-6461-08-01 \n \nWe concur with this finding. The School District intended to develop and implement adequate controls over the financial statement reporting process to ensure that activity is properly recorded; to verify that financial statements properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \nContact Person: Phone: Fax: E-mail: \n \nChris Godfrey, Business Manager (229) 268-4761 x2222 (229) 268-6148 cgodfrey@dooly.k 12 .ga. us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2006-h2007","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2007-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceaed with fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Dooly County Board of Education, Vienna, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (Dooly County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed January 20, 2023).","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 20, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dooly County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dooly County--Auditing--Periodicals","Education--Georgia--Dooly County--Finance--Statistics--Periodicals"],"dcterms_title":["Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2007"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOOLY COUNTY BOARD OF EDUCATION \nVIENNA, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n30 \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJune 4, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members ofthe Dooly County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Dooly County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Dooly County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Dooly County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions. \n \n2007ARL-11 \n \n In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Dooly County Board ofEducation, as ofJune 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nThe Dooly County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated June 4, 2008, on our consideration ofthe Dooly County Board ofEducation's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing ofinternal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dooly County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRWH:gp 2007ARL-11 \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. \n- 1- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n3,946,613.11 \n \n2,205,574.12 \n \n744,779.09 1,337,497.12 \n789,911.41 37,163.88 18,552.06 \n \n309,734.00 7,759,880.64 1,089,485.00 14,918,145.00 3,035,746.00 -5,824,009.00 \n \n$ =====3-=0\"!,;3..,69;!,,0=7=2=.4=3 \n \n$ \n \n933,267.36 \n \n1,257,318.68 \n \n464,260.81 \n \n789,271.64 \n \n540,000.00 9,415,000.00 \n \n$ \n \n13,399,118.49 \n \n$ \n \n15,148,883.67 \n \n48,140.00 422,244.78 332,069.43 1,285,677.64 -267,061.58 \n \n$ \n \n16,969,953.94 \n \n$ =====3=-0,=36=9,..,0=7=2=43= \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2007 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 11,936,717.61 $ \n320,861.57 534,173.87 283,076.23 420,375.88 970,034.23 149,421.19 1,092,661.51 1,420,563.30 \n79,721.79 91,961.94 \n21,451.29 508,385.69 1,079,326.97 206,858.15 \n$ 19,115,591.22 $ \n \n61,845.23 \n86,389.50 29,788.98 178,023.71 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n7,563,822.83 \n \n105,462.86 237,959.46 185,316.96 470,776.72 458,679.55 \n935.77 455,268.14 535,985.58 $ \n \n50,469.48 \n \n539,534.79 883,750.99 \n \n$ \n \n11487963.13 $ \n \n$ 134,144.00 134,144.00 $ \n \n-4,311,049.55 \n-215,398.71 -296,214.41 \n-97,759.27 50,400.84 -511,354.68 -148,485.42 -637,393.37 -750,433.72 -79,721.79 -41,492.46 \n64,938.21 31,149.10 -165,787.00 -206,858.15 \n-7,315,460.38 \n \n$ \n \n3,845,887.47 \n \n1,516,717.57 151,191.00 406,634.53 680 540.75 \n \n$ \n \n6,600,971.32 \n \n$ \n \n-714,489.06 \n \n17,684,443.00 \n \n$ ==1=6=,9=69=,9==5=3=.9=4 \n \n-3- \n \n DOOLY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2007 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Designated for Student Activities Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,856,485.23 $ 2,015,704.88 $ 147,139.57 1,800,788.12 \n \n121,591.04 1,337,497.12 \n789,911.41 37,163.88 18,552.06 \n \n270,942.05 \n \n74,423.00 $ 3,946,613.11 257,646.43 2,205,574.12 \n392,533.09 1,337,497.12 \n789,911.41 37,163.88 18,552.06 \n \n$ 4,308,340.31 $ 4,087,435.05 $ 332,069.43 $ 8,727,844.79 \n \n$ 833,663.77 $ 1,257,318.68 \n \n99,603.59 \n464,260.81 789,271.64 \n \n$ 2,090,982.45 $ 1,353,136.04 \n \n$ 933,267.36 1,257,318.68 464,260.81 789,271.64 \n$ 3,444,118.49 \n \n$ 48,140.00 403,692.72 $ 18,552.06 $ 2,509,181.31 \n \n24,934.36 \n \n1,722,038.72 \n \n225,117.70 \n \n$ 2,217,357.86 $ 2,734,299.01 $ \n \n$ 48,140.00 \n \n403,692.72 \n \n332,069.43 \n \n332,069.43 \n \n18,552.06 \n \n2,509,181.31 \n \n24,934.36 \n \n1,722,038.72 225,117.70 \n \n332,069.43 $ 5,283,726.30 \n \n$ 4,308,340.31 $ 4,087,435.05 $ 332,069.43 $ 8,727,844.79 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \n \n$ 5,283,726.30 \n \n$ 309,734.00 7,759,880.64 1,089,485.00 \n14,918,145.00 3,035,746.00 -5,824,009.00 \n \n21,288,981.64 \n \n352,246.00 \n \n$ -7,580,000.00 -2,375,000.00 \n \n-9,955,000.00 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 16,969,953.94 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nCapital Leases Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,873,666.47 \n \n$ 1,516,717.57 \n \n8,567,255.98 \n \n3,206,042.14 \n \n178,023.71 \n \n32,995.76 \n \n373,638.77 \n \n308,334.39 \n \n372,206.36 $ \n \n$ 16,166,318.45 $ 2,262,562.70 $ \n \n$ 0.00 \n \n3,873,666.47 1,516,717.57 8,567,255.98 3,206,042.14 \n178,023.71 406,634.53 680,540.75 \n \n0.00 $ 18,428,881.15 \n \n$ 9,394,286.55 \n \n$ 9,394,286.55 \n \n351,663.57 \n \n534,173.87 \n \n283,076.23 \n \n398,851.50 \n \n961,690.30 \n \n149,361.19 $ \n \n60.00 \n \n1,066,620.59 \n \n904,799.45 \n \n64,596.89 \n \n91,961.94 \n \n21,451.29 \n \n517,230.69 \n \n997,634.60 \n \n10,102,702.48 \n \n351,663.57 534,173.87 283,076.23 398,851.50 961,690.30 149,421.19 1,066,620.59 904,799.45 \n64,596.89 91,961.94 21,451.29 517,230.69 997,634.60 10,102,702.48 \n \n61,006.00 5,295.00 \n \n63,598.26 $ 520,000.00 2,702.94 198,860.21 \n \n644,604.26 206,858.15 \n \n$ 15,803,699.66 $ 10,169,063.68 $ 718,860.21 $ 26,691,623.55 \n \n$ 362,618.79 $ -7,906,500.98 $ -718,860.21 $ -8,262,742.40 \n \n$ 2,375,000.00 \n \n$ 2,375,000.00 \n \n$ 111,656.37 \n \n$ 702,471.64 \n \n814,128.01 \n \n-814,128.01 \n \n-814, 128.01 \n \n$ 111,656.37 $ 1,560,871.99 $ 702,471.64 $ 2,375,000.00 \n \n$ 474,275.16 $ -6,345,628.99 $ -16,388.57 $ -5,887,742.40 \n \n1,744,052.70 9,079,928.00 348,458.00 11,172,438.70 \n \n-970.00 \n \n-970.00 \n \nFund Balances - Ending \n \n$ 2,217,357.86 $ 2,734,299.01 $ 332,069.43 $ 5,283,726.30 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the loss on the sale of the building/equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the carrying value of the building/equipment sold. \nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nFood Inventories are expensed on the District-Wide Financial Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to. \n \n$ -5,887,742.40 \n \n$ 7,838,156.64 -597,800.00 \n \n7,240,356.64 \n \n-27,778.56 \n \n-307,959.00 \n \n-2,375,000.00 \n \n$ 520,000.00 124,604.26 \n \n644,604.26 \n \n-970.00 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ -714,489.06 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2007 \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ 524,694.11 22,968.09 \n$ 547,662.20 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dooly County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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 School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dooly County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 10 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nas expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n- 12 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dooly County Board ofCommissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on September 21, 2006 (levy date). Taxes were due on December 20, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $3,873,666.47. \n \nThe tax millage rate levied for the 2006 tax year (calendar year) for the Dooly County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14.942 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,516,717.57 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the District-wide financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ 5,000.00 \n \n15 years \n \n$ 5,000.00 15 to 80 years \n \n$ 5,000.00 5 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nand pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \n \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \n \nDEFICIT NET ASSETS \n \nThe School District reported a deficit net assets balance at June 30, 2007, as follows: \n \nFund Type/Fund Name \n \nDeficit Balance \n \nGovernmental Activities \n \n$ 267,061.58 \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION 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 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 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n(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. \nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $6,143,387.40. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's \ntrust department or agent but not in the School District's name. \nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n5,819,493.83 \n \n3 \n \n0.00 \n \nTotal \n \n$ 5,819,493.83 \n \nCATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2007, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less Than 1 Year \n \nDebt Securities U.S. Agencies Implicitly Guaranteed \n \n$ 257,646.43 $ 257,646.43 \n \nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \n \n1,423,427.13 \n \nTotal Investments \n \n$ 1,681,073.56 \n \nThe Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/internet/searchRpts.html. \n \nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2007, was 15 days. \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value ofan investment. The School District does not have a formal policy for managing interest rate risk. \n \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the School District will not be able to recover the value ofthe investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nAt June 30, 2007, $257,646.43 of the School District's applicable investments were uninsured, are not registered in the name of the School District and are held by either the counterparty or the counterparty's trust department or agent, but not in the School District's name. \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings \nAl \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \n$ 257,646.43 $ 257,646.43 \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in FNMA Discount Note. This investment is 15.33% of the School District's total investments. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 18 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July I, 2006 \n \nIncreases \n \nBalances Decreases June 30, 2007 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 309,734.00 \n \n$ \n \n282,730.00 $ 7,477,150.64 \n \n0.00 $ 309,734.00 7,759,880.64 \n \nTotal Capital Assets Not Being Depreciated $ 592,464.00 $ 7,477,150.64 $ \n \n0.00 $ 8,069,614.64 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$15,113,445.00 \n \n$ 195,300.00 $14,918,145.00 \n \n2,780,129.00 $ 361,006.00 105,389.00 3,035,746.00 \n \n1,096,755.00 \n \n7,270.00 1,089,485.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n2,743,738.00 1,765,415.00 \n717,056.00 \n \n279,229.00 276,757.00 \n41,814.00 \n \n3,022,967.00 2,042,172.00 \n758,870.00 \n \nTotal Capital Assets, Being Depreciated, Net $13.764,120.00 $ -236.794.00 $ 307.959.00 $13,219,367.00 \n \nGovernmental Activity Capital Assets - Net $14,356,58~.oo $ :Z,2~0,356.64 $ 30:Z,959,00 $21,288,981.64 \n \nCapital assets being acquired under capital leases as of June 30, 2007, are as follows: \n \nGovernmental Funds \n \nEquipment Less: Accumulated Depreciation \n \n$ 190,905.00 47,727.00 \n \n$ 143.178,00 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration School Administration Maintenance and Operation ofPlant Student Transportation Services Central Support Services Food Services \n \n$ 444,794.00 \n \n$ 3,498.00 1,356.00 4,232.00 \n121,373.00 2,458.00 \n \n132,917.00 20,089.00 \n \n$ 597,800.00 \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and Qualified Zone Academy Bonds (QZAB) escrow account are restricted assets in the Statement ofNet Assets because their use is limited by statutory provisions. Restricted assets at June 30, 2007, were as follows: \n \nDistrict-wide Capital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \n$ 74,423.00 $ 1,007,639.43 $ 782,947.75 \n$ 257,646.43 $ 377,360.99 $1,423,427.13 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2007, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nGeneral Fund Debt Service Fund \n \n$ 111,656.37 702,471.64 \n \nTotal \n \n$ 814,128.01 \n \nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to (1) the General Fund for reimbursement for bus purchase expenditures and to (2) the Debt Service Fund for Bond principal and interest payments. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \n-20- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning ofYear Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2006 2007 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n0.00 $ 3,737.50 $ 3,737.50 $ \n \n0.00 \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ 95,000.00 $ 100,000.00 \n \n- 21 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 9: LONG-TERM DEBT \n \nCAPITAL LEASES The Dooly County Board of Education entered into an agreement dated July 1, 2006, with the Georgia School Board Association for the construction and subsequent lease ofsix new classrooms, an administrative suite, and a corridor which connects the Dooly County High School building to the gymnasium. Under the terms of the agreement, the School District will make annual payments through fiscal year 2024. The Dooly County Board of Education also entered into various lease agreements for the purchase of buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2005A General Government - Series 2005B General Government - QZAB - Series 2005C \n \n3.26% 3.26% 0.00% \n \n$ 4,665,000.00 915,000.00 \n2,000,000.00 \n \n$ 7,580,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \n \nBalance July 1, 2006 \nAdditions Capital Leases \nDeductions Debt Retired \nBalance June 30, 2007 \nPortion of Long-Tenn Debt Due within One Year \n \nGovernmental Funds \n \nGeneral \n \nCa12ital Leases \n \nObligation \n \nGSBA \n \nOther \n \nBonds \n \nTotal \n \n$ \n \n0.00 $ 124,604.26 $ 8,100,000.00 $ 8,224,604.26 \n \n2,375,000.00 \n \n2,375,000.00 \n \n124,604.26 \n \n520,000.00 \n \n644,604.26 \n \n$ 2.375 000 00 $ \n \n0.00 $ 7.580.000.00 $ 9.955.000.00 \n \n$ \n \n0.00 $ \n \n0.00 $ 540,000.00 $ 540,000.00 \n \nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n-22 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 9: LONG-TERM DEBT \n \nFiscal Year Ended June 30 \n \nGSBA \n \nCapital Lease \n \nPrincipal \n \nInterest \n \n2008 2009 2010 2011 2012 2013 - 2017 2018 - 2022 2023 -2027 \n \n$ 118,006.26 \n \n118,006.26 \n \n118,006.26 \n \n118,006.26 \n \n$ 135,000.00 \n \n118,006.26 \n \n780,000.00 \n \n487,431.30 \n \n990,000.00 \n \n276,087.54 \n \n470,000.00 \n \n36,387.50 \n \nTotal Principal and Interest \n \n$2,375,000.00 $ 1,389,937.64 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2008 2009 2010 2011 2012 2013 - 2017 \n \n$ 540,000.00 $ 181,908.00 \n \n555,000.00 \n \n164,304.00 \n \n575,000.00 \n \n146,211.00 \n \n2,595,000.00 \n \n127,466.00 \n \n620,000.00 \n \n108,069.00 \n \n2,695,000.00 \n \n223,473.00 \n \nTotal Principal and Interest \n \n$ 7,580,000.00 $ 951,431.00 \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $246,756.83 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $234,116.00 \n \n- 23 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT\"H\" \n \nNote 10: ON-BEHALF PAYMENTS \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$10,l 74.83 \n \nOffice 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 $2,466.00 \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007: \n \nProject \n \nUnearned Executed Contracts \n \nDooly County High School Renovations \n \n$ 642,040.51 \n \nThe amount described in this note is not reflected in the basic financial statements. \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 13: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n-24- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2007 \n \nEXHIBIT \"H\" \n \nNote 13: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2007 2006 2005 \n \n100% 100% 100% \n \n$ 737,624.44 $ 703,836.00 $ 675,408.00 \n \n- 25 - \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL{1) \n \nFINAL {1) \n \nACTUAL AMOUNTS \n \n$ 3,610,000.00 $ 3,610,000.00 $ 3,873,666.47 \n \n7,645,946.00 \n \n8,135,659.00 \n \n8,567,255.98 \n \n2,741,653.00 \n \n2,741,653.00 \n \n3,206,042.14 \n \n41,500.00 \n \n41,500.00 \n \n178,023.71 \n \n22,000.00 \n \n22,000.00 \n \n32,995.76 \n \n341 314.00 \n \n341,314.00 \n \n308,334.39 \n \n$ 14,402,413.00 $ 14,892,126.00 $ 16,166,318.45 \n \n$ 9,231,879.00 $ 9,925,993.84 $ 9,394,286.55 \n \n352,539.00 784,706.00 293,530.00 306,203.00 1,030,772.00 154,513.00 903,160.00 713,229.00 124,901.00 130,448.00 63,606.00 118,730.00 954,077.00 \n \n366,005.12 711,365.00 293,530.00 419,828.00 1,034,635.51 154,513.00 913,536.56 787,171.00 124,901.00 128,950.00 63,606.00 863,723.10 954,077.00 \n \n351,663.57 534,173.87 283,076.23 398,851.50 961,690.30 149,361.19 1,066,620.59 904,799.45 64,596.89 91,961.94 21,451.29 517,230.69 997,634.60 66,301.00 \n \n$ 15,162,293.00 $ 16,741,835.13 $ 15,803,699.66 \n \n$ \n \n-759,880.00 $ -1,849,709.13 $ \n \n362,618.79 \n \n$ \n \n102,000.00 $ \n \n102,000.00 \n \n-102,000.00 \n \n-102,000.00 $ \n \n111,656.37 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n111,656.37 \n \n$ \n \n-759,880.00 $ -1,849,709.13 $ \n \n474,275.16 \n \n1,744,052.70 \n \n1,744,052.70 \n \n1,744,052.70 \n \n10,393.33 \n \n788.14 \n \n-970.00 \n \nFund Balances - Ending \n \n$ \n \n994,566.03 $ \n \n-104,868.29 $ 2,217,357.86 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n-27- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Southwest Georgia United Empowerment Zone Program, Inc. Empowerment Zone Programs \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States \nOther Programs Direct Safe Schools/Healthy Students Pass-Through From Georgia Department of Education Charter Schools Enhancing Education Through Technology Program Improving Teacher Quality State Grants Migrant Education Reading First State Grants Rural Education Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Federal Financial Assistance \nNIA = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nNIA \n \nN/A \n \n$ \n \n$ \n \n(2) 919,007.00 \n919,007.00 \n \n10.550 10.772 \n \nN/A \n \n34,197.56 \n \nN/A \n \n119,591.00 \n \n$ 1,072,795.56 \n \n* 84.027 \n \nN/A \n \n$ \n \n312,031.70 \n \n* 84.184 \n84.282 84.318 84.367 84.011 84.357 84.358 84.186 84.298 84.010 84.048 \n \n443,089.67 \n \nN/A \n \n200,000.00 \n \nNIA \n \n3,183.88 \n \nN/A \n \n145,397.20 \n \nN/A \n \n37,448.77 \n \nNIA \n \n218,682.41 \n \nNIA \n \n38,991.15 \n \nNIA \n \n9,243.50 \n \nN/A \n \n3,522.63 \n \nNIA \n \n726,258.07 \n \nN/A \n \n27,376.70 \n \n$ 2,165,225.68 \n \n$ \n \n53,017.89 \n \n$ ==3,=29=1==,0=3=9.=13= \n \n- 28- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on the School Breakfast Program ($259,832.00) were not maintained separately and are included in the 2007 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County 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 fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3} Program Primary Grades - Early Intervention (1-3} Program Upper Elementary Grades (4-5} Program Upper Elementary Grades - Early Intervention (4-5} Program Middle School (6-8} Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity - Alternative Program Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Apprenticeship Program Comprehensive Academic Performance System Health Insurance K-8 Statewide Reading and Mathematics Program Middle School Remediation and Intervention Grant Pupil Transportation - State Bonds Teachers' Retirement Virtual Schools State Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n- 30- \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n454,875.92 \n \n460,066.00 157,843.00 859,966.00 627,691.00 358,087.00 367,440.00 890,094.00 645,299.00 273,588.00 \n421,339.00 3,025.00 \n107,543.00 68,543.00 50,367.00 \n150,737.00 48,731.00 28,064.00 \n305,165.00 346,764.00 373,137.00 \n353,256.00 34,144.00 35,802.00 44,395.00 4,991.00 9,429.00 \n151,191.00 44,422.00 \n467,085.24 -137,337.00 \n7,371.72 40,075.00 234,116.00 28,995.12 \n2,393.54 100,000.00 \n10,174.83 150.00 \n43,936.60 \n2,466.00 \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \nAGENCY/FUNDING CONTRACTS Human Resources, Georgia Department of High School Based Summer Learning Program Family Connection \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n41,834.01 \n \n50,000.00 \n \n$ ===8,=56=7=,2=5=5.=98= \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"4\" \n \nPROJECT \nTo finance the renovation, completion, construction, additions, improvements and expansion of new and existing school buildings and facilities; acquiring any property necessary or desirable therefore, both real and personal, including buses, maintenance vehicles, technology software and hardware, system-wide safety and security equipment, and music, physical education/athletic; and ROTC equipment; finance the acquisition, construction and equipping of a new high school gymnasium. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 7,000,000.00 $ 8,242,373.00 $ 7,791,818.00 $ 625,110.00 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the. imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n- 32 - \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n522,988.00 $ 474,614.61 $ \n \n307.27 $ \n \n474,921.88 \n \n199,382.00 \n \n167,807.80 \n \n70.32 \n \n167,878.12 \n \n1,002,690.00 \n \n974,491.37 \n \n2,555.70 \n \n977,047.07 \n \n727,606.00 \n \n529,077.75 \n \n1,361.34 \n \n530,439.09 \n \n424,939.00 \n \n418,451.98 \n \n699.93 \n \n419,151.91 \n \n427,219.00 1,051,609.00 \n746,192.00 319,262.00 500,706.00 \n5,127.00 122,580.00 \n79,819.00 60,520.00 \n \n236,724.77 1,043,056.27 1,022,825.44 \n449,543.68 \n19,776.91 180,540.65 438,109.10 \n5,960.54 \n96,983.05 60,786.66 75,273.94 \n \n105.48 25,816.92 10,617.84 27,464.13 \n17.58 814.33 1,159.98 \n52.74 107.50 599.00 53,660.06 \n52.29 \n \n236,830.25 1,068,873.19 1,033,443.28 \n477,007.81 \n19,794.49 181,354.98 439,269.08 \n5,960.54 52.74 \n107.50 97,582.05 114,446.72 75,326.23 \n \n$ \n \n6,190,639.00 $ 6,194,024.52 $ 125,462.41 $ 6,319,486.93 \n \n176,596.00 33 350.00 \n \n264,024.97 \n \n9,820.39 \n \n273,845.36 33,350.00 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n6,400,585.00 $ 6,458,049.49 $ 135,282.80 $ 6,626,682.29 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 33- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJune 4, 2008 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dooly County Board of Education as of and for the year ended June 30, 2007, which collectively comprise Dooly County Board of Education's basic financial statements and have issued our report thereon dated June 4, 2008. 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Dooly County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Dooly County Board of Education's internal control over financial reporting. \nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. \n2007YB-40 \n \n A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Dooly County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Dooly County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Dooly County Board of Education's internal control. We consider items FS-6461-07-01, and FS-6461-07-02 in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Dooly County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider item FS-6461-07-01 to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, 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 of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management ofDooly County Board ofEducation in a separate letter dated June 4, 2008. \nDooly County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Dooly County Board of Education's response and, accordingly, we express no opinion on it. \n2007YB-40 \n \n This report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n~~w~~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:gp 2007YB-40 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJune 4, 2008 \n \nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \nand Superintendent and Members ofthe Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofDooly County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. Dooly County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \n \n2007SA-10 \n \n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Dooly County Board ofEducation's compliance with those requirements. \nIn our opinion, the Dooly County 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, 2007. \nInternal Control Over Compliance \nThe management of Dooly County 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 Dooly County 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 ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Dooly County Board of Education's internal control over compliance. \nA control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \n2007SA-10 \n \n This report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n~~~~ State Auditor \nRWH:gp 2007SA-10 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER \n \nAUDITEE'S RESPONSE/STATUS \n \nSEE AUDITOR'S COMMENTS \n \nFS-6461-05-01 Further Action Not Warranted \n \nFS-6461-06-01 Further Action Not Warranted \n \n(1) \n \nFS-6461-06-02 Further Action Not Warranted \n \n(1) \n \nAUDITOR'S COMMENTS \n \n(1) Findings/internal control deficiencies ofthis nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter in subsequent periods. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6461-05-01 FA-6461-06-01 F A-6461-06-02 \n \nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Partially Resolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Finding Control Number: FA-6461-06-02 \n \nThe Special Education Program Director has implemented procedures to ensure activity reports and semi-annual certifications are completed for Special Education employees. This finding is pending review by the Georgia Department ofEducation to determine ifa reclaim of funds is appropriate. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type ofReport Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was unqualified. \n \n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Dooly County Board of Education disclosed financial statement significant deficiencies related to the following control categories. \n \nFinancial Reporting \n \nCapital Assets \n \nOf the significant deficiencies described above, Financial Reporting is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Dooly County Board ofEducation did not disclose any significant deficiencies in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dooly County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Dooly County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.027 Special Education - Grants to States 84.184 Safe Schools/Healthy Students Grant \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Dooly County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \n- 1- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6461-07-01 \n \nCondition: \n \nThe School District did not have adequate controls in place over the financial statement reporting process. \n \nCriteria: \n \nManagement is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. \n \nQuestioned Cost: N/A \n \nInformation: \n \nThe Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the School District's financial statements. During the audit, material misstatements were noted on the financial statements presented by the entity and correcting entries were proposed and made by the auditor to properly present the entity's fund level and entity-wide level financial statements. \n \nCause: \n \nThe School District did not implement an adequate system ofintemal control over the financial statement reporting process. \n \nEffect: \n \nThe School District does not have adequate controls in place to ensure that the financial statements were properly prepared in accordance with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should develop and implement internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements (including note disclosures) properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \n \n-2- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Significant Deficiency Finding Control Number: FS-6461-07-02 \n \nCondition: \n \nThe School District failed to adequately maintain the capital assets listing and failed to accurately reflect the capital assets on the general ledger. \n \nCriteria: \n \nChapter 37 Fixed Assets Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. \n \nQuestioned Cost: NIA \n \nInformation: \n \nA review of the capital assets listing and the general ledger revealed the following deficiencies: \n \n Accumulated depreciation related to the fiscal year 2007 capital assets deletions was not removed from the general ledger; \n The depreciation expense calculated for some prior year and all current year capital assets additions was calculated for a whole year instead of for a half-year as Board policy requires; \n Four assets purchased during the current fiscal year were not added to the capital assets listing or to the general ledger; \n One asset added to the capital assets listing and general ledger during the fiscal year was added at the incorrect acquisition cost; \n Three assets that were purchased in the subsequent fiscal year were added to the listing erroneously; \n Construction in Progress was overstated;  Tag numbers had not been assigned to any capital asset additions on \nthe capital assets listing since fiscal year 2005; and  The capital assets listing shows the wrong amount for fiscal year \n2005 depreciation for the E-rate servers added to the listing in that fiscal year. The listing shows $0, when it should show $60,541. \n \nCause: \n \nThe School District failed to ensure that capital assets activity was properly maintained and recorded in the general ledger in accordance with the Board's capital assets policies. \n \n-3 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2007 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Significant Deficiency Finding Control Number: FS-6461-07-02 \n \nEffect: \n \nThe failure ofthe School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \n \nRecommendation: \n \nThe School District should review its capital asset records and make appropriate adjustments to ensure that capital assets records conform to the School District's approved capital assets policy and generally accepted accounting principles. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n-4- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2007 \nFinding Control Number: FS-6461-07-01 \nWe concur with this finding. The School District intends to develop and implement adequate controls over the financial statement reporting process to ensure that activity is properly recorded and verify that financial statements properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financials presented for audit. \nFinding Control Number: FS-6461-07-02 \nWe concur with this finding. The School District will make appropriate adjustments to ensure that capital assets records conform to the School District's approved capital assets policy and generally accepted accounting principles. \nContact Person: Chris Godfrey Phone: (229) 268-4761 Fax: (229) 268-6148 E-mail: cgodfrey@dooly.kl2.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2005-h2006","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2006-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceaed with fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Dooly County Board of Education, Vienna, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (Dooly County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed January 20, 2023).","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 20, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dooly County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dooly County--Auditing--Periodicals","Education--Georgia--Dooly County--Finance--Statistics--Periodicals"],"dcterms_title":["Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2006"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOOLY COUNTY BOARD OF EDUCATION \nVIENNA, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2006 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n25 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n29 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 13, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Dooly County Board of Education, as of and for the year ended June 30, 2006, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Dooly County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Dooly County Board of Education, as of June 30, 2006, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2006ARL-11 \n \n The Dooly County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated February 13, 2007, on our consideration of the Dooly County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dooly County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n~~w-~3s... \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006ARL-11 \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2006 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n1,796,909 \n \n9,060,874 \n \n692,119 820,915 672,978 \n34,562 17,582 \n \n309,734 282,730 1,096,755 15,113,445 2,780,129 -5,226,209 \n \n$ ===2=7=,4=5=2=,5=23= \n \n$ \n \n245,223 \n \n1,298,253 \n \n581,006 7 643 598 \n \n$ \n \n9,768,080 \n \n$ \n \n13,859,917 \n \n430,812 348,458 1,329,296 1 715 960 \n \n$ \n \n17 684 443 \n \n$ ===2=7=,4=5=2=,5=23= \n \nThe notes to the basic financial statements are an integral part of this statement. -1- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2006 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n8,859,387 $ \n \n308,656 692,772 255,118 317,019 957,693 209,545 985,187 932,019 \n64,695 140,380 \n \n97,236 157,655 935,446 231 163 \n \n$ \n \n15,143,971 $ \n \n26,242 \n96,869 44,996 168 107 \n \nThe notes to the basic financial statements are an integral part of this statement. -2- \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n6,551,409 \n \n109,712 295,295 132,614 291,364 342,450 \n \n373,099 431,131 $ \n \n51,514 \n \n35,808 932,420 \n \n$ \n \n9,546,816 $ \n \n$ 58,886 58 886 $ \n \n-2,281,736 \n-198,944 -397,477 -122,504 \n-25,655 -615,243 -209,545 -612,088 -442,002 \n-64,695 -88,866 \n-367 -121,847 \n41,970 -231 163 \n-5,370,162 \n \n$ \n \n3,507,976 \n \n21,508 \n \n1,430,370 61,289 26,802 18,368 272,986 367,660 418 077 \n \n$ \n \n6,125,036 \n \n$ \n \n754,874 \n \n16,929,569 \n \n$ =====17=\"'6=8=4=4=43= \n \n-3- \n \n DOOLY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2006 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,556,118 $ \n \n166,368 $ \n \n141,344 \n \n8,919,530 \n \n38,059 820,915 672,978 \n34,562 17 582 \n \n74,423 $ 274,035 \n \n1,796,909 9,060,874 \n312,094 820,915 672,978 \n34,562 17 582 \n \nTotal Assets \n \n$ 3,281,558 $ 9,085,898 $ \n \n348 458 $ ======12~7=1=5'=9=14= \n \nLIABILITIES AND FUND BALANCES \n \nLIABILITIES \n \nAccounts Payable \n \n$ \n \nSalaries Payable \n \nTotal Liabilities \n \n$ \n \nFUND BALANCES \n \nReserved for: \n \nContinuation of Federal Programs \n \n$ \n \nDebt Service \n \nInventories \n \nCapital Projects \n \nUnreserved \n \nUndesignated Reported in: \n \nGeneral Fund \n \nCapital Projects \n \nTotal Fund Balances \n \n$ \n \n239,253 $ 1,298,253 1,537,506 $ \n413,230 17,582 $ \n1,313,240 \n1,744,052 $ \n \n5,970 5 970 \n$ 8,889,433 \n190 495 9,079,928 $ \n \n$ $ $ 348,458 \n348 458 $ \n \n245,223 1,298,253 1543476 \n413,230 348,458 \n17,582 8,889,433 \n1,313,240 190 495 \n11 172 438 \n \nTotal Liabilities and Fund Balances \n \n$ 3,281,558 $ 9,085,898 $ \n \n348 458 $ ======12~7=1=51=9=14= \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Capital Leases \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 11,172,438 \n \n$ 309,734 282,730 \n1,096,755 15,113,445 \n2,780,129 -5,226,209 \n \n14,356,584 \n \n380,025 \n \n$ -8, 100,000 -124,604 \n \n-8,224,604 \n \n$ 17,684,443 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Long-Term Capital Related Debt Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,321,962 45,170 $ \n6,929,855 2,950,364 \n168,107 22,842 \n222,721 \n$ 13,661,021 $ \n \n61,289 $ \n \n$ \n1,430,370 \n \n344,818 201 731 \n607 838 $ 1,430,370 $ \n \n3,321,962 1,536,829 6,929,855 2,950,364 \n168,107 367,660 424 452 \n15,699,229 \n \n$ 8,478,385 \n308,656 692,772 255,118 312,978 956,636 \n150,520 $ \n995,403 833,272 \n62,491 140,380 \n97,236 157,655 916,907 \n \n66,301 \n \n$ 14 424 710 $ \n \n$ \n \n-763 689 $ \n \n$ \n \n59,025 700 \n \n544,545 \n \n$ 1,160,000 \n231 163 \n \n604 270 $ 1,391,163 $ \n \n3 568 $ \n \n39 207 $ \n \n8,478,385 \n308,656 692,772 255,118 312,978 956,636 209,545 996,103 833,272 \n62,491 140,380 \n97,236 157,655 916,907 544,545 \n1,226,301 231 163 \n16 420 143 \n-720 914 \n \n$ 2,000,000 \n \n$ \n \n697,153 \n \n-697 153 \n \n$ \n \n697 153 $ 1,302,847 \n \n$ \n \n-66,536 $ 1,306,415 $ \n \n1810588 \n \n7 773 513 \n \n$ \n$ 39,207 $ \n309 251 \n \n2,000,000 697,153 -697 153 \n2,000,000 \n1,279,086 \n9,893,352 \n \nFund Balances - Ending \n \n$ 1 744 052 $ 9,079,928 $ \n \n348 458 $ 11172 438 \n \nThe notes to the basic financial statements are an integral part of this statement. -6 - \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds {Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nIn the Statement of Activities, only the gain on the sale of the equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the equipment sold. \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \nGeneral Obligation Bonds Issued \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments \nTotal Long-Term Debt Repayments \nChange in Net Assets of Governmental Activities {Exhibit \"B\") \n \n$ 1,279,086 \n \n$ 621,331 -571 460 \n \n49,871 205,991 \n \n-6,375 \n \n-2,000,000 \n \n$ 1,160,000 66,301 \n \n1,226,301 \n \n$ ===75.,,4=8=7=4 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2006 \nASSETS Cash and Cash Equivalents Investments \nCertificate of Deposit \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \n \nAGENCY FUNDS \n \n$ \n \n25,616 \n \n21,865 \n \n$ ===4=7=48=1= \n \n$ ====4=7=48=1= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dooly County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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 School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dooly County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 10 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless ofwhen the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund \n \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nliability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n- 12 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dooly County Board of Commissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on September 19, 2005 (levy date). Taxes were due on December 20, 2005 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2005 tax digest are reported as revenue in the governmental funds for fiscal year 2006. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2006, for maintenance and operations amounted to $3,300,454. \n \nThe tax millage rate levied for the 2005 tax year (calendar year) for the Dooly County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14.942 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,491,659 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nLand Land Improvements Buildings and Improvements Equipment \n \nCapitalization Policy \n \nEstimated Useful Life \n \nAll \n \nNIA \n \n$ \n \n5,000 \n \n15 years \n \n$ \n \n5,000 15 to 80 years \n \n$ \n \n5,000 5 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION 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 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 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(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. \nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $3,090,735. The amounts ofthe total bank balances are classified into four categories of custodial credit risk: \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \nCategory 4 - Uncollateralized. \n \nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 321,865 \n \n2 \n \n2,768,870 \n \n3 \n \n0 \n \n4 \n \n0 \n \nTotal \n \n$ 3,090.735 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2006, the carrying value ofthe School District's total investments was $8,557,379 which is materially the same as fair value. This investment consisted entirely offunds 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 School District 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: \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool. 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 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nand cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \nInvestments in Georgia Fund 1 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2006, was 28 days. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2005 \n \nIncreases \n \nBalances Decreases June 30, 2006 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 309,734 \n \n$ \n \n0 $ 282,730 \n \n0 $ 309,734 282,730 \n \nTotal Capital Assets Not Being Depreciated $ 309,734 $ 282,730 $ \n \n0 $ 592,464 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 15,113,445 2,860,616 $ 770,654 \n \n12,500 $ 326,101 \n \n$ 15,113,445 \n \n92,987 \n \n2,780,129 \n \n1,096,755 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n2,464,509 1,590,740 \n686,112 \n \n279,229 261,287 \n30 944 \n \n86,612 \n \n2,743,738 1,765,415 \n717,056 \n \nTotal Capital Assets, Being Depreciated, Net $ 14,003,354 $ -232,859 $ \n \n6 375 $ 13,764,120 \n \nGovernmental Activity Capital Assets - Net $ 14,313,088 $ \n \n42,8:Zl $ \n \n6,315 $ 14,356,584 \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nCapital assets being acquired under capital leases as of June 30, 2006, are as follows: \n \nGovernmental Funds \n \nEquipment Less: Accumulated Depreciation \n \n$ \n \n190,905 \n \n28 636 \n \nCurrent year depreciation expense by function is as follows: \n \n$====ccl==62==,2==6-9 \n \nInstruction Support Services \nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \n \n$ 424,826 \n \n$ \n \n4,506 \n \n1,178 \n \n7,715 \n \n110,106 \n \n2 458 \n \n125,963 20 671 \n \nNote 6: RESTRICTED ASSETS \n \n$==5==7le'czc4c'cce6'=c0 \n \nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2006, were as follows: \n \nDistrict-wide CaQital Projects \n \nBond \n \nSPLOST \n \nProceeds \n \nDebt Service Funds \n \nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \nRestricted Investments: Capital Acquisitions \n \n$ $ 298,004 \n$ 2,364,854 $ 6,554,676 \n \n74,423 \n \n- 18 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2006, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide Capital Projects \n \nGeneral Fund \n \n$==69\"='7\"\"'.1\"\"\"5\"\"\"'3 \n \nTransfers are used to return regular Capital Projects funds to the General Fund. The funds were originally transferred from the General Fund. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000 loss per occurrence, up to $2,000,000. \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ \n \n95,000 \n \n$ 100,000 \n \nNote 9: LONG-TERM DEBT \n \nCAPITAL LEASES The Dooly County Board of Education has entered into various lease agreements as lessee for the purchase of buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2005A General Government - Series 2005B General Government - QZAB - Series 2005C \n \n3.26% 3.26% \n0% \n \n$ 5,100,000 1,000,000 2,000,000 \n \n$ 8,100.000 \n \n-20- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT\"H\" \n \nNote 9: LONG-TERM DEBT \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \n \nGovernmental Funds \n \nGeneral \n \nCapital \n \nObligation \n \nLeases \n \nBonds \n \nTotal \n \nBalance July 1, 2005 \n \n$ 190,905 $ 7,260,000 $ 7,450,905 \n \nAdditions G. 0. Bonds \n \n2,000,000 \n \n2,000,000 \n \nDeductions Debt Retired \n \n66,301 \n \n1,160.000 \n \n1,226,301 \n \nBalance June 30, 2006 \n \n$ 124,604 $ 8,100,000 $ 8,224,604 \n \nPortion of Long-Term Debt Due within One Year \n \n$ \n \n61,006 $ 520,000 $ 581.006 \n \nAt June 30, 2006, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2007 2008 \n \n$ \n \n61,006 $ \n \n63,598 \n \n5,296 2,703 \n \nTotal Principal and Interest \n \n$ 124,604 $ \n \n7 999 \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2007 2008 2009 2010 2011 2012 - 2016 \n \n$ 520,000 $ 540,000 555,000 575,000 \n2,595,000 3,315,000 \n \n198,860 181,908 164,304 146,211 127,466 331,542 \n \nTotal Principal and Interest \n \n$ 8,100,000 $ 1,150,291 \n \n- 21 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 10: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2006, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nDooly County High School Renovations \n \n$ 9,694,319 $====43=9~3==7 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 11: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 12: SUBSEQUENT EVENTS \n \nIn the subsequent fiscal year, the School District entered into a lease purchase agreement with the Georgia School Boards Association in the amount of$2,375,000. The proceeds from this lease will be used for the renovation and construction ofnew and existing school buildings and the acquisition and construction of a new high school gymnasium. \n \nNote 13: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \n- 22 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2006 \n \nEXHIBIT \"H\" \n \nNote 13: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2006 2005 2004 \n \n100% 100% 100% \n \n$ 703,836 $ 675,408 $ 645,947 \n \n- 23 - \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL(1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n3,440,000 $ \n \n3,440,000 $ \n \n3,321,962 \n \n25,000 \n \n25,000 \n \n45,170 \n \n6,743,033 \n \n6,743,033 \n \n6,929,855 \n \n3,234,797 \n \n3,234,797 \n \n2,950,364 \n \n41,500 \n \n41,500 \n \n168,107 \n \n31,000 \n \n31,000 \n \n22,842 \n \n258 117 \n \n258 117 \n \n222 721 \n \n$ \n \n13 773 447 $ \n \n13 773 447 $ \n \n13 661 021 \n \n$ \n \n8,648,758 $ \n \n8,661,971 $ \n \n8,478,385 \n \n343,692 858,306 286,358 324,743 923,612 157,420 833,272 975,275 163,751 363,831 \n373,598 954,077 \n \n351,041 707,160 276,358 319,100 937,003 157,270 846,215 988,016 151,130 131,512 \n229,395 954,077 \n \n308,656 692,772 255,118 312,978 956,636 150,520 995,403 833,272 \n62,491 140,380 \n97,236 157,655 916,907 \n66 301 \n \n$ \n \n15 206 693 $ \n \n14 710 248 $ \n \n14424710 \n \n$ \n \n-1433246 $ \n \n-936 801 $ \n \n-763 689 \n \n$ \n \n171,615 $ \n \n171,615 $ \n \n697,153 \n \n-135 865 \n \n-135 865 \n \n$ \n \n35 750 $ \n \n35 750 $ \n \n697 153 \n \n$ \n \n-1,397,496 $ \n \n-901,051 $ \n \n-66,536 \n \n1678041 \n \n1 678 041 \n \n1 810 588 \n \nFund Balances - Ending \n \n$ \n \n280 545 $ \n \n776 990 $ \n \n1744052 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Southwest Georgia United Empowerment Zone, Inc. Empowerment Zone Programs \nTotal U.S. Department of Agriculture \nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States \nOther Programs Direct Impact Aid Pass-Through From Georgia Department of Education English Language Acquisition Grants Enhancing Education Through Technology Program Hurricane Education Recovery Improving Teacher Quality State Grants Migrant Education Reading First State Grants Rural Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \nTotal U. S. Department of Education \nDefense, U.S. Department of Direct Department of the Army R.O.T.C. Program \nTotal Federal Financial Assistance \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA \n \nN/A \n \n$ \n \n$ \n \n(2) 814 479 \n814,479 \n \n10.550 10.772 \n \nN/A \nN/A \n$ \n \n52,043 \n85 530 952 052 \n \n* 84.027 \n \nN/A \n \n$ \n \n327,472 \n \n84.041 \n84.365 84.318 84.938 84.367 84.011 * 84.357 84.358 84.186 84.298 * 84.010 84.048 \n \nN/A N/A N/A NIA N/A N/A N/A N/A N/A N/A NIA \n$ \n \n(3) \n1,129 28,002 (4) 158,552 25,387 220,704 45,526 \n4,805 7,749 1,056,618 26 594 \n1,902,538 \n \n$ \n \n56 117 \n \n$ ===2;;.,=91=0\"=7=0,;.,,,7 \n \n- 26 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the fund earned on the School Breakfast Program ($271,739) were not maintained separately and are included in the 2006 National School Lunch Program. \n(3) Funds earned on the Impact Aid program, in the amount of $1,531, do not require reporting of expenditures. (4) Funds earned on the Hurricane Education Recovery program, in the amount of $10,434, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County 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 fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Student Achievement Grant Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs K-8 Statewide Reading and Mathematics Program Charter Schools School Improvement - CRCT Remediation \nHuman Resources, Georgia Department of Family Advocate Program Family Connection \n \nSee notes to the basic financial statements. \n \n- 28 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n454,703 \n \n325,717 224,012 754,782 529,723 364,968 307,243 860,500 526,576 245,472 426,121 \n12,819 75,990 59,420 53,574 132,614 43,302 26,115 \n290,918 319,953 357,780 \n333,377 58,886 35,802 44,202 4,978 2,500 -967 \n223,149 51,638 75,662 \n-374,581 \n32,224 2,127 4,699 \n8,049 35 808 \n$ ===6=,9=29='=85=5= \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe acquisition and construction of a Pre-K through grade 8 elementary and middle school and for the renovation, repair and improvement of existing schools and later facilities and provide for the issuance of the Dooly County School District general obligation sales tax bond in the aggregate principal amount of $4,300,000. \nTo finance the renovation, completion, construction, additions, improvements and expansion of new and existing school buildings and facilities; acquiring any property necessary or desirable therefore, both real and personal, including buses, maintenance vehicles, technology software and hardware, system-wide safety and security equipment, and music, physical education/athletic; and ROTC equipment; finance the acquisition, construction and equipping of a new high school gymnasium. \nTo reimburse the School District for the payment of a portion of the principal and interest on its outstanding general obligation bonds coming due February 1, 2006. \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n$ 5,625,597 $ 12,526,306 $ \n \n251,299 $ 12,275,007 Completed \n \n7,000,000 \n \n7,000,000 \n \n342,405 \n \n108,150 Ongoing \n \n150,000 \n \n150,000 \n \n150 000 \n \nCompleted \n \n$ 12,775,597 $ 19,676,306 $ \n \n743704 $ 12,383,157 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nCurrent Year \n \n$ ==2=3=1=1'6=3= \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n (This page left intentionally blank) \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n385,465 $ 273,075 897,762 625,477 426,602 \n375,340 1,027,250 \n628,038 285,955 507,247 \n14,513 92,495 70,861 65 217 \n \n240,873 $ 224,920 824,416 453,144 580,608 \n258,592 1,020,576 \n923,112 338,488 \n16,021 162,683 415,780 \n69,538 88,138 53,660 57 669 \n \n4,058 $ 2,518 17,408 7,237 6,456 \n3,213 8,602 45,231 19,582 \n5,198 6,137 \n463 73 \n933 46,960 \n59 \n \n244,931 227,438 841,824 460,381 587,064 \n261,805 1,029,178 \n968,343 358,070 \n16,021 167,881 421,917 \n463 69,611 89,071 100,620 57 728 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n5,675,297 $ 5,728,218 $ \n \n174,128 $ \n \n5,902,346 \n \nMedia Center Program Staff and Professional Development \n \n157,759 31 279 \n \n238,603 11 544 \n \n14,413 19 735 \n \n253,016 31 279 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n5 864 335 $ 5,978,365 $ \n \n208276 $==6===18=6=6=4=1 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 13, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dooly County Board of Education as of and for the year ended June 30, 2006, which collectively comprise Dooly County Board of Education's basic financial statements and have issued our report thereon dated February 13, 2007. 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion 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 of the internal control over financial reporting that, in our judgment, could adversely affect Dooly County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6461-06-01 and FS-6461-06-02. \n2006YB-30 \n \n A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above are material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, 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 of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use of the management and members of the Dooly County Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \nCQ~.4d-k ~p ... \n~Jell W. Hinton, CPA, CGFM \nState Auditor \nRWH:as 2006YB-30 \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nFebruary 13, 2007 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofDooly County Board ofEducation with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2006. Dooly County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of 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 of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County Board ofEducation's compliance with \n \n2006SA-45 \n \n 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 Dooly County Board ofEducation's compliance with those requirements. \nIn our opinion, the Dooly County 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, 2006. The results of our auditing procedures disclosed a nonmaterial instance of noncompliance with those requirements which is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6461-06-01. \nInternal Control Over Compliance \nThe management of Dooly County 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 Dooly County 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 0MB Circular A-133. \nWe noted a certain matter involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Dooly County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6461-06-02. \nA material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over compliance 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 also considered to be a material weakness. \n2006SA-45 \n \n This report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n~~-~~ Russell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2006SA-45 \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6461-04-01 FS-6461-04-02 FS-6461-04-03 FS-6461-05-01 FS-6461-05-02 FS-6461-05-03 FS-6461-05-04 \n \nFurther Action Not Warranted Further Action Not Warranted Further Action Not Warranted Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS INVESTMENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures Finding Control Number: FS-6461-05-01 \n \nDue to limited accounting staff at each school, the necessary procedures to resolve this finding have not yet been put into place. The School District proposes to implement the necessary procedures to ensure proper controls are established at each school. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6461-05-01 FA-6461-05-02 \n \nUnresolved - See Corrective Action/Reponses Previously Reported Corrective Action Implemented \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH MANAGEMENT Excessive Cash Balances Finding Control Number: FA-6461-05-01 \n \nThe School District has implemented procedures for fiscal year 2007 to assure that the amount of Federal Funds requested for reimbursement from the Georgia Department of Education is closely aligned with actual program expenditures. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dooly County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements Accounting Controls (Overall) \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dooly County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirements. \n \nActivities Allowed or Unallowed \n \nAllowable Costs/Cost Principles \n \nThe reportable condition described above is considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dooly County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Dooly County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 84.010 Title I Grants to Local Educational Agencies 84.027 Special Education - Grants to States 84.357 Reading First State Grants \n \n- 1- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n9. Low Risk Auditee The Dooly County Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Reportable Condition Finding Control Number: FS-6461-06-01 \n \nCondition: \n \nThis is a repeat finding (FS-6461-05-01 and FS-6461-04-01) from the years ended June 30, 2005 and 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate separation of duties, as well as adequate internal controls over the school activity accounts. \n \nCriteria: \n \nThe School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties. Additionally, management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nQuestioned Cost: NIA \n \nInformation: \n \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \n \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of twenty items, the following deficiencies were noted: 1) Eight receipts did not contain supporting documentation, 2) Ten receipts were not deposited in a timely manner, 3) Two receipts could not be found. \n \n-2 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls over School Activity Accounts Reportable Condition Finding Control Number: FS-6461-06-01 \n \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Six voucher packets, of the twenty tested, did not contain an invoice supporting the disbursement. \n \nCause: \n \nThe School District has not assigned responsibilities to achieve appropriate separation of duties nor utilized management oversight of the incompatible activities to properly safeguard assets. Additionally, the School District failed to ensure that internal controls were established, implemented and functioning at the school level. \n \nEffect: \n \nErrors and/or irregularities may not be detected in a timely manner. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \n \nACCOUNTING CONTROLS (OVERALL) Inadequate General Controls Reportable Condition Finding Control Number: FS-6461-06-02 \n \nCondition: \n \nOur review of the School District included a review of general controls related to their financial information systems. We noted weaknesses in internal controls which we consider relevant to the School District's financial statements for the year ended June 30, 2006. \n \nCriteria: \n \nPolicies and procedures should be in place to reasonably mitigate the risk of loss, manipulation, or data corruption due to internal and external threats. \n \nQuestioned Cost: NIA \n \n-3- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nACCOUNTING CONTROLS (OVERALL) Inadequate General Controls Reportable Condition Finding Control Number: FS-6461-06-02 \n \nInformation: \n \nWeaknesses in internal control over financial information systems were identified at the School District. \n \nCause: \n \nManagement did not implement proper policies and controls over disaster recovery, access to financial information systems and backups. \n \nEffect: \n \nWithout satisfactory controls in place, losses, changes or misuses of data could occur and possibly not be detected. \n \nRecommendation: \n \nManagement of the School District should perform a complete risk assessment to identify internal and external threats that could cause loss, manipulation, or corruption of data maintained in the financial information system. Policies and procedures should be developed and implemented to address the weakness. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCASH MANAGEMENT Excessive Cash Balances Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Title I Grants to Local Educational Agencies (CFDA 84.010) Reading First State Grants (CFDA 84.357) Finding Control Number: FA-6461-06-01 \n \nCondition: \n \nA review of cash management procedures for the Title I Grants to Local Educational Agencies (CFDA 84.010) and Reading First State Grants (CFDA 84.357) programs disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation of excessive cash balances. \n \nCriteria: \n \nIn accordance with 34 CFR 80.21 interest earned on advances by local government grantees is required to be submitted promptly to the Federal grantor agency. Up to $100 per year may be kept for administrative expenses. \n \n-4 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nCASH MANAGEMENT Excessive Cash Balances Nonmaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Title I Grants to Local Educational Agencies (CFDA 84.010) Reading First State Grants (CFDA 84.357) Finding Control Number: FA-6461-06-01 \n \nQuestioned Cost: $666 \n \nInformation: \n \nThe School District earned $666 on advances. \n \nCause: \n \nThe Title I Grants to Local Educational Agencies and Reading First State Grants programs had an average cash balance of $61,331 with excessive ending monthly cash balances in five months. \n \nEffect: \n \nThe School District failed to accurately forecast the cash needs of the programs resulting in noncompliance with grant requirements. \n \nRecommendation: \n \nThe School District should implement procedures to accurately forecast the cash needs ofthe programs. In addition, procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department of Education and disbursement of such funds by the School District. The Georgia Department of Education should review this matter to determine if a refund of funds is necessary for the excess interest proceeds. \n \n-5- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2006 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Reportable Condition - Material Weakness U.S. Department of Education Through Georgia Department of Education Special Education - Grants to States (CFDA 84.027) Finding Control Number: FA-6461-06-02 \n \nCondition: \n \nA review ofemployee compensation for Special Education - Grants to States (CFDA 84.027) revealed that control procedures were not in place to adequately monitor payments to employees and ensure employees are paid in accordance with approved salary scales or other applicable approved documentation. \n \nCriteria: \n \nProvisions of the 0MB Circular A-87, Cost Principles for Determining Allowable Costs, require that \"to be allowable under Federal awards, costs must be... adequately documented\" and \"charges to Federal awards for salaries and wages ... will be based on payrolls documented in accordance with generally accepted practice ofthe governmental unit and approved by a responsible official of the governmental unit.\" \n \nQuestioned Cost: $27,782 \n \nInformation: \n \nThe School District did not have adequate procedures in place to conform to these requirements and ensure that employee compensation payments were allowable. \n \nCause: \n \nManagement failed to implement internal controls for monitoring compliance with Federal guidelines to ensure that employee compensation payments charged to the Special Education - Grants to States program were for allowable program purposes. \n \nEffect: \n \nFailure to monitor payments to employees and ensure employees are paid in accordance with approved salary scales can result in noncompliance with the requirements of the Federal grant. \n \nRecommendation: \n \nThe School District should implement procedures to ensure that all costs are allowable under 0MB Circular A-87 and include the semi-annual certifications as required. The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate. \n \n-6- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2006 \nFinding Control Number: FS-6461-06-01 \nWe concur with this finding. Procedures will be implemented to provide adequate internal control and adequate segregation of duties. Management at each site will monitor controls to provide reasonable assurance that transactions are being processed according to the established procedures. \nFinding Control Number: FS-6461-06-02 \nWe concur with this finding. The School District will implement procedures for disaster recovery, access to financial information systems and backups. \nFinding Control Number: FA-6461-06-01 \nWe concur with this finding. The School District has implemented procedures to ensure that the accounting records for the Federal programs reflect the actual expenditures ofthe Title I Schoolwide Program and is allocated on a monthly basis. \nFinding Control Number: FA-6461-06-02 \nWe concur with this finding. The Program Director will implement procedures to ensure activity reports and semi-annual certifications are completed for Special Education employees. Procedures will be in place for the 2007-2008 fiscal year. \nContact Person: Chris Godfrey, Finance Director Phone: (229) 268-4761 Fax Number: (229) 268-6148 E-mail Address: cgodfrey@dooly.k12.ga.us \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2004-h2005","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2005","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. 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Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOOLY COUNTY BOARD OF EDUCATION \nVIENNA, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n10 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n11 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n25 \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n26 \n \n3 SCHEDULE OF STATE REVENUE \n \n28 \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n29 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 6, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Dooly County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Dooly County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm10ns. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Dooly County Board of Education, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2004ARL-11 \n \n The Dooly County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nIn accordance with Government Auditing Standards, we have also issued our report dated July 6, 2005, on our consideration ofthe Dooly County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope ofour testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. 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. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dooly County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA 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. \nRespectfully submitted, \n \nRWH:gp 2004ARL-11 \n \nState Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. \n-3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n2,157,507 \n \n883,617 \n \n544,924 1,547,751 \n775,846 147,570 \n12,476 \n \n309,734 11,180,431 \n770,654 3,889,998 2,129,372 -4 474 475 \n \n$ ===1=9=8=7=5,=40=5= \n \n$ \n \n467,512 \n \n955,290 \n \n17,293 \n \n9,993 \n \n1,010,000 1 160 000 \n \n$ \n \n3,620,088 \n \n$ \n \n11,635,714 \n \n59,930 426,265 161,091 659,266 3 313 051 \n \n$ \n \n16 255 317 \n \n$ ===1=9=8=7=5=40=5= \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30. 2004 \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ \n \n7,901,867 $ \n \n290,645 732,735 254,189 403,356 891,941 131,025 907,160 853,006 \n68,688 360,647 \n \n115,166 95,058 \n918,629 148 057 \n \n34,073 \n118,164 47,247 \n \nTotal Governmental Activities \n \n14 072 169 $ \n \n199,484 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \nTotal General Revenues \n \nChange in Net Assets \n \nNet Assets - Beginning of Year \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n6,295,232 $ \n \n765,859 $ \n \n-806,703 \n \n106,503 411,213 133,442 \n3,373 411,579 281,597 388,401 368,853 \n335,314 \n \n28,153 56,732 \n111,760 68,023 \n \n-184,142 -321,522 -120,747 -371,830 -423,630 150,572 -406,999 -416,130 \n-68,688 -25,333 \n \n50,009 833,347 \n \n128,533 \n \n2,998 -45,049 90,498 -148 057 \n \n$ \n \n9 618 863 $ \n \n1 159 060 $ \n \n-3,094,762 \n \n$ \n \n3,491,315 \n \n20,545 \n \n972,792 29,722 13,062 \n318,036 43,047 \n281 603 \n \n$ \n \n5 170 122 \n \n$ \n \n2,075,360 \n \n14 179 957 \n \n$ ===16=-2=5=5=3=17= \n \n-5- \n \n DOOLY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2004 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,981,512 $ \n93,142 852,143 775,846 \n30,903 12 476 \n \n175,995 883,617 \n \n$ 2,157,507 883,617 \n \n$ 161,091 695,608 \n116,667 \n \n254,233 1,547,751 \n775,846 147,570 \n12 476 \n \nTotal Assets \n \n$ 3,746,022 $ 1,871,887 $ 161,091 $ 5,779,000 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ 467,512 955,290 $ 9 993 \n$ 1,432,795 $ \n \n17,293 17,293 \n \n$ 467,512 955,290 17,293 9 993 \n$ 1,450,088 \n \n$ \n \n59,930 \n \n413,789 \n \n12,476 $ \n \n$ $ 161,091 659,266 \n \n59,930 413,789 161,091 \n12,476 659,266 \n \n1,827,032 \n \n1,195,328 \n \n1,827,032 1,195,328 \n \n$ 2,313,227 $ 1,854,594 $ 161,091 $ 4,328,912 \n \nTotal Liabilities and Fund Balances \n \n$ 3,746,022 $ 1,871,887 $ 161,091 $ 5,779,000 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30. 2004 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable \n \n$ \n \n4,328,912 \n \n$ \n \n309,734 \n \n11,180,431 \n \n770,654 \n \n3,889,998 \n \n2,129,372 \n \n-4 474 475 \n \n13,805,714 \n \n290,691 \n \n-2,170,000 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 16,255,317 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2004 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,379,171 \n \n42,784 \n \n$ \n \n7,218,986 $ 1,091,037 \n \n2,793,659 \n \n199,484 \n \n29,398 \n \n13,649 \n \n281,603 \n \n$ 13,945,085 $ 1,104,686 $ \n \n$ 972,792 \n972,792 $ \n \n3,379,171 1,015,576 8,310,023 2,793,659 \n199,484 43,047 \n281,603 \n16,022,563 \n \n$ 7,761,238 \n \n$ \n \n290,645 732,735 254,189 398,187 881,524 131,015 $ 886,638 739,467 \n68,688 360,647 115,166 \n95,058 893,406 \n47,534 \n \n10 1,572,525 \n \n$ \n \n865,000 \n \n148 057 \n \n$ 13,656,137 $ 1,572,535 $ 1,013,057 $ \n \n$ \n \n288,948 $ -467,849 $ \n \n-40,265 $ \n \n7,761,238 \n290,645 732,735 254,189 398,187 881,524 131,025 886,638 739,467 \n68,688 360,647 115,166 \n95,058 893,406 1,620,059 \n865,000 148,057 \n16,241,729 \n-219, 166 \n \n$ \n \n$ \n \n-43,864 \n \n$ \n \n-43 864 $ \n \n$ \n \n288,948 $ -511,713 $ \n \n2,025,900 \n \n2,366,307 \n \n-1 621 \n \n43,864 $ \n43 864 $ 3,599 $ \n157,492 \n \n43,864 -43 864 \n0 -219,166 4,549,699 \n-1 621 \n \nFund Balances - Ending \n \n$ 2,313,227 $ 1,854,594 $ \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n161,091 $ =====4,3=28='=91=2= \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \nFood Inventories are expensed on the District-wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \n \n$ \n \n-219,166 \n \n$ 1,591,126 -284,945 \n \n1,306,181 124,966 \n \n865,000 -1 621 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ ==2=,0=7=5,=3=60= \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30. 2004 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS \n$ ====17=0=56= \n$ ====17=0=56= \n \nThe notes to the basic financial statements are an integral part of this statement. -10- \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dooly County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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 School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dooly County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund \n \n- 12 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nliability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \nINVESTMENTS \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dooly County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on October 9, 2003 (levy date). Taxes were due on December 20, 2003 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $3,358,626. \n \nThe tax millage rate levied for the 2003 tax year (calendar year) for the Dooly County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n14.942 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $972,792 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFOOD INVENTORIES On the District-wide financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nare reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives ofthe assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ \n \n5,000 \n \n15 years \n \n$ \n \n5,000 15 to 80 years \n \n$ \n \n5,000 5 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. 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 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(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. \nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $3,508,221. The amounts of the total bank balances are classified into three categories of credit risk: \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 300,000 \n \n2 \n \n3,208,221 \n \n3 \n \n0 \n \nTotal \n \n$ 3,508.221 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2004, the carrying value ofthe School District's total investments was $506,492 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 School District 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: \n \nThe Primary Liquidity Portfolio consists of Georgia 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 2a-7 ofthe Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \n \nNote 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2003 \n \nIncreases \n \nBalances Decreases June 30, 2004 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 309,734 \n \n$ \n \n9,589,305 $ l,591,126 \n \n0 $ 309,734 11,180,431 \n \nTotal Capital Assets Not Being Depreciated $ 9,899,039 $ l,591,126 $ \n \n0 $ 11,490,165 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 3,889,998 2,129,372 770,654 \n \n$ \n \n0 $ 3,889,998 \n \n2,129,372 \n \n770,654 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n2,179,404 $ 1,388,402 \n621,724 \n \n96,994 151,717 36,234 \n \n2,276,398 1,540,119 \n657 958 \n \nTotal Capital Assets, Being Depreciated, Net $ 2,600,494 $ -284 945 $ \n \n0 $ 2,315,549 \n \nGovernmental Activity Capital Assets - Net $ 12,499.533 $ 1,306.181 $ \n \n0 $ 13,805.714 \n \nCurrent year depreciation expense by function is as follows: \n \n- 18 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 5: CAPITAL ASSETS \n \nInstruction Support Services \nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 127,666 \n \n$ \n \n4,693 \n \n9,457 \n \n18,630 \n \n103,073 \n \n135,853 21,426 \n \n$ 284~945 \n \nNote 6: RESTRICTED ASSETS \n \nSpecial Purpose Local Option Sales Tax (SPLOST) is reported as restricted assets in the Statement ofNet Assets because its use is limited by applicable statutory provisions. Restricted assets at June 30, 2004, is as follows: \n \nDistrict-wide Capital Projects SPLOST \n \nRestricted Cash and Cash Equivalents: Capital Acquisitions \nRestricted Investments: Capital Acquisitions \n \n$ 317,540 $ 743,617 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2004, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nDebt Service Funds \n \nTransfers are used to move sales tax revenue to the Debt Service Fund for payment of bonds. \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd ofYear Liability \n \n2003 2004 \n \n$ \n \n0 $ \n \n4,232 $ \n \n4,232 $ \n \n0 \n \n$ \n \n0 $ \n \n4 278 $ \n \n4 278 $ \n \n0 \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \n- 20 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ \n \n95,000 \n \n$ 100,000 \n \nNote 9: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nAmount \n \nGeneral Government - Series 2000 \n \n4.88% \n \n$ 2,170.000 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2003 \n \n$ 3,035,000 \n \nDeductions Debt Retired \n \n865,000 \n \nBalance June 30, 2004 \n \n$ 2,170.000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 1,010,000 \n \nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2005 2006 \n \n$ 1,010,000 $ 1,160,000 \n \n105,896 56,608 \n \nTotal Principal and Interest \n \n$ 2,170.000 $====1=\"62...,,.5\"'=0'==4 \n \n- 21 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT \"H\" \n \nNote 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $124,224 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $122,763 \nOffice 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 $1,461 \nNote 11: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNote 12: SUBSEQUENT EVENTS \nIn the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $8,100,000. The proceeds from these bonds will be used for the renovation and construction ofnew and existing school buildings and the acquisition and construction ofa new high school gymnasium. \nNote 13: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n- 22 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2004 \n \nEXHIBIT\"H\" \n \nNote 13: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2004 2003 2002 \n \n100% 100% 100% \n \n$ 645,947 $ 719,813 $ 688,470 \n \n- 23 - \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments Inventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n3,285.748 $ \n \n3,285.748 $ \n \n3,379.171 \n \n42.784 \n \n7,199.526 \n \n7,199.526 \n \n7,218.986 \n \n1,491.677 \n \n1,507.677 \n \n2,793.659 \n \n199.484 \n \n45.000 \n \n45.000 \n \n29.398 \n \n55000 \n \n55 000 \n \n281 603 \n \n$ \n \n12,076,951 $ \n \n12,092,951 $ \n \n13,945,085 \n \n$ \n \n8,311.509 $ \n \n8,470.072 $ \n \n7,761.238 \n \n305,582 781,858 234,881 321,186 1,012,842 137,075 841,962 678,166 \n40,731 480,156 \n8,284 \n \n307,703 878,627 228.462 321,286 996,347 137,075 841,962 690,283 \n40,731 395.464 \n192,338 960,939 \n \n290,645 732,735 254,189 398,187 881,524 131,015 886,638 739.467 \n68,688 360,647 115,166 \n95,058 893.406 47 534 \n \n$ \n \n13,154,232 $ \n \n14,461,289 $ \n \n13,656,137 \n \n$ \n \n-1,077,281 $ \n \n-2,368,338 $ \n \n288,948 \n \n1,947,308 \n \n1,947,308 \n \n2,025,900 \n \n-157,317 \n \n-157,317 \n \n-1 621 \n \nFund Balances - Ending \n \n$ \n \n712 710 $ \n \n-578 347 $===2:i,,3=1=3=,2=2===7 \n \nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 25 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Food and Nutrition Program Child and Adult Care Food Program Pass-Through From Southwest Georgia United Empowerment Zone, Inc. Empowerment Zones Program \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States \nOther Programs Direct Impact Aid Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading Excellence - Local Reading Improvement Reading First State Grants Rural Education Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States Pass-Through From Marion County Board of Education d/b/a Two Rivers Migrant Education Agency Migrant Education \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A NIA $ \n$ \n \n(2) 800 621 \n800,621 \n \n10.550 \n \nNIA \n \n35,424 \n \n10.558 10.772 \n \nNIA \nN/A $ \n \n(2) \n94466 930 511 \n \n84.027 \n \nN/A $ \n \n207,269 \n \n84.041 \n84.318 84.367 84.338 84.357 84.358 84.186 84.298 84.010 84.048 \n84.011 \n \nN/A N/A N/A NIA N/A N/A N/A N/A N/A \nN/A \n$ \n \n(3) \n26,865 170,470 535,387 26,720 42,794 22,408 \n15,773 774,290 \n28,371 \n15 478 \n1,865,825 \n \n-26- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n$ _ _ _ _4_6~3~5~6 \n \nTotal Federal Financial Assistance \nN/A = Not Available \n \n$===2,..,84=2=6,6=9==2 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on Child and Adult Care Food Program ($3,592) and the School Breakfast Program ($256,762) were not maintained separately and are included in the 2004 National School Lunch Program. \n(3) Funds earned on the Impact Aid program, in the amount of $7,723, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County 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 fund financial statements. \n \nSee notes to the basic financial statements. \n \n-27 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Migrant Education Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs 4-8 Statewide After School Program K-3 Statewide Reading Program Health Insurance Next Generation Schools Lottery Program SIS Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nHuman Resources, Georgia Department of Family Connection \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n412,470 \n \n$ \n \n412,470 \n \n225,909 374,565 633,726 676,704 300,592 490,286 892,088 539,326 251,220 \n371,051 7,171 \n11,878 61,495 46,120 133,442 43,182 26,899 \n281,597 316,580 375,225 \n304,832 68,023 34,907 46,190 5,749 2,000 3,292 \n238,372 54,058 35,335 \n-340,918 \n13,961 31,344 122,763 12,960 \n63,252 \n \n225,909 374,565 633,726 676,704 300,592 490,286 892,088 539,326 251,220 \n371,051 7,171 \n11,878 61,495 46,120 133,442 43,182 26,899 \n281,597 316,580 375,225 \n304,832 68,023 34,907 46,190 5,749 2,000 3,292 \n238,372 54,058 35,335 \n-340,918 \n13,961 31,344 122,763 12,960 \n63,252 \n \n$ \n \n1,091,037 \n \n49,879 \n \n1,461 \n \n1,091,037 49,879 1,461 \n \nSee notes to the basic financial statements. \n \n$ \n \n7,218,986 $ \n \n1,091,037 $ \n \n8,310,023 \n \n- 28- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe acquisition and construction of a Pre-K through grade 8 elementary and middle school and for the renovation, repair and improvement of existing schools and later facilities and provide for the issuance of the Dooly County School District general obligation sales tax bond in the aggregate principal amount of $4,300,000 \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS(2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 5,625,597 $ 12,112,026 $ \n \n1,720,582 $ 10,391,444 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n-29- \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM {QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES OPERATIONS \n \nTOTAL \n \n$ \n \n284,217 $ \n \n217,006 $ \n \n12,057 $ \n \n229,063 \n \n413,494 \n \n333,470 \n \n15,321 \n \n348,791 \n \n758,518 \n \n605,127 \n \n39,445 \n \n644,572 \n \n775,996 \n \n590,734 \n \n26,423 \n \n617,157 \n \n368,770 \n \n262,083 \n \n15,762 \n \n277,845 \n \n561,755 1,056,829 \n629,994 301,144 442.907 \n9,293 22,203 72,295 54 779 \n \n517,091 967,675 732,357 324,576 \n182,428 398.973 \n7,290 63,843 22,193 \n9,156 53146 \n \n14,376 70,375 54,176 27,404 \n7,216 3,776 \n810 36,273 \n376 \n \n531,467 1,038,050 \n786,533 351,980 \n189,644 402,749 \n7,290 63,843 23,003 45,429 53,522 \n \n$ \n \n5,752,194 $ 5,287,148 $ \n \n323,790 $ \n \n5,610,938 \n \n157,336 31 788 \n \n230,805 7 329 \n \n17,147 23 015 \n \n247,952 30 344 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n5 941 318 $ 5,525,282 $ \n \n363,952 $ ===5,=8=89~,2=3=4 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 6, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dooly County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Dooly County Board ofEducation's basic financial statements and have issued our report thereon dated July 6, 2005. 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County 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 an opinion 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 ourjudgment, could adversely affect Dooly County Board of Education'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 of Findings and Questioned Costs as items FS-6461-04-01, FS-6461-04-02 and FS-6461-04-03. \n2004YB-30 \n \n A material weakness is a reportable condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grant agreements, 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 of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nThis report is intended solely for the information and use of the management and members of the Dooly County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:gp 2004YB-30 \n \nState Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJuly 6, 2005 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Dooly County Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2004. Dooly County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe 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 of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County 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 Dooly County Board of Education's compliance with those requirements. \n2004SA-10 \n \n In our opinion, the Dooly County 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, 2004. \nInternal Control Over Compliance \nThe management of Dooly County 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 Dooly County 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 0MB Circular A-133. \nOur 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 reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. \nThis report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n~-~ \n \nRWH:gp 2004SA-10 \n \nState Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6461-03-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Finding Control Number: FS-6461-03-01 \n \nThe Dooly County Board ofEducation was unable to put into place the procedures to clear this finding prior to the end offiscal year 2004. Management is making a concerted effort to eliminate this finding for future audits. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA-6461-03-01 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nThe School District has implemented changes to resolve this finding in fiscal year 2005 and this finding will be shown as resolved in the fiscal year 2005 audit report. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dooly County Board of Education disclosed financial statement reportable conditions related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts Accounting Controls (Overall) \n \nExpenditures/Liabilities/Disbursements General Ledger \n \nNone ofthe reportable conditions described above are considered to be material weaknesses. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dooly County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dooly County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Dooly County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \n \n7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n \n9. Low Risk Auditee The Dooly County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n \n- 1- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-6461-04-01 \nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  No supporting documentation was available for cash receipts examined. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from record keeping or processing of signed checks.  Twenty-three out ofthe twenty-five voucher packets tested, did not contain proper approval by appropriate personnel. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal account sites, for accounting functions and their failure to establish controls over these accounts. Management should implement additional procedures to ensure that the key accounting functions ofcustody, recordkeeping and authorization are segregated and establish controls over these accounts. \nACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-6461-04-02 \nAn examination ofthe internal accounting control procedures revealed that the School District did not maintain adequate separation of duties for the following accounting function and related procedures: \n Access controls in the Financial System do not prevent users from accessing accounting functions that are outside of their area of responsibility. \n-2- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2004 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-6461-04-02 Management should ensure that the access controls in the accounting information system complement the system of internal control by limiting an employee's access to only the accounting functions necessary for the performance of that employee's duties. GENERAL LEDGER Inadequate Accounting Procedures Reportable Condition Finding Control Number: FS-6461-04-03 The School District's internal controls over the subsidiary records supporting balance sheet accounts were determined to be insufficient. The Accounts Receivable subsidiary ledger contained invalid receivables totaling $27,056 in the General Fund. This discrepancy occurred due to the failure to properly cancel receivables and reconcile the subsidiary ledger and general ledger. Management should ensure that subsidiary ledgers are periodically reconciled to the accounting records. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-3- \n \n SECTIONV MANAGEMENT'S RESPONSES \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2004 \nFinding Control Number: FS-6461-04-01 \nWe have requested of management its views concerning this finding, its conclusions, its recommendations and the planned corrective actions. We have not received management's views as of the release of this audit report. \nFinding Control Number: FS-6461-04-02 \nWe have requested of management its views concerning this finding, its conclusions, its recommendations and the planned corrective actions. We have not received management's views as of the release of this audit report. \nFinding Control Number: FS-6461-04-03 \nWe have requested of management its views concerning this finding, its conclusions, its recommendations and the planned corrective actions. We have not received management's views as of the release of this audit report. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2002-h2003","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2003-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceaed with fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Dooly County Board of Education, Vienna, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (Dooly County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed January 20, 2023).","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 20, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dooly County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dooly County--Auditing--Periodicals","Education--Georgia--Dooly County--Finance--Statistics--Periodicals"],"dcterms_title":["Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2003"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"DOOLY COUNTY BOARD OF EDUCATION \nVIENNA, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \nFOR THE FISCAL YEAR ENDED JUNE 30, 2003 \nSTATE OF GEORGIA \nDEPARTMENT OF AUDITS AND ACCOUNTS \nRussell W. Hinton State Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n3 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n4 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n6 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n7 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n8 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n9 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n10 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n11 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERALFUND \n \n27 \n \n DOOLY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n30 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nJune 4, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Dooly County Board of Education, as of and for the year ended June 30, 2003, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Dooly County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mons. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective position ofthe governmental activities, each major fund, and the aggregate remaining fund information of the Dooly County Board of Education, as of June 30, 2003, and the respective changes in financial position thereoffor the year then ended in conformity with accounting principles generally accepted in the United States of America. \n2003-34ARL-1 l  \n \n The Dooly County Board ofEducation has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not to be part of, the basic financial statements. \nAs discussed in Note 2 to the basic financial statements, during fiscal year 2003, the Board completed a comprehensive inventory of its capital assets for inclusion in the basic financial statements and consolidated its individual school activity accounts for inclusion in the basic financial statements. These changes are in accordance with generally accepted accounting principles. \nAs described in Note 2, the Dooly County Board of Education has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments, as of June 30, 2003. \nIn accordance with Government Auditing Standards, we have also issued our report dated June 4, 2004, on our consideration ofthe Dooly County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27 is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Dooly County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \n2003-34ARL-11 \n \n 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. \nRespectfully submitted, \n~4~ \nRu ell W. Hinton State Auditor \nRWH:as 2003-34ARL-1 l \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2003 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. -3- \n \nEXHIBIT\"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n2,519,328 \n \n1,707,448 \n \n511,455 961,716 1,135,996 118,002 \n14,097 \n \n309,734 9,589,305 \n770,654 3,889,998 2,129,372 -4,189,530 \n \n$ ===1=9\"'=,4=6=-7,=57=5= \n \n$ \n \n277,340 \n \n973,274 \n \n589,700 \n \n388,594 \n \n23,710 \n \n865,000 2,170,000 \n \n$ \n \n5,287,618 \n \n$ \n \n9,822,620 \n \n434,857 157,492 1,202,717 2,562,271 \n \n$ \n \n14 179 957 \n \n$ ===1~9~.4;,;;;6~7,~57;,,;;5;,,, \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2003 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil 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 Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Gain on Sale of Building \nTotal General Revenues and Special Items \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n8,878,926 \n \n445,280 687,167 239,175 356,283 1,360,708 123,081 873,088 872,833 \n40,447 191,235 \n \n165,724 $ \n \n872,872 183,732 \n \n$ \n \n15,290,551 $ \n \n219,563 49,432 \n268 995 \n \nThe notes to the basic financial statements are an integral part of this statement. -4 - \n \n EXHIBIT\"B\" \n \nPROGRAM REVENUES \n \nOPERATING \n \nCAPITAL \n \nGRANTS AND \n \nGRANTS AND \n \nCONTRIBUTIONS CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ \n \n6,496,733 $ \n \n3,106,334 $ \n \n113,363 320,395 130,653 \n16,137 412,009 294,041 406,847 435,167 \n \n84,505 170,288 \n328,944 1,842,073 \n \n163,120 \n \n46,498 807,854 \n \n414,926 \n \n$ \n \n9 642 817 $ \n \n5 947 070 $ \n \n724,141 \n-331,917 -366,772 -108,522 -255,641 -778,411 170,960 -137,297 1,404,407 \n-40,447 -28, 115 \n53,839 46,498 399,340 -183,732 \n568,331 \n \n$ \n \n3,393,886 \n \n1,024,280 24,405 5,595 \n771,394 48,278 85,980 \n \n208,952 \n \n$ \n \n5,562,770 \n \n$ \n \n6,131,101 \n \n8,048,856 \n \n$ \n \n14179 957 \n \n-5- \n \n DOOLY COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30. 2003 \n \nEXHIBIT\"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Other Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \nUnreserved Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 998,842 $ 1,520,486 1,707,448 \n \n$ 2,519,328 1,707,448 \n \n188,238 961,716 1,135,996 \n1,335 14 097 \n \n$ 157,492 116,667 \n \n345,730 961,716 1,135,996 118,002 \n14 097 \n \n$ 3,300,224 $ 3,344,601 $ 157,492 $ 6,802,317 \n \n$ 277,340 973,274 $ \n23 710 \n$ 1,274,324 $ \n \n589,700 388,594 \n978,294 \n \n$ 277,340 973,274 589,700 388,594 23 710 \n$ 2,252,618 \n \n$ 420,760 \n \n$ 420,760 \n \n$ 157,492 \n \n157,492 \n \n14,097 \n \n14,097 \n \n$ 1,560,804 \n \n1,560,804 \n \n1,591,043 \n \n805,503 \n \n1,591,043 805,503 \n \n$ 2,025,900 $ 2,366,307 $ 157,492 $ 4,549,699 \n \n$ 3,300,224 $ 3,344,601 $ 157,492 $ 6,802,317 \n \nThe notes to the basic financial statements are an integral part of this statement. -6- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2003 \n \nEXHIBIT\"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \n \n$ 4,549,699 \n \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \n \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \n \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \n \n$ \n \n309,734 \n \n9,589,305 \n \n770,654 \n \n3,889,998 \n \n2,129,372 \n \n-4,189,530 \n \n12,499,533 \n \nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \n \n165,725 \n \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \n \nBonds Payable \n \n-3,035,000 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 14,179,957 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30. 2003 \n \nEXHIBIT\"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES {USES} \nProceeds from Sale of Buildings Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3.329.014 30,000 \n7,880,752 $ 2,537,679 \n268,995 43,481 85,980 \n \n$ $ 1,024,280 5,947,070 \n \n4,794 \n \n3 \n \n3.329,014 1,054,280 13,827,822 2,537,679 \n268,995 48,278 85,980 \n \n$ 14,175,901 $ 5,951,864 $ 1,024,283 $ 21,152,048 \n \n$ 8,503,989 \n \n$ 8,503,989 \n \n445,280 687,167 239,175 346,083 1,340,154 123,056 849,110 792,229 \n40,447 191,235 165,724 836,887 \n$ \n \n$ 8,586,302 \n \n445,280 \n \n687,167 \n \n239,175 \n \n346,083 \n \n1,340,154 \n \n25 \n \n123,081 \n \n849,110 \n \n792,229 \n \n40,447 \n \n191,235 \n \n165,724 \n \n836,887 \n \n8,586,302 \n \n730,000 183,732 \n \n730,000 183,732 \n \n$ 14,560,536 $ 8,586,302 $ 913,757 $ 24,060,595 \n \n$ -384,635 $ -2,634,438 $ 110,526 $ -2,908,547 \n \n$ 350,000 \n \n$ \n \n$ 46,944 \n \n-46 944 \n \n350,000 46,944 -46 944 \n \n$ 303,056 $ 46944 $ \n \n350,000 \n \n$ -384,635 $ -2,331,382 $ 157,470 $ -2,558,547 \n \n2,416,810 \n \n4,697,689 \n \n22 \n \n7,114,521 \n \n-6 275 \n \n-6 275 \n \n$ 2,025,900 $ 2,366,307 $ 157,492 $ 4,549,699 \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n DOOLY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2003 \n \nEXHIBIT\"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nIn the Statement of Activities, only the gain on the sale of the building is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the carrying value of the building sold. \nBecause some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements \nFood Inventories are expensed on the District-wide Statements using the consumption method while on the fund level Food Inventories are recorded as expenditures when purchased. In the current period this difference amounts to: \n \n$ -2,558,547 \n \n$ 8,074,123 -330,272 \n \n7,743,851 \n \n141,048 60,652 \n \n730,000 14 097 \n \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 6,131,101 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n DOOLY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30. 2003 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT\"G\" \nAGENCY FUNDS $ ====1=1 =76=4= \n$ ===11='=76=4= \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 10 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Dooly County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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 School District is a primary government and consists of all the organizations that compose its legal entity. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Dooly County Board of Education. \nDistrict-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds ofgeneral long-term liabilities and acquisitions under capital leases are reported as other financing sources. \n- 12 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \n \nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2002 and ending in early June 2003. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2002 and ending in August 2003. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit costs and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \n \nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \n \nIn prior years, the financial activities of the School District's School Food Services Fund, Lottery Programs and Federal Programs were reported as Special Revenue Funds. These funds had a combined fund balance of$416,388 at July 1, 2002. For fiscal year 2003, these funds have been reported as part of the General Fund. In addition, governmental fund activity from the various school activity accounts, which were not reported in the prior year's financial statements, have been reported within the General Fund for fiscal year ended June 30, 2003. The governmental fund activity ofthe various school activity accounts had a fund balance of$39,973 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \n \nGeneral Fund Balance July 1, 2002 \n \n$ 1,960,449 \n \nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \n \n416,388 39 973 \n \nGeneral Fund Balance July 1, 2002 (Restated) \n \n$ 2,416,810 \n \nCHANGES IN ACCOUNTING PRINCIPLES \n \nThe Dooly County Board ofEducation has implemented a new financial reporting model as required by provisions of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments, as of June 30, 2003. \n \nThe provisions of GASB Statement No. 34 require the inclusion of a Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nGeneral Fund (Restated) July 1, 2002 Capital Projects Fund Debt Service Fund \n \n$ 2,416,810 4,697,689 22 \n \nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds and Notes Payable Food Inventories Costing Differences \n \n$ 7,114,521 9,617,546 -5,002,912 105,073 -3,765,000 -20,372 \n \nNet Assets Beginning (See Exhibit \"B\") \n \n$ 8,048.856 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \n \nINVESTMENTS \n \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market 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 School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, 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 basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Dooly County Board ofCommissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on January 20, 2002 (levy date). Taxes were due on December 20, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2002 tax digest are reported as revenue in the governmental funds for fiscal year 2003. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2003, for maintenance and operations amounted to $3,329,014. \n \nThe tax millage rate levied for the 2002 tax year (calendar year) for the Dooly County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n15.75 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,024,280 and is to be used for capital outlay for educational purposes and debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nINVENTORIES \n \nFOOD INVENTORIES On the District-wide financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time ofpurchase. On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment \n \nAll \n \nNIA \n \n$ \n \n5,000 \n \n15 years \n \n$ \n \n5,000 15 to 80 years \n \n$ \n \n5,000 5 to 12 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement ofNet Assets. \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION 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 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(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, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(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. \nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $4,669,903. The amounts of the total bank balances are classified into three categories of credit risk: \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 308,351 \n \n2 \n \n4,361,552 \n \n3 \n \n0 \n \nTotal \n \n$ 4,669,903 \n \nCATEGORIZATION OF INVESTMENTS At June 30, 2003, the carrying value ofthe School District's total investments was $1,450,781 which is materially the same as fair value. This investment consisted entirely offunds 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 School District 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: \n \n- 18 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 3: DEPOSITS AND INVESTMENTS \nThe Primary Liquidity Portfolio consists of Georgia 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 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \nInvestments in Georgia Fund 1and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \nNote 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2002 \n \nIncreases \n \nBalances Decreases June 30, 2003 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 314,985 \n \n$ \n \n1,511,547 $ 8,077,758 \n \n5,251 $ 309,734 9,589,305 \n \nTotal Capital Assets Not Being Depreciated $ 1,826,532 $ 8,077,758 $ \n \n5,251 $ 9,899,039 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \n \n$ 4,624,528 $ 1,971,911 1,194,575 \n \n121,000 $ 157,461 \n \n855,530 $ 423,921 \n \n3,889,998 2,129,372 \n770,654 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n2,870,056 1,234,144 \n898,712 \n \n123,240 154,258 52 774 \n \n813,892 329,762 \n \n2,179,404 1,388,402 \n621,724 \n \nTotal Capital Assets, Being Depreciated, Net $ 2,788,102 $ \n \n-51 811 $ \n \n135,797 $ 2,600,494 \n \nGovernmental Activity Capital Assets - Net $ 4,614,634 $ 8,025,947 $ 141,048 $ 12,499,533 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 172,511 \n \n$ \n \n4,693 \n \n9,457 \n \n18,268 \n \n102,300 \n \n134,718 23,043 \n \n$==3=30='=,2==7==2 \nNote 6: RESTRICTED ASSETS \nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and Property tax levied are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2003, were as follows: \n \n- 20 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 6: RESTRICTED ASSETS \n \nDistrict-wide Capital Projects Bond Proceeds \n \nRestricted Cash and Cash Equivalents: Capital Acquisitions \nRestricted Investments: Capital Acquisitions \n \n$ 1,520,486 $ 1,707,448 \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2003, consisted of the following: \n \nTransfer to \n \nTransfers From District-wide \nCapital Projects \n \nDebt Service Funds \n \n$==4==6=9==4==4 \n \nTransfers are used to move sales tax revenue to the Debt Service Fund for payment of bonds. \n \nNote 8: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and acts of God. The School District 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. \n \nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by \n \n- 21 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT \"H\" \n \nNote 8: RISK MANAGEMENT \n \nthe system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2002 2003 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n0 $ \n \n3 662 $ \n \n3 662 $ \n \n0 \n \n$ \n \n0 $ \n \n4 232 $ \n \n4 232 $ \n \n0 \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent All Employees \n \n$ \n \n95,000 \n \n$ 100,000 \n \nNote 9: LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nAmount \n \nGeneral Government - Series 2000 \n \n4.88% \n \n$ 3,035,000 \n \n- 22 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 9: LONG-TERM DEBT \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \n \nGovernmental Funds General \nObligation Bonds \n \nBalance July 1, 2002 \n \n$ 3,765,000 \n \nDeductions Debt Retired \n \n730,000 \n \nBalance June 30, 2003 \n \n$ 3,035.000 \n \nPortion of Long-Term Debt Due within One Year \n \n$ 865,000 \n \nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \n \nDebt \n \nPrincipal \n \nInterest \n \n2004 2005 2006 \n \n$ 865,000 $ 1,010,000 1,160,000 \n \n148,108 105,896 56,608 \n \nTotal Principal and Interest \n \n$ 3,035.000 $ 310.612 \n \nNote 10: ON-BEHALF PAYMENTS \n \nThe Board has recognized revenues and costs in the amount of $152,389 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $128,913 \n \n- 23 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 10: ON-BEHALF PAYMENTS \n \nOffice 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 $23,476 \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2003, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n02/01 S-646-034 \n \n$ 1,499,895 $====6==95-,6==0==8 \n \nThe amounts described in this note are not reflected in the basic financial statements. \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 13: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS 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. \n \n- 24 - \n \n DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2003 \n \nEXHIBIT\"H\" \n \nNote 13: RETIREMENT PLANS \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2003 2002 2001 \n \n100% 100% 100% \n \n$ 719,813 $ 688,470 $ 841,807 \n \n- 25 - \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent 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 Enterprise Operations Community Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nInventory - Net Change in Period \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n3,249,748 $ \n \n3,249,748 $ \n \n3,329,014 \n \n30,000 \n \n7,543,769 \n \n7,683,769 \n \n7,880,752 \n \n1,594,817 \n \n1,594,817 \n \n2,537,679 \n \n40,700 \n \n40,700 \n \n268,995 \n \n66,000 \n \n66,000 \n \n43,481 \n \n95,500 \n \n95 500 \n \n85 980 \n \n$ \n \n12,590,534 $ \n \n12,730,534 $ \n \n14,175,901 \n \n$ \n \n8,356,799 $ \n \n9,206,119 $ \n \n8,503,989 \n \n342,064 440,305 242,337 303,371 1,367,215 150,817 913,745 775,492 \n40,731 193,231 \n954 077 \n \n387,878 760,316 242,337 323,439 1,367,215 150,967 915,471 860,913 \n40,731 322,648 \n21,848 955,062 \n \n445,280 687,167 239,175 346,083 1,340,154 123,056 849,110 792,229 \n40,447 191,235 165,724 \n836,887 \n \n$ \n \n14 080 184 $ \n \n15,554,944 $ \n \n14,560,536 \n \n$ \n \n-1,489,650 $ \n \n-2,824,410 $ \n \n-384 635 \n \n$ \n \n119,923 $ \n \n-113 723 \n \n119,923 -113,723 \n \n$ \n \n6,200 $ \n \n6 200 \n \n$ \n \n-1,483,450 $ \n \n-2,818,210 $ \n \n-384,635 \n \n2,490,249 \n \n2,490,249 \n \n2,416,810 \n \n391,840 \n \n1,020,297 \n \n-6,275 \n \nFund Balances - Ending \n \n$ \n \n1,398,639 $ \n \n692,336 $ ==,,;;,2,~02~5~,9~00~ \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, 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 \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program Pass-Through From Southwest Georgia United Empowerment Zone, Inc. Empowerment Zone Programs \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through \nOther Programs Direct Impact Aid Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies School Improvement Title II Enhancing Education Through Technology Improving Teacher Quality TitleV Innovative Education Program Strategies Title VI Rural and Low Income Schools Reading Excellence - Local Reading Improvement Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Marion County Board of Education d/b/a Two Rivers Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nNIA NIA $ \n$ \n \n(2) 730,872 \n730,872 \n \n10.550 10.558 10.772 \n \nNIA NIA NIA \n$ \n \n45,464 (2) \n104,439 880 775 \n \n84.027 \n \nNIA $ \n \n169,959 \n \n84.041 \n \n(3) \n \n* 84.010 \n \nNIA \n \n* 84.010 \n \nNIA \n \n84.318 \n \nNIA \n \n84.367 \n \nNIA \n \n84.298 \n \nNIA \n \n84.358 \n \nNIA \n \n* 84.338 \n \nNIA \n \n84.048 \n \nNIA \n \n840,370 15,211 \n18,624 188,340 \n18,554 35,020 303,447 \n37,440 \n \n84.011 \n \nNIA \n \n27,476 \n \n- 28 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nEducation, U. S. Department of Other Programs Pass-Through From Middle Georgia Regional Education Service Agency Elementary and Secondary Education Act Title Ill Limited English Proficient \nTotal U.S. Department of Education \nDefense, U.S. Department of Direct Department of the Army R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n84.365 \n \nNIA $ _ _ _--'8--'-',6'-\"9..C...3 $ _ _ _1~6_6_3~1_34_ \n \n$ _ _ _ _4_1~,8_39_ \n \nTotal Federal Financial Assistance N/A = Not Available \n \n$ ===2=-'=58=5=7,=48= \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \n(2) Expenditures for the funds earned on Child and Adult Care Food Program ($6,348) and the School Breakfast Program ($215,606) were not maintained separately and are included in the 2003 National School Lunch Program. \n(3) Funds earned on the Impact Aid Program, in the amount of $4,220, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the basic financial statements. \n \nSee notes to the basic financial statements. \n \n- 29- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nGRANTS \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \n \n$ \n \n334,871 \n \n$ \n \nKindergarten Program - Early Intervention Program \n \n186,923 \n \nPrimary Grades (1-3) Program \n \n683,357 \n \nPrimary Grades - Early Intervention (1-3) Program \n \n509,680 \n \nUpper Elementary Grades (4-5) Program \n \n371,305 \n \nUpper Elementary Grades - Early Intervention (4-5) Program \n \n386,844 \n \nMiddle School (6-8) Program \n \n899,858 \n \nHigh School General Education (9-12) Program \n \n455,154 \n \nVocational Laboratory (9-12) Program \n \n265,914 \n \nStudents with Disabilities \n \nCategory I \n \n-886 \n \nCategory II \n \n139,802 \n \nCategory Ill \n \n248,915 \n \nCategoryV \n \n5,944 \n \nGifted Student - Category VI \n \n10,717 \n \nRemedial Education Program \n \n64,159 \n \nAlternative Program \n \n56,621 \n \nEnglish Speakers of Other Languages (ESOL) \n \n47,173 \n \nMedia Center Program \n \n130,650 \n \n20 Days Additional Instruction \n \n52,193 \n \nStaff and Professional Development \n \n25,983 \n \nIndirect Cost \n \nCentral Administration \n \n293,856 \n \nSchool Administration \n \n389,164 \n \nFacility Maintenance and Operations \n \n372,126 \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \n288,486 \n \nBus Replacement \n \n74,046 \n \nSparsity \n \n34,095 \n \nNursing Services \n \n48,820 \n \nPrincipal Supplements \n \n5,761 \n \nVocational Supervisors \n \n13,477 \n \nMigrant Education \n \n2,130 \n \nMid-term Adjustment Hold-Harmless \n \n298,045 \n \nEducation Equalization Funding Grant \n \n332,391 \n \nFood Services \n \n57,852 \n \nVocational Education \n \n170,695 \n \nAusterity Reduction \n \n-181,614 \n \nOther State Programs \n \n4-8 Statewide After School Program \n \n16,915 \n \nK-3 Statewide Reading Program \n \n24,115 \n \nHealth Insurance \n \n128,913 \n \nMentor Teachers \n \n1,660 \n \nNext Generation Schools \n \n67,030 \n \nPost Secondary Options \n \n-99 \n \nLottery Program \n \nComputers in the Classroom \n \n33,180 \n \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \n \n$ \n \n5,947,070 \n \nOffice of School Readiness Pre-Kindergarten Program \n \n429,108 \n \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n- 30- \n \n23,476 \n \nTOTAL \n334,871 186,923 683,357 509,680 371,305 386,844 899,858 455,154 265,914 \n-886 139,802 248,915 \n5,944 10,717 64,159 56,621 47,173 130,650 52,193 25,983 \n293,856 389,164 372,126 \n288,486 74,046 34,095 48,820 5,761 13,477 2,130 \n298,045 332,391 \n57,852 170,695 -181,614 \n16,915 24,115 128,913 \n1,660 67,030 \n-99 \n33,180 \n5,947,070 \n429,108 \n23,476 \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nCONTRACTS Education, Georgia Department of After School Programs \nHuman Resources, Georgia Department of Family Connection Male Involvement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n29,977 \n \n46,498 5472 \n \n$ \n \n29,977 \n \n46,498 5 472 \n \n$ \n \n7,880,752 $ \n \n5 947 070 $====,;1,;;;;3,~82;,;,7.,;;:,8~22= \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30 2003 \n \nSCHEDULE \"4\" \n \nPROJECT \nThe acquisition and construction of a Pre-K through grade 8 elementary and middle school and for the renovation, repair and improvement of existing schools and later facilities and provide for the issuance of the Dooly County School District general obligation sales tax bond in the aggregate principal amount of $4,300,000 \n \nORIGINAL ESTIMATED \nCOST(1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR(3) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 5,625,597 $ 10,207,712 $ \n \n8 770 034 $ 1 621 410 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \n(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n \nSee notes to the basic financial statements. \n \n- 32 - \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM {QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2003 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory II \n \nCategory Ill \n \nCategory IV \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n375,760 $ 225,180 787,173 605,714 435,849 \n435,881 1,032,196 \n561,741 317,720 452,226 \n13,813 69,672 67,427 54,279 \n \n354,498 $ 232,919 1,065,600 349,476 477,394 \n239,936 901,139 882,584 457,092 \n264,383 331,909 \n8,326 \n63,693 \n13,618 53,902 \n \n6,030 $ 1,679 24,081 2,638 31,959 \n1,345 46,410 41,940 26,950 \n6,456 6,215 \n395 418 344 50,882 5,455 \n \n360,528 234,598 1,089,681 352,114 509,353 \n241,281 947,549 924,524 484,042 \n270,839 338,124 \n8,326 395 \n64,111 344 \n64,500 59 357 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ \n \n5,434,631 $ 5,696,469 $ \n \n253,197 $ \n \n5,949,666 \n \nMedia Center Program Staff and Professional Development \n \n152,092 30,191 \n \n210,521 14 363 \n \n22,450 18 024 \n \n232,971 32 387 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n5 616,914 $ 5,921,353 $ \n \n293,671 $ ===6,52,;;15=-,0=2=4 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n RUSSELL W. HINTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nJune 4, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Dooly County Board of Education as of and for the year ended June 30, 2003, which collectively comprise Dooly County Board ofEducation's basic financial statements and have issued our report thereon dated June 4, 2004. 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. \nCompliance \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County 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 \n2003-34YB-30 \n \n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dooly County 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-6461-03-01. \nA 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, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n'-0~ \nRu ell W. Hinton \nRWH:as 2003-34YB-30 \n \n RUSSELL W. HINTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \nJune 4, 2004 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofDooly County Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2003. Dooly County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe 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 of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County 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 Dooly County Board of Education's compliance with those requirements. \n2003SA-30 \n \n In our opinion, the Dooly County 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, 2003. \nInternal Control Over Compliance \nThe management of Dooly County 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 Dooly County 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 0MB Circular A-133. \nWe noted a certain matter involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Dooly County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6461-03-01. \nA 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 of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n \nRWH:as 2003SA-30 \n \n~u)~~ \nRu sell W. Hinton State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6461-01-01 FS-6461-02-01 \n \nFurther Action Not Warranted Previously Reported Corrective Action Implemented \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was unqualified. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dooly County Board of Education disclosed a financial statement reportable condition related to the following control categories. \n \nCash and Cash Equivalents Revenues/Receivables/Receipts \n \nExpenditures/Liabilities/Disbursements \n \nThe reportable condition described above is not considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dooly County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement. \n \nSpecial Tests and Provisions \n \nThe reportable condition described above is not considered to be a material weakness. \n \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dooly County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n \n6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Dooly County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) ofOMB Circular A-133. This audit finding is included in section IV of this report. \n \n7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.010 Elementary and Secondary Education Act - Title I - School Improvement 84.338 Reading Excellence - Local Reading Improvement \n \n- 1- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nI SUMMARY OF AUDITOR'S RESULTS \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \n9. Low Risk Auditee The Dooly County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-6461-03-01 \nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions. \nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  No supporting documentation was available for cash receipts examined. \nExpenditures/Liabilities/Disbursements  The check writing function was not separated from record keeping or processing of signed checks. \nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal account sites, for accounting functions and their failure to establish controls over these accounts. Management should implement additional procedures to ensure that the key accounting functions of custody, recordkeeping and authorization are segregated. \n-2 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2003 \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nSPECIAL TESTS AND PROVISIONS Fiscal Requirements of School-wide Program Not Fully Implemented Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6461-03-01 \nDuring the year in review, there were three schools that the School District identified as participating in a school-wide program. While Federal provisions prescribe that multiple funding sources (Federal State or Local) are required to support a school-wide program, we noted that the Title I program was identified as the only funding source supporting the school-wide program concept at the participating schools and, in contrast with Federal requirements, the School District arbitrarily charged the Title I fund with school-wide expenditures. \nIn accordance with provisions ofU. S. Department of Education Instructions and 0MB Circular A133, Compliance Supplement provisions, eligible schools are able to use their Title I, Part A funds, in combination with other Federal, State and local funds, in order to upgrade the entire educational program ofthe school and to raise academic achievements for all students. By combining funds from Title I and other eligible U. S. Department ofEducation funded programs in support ofa school-wide program, U. S. Department of Education Instructions provide that specific school-wide program costs lose their identity but only in those circumstances when funds are combined in a schoolwide program. In line with 0MB Circular A-87 requirements, school-wide expenditures should be charged to those Federal funding sources supporting the school-wide program in a reasonable manner. If there is only one Federal funding source, then costs should be charged to the Federal program based on the specific benefits derived from that cost. When more than one Federal program supports a school-wide program, then school-wide program expenditures may be allocated to specific Federal funds in proportion to the different Federal funds provided in support of the school-wide program. It was the School District's understanding that costs related to a school-wide program lose their identity and therefore any school-wide program cost can be charged to the Title I program. They were unaware that this was only applicable when there is more than one funding source supporting the school-wide program. \nThe School District should implement procedures to assure that ifthe Title I program continues to be the only funding source in support ofa school-wide program, only those costs that specifically relate to the Title I program may be charged to the Title I fund. If more than one funding source is to support the school-wide program in the future, then procedures should be developed to (1) combine such funds as prescribed by U. S. Department ofEducation and (2), in line with 0MB Circular A-87 provisions, allocate such school-wide program costs to the respective Federal fund in a reasonable manner. The School District should seek Georgia Department of Education guidance in implementing fiscal procedures for combining and allocating school-wide program expenditures to Federal programs. \n-3 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2001-h2002","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2002-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceaed with fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Dooly County Board of Education, Vienna, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (Dooly County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed January 20, 2023).","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 20, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dooly County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dooly County--Auditing--Periodicals","Education--Georgia--Dooly County--Finance--Statistics--Periodicals"],"dcterms_title":["Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":" DOOLY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS-OVERVIEW  \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \n2 \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \n4 \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \n6 \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \n7 \n \nADDIDONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \n20 \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n22 \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \n24 \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \n26 \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n2 SCHEDULE OF STATE REVENUE \n \n30 \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n33 \n \nALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n34 \n \n5 \n \nBY SITE \n \n35 \n \n DOOLY COUNTY BOARD OF EDUCATION \n-TABLE OF CONTENTS- \nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITII GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nSECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF.PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RussEu. W. H1NTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington S1reet. S.W., Suite 214 Atlanta, Georgia 30334-8400 \nAugust 27, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nLadies and Gentlemen: \n \nWe have audited the accompanying general-purpose financial statements ofthe Dooly County Board \n \nof Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These \n \ngeneral-purpose financial statements are the responsibility ofthe Dooly County Board ofEducation's \n \nmanagement. Our responsibility is to express an opinion on these general-purpose financial \n \nstatements based on our audit. . \n \n \n \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on. \n \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2002ARL-14 \n \n * The general-purpose financial statements of the Board of Education did not contain a . General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \n* 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. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material; \nIn our opinion, except for the effects on the general-purpose financial statements of the matters \nreferred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Dooly County Board ofEducation as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nAs discussed in Note 1 to the general-p'urpose financial statements, during fiscal year 2002, the Board of Education changed its method of accounting for the salaries of certain ten-month employees from a cash basis to modified accrual basis. This change is in accordance with accounting principles generally accepted in the United States of AmeJ:ica. \nIn accordance with Government Auditing Standards, we have also issued our report dated August 27, 2002, on our consideration ofthe Dooly County Board ofEducation's internal control over financial reporting and our tests of its 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. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Dooly County 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 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. \n2002ARL-14 \n \n A copy ofthis report has been filed as a pennanent record ih the office ofthe State Auditor and made \n \navailable to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- \n \n6-24. \n \n. \n \nRespectfully submitted, \n~~~.::!;;: \n \nRWH:gp 2002ARL-14 \n \nState Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2002 \n \nASSETS \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nAmount Available in Debt Service Fund \nAmount to be Provided in Future Years For Payment of Bond Debt \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ \n \n1,908,939.63 $ \n \n431,199.84 $ \n \n620,725.68 \n \n4,048,566.39 \n \n1,176,605.39 \n \n258,667.97 \n \n146,174.93 \n \n13,396.60 6,976.17 \n \nTotal Assets \n \n$ 3,085,545.02 $ \n \n710,240.58 $ 4,815,467.00 \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Contracts Payable Deferred Revenue G1::neral Obligation Bonds Payable \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \nTotal Fund Equity \n \n$ \n \n240,620.72 $ \n \n40,714.31 \n \n884,475.43 \n \n155,923.05 \n \n$ \n \n117,778.07 \n \n97,215.59 \n \n$ 1,125,096.15 $ \n \n293,852.95 $ \n \n117778.07 \n \n$ \n \n100,466.00 \n \n$ \n \n13,396.60 \n \n6,976.17 \n \n$ 3,378,969.09 \n \n620,889.16 \n \n1,859,982.87 $ 1,960,448.87 $ \n \n396,014.86 416,387.63 $ \n \n697,830.68 4,697,688.93 \n \nTotal Liabilities and Fund Equity \n \n$ 3,085,545.02 $ \n \n710,240.58 $ \n \nThe notes to the general-purpose financial statements are an integral part of this statement. \n \n-2- \n \n4,815,467.00 \n \n EXHIBIT\"A\" \n \nDEBT SERVICE \nFUND \n \nACCOUNT GROUP GENERAL \nLONG-TERM DEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ 2,960,865.15 $ 2,467,789.41 \n \n$ \n \n22.06 \n \n4,048,588.45 \n \n4,807,405.90 \n \n1,581,448.29 \n \n2,115,091.08 \n \n$ \n \n22.06 \n \n3 764 977.94 \n \n13,396.60 6,976.17 22.06 \n3,764,977.94 \n \n12,387.52 8,974.98 \n25,727.84 \n4,274,272.16 \n \n$ \n \n22.06 $ \n \n3,765,000.00 $ 12,376,274.66 $ 13,711,648.89 \n \n$ \n \n281,335.03 $ \n \n279,737.56 \n \n1,040,398.48 \n \n1,007,306.18 \n \n117,778.07 \n \n97,215.59 \n \n55,463.84 \n \n$ \n \n3,765,000.00 \n \n3,765,000.00 \n \n4,300,000.00 \n \n$ \n \n3,765,000.00 $ 5,301,727.17 $ 5,642,507.58 \n \n$ \n \n22.06 \n \n0.00 \n \n$ \n \n22.06 \n \n$ \n \n100,466.00 \n \n22.06 $ \n \n25,727.84 \n \n13,396.60 6,976.17 \n3,378,969.09 620,889.16 \n \n12,387.52 8,974.98 \n3,385,445.20 471,695.44 \n1,034,921.35 \n \n2,953,828.41 \n \n3,129,988.98 \n \n$ 7 074 547.49 $ 8,069,141.31 \n \n$ \n \n22.06 $ \n \n3,765,000.00 $ 12,376,274.66 $ 13,711,648.89 \n \n-3- \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES . YEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant  Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations \nCapital Outlay Debt Service \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nAccrued Interest on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 (Restated - See Note 1) \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 7,499,049.85 $ 123,856.99 \n3,494,283.29 106,222.64 \n$ 11,223,412.77 $ \n \n536,264.08 2,116,256.18 \n51,825.99 \n2,704,346.25 \n \n$ 6,974,989.40 $ 1,455,225.69 \n \n260,618.17 573,489.76 242,216.60 261,152.29 848,161.02 123,602.08 893,319.14 616,928.77 \n40,730.50 . 116,075.51 \n103,131.33 10,165.32 \n \n63,290.52 153,535.85 \n13,154.50 37,231.77 \n39,141.35 48,862.35 \n58,380.31 902,036.36 \n \n$ 11,064,579.89. $ \n \n$ \n \n158,832.88 $ \n \n2,770,858.70 -66,512.45 \n \n$ \n \n$ \n \n-80,365.04 \n \n$ \n \n-80,365.04 $ \n \n$ \n \n78,467.84 $ \n \n1,881,981.03 \n \n79,380.42 \n79,380.42 \n12,867.97 404,509.39 \n1,009.08 -1 998.81 \n \nFUND BALANCE JUNE 30 \n \n$ 1 960 448.87 $ ==4=1=6==,3=87===63== \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4 - \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Onl:r'.l \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n313,402.25 \n \n$ 8,348,716.18 $ 9,467,696.87 \n \n2,240,113.17 \n \n2,162,739.14 \n \n141,106.38 $ \n \n788,906.19 \n \n4,424,295.86 \n \n4,440,027.31 \n \n85,678.06 \n \n174.70 \n \n243,901.39 \n \n725,897.60 \n \n$ \n \n540,186.69 $ \n \n789,080.89 $ 15,257,026.60 $ 16,796,360.92 \n \n$ 8,430,215.09 $ 9,388,185.33 \n \n$ \n \n50.00 \n \n1,600,355.43 \n \n323,908.69 \n \n263,372.86 ., \n \n727,025.61 \n \n770,954.47 \n \n242,216.60 \n \n266,076.10 \n \n274,306.79 \n \n266,502.43 \n \n885,392.79 \n \n1,258,112.99 \n \n123,652.08 \n \n206,381.04 . \n \n932,460.49 \n \n846,926.19 \n \n665,791.12 \n \n730,758.60 \n \n40,730.50 \n \n36,686.50 \n \n174,455.82 \n \n78,219.29 \n \n902,036.36 103,131.33 \n \n1,022,873.03 271,499.64 \n \n'\" \n \n1,610,520.75 \n \n239,421.69 \n \n$ \n \n535,000.00 \n \n279,786.67 \n \n535,000.00 279,786.67 \n \n$ \n \n1,600,405.43 $ \n \n814 786.67 $ 16,250,630.69 $ 15,645,970.16 \n \n$ \n \n-1,060,218.74 $ \n \n-25,705.78 $ \n \n-993,604.09 $ 1,150,390.76 \n \n$ \n \n984.62 \n \n$ \n \n984.62 \n \n$ \n \n-1,059,234.12 $ \n \n5,756,923.05 \n \n$ \n \n25,064.22 \n \n$ \n \n8Q,365.04 \n \n-80,365.04 \n \n4,300,000.00 159,184.34 -159 184.34 \n \n$ \n \n0.00 $ 4,325,064.22 \n \n-25,705.78 $ 25,727.84 \n \n-993,604.09 $ 8,069,141.31 \n \n5,475,454.98 2,595,006.48 \n \n1,009.08 -1 998.81 \n \n4,285.11 -5,605.26 \n \n$ \n \n4,697,688.93 $ \n \n22.06 $ 7,074,547.49 $ 8,069,141.31 \n \n-5- \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - /NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30. 2002 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nBUDGET \n \nACTUAL \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \n \n$ 7,396,656.00 $ 7,499,049.85 \n \n123,856.99 \n \n3,300,095.00 \n \n3,494,283.29 \n \n82,000.00 \n \n106,222.64 \n \nTotal Revenues EXPENDITURES \n \n$ 10,778,751.00 $ 11,223,412.77 \n \nCurrent 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 ~upport Services Other Support Services Food Services Operation Community Services Operations \nCapital Outlay \nTotal Expenditur~s \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES /USES} \n \n$ 7,445,587.00 $ 6,974,989.40 \n \n287,348.00 647,413.00 240,128.00 300,817.00 885,423.00 124,022.00 976,980.00 610,658.00 \n40,731.00 7,042.00 \n \n260,618.17 573,489.76 242,216.60 261,152.29 848,161.02 123,602.08 893,319.14 616,928.77 \n40,730.50 116,075.51 \n \n88,500.00 60,000.00 \n \n103,131.33 10 165.32 \n \n$ 11,714,649.00 $ 11,064,579.89 \n \n$ -935,898.00 $ 158,832.88 \n \nOther Sources Other Uses \n \n$ -80,000.00 $ \n \n-80 365.04 \n \nTotal Other Financing Sources (Uses) \n \n$ -80,000.00 $ \n \n-80,365.04 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \n \n$ -1,015,898.00 $ \n \n78,467.84 \n \nFUND BALANCE JULY 1. 2001 (Restated See Note 1) 1,521,772.23 \n \n1,881,981.03 \n \nAdjustments \n \n-24.00 \n \nFUND BALANCE JUNE 30. 2002 \n \n$ 505,850.23 $ 1,960 448.87 \n \nSPECIAL REVENUE FUND \n \nBUDGET \n \nACTUAL \n \n$ 494,745.00 $ 536,264.08 2,225,199.00 2,116,256.18 \n \n75,700.00 \n \n51,825.99 \n \n$ 2,795,644.00 $ 2,704,346.25 \n \n$ 1,419,142.00 $ 1,455,225.69 \n \n72,146.00 170,377.00 \n \n63,290.52 153,535.85 \n \n24,226.00 22,293.00 \n \n13,154.50 37,231.77 \n \n17,774.00 22,419.00 \n \n39,141.35 48,862.35 \n \n72,318.00 1,077,700.00 \n \n58,380.31 902,036.36 \n \n$ 2,898,395.00 $ 2,770,858.70 $ -102,751.00 $ -66,512.45 \n \n$ 81,500.00 $ 79,380.42 $ 81 500.00 $ 79 380.42 \n \n$ -21,251.00 $ 12,867.97 \n \n458,054.04 \n \n383,146.89 \n \n$ 436,803.04 $ 396,014.86 \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -6 - \n \n    ! . t ' .... \nDOOLY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \nJUNE 30,'2002 \n \nEXHIBIT \"D\" \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  \nREPORTING ENTITY \nThe Dooly County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District 1s a primary government and consists of all the organizations that compose its legal entity. \nFUND ACCOUNTING \nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \nGeneral 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 School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \nAlthough \"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. \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: \nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \n \n-7- \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL 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 accompl_ish specific educational objectives. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \nDEBT 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. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus; With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as . liabilities in the governmental funds. Other liabilities, which are not expected to be financed from \navailable spendable resources, are reported in the General Long-Term Debt Account Group. \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n-8- \n \n DOOLY COUNTY Bo'ARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30; 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nExpenditures are generally recognized when the related fund liability is incurred. \n \nFor fiscal year 2002, the School District changed its method of accounting for the final two' payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal.year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. Adjustments were also made for the similar salaries, benefits and related State revenues earned in fiscal year 2001 and recorded in fiscal year 2002. \n \nThe net effect of the above accounting treatment results in the accompanying financial statements reflecting expenditures for those salaries and benefits earned by employees during fiscal year 2002 and the related State revenue to fund these contracts. In addition, the fund balance at July 1, 2001, has been restated for salaries and benefits earned by ~mployees in fiscal year 2001 but not paid until July and August 2001 and for the related State revenue for these contracts. An analysis of this restatement is as follows: \n \nGeneral Fund Balance July 1, 2001 \n \n$2,045,504.10 \n \nAdd: State Revenue Related to July and August 2001 Salary Payments Earned by Employees in Fiscal Year 2001 \n \n930,108.47 \n \nDeduct: July and August 2001 Salary Payments Earned by Employees in Fiscal Year 2001 \n \n-1,093,631.54 \n \nGeneral Fund Balance July 1, 2001 (Restated) \n \n$ 1,881,981.03 \n \nThis change is in accordance with generally accepted accounting principles. \n \nBUDGET \n \nThe Dooly County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \n \n.The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with \n \n-9- \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nprovisions 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. \n \nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \n \nSpecial Revenue \nFund \n \nFUND BALANCE JULY 1,2001 \n \n$ 404,509.39 \n \nAdjustments Inventories - July 1, 2001 Food Donated Commodities Purchased Foods \n \n-12,387.52 -8,974.98 \n \nFund Balance July 1, 2001 (Budget Basis) \n \n$ 383,146.89 \n \nExcess ~f Revenues and Other Financing Sources over (under) Expenditures a.-id Other Financing Uses \n \n12,867.97 \n \nFUND BALANCE JUNE 30, 2002 (Budget Basis) \n \n$ 396,014.86 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insur:ed Federal savings and loan associations. \n \nINVESTMENTS \n \nCOMPOS.ITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported \n \n- 10 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nat 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 ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest-rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) .Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nRECEIVABLES \nReceivables 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 ~set 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. \nPROPERTY TAXES \nThe Dooly County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 16, 2001 (levy date). Taxes were due on January 31, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $3,437,189.61. \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nThe tax millage rate levied for the 2001 tax year (calendar year) for the Dooly County Board of Education was a,s follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n15.75 mills \n \nSALES TAXES \n \nSpecial 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 $930,012.57 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $4,225,726.11 has been collected or on December 31, 2005, whichever occurs first. \n \nINVENTORIES \n \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \n \nCOMPENSATED ABSENCES \n \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. \n \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are . recognized in the financial statements during the year bonds are issued. General obligation bonds \n \n- 12 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS . \n \nJUNE 30, 2002 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nare direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Tenn Debt Account Group. \n \nINTERFUND TRANSACTIONS \n \nThe School District has the following types of interfund transactions: \n \nReimbursements ofexpenditures initially made from a fund that are properly applicable to another \n \nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the \n \nfund that is reimbursed. \n \n \n \nOperating transfers are recorded for all interfund transactions other than reimbursements. \n \nMEMORANDUM ONLY -TOTAL COLUMNS \n \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION 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 of insurance, or by collateral. The aggregate of the 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 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperati~g funds placed in demand deposit checking accounts. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business. \n \n. within the State of Georgia, \n \n \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(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, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $5,994,261.43 The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with \n \nsecurities held by the School District or by the School District's agent in the \n \nSchool District's name. \n \n \n \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's \n \ntrust department or agent in the School District's name. \n \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized \n \nwith securities held by the pledging financial institution, or by. its trust \n \ndepartment or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 300,000.00 \n \n2 \n \n402,372.89 \n \n3 \n \n5,291,888.54 \n \nTotal \n \n$ 5.994.261.43 \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:  \n \nCategory .1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name.. \n \nAt June 30, 2002, the carrying value of the School District's total investments was $1,855,032.29 which is materially thesame as fair value. The investments are classified as to risk categories as follows: \n \nType of Investment \nU. S. Government \nLocal Government. Investment Pools Total Investments \n \nRisk Categories \n \n2 \n \n3 \n \nCarrying Amount \n \n22 06 $ \n \nooo $====\"o\"\".o=\"'o $ 22.06 $ \n \nFair . Value \n22.06 \n \n1,855.010.23 1.855,010.23 $ I 855 032 29 $ I 855.032.29 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy oftlle 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 ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia 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 Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act ofl 940 and is considered to be a 2a-7 like pool. The pool's primary objectives 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 of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nInvestments 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, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets \n \nand errors or omissions. However, the errors or omissions policy excludes coverage for sexual \n \nharassment and discrimination. The School District has neither significantly reduced coverage for \n \nthese risks nor incurred losses (settlements) which exceeded the School District's insurance coverage \n \nin any of the past three years. \n \n \n \nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2001 2002 \n \n$ \n \n0.00 $ \n \n6 957.00 $ \n \n6 957.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n3,662.00 $ \n \n3,662.00 $ \n \n0.00 \n \nf \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 4: RISK MANAGEMENT \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $350,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal Each Assistant Principal Director of Elementary Education Federal Programs Director Assistant Superintendent Business Manager Assistant Principal - Director \nof Special Education All Other Employees \n \n$ 45,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 \n$ 10,000.00 $ 5,000.00 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2000 \n \n4.88% \n \n$ 3.765,000.00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGeneral  Obligation \nBonds \n \nBalance July 1, 2001 \n \n.$ 4,300,000.00 \n \nDeductions Debt Retired \n \n535,000.00 \n \nBalance June 30, 2002 \n \n$ 3,765,000.00 \n \nAt June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2003 2004 2005 2006 \n \n$ 913,732.00 1,013,108.00 1,115,896.00 1,216,608.00 \n \nTotal Principal and Interest \n \n$ 4,259,344.00 \n \nNote 6: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of$ 167,510.56 for \n \nhealth insurance and retirement contributions paid on the School District's behalf by the following \n \nState Agencies. \n \n' \n \nGeorgia Department of Education P?id to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $145,094.56  \n \nOffice 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 $22,416.00 \n \n- 18 - \n \n 1 \n \nI l, \n \nDOOLY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2002 \n \nEXHIBIT \"D\" \n \nNote 7: CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the \n \nperformance ofroutine School District operations. The ultimate disposition ofthese proceedings is \n \nnot presently determinable, but is not believed to be material to the general-purpose financial \n \nstatements. \n \n \n \nNote 8: ACCUMULATED EMPLOYEES' LEAVE \n \nAll twelve month employees ofthe Dooly County Board ofEducation earn annual leave at a rate of .8333 days per month. Annual leave may be accumulated up to ten days. Unused leave, up to the maximum accumulation, is paid to employees at their current rate_ of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences \n \nNote 9: RETIREMENT PLANS \n \n. TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nTRS PLAN DESCRIPTION Substantially all teachers, administrative arid clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their indepe~dent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2002 2001 2000 \n \n100% 100% 100% \n \n$ 688,469.60 $ 841,806.95 $ 837,529.59 \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 \n \nASSETS \nCash and .Cash Equivalents \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n412,124.19 $ \n \n37,148.33 \n \n23,062.78 \n \n13,396.60 6 976.17 \n \nTotal Assets \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Deferred Revenue \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \n$ \n \n455,559.74 $===3=7=1=4=8..3.3. == \n \n$ \n \n7,016.07 $ \n \n8,179.20 \n \n32,156.04 \n \n28,969.13 \n \n$ \n \n39,172.11 $ \n \n37,148.33 \n \n$ \n \n13,396.60 \n \n6,976.17 \n \n396,014.86 $ \n \n$ \n \n416,387.63 $ \n \n0.00 0.00 \n \n$ \n \n455,559.74 $===3=7==1=48==33= \n \nSee notes to the general-purpose financial statements. - 20- \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n449,272.52 $ \n \n450,432.68 \n \n. $ . 235,605.19 \n \n258,667.97 \n \n308,221.60 \n \n13,396.60 6 976.17 \n \n12,387.52 8,974.98 \n \n$ \n \n235,605.19 $ \n \n728,313.26 $==7=8=0=,0=16==78= \n \n$ \n \n18,072.68 $ \n \n18,072.68 $ \n \n126,631.35 \n \n25,519.04 \n \n40,714.31 \n \n40,080.84 \n \n94,797.88 \n \n155,923.05 \n \n153,331.36 \n \n97,215.59 \n \n97,215.59 \n \n55,463.84 \n \n$ \n \n235,605.19 $ \n \n311,925.63 $ \n \n375,507.39 \n \n$ \n \n$ _ _ _----\"o'\"'\".o'\"\"'o_ \n \n$ \n \n0.00 $ \n \n13,396.60 $ 6,976.17 \n \n12,387.52 8,974.98 \n \n396,014.86 \n \n383,146.89 \n \n416,387.63 $ _ _4-\"\"0'-\"4.._,5_0_9_;;;.;.;.;;.;39c.. \n \n$ \n \n235,605.19 $ \n \n728,313.26 $==7=8=0=,0=16==78= \n \n- 21 - \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \nSee notes to the general-purpose financial stl\\ltements. \n- 22 - \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n62,478.00 $ \n \n473,786.08 \n \n802,865.06 \n \n49,561.27 \n \n$ \n \n914,904.33 $ \n \n473,786.08 \n \n$ \n \n351,223.09 \n \n44,768.53 7,420.74 \n \n17,509.32 \n \n39,141.35 13,723.05 \n \n$ \n \n902,036.36 \n \n$ \n \n902,036.36 $ \n \n473,786.08 \n \n$ \n \n12,867.97 $ \n \n0.00 \n \n$ \n \n12,867.97 $ \n \n0.00 \n \n404,509.39 \n \n0.00 \n \n1,009.08 -1 998.81 \n \n$ \n \n416,387.63 $====0==00= \n \n EXHIBIT\"F\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n536,264.08 $ \n \n507,907.66 \n \n$ 1,313,391.12 \n \n2,116,256.18 \n \n2,103,190.18 \n \n2,264.72 \n \n51,825.99 \n \n113,911.12 \n \n$ 1,315,655.84 $ 2,704,346.25 $ 2,725,008.96 \n \n$ 1,104,002.60 $ 1,455,225.69 $ 1,382,221.59 \n \n18,521.99 146,115.11 \n13,154.50 19,722.45 \n35,139.30 58,380.31 \n \n63,290.52 153,535.85 \n13,154.50 37,231.77 \n39,141.35 48,862.35 58,380.31 902,036.36 \n \n74,682.98 288,238.40 \n13,964.39 34,976.59 \n5,550.00 14,658.81 33,310.85 63,027.24 1,022,873.03 \n935.52 \n \n$ 1,395,036.26 $ 2,770,858.70 $ 2,934,439.40 \n \n$ \n \n-79,380.42 $ \n \n-66,512.45 $ \n \n-209,430.44 \n \n79,380.42 \n \n79,380.42 \n \n159,184.34 \n \n$ \n \n0.00 $ \n \n12,867.97 $ \n \n-50,246.10 \n \n0.00 \n \n404,509.39 \n \n456,075.64 \n \n1,009.08 -1,998.81 \n \n4,285.11 -5,605.26 \n \n$ \n \n0.00 \"$ \n \n416,387.63 $ \n \n404,509.39 . \n \n- 23 - \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nCash Overdraft Contracts Payable \nTotal Liabilities FUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity \nTotal Liabilities and Fund Equity \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n557,830.68 $ \n \n27,582.60 \n \n140,000.00 \n \n3,351,386.49 \n \n$ \n \n697,830.68 $ 3,378,969.09 \n \n$ 3,378,969.09 \n \n$ _ ___.;6:.:9:;.:.7.i.:,8;.:.30::..:.:::;68=- \n \n$ \n \n697,830.68 $ \n \n0.00 3,378,969.09 \n \n$ \n \n697,830.68 $ 3,378,969.09 \n \nSee notes to the general-purpose financial statements. - 24- \n \n EXHIBIT\"G\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 301 2002 \n \nJUNE 301 2001 \n \n$ \n \n5,227.35 $ \n \n30,085.05 $ \n \n620,725.68 $ 1,767,799.87 \n \n112,550.72 \n \n444,629.18 \n \n4,048,566.39 \n \n4,781,678.06 \n \n146,174.93 \n \n146,174.93 \n \n157,197.09 \n \n$ \n \n117 778.07 $ \n \n620,889.16 $ 4,815,467.00 $ 6,706,675.02 \n \n$ _ _ _1;..;.1..;...7'-'-7.;..;78;;.;..0:;..;7_ $ ---'1c...;.1..;...7'-'-77.;..;8;;.;..0:;..;7_ \n \n$ $ _ _1;;..;1..;..7i;.;..7.;...78;;.;...0.7. _ \n \n$ \n \n117778.07 $ \n \n949,751.97 949,751.97 \n \n$ 3,378,969.09 $ 3,385,445.20 \n \n$ \n \n620,889.16 \n \n620,889.16 \n \n471,695.44 \n \n1,034,921.35 \n \n$ \n \n0.00 \n \n0.00 \n \n697,830.68 \n \n864,861.06 \n \n$ \n \n0.00 $ \n \n620,889.16 $ 4,697,688.93 $ 5,756,923.05 \n \n$ \n \n117778.07 $ \n \n620,889.16 $ 4,815,467.00 $ 6,706,675.02 \n \n- 25- \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 \n \nREVENUES \nState Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Support Services Business Administration \nCapital Outlay Land and Land Improvements Building and Building Improvements \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds from General Obligation Bonds Par Value \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n18 776.74 $ \n \n58,763.98 \n \n$ \n \n18 776.74 $ \n \n58,763.98 \n \n$ \n \n186,791.74 $ \n \n$ \n \n186,791.74 $ \n \n$ \n \n-168,015.00 $ \n \n425.00 425.00 58,338.98 \n \n$ \n \n984.62 \n \n$ \n \n-64,815.09 \n \n$ \n \n984.62 $ \n \n-64,815.09 \n \n$ \n \n-167,030.38 $ \n \n -6,476.11 \n \n864,861.06 \n \n3,385,445.20 \n \n$ \n \n697,830.68 $ 3,378,969.09 \n \nSee notes to the general-purpose financial statements. -26- \n \n EXHIBIT\"H\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE. LOCAL OPTION SALES TAX \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2002 \n \nJUNE 30, 2001 \n \n$ \n \n313,402.25 \n \n$ \n \n313,402.25 \n \n$ \n \n141,106.38 \n \n141,106.38 $ \n \n469,858.32 \n \n8137.34 \n \n85,678.06 \n \n347,302.66 \n \n$ \n \n313,402.25 $. \n \n149,243.72 $ \n \n540,186.69 $ \n \n817,160.98 . \n \n$ \n \n$ \n \n291,920.74 \n \n1,121,217.95 \n \n$ \n \n1,413,138.69 $ \n \n$ \n \n-1,099?36.44 $ \n \n50.00 $ \n \n50.00 $ \n \n291,920.74 1,308,434.69 \n \n50.00 $ 1,600,405.43 $ \n \n149,193.72 $ -1,060,218.74 $ \n \n86,780.00 35,000.00 86,016.00 207,796.00 609,364.98 \n \n$ \n \n64,815.09 \n \n$ \n \n64,815.09 \n \n$ 4,300,000.00 \n \n$ \n \n65,799.71 \n \n1,029;694.00 \n \n-64,815.09 \n \n-1,081,680.89 \n \n$ \n \n984.62 $ 4,248,013.11 \n \n$ \n \n-1,034,921.35 $ \n \n1,034,921.35 \n \n149,193.72 $ -1,059,234.12 $ \n \n471,695.44 \n \n5,756,923.05 \n \n4,857,378.09 899,544.96 \n \n$ \n \n0.00 $ \n \n620,889.16 $ 4,697,688.93 $ 5,756,923.05 \n \n- 27 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2002 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgriculture, 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 \n \n. 10.553 . 10.555 \n \nN/A \n \n$ 238,810.99 \n \nN/A \n \n492,604.86 $ \n \n(2) 853,516.09 (3) \n \nTotal Child Nutrition Cluster \n \n$ 731,415.85 $ \n \n853,516.09 \n \nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program Pass-Through From Southwest Georgia United Empowerment Zone, Inc. Empowerment Zone Programs Rural Community Development Initiative \nTotal U. S. Department of Agriculture \n \n10.550 \n10.558 \n10.772 10.446 \n \nN/A \n \n48,520.27 \n \nNIA \n \n22,928.94 \n \nN/A \n \n59,487.42 \n \nN/A \n \n9,203.72 \n \n$ 871,556.20 $ \n \n48,520.27 \n(2) \n(4) (4! 902,036.36 \n \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Capacity Building Improvement Grant \n \n84.027 84.173 \n \nN/A \n \n$ 170,789.69 $ \n \nNIA \n \n2,695.00 \n \n170,789.69 2,695.00 \n \nTotal Special Education Cluster \n \n$ 173,484.69 $ \n \n173,484.69 \n \nOther Programs \n \nDirect \n \nImpact Aid \n \n84.041 \n \nPass-Through From Georgia Department of Education \n \nComprehensive School Reform Demonstration Project \n \nSite Evaluation \n \n84.332 \n \nN/A \n \nElementary and Secondary Education Act \n \nTitle I \n \nGrants to Local Educational Agencies \n \n84.010 \n \nNIA \n \nTitle II \n \nEisenhower Professional Development \n \n84.281 \n \nN/A \n \nTitle VI \n \nInnovative Education Program Strategies \n \n84.298 \n \nNIA \n \nClass Size Reduction \n \n84.340 \n \nNIA \n \nVocational Education - Basic Grants to States \n \nHigh School Program \n \nBasic Grant \n \n84.048 \n \nNIA \n \nPass-Through From Georgia Department of \n \nHuman Resources \n \nSafe and Drug-Free Schools and Communities \n \n84.186 \n \nN/A \n \nPass-Through From Marion County Board of Education \n \nd/b/a Two Rivers Migrant Education Agency \n \nElementary and Secondary Education Act \n \nTitle I \n \nMigrant Education \n \n84.011 \n \nN/A \n \n2,065.51 226,000.00 658,374.62 \n23,428.04 18,708.00 93,362.00 54,981.56 16,116.58 \n22,454.94 \n \n(5) 226,000.00 658,374.62 \n23,428.04 18,708.00 93,362.00 57,246.28 (3) (4) \n22,454.94 \n \nTotal U. S. Department of Education \n \n$ 1,288,975.94 $ 1,273,058.57 \n \n- 28 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \nJustice, U. S. Department of Pass-Through From Children and Youth Coordinating Council Title V Delinquency Prevention Program \nDefense, U.S. Department of Direct Department of the Army . R.O.T.C. Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n16.548 \n \nNIA \n \n36,983.76 \n \n(4) \n \n$ 42,597.27 $ \n \n121,977.69 (3) \n \nTotal Federal Financial Assistance \nNIA = Not Available \n \n$ 2,240,113.17 $ =====2,=29=7=,0=7=2=.6=2 \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(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. \n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program. \n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \n(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe School District did not provide Federal Assistance to any Subrecipient. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County 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. \n \nSee notes to the general-purpose financial statements. \n \n- 29- \n \n POOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2002 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \nGRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) \n \n$ \n \n4,755.00 \n \n$ \n \n4,755.00 \n \nEducation, Georgia Department of \n \nQuality Basic Education \n \nDirect Instructional Cost \n \nKindergarten Program \n \nKindergarten Program - Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades - Early Intervention (1-3) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elementary Grades Early Intervention (4-5) Program \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory II \n \nCategory Ill \n \nCategory V \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \nTwenty Days Additional Instruction \n \n \n \nMedia Center Program \n \nStaff and Professional Development \n \nIndirect Cost \n \nCategorical Grants \n \nPupil Transportation \n \nRegular \n \nBus Replacement \n \nNursing Services \n \nPrincipal Supplements \n \nVocational Supervisors \n \nMid-term Adjustment Hold-Harmless \n \nDefe_rred Summer Salaries (Prior Year) \n \nDeferred Summer Salaries (Current Year) \n \nEducation Equalization Funding Grant \n \nFood Services \n \nVocational Education \n \nOther State Programs \n \nHealth Insurance \n \nPost Secondary Options \n \nStatewide After School Program \n \nStatewide Reading Program \n \nLottery Programs \n \nAssistive Technology \n \nComputers in the Classroom \n \n252,216.00 233,513.00 638,918.00 587,964.00 396,425.00 302,596.00 814,583.00 657,799.00 328,066.00 \n5,526.00 123,965.00 225,059.00 \n5,699.00 18,796.00 34,501.00 65,961.00 43,630.00 46,058.00 145,561.00 27,148.00 1,173,947.00 \n \n373,992.52 100,466.00 48,820.00 \n6,618.00 13,477.00 54,244.00 -930, 108.47 798,004.00 487,211.00 \n$ \n91,183.22 \n \n62,478.00 \n \n145,094.56 99.00 \n17,738.40 29,503.38 \n \n4,762.00 41,525.00 \n \n252,216.00 233,513.00 638,918.00 587,964.00 396,425.00 302,596.00 814,583.00 657,799.00 328,066.00 \n5,526.00 123,965.00 225,059.00 \n5,699.00 18,796.00 34,50_1.00 65,961.00 43,630.00 46,058.00 145,561.00 27,148.00 1,173,947.00 \n373,992.52 100,466.00 48,820.00 \n6,618.00 13,477.00 54,244.00 -930, 108.47 798,004.00 487,211.00 62,478.00 91,183.22 \n145,094.56 99.00 \n17,738.40 29,503.38 \n4,762.00 41,525.00 \n \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \n \n$ 313,402.25 \n \n313,402.25 \n \nOffice of Planning and Budget Challenge Program \n \n20,000.00 \n \n20,000.00 \n \nOffice of School Readiness Pre-Kindergarten Program \n \n427,499.08 \n \n427,499.08 \n \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \n22,416.00 \n \n22,416.00 \n \n 30- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 \n \n.SCHEDULE \"2\" \n \nAGENCY/FUNDING \nCONTRACTS Education, Georgia Department of After School Programs \nHuman Resources, Georgia Department of Family Connection \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nGENERAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 41,773.34 45,831.90 \n \n$ 41,773.34 45 831.90 \n \n$ 7,499,049.85 $ 536,264.08 $ 313,402.25 $ 8,348,716.18 \n \n(1) The purpose of these funds is to provide JROTC equipment at Dooly County High School. \n \nSee notes to the general-purpose financial statements. \n \n 31 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n. YEAR ENDED JUNE 30 2002 \n \nSCHEDULE \"3\" \n \nPROJECT \nThe acquisition and construction of a Pre-K through grade 8 elementary and middle school and for the renovation. repair and improvement of existing schools and later facilities and provide for the issuance of the Dooly County School District general obligation sales tax bond in the aggregate principal amount of $4,300,000.00 \n \nESTIMATED ORIGINAL COST (1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED \nIN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ 5:625,597.00 $ 5.625,597.00 $ 1.413,613.69 $ 207,796.00 Ongoing \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's C(!rrent estimate of total cost for each project. Includes all cost from project inception to completion. \n(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \n(4) In addition to the expenditures shown above,. the School District incurred current year interest expenditures in the amount of $279,786.67 to provide advanced funding for the above project as follows: \n \nPrior Years $ \n \n0.00 \n \nCurrent Year \n \n279,786.67 \n \nTotal \n \n$ 279,786:67 \n \n_See notes to the general-purpose financial statements. \n \n- 33- \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM {QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002 \n \nSCHEDULE \"4\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early lnterventioi:, (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS ' FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n290,693.00 $ 438,258.45 $ \n \n10,968.10 $ \n \n449,226.55 \n \n269,138.00 \n \n297,347.93 \n \n1,641.05 \n \n298,988.98 \n \n736,389.00 1,169,992.49 \n \n54,183.58  1,224,176.07 \n \n677,662.00 \n \n484,422.46 \n \n6,333.81 \n \n490,756.27 \n \n456,903.00 \n \n591,195.33 \n \n29,010.70 \n \n620,206.03 \n \n348,759.00 \n938,854.00 .758,151.00 378,115.00 415,206.00 \n21,663.00 39,764.00 76,024.00 50,287.00 \n \n294,101.74 168.32 \n1,158,659.95 995,651.34 479,308.78 \n316,588.86 347,714.95 \n15,818.97 71,632.51 59,800.94 14,484.87 53,958.36 \n \n916.36 \n44,971.11 78,092.81 27,157.13 \n7,720.78 5,204.38 \n474.29 404.36 64,956.20 1,063.61 \n \n295,018.10 168.32 \n1,203,631.06 1,073,744.15 \n506,465.91 \n324,309.64 352,919.33 \n15,818.97 72,106.80 60,205.30 79,441.07 55,021.97 \n \n$ \n \n5,457,608.00 $ 6,789,106.25 $ 333,098.27 $ 7,122,204.52 \n \n167,766.00 31,290.00 \n \n227,381.36 5,175.74 \n \n40,065.48 26,114.26 \n \n267,446.84 31,290.00 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n5,656,664.00 $ 7,021,663.35 $ 399,278.01 $ . 7,420,941.36 \n \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nSee notes to the general-purpose financial statements. \n \n 34- \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 \n \nSCHEDULE \"5\" \n \nSITE Dooly County High School . Dooly County Middle School Unadilla Elementary School Vienna Elementary School Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n1,329,975.00 $ \n \n1,904,878.03 \n \n1,074,698.00 \n \n1,414,899.26 \n \n1,009,719.00 \n \n1,307,521.99 \n \n1,967,192.00 \n \n2,485,940.34 \n \n76,024.00 \n \n8,964.90 \n \n$ \n \n5,457,608.00 $ =====7=1,=22='=20=4=.5=2 \n \n.. \n \nSee notes to the general-purpose financial statements. - 35- \n \n SECTION II COMPLIANCE AND INTERNAL CONI'ROL REPORTS \n \n w. RUSSELL \n \nHINTON \n \nSTATE AUDITOR \n \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \nAugust 27, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN \nACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofDooly County Board ofEducation as of and for the year ended June 30, 2002, and have issued our report thereon dated August 27, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained iri Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts 3.l}d 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. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County Board of Education's internal control over financial reporting in order to detemiine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2002YB-41 \n \n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dooly County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable conditi~n is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6461-02-01. \nA 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, we consider item FS-6461-02-01 to be a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nspectfully submitted, \n~-~ \n \nRWH:gp 2002YB-41 \n \nState Auditor \n \n RussE1.L W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 \nAugust 27, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofDooly County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Dooly County Boarcl of Education's major Federal programs are identified in the Summary of Auditor's Results Section of 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 of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County 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 Dooly County Board of Education's compliance with those requirements. \n2002SA-10 \n \n Ir \nIn our opinion, the Dooly County 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, 2002. \nInternal Control Over Compliance \n The management of Dooly County 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 Dooly County 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  oh internal control over compliance in accordance with 0MB Circ,ular A-133. \nOur 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. \nThis report is intended solely for the information and use ofthe management, members pfthe Dooly County 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. \nRWH:gp 2002SA-10 \n \n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6461-00-0 I FS-6461-01-0 I \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6461-01-01 \n \nWe concur with this recommendation. The School District has begun to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. However, these procedures will not be placed in operation until fiscal year 2003. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n , t.'1 \nDOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS . \nYEAR ENDED JUNE 30. 2002 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dooly. County Board of Educ~tion disclosed a financial statement reportable condition related to the following control category. \n \nGeneral Fixed Assets \n \nThe reportable condition described above is considered to be a material weakness. \n \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dooly County Board of Education did not disclose any reportable conditions in internal control over major programs. \n \n5. Type of Report Issued on Compliance for Major Programs \n \n. \n \nThe auditor's opinion on the Dooly County Board ofEducation's report on compliance with \n \nrequirements applicable to major programs was unqualified. . \n \n6.  Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 \n \nThe Dooly County Board ofEducation's audit did not disclose audit findings required to be \n \nreported by section .510(a) of 0MB Circular A-133. \n \n \n \n7. 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 \n \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n \n9. Low Risk Auditee The Dooly County Board ofEducation did qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \n \n- 1- \n \n DOOLY COUNTY BOARD OF EDUCATION  SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2002 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6461-02-01 The Dooly County ~oard 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 School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records s.hould include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of ali additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2000-h2001","title":"Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2001-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000; ceaed with fiscal year ended June 30, 2008.","Report year covers fiscal year.","Has supplements: Dooly County Board of Education, Vienna, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (Dooly County Board of Education (Ga.)), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2000 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed January 20, 2023).","Fiscal year ended June 30, 2008 (online surrogate); (Georgia Government Publications database, viewed January 20, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Dooly County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Dooly County--Auditing--Periodicals","Education--Georgia--Dooly County--Finance--Statistics--Periodicals"],"dcterms_title":["Dooly County Board of Education, Vienna, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bd69-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["official reports","state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"-- ..,,-'...) \n.~ , \nI. ,,_ \n \n, I \n,, . ,: ...., \n \n... \n \n..... I , ,l ',. \n \n.., \n.. - ,: ' - '' \\ ,' ' \n. : . .., \n \n,.. . \n' \n \n,\u003el, 1,r \n \n -~ \n \n,t ' \n \n. : - ... \n \nJ ...... \n \n~ \n \n, : 1J. ' -  '  ; \n I~- \n',,,, \n \n. ;, \n \n' -' , fl, , ',, I ~ \n \nr I \n \n-, I \n \n. .... ,, ' \n \n_ ~ \n \n4 , \n \nI \n \n.. ;.: :-1,1 \n \n..1 ...... ...,_ 1 ,. c.. J  r  ;,  0 \n.: : \nJ / \n \n.... ..., \n \n., \n \n' _, \n \n. ,_ '' \n \n.. \n \n: ; .',.,_ \n \nI- \n \n' \n \n... :. ~,r\\ ! \n \n...,,.,,, \\ \n\u003e  .... '1.. \n \n \n,J \n \n \n \n r\\ ~/ r~ I ~ \n \n- \n \nJ , \n \n,,_, \n \n;_, 'J,; \n \n:' I \n \nI, \n \n. ' r \n \n, , \n \n'' , I , 1-,, \n \n' \n \n,., \n~. -: ' ' \n.,. l,t-,,, .' \n,, f \n \n.' ,' ', \n \n! ' \n \n. , \n \n\\_ \n \n', . ' \n'I \n. t' ' ' \n \n-, ... \n,,. ' \n' \n \n,, J I \n \n, ... \n \n:, ,, -\\. '; ;, ,- ' \n \n1' .,' \n \n J r, \n \n. , I ' \n \n,: \n \n,- . \n \n'1.J \n \n' '   I ' \n \n-  ;\"I: I I) f \n \n.._, i \n \nI,, \n' , .' \n \n/' \n \n... - .::.. ... ., \n \n,J ' \"' t_ J ... \n'' ' \n \nI\" \n.. .:' \n_ ,_ \n \n'1 .- \n \n'1, \n \n\" .. \n I  \n,, \n,: , : r: ., \"' \n,, , \n \n DOOLY COUNTY BOARD OF EDUCATION \n- TABLE OF coNTENTs - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nEXHIBITS \n \nGENERAL-PURPOSE FINANCIAL STATEMENTS \n \nCOMBINED STATEMENTS - OVERVIEW \n \nA \n \nCOMBINED BALANCE SHEET \n \nALL FUND TYPES AND ACCOUNT GROUP \n \nB \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES \n \nALL GOVERNMENTAL FUND TYPES \n \nC \n \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \n \nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \n \n(NON-GAAP BASIS) \n \nGENERAL AND SPECIAL REVENUE FUNDS \n \nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nADDmONAL FINANCIAL INFORMATION \n \nCOMBINING STATEMENTS \n \nSPECIAL REVENUE FUND \n \nE \n \nCOMBINING BALANCE SHEET \n \nF \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nCAPITAL PROJECTS FUND \n \nG \n \nCOMBINING BALANCE SHEET \n \nH \n \nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \n \nAND CHANGES IN FUND BALANCES \n \nSCHEDULES \n \n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n2 SCHEDULE OF STATE REVENUE \n \n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \nALLOlMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \n4 \n \nBY PROGRAM \n \n5 \n \nBY SITE \n \nPage \n2 \n4 7 8 \n22 \n24 \n26 28 \n30 32 35 36 37 \n \n DOOLY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- \nSECTIONil 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 0MB CIRCULAR A-133 \nSECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \nSECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n RussEI.L W. H1NTON \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, SW, Suite 214 Atlanta, Georgia 30334-8400 \nJune 7, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying general-purpose financial statements ofthe Dooly County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Dooly County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \n \n2001ARL-13 \n \n * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. \n* School activity accounts maintained at the individual schools are not included in the \ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \n* The Board of Education did not recognize as expenditures, in the year ended \nJune 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits 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, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \nIn 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 Dooly County Board ofEducation as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated June 7, 2002, on our consideration ofthe Dooly County Board ofEducation's internal control over financial reporting and our tests of its 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. \nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Dooly County 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 \n2001ARL-13 \n \n 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 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. \nA 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. \nRespectfully submitted, \n- ~-~ \n \nRWH:as 2001ARL-13 \n \nState Auditor \n \n DOOLY COUNTY BOARD OF EDUCATION \n \n ----------------------------------------- \n \nDOOLY COUNTY BOARD Of EDUCATION COMBINED BALANCE SHEET \nALL FUND TYPES AND ACCOUNT GROUP \nJUNE 30. 2001 \n \nAfil \nCash and Cash Equivalents \nInvestments \nAccounts Receivable \nInventories Food Donated Commodities Purchased Food \nAmount Available In Debt Service Fund \nAmount to be Provided In Future Years For Payment of Bond Debt \n \nGENERAL FUND \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nCAPITAL \n \nREVENUE \n \nPROJECTS \n \nFUND \n \nFUND \n \n$ 1,325,940.18 $ 323,801.33 $ \n \n818,047.90 \n \n4,781,678.06 \n \n719,563.92 \n \n308,221 60 \n \n157,197.09 \n \n12,387.52 8,974.98 \n \nTotal Assets \n \n$ \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nAccounts Payable Salaries Payable Deferred Revenue General ObllgaUon Bonds Payable \nTotal Llabllilles \nfUNDEOUITY \nFund Balances Reserved For Bus Replacement Funds For ConbnuaUon of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undeslgnated \nTotal Fund Equity \n \n$ \n \n40,080.84 \n \n153,331.36 \n \n55,463.84 \n \n$ _~24.;.;:8.,8:.:..76.;:;..;._04~ \n \ns \ns 2,045,504.10 \n$ 2,045,504 10 $ \n \n12,387.52 8,974.98 $ \n383,146 89 404,509.39 $ \n \n3,385,445.20 471,695 44 \n1,034,921.35 \n864,861.06 \n5,756,923.05 \n \nTotal Llab1llties and Fund Equity \n \n$ \n \n5.756,923.05 \n \nThe notes to the general-purpose financial statements are an Integral part of this statement. -2- \n \n EXHIBIT \"A\" \n \nDEBT SERVICE \nFUND \n \nACCOUNT GROUP GENERAL \nLONG-TERM DEBT \n \nTOTALS \n \n(Memorandum Only) \n \nJUNE 301 2001 \n \nJUNE 301 2000 \n \n$ 2,467,789.41 $ 2,425,690.73 \n \n$ \n \n25,727.84 \n \n4,807,405.90 \n \n1,184,982.61 \n \n345,291.94 \n \n$ \n \n25,727.84 \n \n4,274,272.16 \n \n12,387.52 8,974.98 25,727.84 \n4,274.272 16 \n \n8,102.41 14,580.24 \n \n$ \n \n25.727.84 $ \n \n4.300.000 00 $ 12.781.540 42 $ 2.793.665 32 \n \n$ \n \n40,080.84 $ \n \n44,253.88 \n \n153,331.36 \n \n154,404.96 \n \n55,463.84 \n \n$ \n \n4,300,000.00 \n \n4,300,000.00 \n \n$ \n \n4,300,000.00 $ \u003c.548.876.04 $ \n \n198,658.84 \n \n$ \n \n25,727.84 \n \n0.00 \n \n$ \n \n25,727.84 \n \n$ \n \n46,109.00 \n \n45,309.50 \n \n$ \n \n25,727.84 \n \n12,387.52 8,974.98 3,385,445.20 471,695.44 1,034,921.35 \n \n8,102.41 14,580.24 \n5,227.35 \n \n3.293.512.05 \n \n2,475,677.98 \n \n$ 8,232,664.38 $ 2,595,006.48 \n \n$ \n \n25i721.84 $ \n \n4,300,000.00 $ 12.781,540 42 $ 2,793,665.32 \n \n. 3. \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nALL GOVERNMENTAL FUND TYPES \nYEAR ENDED JUNE 30. 2001 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support SeMces Pupil Services Improvement of Instructional Services Educational Media SeMces General Administration School Administration Business Adm1nistrabon Maintenance and Operabon of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operabons \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES\\ \nAccrued Interest on Bonds Sold Proceeds from General Obligation Bonds \nPar Value Operating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Penod Donated Commodities Purchased Food \n \nGENERAL FUND \n \nSPECIAL REVENUE \nFUND \n \n$ 8,029,680 74 $ 59,548.96 \n3,970,168.99 264,020.20 \n$ 12,323,418.89 $ \n \n507,907.66 2,103,190.18 \n113911.12 \n2,725,008.96 \n \n$ 7,006,863.30 $ \n \n180,316.08 482,716.07 234,422.76 252,538.04 1,211,474.88 114,051.04 826,708.16 660,164 53 \n36,686.50 15,192.05 \n \n271,499 64 11747017 \n \n$ 11,410,103.22 $ \n \n$ \n \n913,315.67 $ \n \n1,382,221.59 \n74,682 98 288,238.40 \n13,964.39 34,976.59 \n5,550.00 14,658.81 33,310.85 \n63,027.24 1,022,873.03 \n935 52 \n2,934,439 40 \n-209.430.44 \n \n$ $ -107 197 45 \n$ -107,197.45 $ \n \n159,18434 159,184.34 \n \n$ \n \n806,118.22 $ \n \n1,239,385.88 \n \n-50,246.10 456,075.64 \n \n4,285.11 -5,605.26 \n \nFUND BALANCE JUNE 30 \n \n$ \n \nThe notes to the general-purpose financial statements are an integral part of this statement. -4- \n \n2,045,504.10 $ -==-==4=-04===.5=09===-39E\u003e \n \n EXHIBIT\"B\" \n \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTALS \n \n(Memorandum Only} \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 301 2000 \n \n$ \n \n469,858.32 \n \n347,30266 $ \n \n$ \n \n817,160.98 $ \n \n$ 663.62 \n \n8,537,588.40 $ 2,162,739.14 4,440,027.31 \n725,897.60 \n \n7,719,770.65 2,031, 138.45 2,723,183.34 \n640,440.90 \n \n663.62 $ 15,866,252.45 $ 13,114,533.34 \n \n$ \n \n$ \n \n86,780.00 \n \n121,016.00 \n \n$ \n \n207.796.00 $ \n \n$ \n \n609.364 98 $ \n \n000 $ 8,389,084.89 $ 7,739,579.60 \n \n254,999.06 770,954.47 234,422.76 266,502.43 1,246,451.47 206,381.04 841,366.97 693,475.38 \n36,686.50 78,219.29 1,022,873.03 271,499.64 239,421.69 \n \n428,634.79 747,247.32 240,965.29 275,609.72 1,191,936.60 114,776.02 781,499.16 590,168.14 \n36,658.50 52,297.91 1,100,557.80 119,509.76 299.74042 \n \n0.00 $ 14,552,338.62 $ 13,719,181.03 \n \n663.62 $ 1,313,913.83 $ -604.647.69 \n \n$ \n \n$ \n \n4,300,000.00 \n \n-51.986.89 \n \n$ \n \n4,248,013.11 $ \n \n$ \n \n4,857,378 09 $ \n \n899,544 96 \n \n25,064.22 $ 25,064 22 $ \n \n25,064.22 \n4,300,000.00 159,184.34 $ -159.184.34 \n4,325,064.22 $ \n \n73,581.21 -73.581.21 \n0.00 \n \n25,727.84 $ 0.00 \n \n5,638,978.05 $ 2,595,006.48 \n \n-604,647.69 3,200,202.53 \n \n4,285.11 -5.605.26 \n \n-7,361.07 6 812.71 \n \n$ \n \n5,756,923.05 $ \n \n25.727.84 $ 8,232,664.38 $ 2,595,006.48 \n \n-5- \n \n OOOLY COUNTY BOARD OF EDUCATION \nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nBUDGET AND ACTUAL - {NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS \nYEAR ENDED JUNE 30, 2001 \n \nEXHIBIT\"C\" \n \nGENERAL FUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS! \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \n \n$ 9,570,312.00 $ 8,029,680.74 \n \n7,000.00 \n \n59,548.96 \n \n3,146,295.00 \n \n3,970,168.99 \n \n69,127.00 \n \n264,020.20 \n \nTotal Revenues \n \n$ 12,792,734.00 $ 12,323,418.89 \n \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services EducatJonal Media Services General Admlnlstra1ion School Administration Business Administration Maintenance and Operation of Plant Student Transportabon Services Central Support Services Other Support Services Food Services Operation Community Services OperatJons \nCapital Outlay \n \n$ 7,411,448.00 $ 7,006,863.30 \n \n214,645.00 448,764.00 235,743.00 366,423.00 1, 156,433.00 197,051.00 1,042,819.00 724,277.00 \n37,000.00 \n \n180,316.08 482,716.07 234,422.76 252,53804 1,211,474.88 114,051.04 826,70816 680,164 53 \n36,686.50 15,192.05 \n \n291,383.00 120,000.00 \n \n271,499.64 117,470.17 \n \nTotal Expenditures \n \n$ 12,247,984 00 $ 11,410,103.22 \n \nExcess of Revenues over (under) Expenditures \n \n$ 544,750.00 $ 913,315.67 \n \nQil:IER FINANCIN~ ~URCES {USES} \nOther Sources Other Uses \n \n$ 75,00000 $ -107,197.45 \n \nTotal Other Financing Sources (Uses) \n \n$ 75,000 00 $ -107,197.45 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ \n \n619,750.00 $ \n \n806,118.22 \n \nFUND BALANCE Jl,!bY l, 2QQQ \n \n1,620,456.00 \n \n1,239,385.88 \n \nAdjustments \n \n136,105.00 \n \nEUt!!Q BA~CE JUNE ao, io121 \n \n$ 213761311.00 $' 210451504.10 \n \nSPEC~LREVENUEFUND \n \nACTUAL \n \n(BUDGET \n \nBUDGET \n \nBASIS! \n \n$ 474,322.00 $ 507,907.66 2,358,117.00 2,103,190.18 \n \n166,286.00 \n \n113,911.12 \n \n$ 2,998,725 00 $ 2,725,008 96 \n \n$ 1,362,096 00 $ 1,382,221 59 \n \n70,907.00 311,642.00 \n \n74,682.98 288,238.40 \n \n31,07800 37,545 00 \n16,518.00 28,279.00 \n \n13,964.39 34,976.59 \n5,550.00 14,658 81 33,310.85 \n \n63,985.00 1,268,883.00 \n \n63,027.24 1,022,873.03 \n \n35,215.00 \n \n935.52 \n \n$ 3,226,148.00 $ 2,934,439.40 \n \n$ -227,42300 $ -209.43044 \n \n$ 75,000.00 $ 159,184.34 \n \n$ 75,00000 $ 159,184.34 \n \n$ -152,423.00 $ -50,246.10 \n \n450,883.00 \n \n433,392.99 \n \n6,593.00 \n \n$ 305105300 $ 3831146.89 \n \nThe notes to the general-purpose financial statements are an Integral part of this statement -7- \n \n ------------------------------------------- \n \nDOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nREPORTING ENTITY \n \nThe Dooly County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \n \nFUND ACCOUNTING \n \nThe School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. \n \nGeneral 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 School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \n \nAlthough \"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. \n \nThe general-purpose financial statements account for all State, Federal, Taxes and Other funds under \n \ncontrol of the School District, in compliance with generally accepted accounting principles \n \napplicable to governmental units, unless otherwise disclosed in these notes. Funds and the account \n \nII \n'I \n \ngroup presented in this report are as follows: \n \n.{ GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's \n \neducational activities. Governmental Fund Types include: \n \nGENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \n \n-8- \n \n  .... ' \n \nDOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSPECIAL 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. \nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \nDEBT 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. \nACCOUNT GROUP \nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \nBASIS OF ACCOUNTING \nThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Tenn Debt Account Group. \nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \nRevenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). \"Measurable\" means the amount of the transaction can be determined and \"available\" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \n \n-9 - \n \n I \n \nDOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nExpenditures are generally recognized when the related fund liability is incurred. \nA departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning . in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \nBUDGET \nThe Dooly County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \nThe budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next called 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. \nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis report: \n- 10- \n \n I'  '' ~ \n \n \n \n,t  \n \nDOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \nSpecial Revenue \nFund \n \nFUND BALANCE JULY 1, 2000 \n \n$ 456,075.64 \n \nAdjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods \n \n-8,102.41 -14,580.24 \n \nFund Balance July 1, 2000 (Budget Basis) \n \n$ 433,392.99 \n \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \n \n-50,246.10 \n \nFUND BALANCE JUNE 30, 2001 (Budget Basis) \n \n$ 383,146.89 \n \nCASH AND CASH EQUIVALENTS \n \nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. \n \nINVESTMENTS \n \nCOMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia \nAnnotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among \noptions for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n- 11 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nRECEIVABLES \n \nReceivables 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. \n \nPROPERTY TAXES \n \nThe Dooly County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 19, 2000 (levy date). Taxes were due on January 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Dooly County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $3,917,638.50. \n \nThe tax millage rate levied for the 2000 tax year (calendar year) for the Dooly County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n~mills \n \n- 12 - \n \n DOOLY COUNfY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nSALES TAXES \nSpecial 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 $469,858.32 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $5,155,738.68 has been collected or on December 31, 2005, whichever occurs first. \nINVENTORIES \nFOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements. \nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also dee.med to be immaterial to the fair presentation ofthese financial statements. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. \n \n- 13 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nINTERFUND TRANSACTIONS \nThe School District has the following types of interfund transactions: \nReimbursements 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. \nOperating transfers are recorded for all interfund transactions other than reimbursements. \nMEMORANDUM ONLY -TOTAL COLUMNS \nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \nNote 2: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION 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, orby collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 1IO 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. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n- 14 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(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, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \n \n(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. \n \nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $7,129,856.75. The amounts ofthe total bank balances are classified into three categories of credit risk: \n \nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \n \nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ 300,000.00 \n \n2 \n \n708,156.57 \n \n3 \n \n6,121,700.18 \n \nTotal \n \n$ 7,129,856.75 \n \nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \n \n- 15 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \nCategory 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name. \n \nAt June 30, 2001, the carrying value of the School District's total investments was $1,221,936.88 which is materially the same as fair value. The investments are classified as to risk categories as follows: \n \nType of Investment \n \nRisk Categones \n \n2 \n \n3 \n \nCarrying Amount \n \nFair Value \n \nU. S. Government \n \n$ 25 727 84 $ \n \n0.00 $====!O\u003c0=0 $ 25,727.84 $ 25,727.84 \n \nLocal Government Investment Pools \n \n1,126,209.04 1,196,209.04 \n \nTotal Investments \n \n$ I 22123688 $ I 22123688 \n \nThe carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. 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 ofthe Primary Liquidity Portfolio is as follows: \n \nThe Primary Liquidity Portfolio consists of Georgia 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 Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives 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 of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \n \n- 16 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30, 2001 \n \nNote 2: DEPOSITS AND INVESTMENTS \n \nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-tenn 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, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. \n \nNote 3: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \n \nNote 4: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts and assets. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. \n \nThe School District has elected to self-insure for all losses related to natural disaster. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2000 2001 \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n0.00 $ \n \n6,957.00 $ \n \n6,957.00 $ \n \n0.00 \n \n- 17 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 4: RISK MANAGEMENT \n \nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Each Principal Each Assistant Principal Director of Elementary Education Federal Programs Director Assistant Superintendent Business Manager Assistant Principal - Director \nof Special Education All Other Employees \n \n$ 45,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 \n$ 10,000.00 $ 5,000.00 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rate \n \nAmount \n \nGeneral Government - Series 2000 \n \n4.88% \n \n$ 4.300.000,00 \n \nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \n \n- 18 - \n \n DOOLY COUNTY BOARD OF EDUCAT'ION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENfS \n \nJUNE 30. 2001 \n \nNote 5: GENERAL LONG-TERM DEBT \n \nGeneral Obligation \nBonds \n \nBalance July 1, 2000 \n \n$ \n \n0.00 \n \nAdditions G. 0. Bonds \n \n4,300,000.00 \n \nBalance June 30, 2001 \n \n$ 4,300,000.00 \n \nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30 \n \nGeneral Obligation \nBonds \n \n2002 2003 2004 2005 2006 \n \n$ 814,786.67 913,732.00 \n1,013,108.00 1,115,896.00 1,216.608.00 \n \nTotal Principal and Interest \n \n$ 5,074,130.67 \n \nNote 6: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and expenditures in the amount of $195,345.48 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $152,736.22 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $8,824.26 \n \n- 19 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 6: ON-BEHALF PAYMENTS \nOffice 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 $33,785.00 \nNote 7: CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. \nNote 8: ACCUMULATED EMPLOYEES' LEAVE \nAll twelve month employees ofthe Dooly County Board ofEducation earn annual leave at a rate of .8333 days per month. Annual leave may be accumulated up to ten days. Unused leave, up to the maximum accumulation, is paid to employees at their current rate of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences \nNote 9: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board 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: \n- 20 - \n \n DOOLY COUNTY BOARD OF EDUCATION \n \nEXHIBIT \"D\" \n \nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \n \nJUNE 30. 2001 \n \nNote 9: RETIREMENT PLANS \nFiscal Year \n2001 2000 1999 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n$ 841,806.95 $ 837,529.59 $ 830,198.19 \n \n- 21 - \n \n ----~~------------------------------------ \nDOOLY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND \nJUNE 30, 2001 \n \nASSETS Cash and Cash Equivalents Accounts Receivable Inventories \nFood Donated Commodities Purchased Food \nTotal Assets \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n393,500.14 $ \n \n56,932.54 \n \n33,339.19 \n \n12,387.52 81974.98 \n \n$ \n \n448,201.83 $ --=====5=6~,9=3=2=54= \n \nLIABILITIES AND FUND EQUITY \nLIABILITIES \nCash Overdraft Accounts Payable Salaries Payable Deferred Revenue \nTotal Liabilities \nFUND EQUITY \nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \nTotal Fund Equity \nTotal Liabilities and Fund Equity \n \n$ \n \n7,337.34 $ \n \n12,767.18 \n \n36,355.10 \n \n44,165.36 \n \n$ \n \n43,692.44 $ \n \n56,932.54 \n \n$ \n \n12,387.52 \n \n8,974.98 \n \n383.146.89 $ \n \n0.00 \n \n$ \n \n404.509.39 $ \n \n0.00 \n \n$ \n \n448.201 .83 $ -=-==56==,9=32==54==- \n \nSee notes to the general-purpose financial statements. \n-22- \n \n EXHIBIT\"E\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n450,432.68 $ \n \n460,637.06 \n \n$ \n \n274,882.41 \n \n308,221.60 \n \n200,534.31 \n \n12,387.52 8,974.98 \n \n8,102.41 14,580.24 \n \n$ \n \n274,882.41 $ \n \n780,016.78 $ ===-6=83ic!:,8=54==02== \n \n$ \n \n126,631.35 $ \n \n126,631.35 $ \n \n29,119.54 \n \n19,976.32 \n \n40,080.84 \n \n44,253.88 \n \n72,810.90 \n \n153,331.36 \n \n154,404.96 \n \n55,463.84 \n \n55,463.84 \n \n$ \n \n274,882.41 $ \n \n375,507.39 $ \n \n227,TT8.38 \n \n$ \n \n45,309.50 \n \n$ \n \n12,387.52 \n \n8,974.98 \n \n8,102.41 14,580.24 \n \n$ \n \n0.00 \n \n383,146.89 \n \n388,083.49 \n \n$ \n \n0.00 $ \n \n404,509.39 $ \n \n456,075.64 \n \n$ \n \n274,882.41 $ \n \n780,016.78 $ ==6i=8==3=,8=54=-.0=2..., \n \n- 23- \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent 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 Other Support Services Food Services Operation \nCapital Outlay \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES \nOperating Transfers In \nExcess of Revenues and Other Financing Sources over (under) Expenditures \nFUND BALANCE JULY 1 \nFood Inventory - Net Change in Period Donated Commodities Purchased Food \nFUND BALANCE JUNE 30 \nSee notes to the general-purpose financial statements. \n-24- \n \nSCHOOL FOOD \nSERVICES FUND \n \nLOTTERY PROGRAMS \n \n$ \n \n60,886.00 $ \n \n447,021.66 \n \n798,234.66 \n \n106,828.88 \n \n$ \n \n965,949.54 $ \n \n447,021.66 \n \n$ \n \n380,613.76 \n \n57,431.18 6,105.93 \n \n$ 1,022,873.03 \n \n14,310.08 \n12,608.81 285.14 \n \n$ 1,022,873.03 $ \n \n$ \n \n-56,923.49 $ \n \n471,354.90 -24,333.24 \n \n51,986.89 \n \n$ \n \n-4,936.60 $ \n \n410,766.14 \n \n4,285.11 -5,605.26 \n \n24,333.24 \n0.00 0.00 \n \n$ 4041509.39 $ =-====--===-==o=-.o=o= \n \n EXHIBIT\"F\" \n \nFEDERAL PROGRAMS \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 301 2000 \n \n$ \n \n507,907.66 $ \n \n509,304.60 \n \n$ 1,304,955.52 \n \n2,103,190.18 \n \n1,977,126.82 \n \n7,082.24 \n \n113,911.12 \n \n159,123.75 \n \n$ 1,312,037.76 $ 2,725,008.96 $ 2,645,555.17 \n \n$ 1,001,607.83 $ 1,382,221.59 $ 1,151,656.09 \n \n17,251.80 282,132.47 \n13,964.39 20,666.51 \n5,550.00 2,050.00 33,025.71 63,027.24 \n935.52 \n \n74,682.98 288,238.40 \n13,964.39 34,976.59 \n5,550.00 14,658.81 33,310.85 63,027.24 1,022,873.03 \n935.52 \n \n59,397.58 310,723.16 \n645.90 24,370.56 37,303.94 \n7,888.00 14,462.00 21,960.22 51,057.08 1,100,557.80 \n \n$ 1,440,211.47 $ 2,934,439.40 $ 2,780,022.33 \n \n$ -128,173.71 $ -209,430.44 $ -134,467.16 \n \n82,864.21 \n \n159,184.34 \n \n73,581.21 \n \n$ \n \n-45,309.50 $ \n \n-50,246.10 $ \n \n-60,885.95 \n \n45,309.50 \n \n456,075.64 \n \n517,509.95 \n \n4,285.11 -5,605.26 \n \n-7,361.07 6,812.71 \n \n$ \n \n0.00 $ \n \n404,509.39 $ _ _4=5=6i1!0ai.1.s.ii:::.64== \n \n- 25- \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 \n \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTotal Assets \nLIABILITIES AND FUND EQUITY LIABILITIES \nCash Overdraft FUND EQUITY \nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity \nTotal Liabilities and Fund Equity \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n424,861.06 \n \n440,000.00 $ 4,335,197.17 \n \n$ \n \n864,861.06 $ 4,335,197.17 \n \n$ \n \n949,751.97 \n \n$ 3,385,445.20 \n \n$ \n \n864,861.06 \n \n0.00 \n \n$ \n \n864,861.06 $ 3,385,445.20 \n \n$ \n \n864,861.06 $ 4,335,197.17 \n \nSee notes to the general-purpose financial statements. -26- \n \n EXHIBIT\"G\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT \nCOMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ 1,034,921.35 $ \n \n308,017.46 $ 1,767,799.87 $ \n \n899,544.96 \n \n6,480.89 \n \n4,781,678.06 \n \n1571197.09 \n \n1571197.09 \n \n$ 1,034,921.35 $ \n \n471,695.44 $ s,100 1675.02 $=-===-=a..s....,9.,.5..44==96= \n \n$ _ _94_9_,7__51_.9_7_ \n \n$ $ 1,034,921.35 \n0.00 \n$ 1,034,921.35 $ \n \n$ 471,695.44 \n0.00 471,695.44 $ \n \n3,385,445.20 471,695.44 \n1,034,921.35 $ \n864,861.06 \n5,756,923.05 $ \n \n5,227.35 8941317.61 899,544.96 \n \n$ 1,034,921.35 $ \n \n471,695.44 $ 6.706,675.02 $=....,,.8=9=9=-=,544=-===96= \n \n-27- \n \n DOOLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 \n \nREVENUES \nState Funds Federal Funds Taxes Other Funds \nTotal Revenues \nEXPENDITURES \nCurrent Support Services Business Administration \nCapital Outlay Salaries Employee Benefits Land and Land Improvements Building and Building Improvements \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES} \nProceeds from General Obligation Bonds Par Value \nOperating Transfers In Operating Transfers Out \nTotal Other Financing Sources (Uses) \nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \nFUND BALANCE JULY 1 \nFUND BALANCE JUNE 30 \n \nREGULAR \n \nBOND PROCEEDS \n \n$ \n \n22,530.34 $ \n \n322,935.20 \n \n$ \n \n22,530.34 $ \n \n322,935.20 \n \n$ \n \n0.00 $ \n \n86,780.00 \n \n35,000.00 86,016.00 \n \n$ \n \n0.00 $ \n \n207,796.00 \n \n$ \n \n22,530.34 $ \n \n115. 139.20 \n \n$ 4,300,000.00 \n \n$ \n \n-51,986.89 \n \n-1,029,694.00 \n \n$ \n \n-51,986.89 $ 3,270,306.00 \n \n$ \n \n-29,456.55 $ 3,385,445.20 \n \n894,317.61 \n \n0.00 \n \n$ \n \n864,861.06 $ 3,385,445.20 \n \nSee notes to the general-purpose financial statements. \n-28- \n \n EXHIBIT\"H\" \n \nGEORGIA STATE FINANCING AND \nINVESTMENT COMMISSION \n \nSPECIAL PURPOSE LOCAL OPTION SALES TAX \n \nTOTALS \n \nYEAR ENDED \n \nJUNE 30, 2001 \n \nJUNE 30, 2000 \n \n$ \n \n7,305.00 \n \n22,791.59 \n \n$ \n \n0.00 $ \n \n469,858.32 $ \n \n469,858.32 \n \n1 837.12 \n \n347,302.66 \n \n348,986.37 \n \n$ \n \n0.00 $ \n \n471,695.44 $ \n \n817,160.98 $ \n \n379,082.96 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n86,780.00 \n \n$ \n35,000.00 86,016.00 \n \n2,598.48 198.78 \n206,632.54 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n207,796.00 $ \n \n209,429.80 \n \n$ \n \n0.00 $ \n \n471,695.44 $ \n \n609,364.98 $ \n \n169,653.16 \n \n$ 1,029,694.00 $ 1,029,694.00 \n \n$ 4,300,000.00 1,029,694.00 -1,081,680.89 \n$ 4,248,013.11 \n \n$ 1,029,694.00 $ 5,227.35 \n \n471,695.44 $ 0.00 \n \n4,857,378.09 $ 899,544.96 \n \n169,653.16 729,891.80 \n \n$ 1,034,921.35 $ \n \n471,695.44 $ 5,756,923.05 $ ==-=-=8=-9=9=,544=.96==== \n \n-29- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"1\" \n \nFUNDING AGENCY PROGRAM/GRANT \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \nAgnculture, U S Department of Child Nutnllon Cluster Pass-Through From Georgia Department of Educabon Food and Nutnllon Program Food Services School Breakfast Program Nabonal School Lunch Program \n \n. 10 553 10 555 \n \nNIA \n \n$ 244,883 76 \n \nNIA \n \n500,231 69 $ \n \n(2) 979,806 45 (3) \n \nTotal Child Nutrition Cluster \n \n$ 745,115 45 $ \n \n979,80645 \n \nOther Programs Pass-Through From Georgia Department of Educabon Food and Nutnllon Program Food D1stnbut1on Program (1) Fresh Produce Program (1) Pass-Through From Office of School Readiness Food and Nutrlllon Program Child and Adult Care Food Program \n \n10 550 \n \nNIA \n \n10 550 \n \nNIA \n \n10.558 \n \nNIA \n \n38,066 58 5,000.00 \n10,052.63 \n \n38,066.58 5,000 00 \n(2! \n \nTotal U S. Department of Agriculture \n \n$ 798,234 66 $ 1,022,873 03 \n \nEducabon, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lndlVlduals wrth D1sab1hbes Education Act Part B - Special Educallon Flow Through Capacity Building Improvement Grant \n \n84 027 84173 \n \nNIA \n \n$ \n \n89,650.61 $ \n \nNIA \n \n2,789 00 \n \n121,431 48 2,789 00 \n \nTotal Special Educallon Cluster \n \n$ 92,439 61 $ \n \n124,220 48 \n \nOther Programs \n \nDirect \n \nImpact Aid \n \n84041 \n \nPass-Through From Georgia Department of Educabon \n \nComprehensive School Reform Demonstrallon ProJect \n \n84332 \n \nNIA \n \nComprehensive School Reform Demonstrallon Project \n \nSite Evaluabon \n \n84 332 \n \nNIA \n \nElementary and Secondary Education Act \n \nTitler \n \nGrants to Local Educallonal Agencies \n \n84 010 \n \nNIA \n \nT1Ue II \n \nEisenhower Professional Development \n \n84 281 \n \nNIA \n \nTitle VI \n \nlnnovabve EducaUon Program Strategtes \n \n84298 \n \nNIA \n \nClass Size ReductJon \n \n84340 \n \nNIA \n \nVocational Education - Basic Grants to States \n \nHigh School Program Basic Grant \n \n84048 \n \nNIA \n \nGoals 2000 \n \nState and Local Educallon Systemic Improvement Grant \n \n84276 \n \nNIA \n \nPass-Through From Chattahoochee-Flint Regional \n \nEducational Service Agency \n \nElementary and Secondary Educallon Act \n \nT1Ue I Migrant Educallon \n \n84.011 \n \nNIA \n \n1,700 44 210,000 00 \n9,200 00 \n591,762 63 7,221 36 19,029 00 75,007.00 \n42,68940 135,300 00 \n \n(4) 210,000 00 \n9,200 00 \n601,231.32 7,221.36 19,029 00 75,007 00 \n54,686 86 (3) 135,300 00 \n \n72,5n65 \n \n12,5n65 \n \n- 30 - \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2001 \n \nSCHEDULE 1 \n \nFUNDING AGENCY PROGRAM/GRANT \nEducallon, U S Department of Other Programs Pass-Through From Office of School Readiness Elementary and Secondary Educallon Act Trtlell Pre-K Summer Program \nTotal U S Department of Education \nHealth and Human Sel'Vlces, U S. Department of Pass-Through Human Resources, Georgia Department of Temporary Assistance for Needy Famrlres \nDefense, U S Department of Drrect Department of the Army RO.TC Program \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nFEDERAL REVENUE IN PERIOD \n \nEXPENDITURES IN PERIOD \n \n84336 \n \nNIA \n \n$ \n \n10,000 00 $ \n \n10,000 00 \n \n$ 1,266,927 09 $ \n \n1,318,473 67 \n \n93558 \n \nNIA \n \n$ \n \n57,848 52 $ \n \n57,848 52 \n \n$ 39,728 87 $ \n \n121,737.80 (3) \n \nTotal Federal Frnanaal Assistance NIA = Not Available \n \n$ 2,162,73914 $.,..,,..,.;;;;,2=52=0=,9=3==3=-02= \n \nNotes to the Schedule of Expendrtures of Federal Awards \n \n(1) The amounts shown for the Food Drstnbut1on and Fresh Produce Programs represents the Federally assigned value of nonmonetary assistance for donated commod11les received and/or consumed by the system dunng the current fiscal year \n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not marntarned separately and are Included in the 2001 Nallonal School Lunch Program \n(3) Expenditures for !hrs program include State, and/or Ot:-ier Funds Expenditures are not maintarned by fund source \n(4) Funds earned on !hrs program do not require reporting of expenditures. \n \nMaJor Programs are rdenllfied by an astensk (*) rn front of the CFDA number \n \nThe School Drstnct drd not provide Federal Assistance to any Subreapient \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant actrV1ty of the Dooly County Board of Education and rs presented on the modified accrual basrs of accountJng whrch Is the baSls of accounllng used rn the presentation of the general-purpose finanaal statements \n \nSee notes to the general-purpose finanaal statements \n \n- 31 - \n \n DOOLY COUNTY BOARD OF EDUCATION \nSCHEDULE OF STATE REVENUE \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \nGRANTS Community Affairs, Georgia Department of Local Assistance Grant (1) \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program  Eariy Intervention Program Primary Grades (1-3) Program Primary Grades - Ear1y Intervention (1-3) Program Upper Bementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1llties Category I Category II Category Ill Gifted Student  Category VI Remedial Education Program Altemative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportabon Regular Bus Replacement Nursing services Principal Supplements Vocational Supervisors Migrant Education Mid-term Adjustment Hold-Harmless Educational Equahzation Funding Grant Food services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentor Teachers Remedial Summer School Program Teachers' Retirement Lottery Programs Apphed Technology Labs Computers ln the Classroom \nHuman Resources, Georgia Department of Family Connections \nOffice of Planning and Budget Through Georgia Arts Council Challenge Program \nOffice of School Readiness Pre-Kindergarten Program \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n12,500.00 \n \n$ \n \n12,500 00 \n \n303,576.00 129,989.00 1,005,014.00 435,178.00 483,196.00 885,495 00 751,369.00 353,298.00 \n6,171.00 170,935.00 184,680.00 \n19,304.00 179,815.00 72,209.00 51,854.00 156,915.00 39,757.00 1,114,125.00 \n \n303,576.00 129,989 00 1,005,014.00 435,178.00 483,196.00 885,495.00 751,369.00 353,298.00 \n6,171.00 170,935.00 184,680.00 \n19,304.00 179,815.00 \n72,209.00 51,854.00 156,915.00 39,757.00 1,114,125.00 \n \n322,921.00 96,182.00 50,736.00 6,803.00 13,273.00 1,538 00 207,105.00 379,977.00 $ 72,415.00 \n \n60,886.00 \n \n4,481.09 152,736.22 \n2,282.00 5,358.62 8,824.26 \n \n50,000.00 36,426.00 \n \n322,921.00 96,182.00 50,736.00 6,803 00 13,273 00 1,538.00 207,105.00 379,977 00 60,886.00 72,415.00 \n4,481.09 152,736.22 \n2,282.00 5,358 62 8,824.26 \n50,000.00 36,426.00 \n \n111,168.94 \n \n111,168.94 \n \n20,000.00 360,595.66 \n \n20,000.00 360,595 66 \n \n 32  \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"2\" \n \nAGENCY/FUNDING \nGRANTS Office of Treasury and Fiscal Services Public School Employees Retirement \nCONTRACTS Education, Georgia Department of Georgia's Reading Challenge Georgia's Reading First Middle School/After School Program \n \nGOVERNMENTAL FUND TYPES \n \nSPECIAL \n \nGENERAL \n \nREVENUE \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n33,785.00 \n \n$ \n \n33,785.00 \n \n126,898.00 37,731.00 20,085.61 \n \n126,898.00 37,731.00 20,085.61 \n \n$ 8,029,680.74 $ 507,907.66 $ 8,537,588 40 \n \n(1) The purpose of these funds Is to provide new band uniforms at Dooly County High School. \n \nSee notes to the general-purpose financial statements. \n \n- 33- \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF APPRQYED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30 2001 \n \nSCHEDULE \"3\" \n \nPROJECT \n \nESTIMATED ORIGINAL COST(1) \n \nCURRENT ESTIMATED \nCOST (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR(3) \n \nAMOUNT EXPENDED IN PRIOR YEARS(3) \n \nThe acquisrtJon and constructJon of a Pre-K \n \nthrough grade 8 elementary and middle school \n \nand for the ranovallOn, repair and improvement of \n \neX1stIng schools and later faaht1es and provide for \n \nthe issuance of the School D1stnct general \n \nobhgation sales tax bond in the aggregate \n \npnncrpal amount of $4,300,000.00 \n \n$ 51625.597 00 $ 51625.597 00 $ 207?96 00 $ \n \n000 \n \nPROJECT STATUS \nOngoing \n \n(1} The School D1stnct's ong1nal cost estimate as speafied in the resolution calling for the impos1tion of the Local Option Sales Tax \n(2) The School Dlstnct's current estimate of total cost for the project. lndudes all cost from project Incept,on to completion \n(3) The voters of Dooly County approved the rmposibon of a 1% sales tax to fund the above proj8cl. Amounts expended \nfor the project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the pl'Oj8CI \n \nSee notes to the general-purpose financ:lal statements \n \n-35- \n \n DOOLY COUNTY BOARD OF-EDUCATION \nGENERAL FUND - OUALITY:BASIC-EDl;IC).J10NPR0GRAM IOBEl \nALLOTMENTS;AND EXP.ENDITURES ._ BY PROGRAM \nYEAR ENDED JUNE 30. 2001 \n \nSCHEDULE 4 \n \nDESCRIPTION \nDlred lnstructronal Programs Klndergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI Remedial Educabon Program Alternative Educabon Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n345,711.00 $ 320,721.34 $ \n \n2,19116 $ 322,912.50 \n \n148,030.00 \n \n278,340.44 \n \n7,012.62 \n \n285,353 06 \n \n1,144,504.00 \n \n890,110.66 \n \n28,83010 \n \n918,940.76 \n \n495,578.00 \n \n631,624.02 \n \n15,960.28 \n \n647,584.30 \n \n550,261.00 \n \n503,755.37 \n \n15,888.83 \n \n519,644 20 \n \n1,008,397.00 \n \n908,150.93 \n \n39,618.42 \n \n947,769.35 \n \n855,655.00 \n \n961,856 75 \n \n52,07384 \n \n1,013,930.59 \n \n402,334 00 \n \n403,289.86 \n \n50,049.52 \n \n453,339.38 \n \n411,999.00 \n \n231,081.37 \n \n6,06626 \n \n237,147.63 \n \n299,943 44 \n \n7,173 73 \n \n307,117 17 \n \n2,999.72 \n \n2,999.72 \n \n21,983.00 \n \n59,855 37 \n \n800.63 \n \n60,656.00 \n \n204,772.00 \n \n120,218.48 \n \n996,23 \n \n121,214 71 \n \n82,231.00 \n \n76,228.01 \n \n63,042.98 \n \n139,270 99 \n \n59,051.00 \n \n45,982.36 \n \n260.31 \n \n46,242.67 \n \n$ \n \n5,730,506.00 $ 5,734,158.12 $ 289,964.91 $ 6,024,123.03 \n \n178,694.00 45,275 00 \n \n192,321.96 11,759 03 \n \n35,451 78 33,515 97 \n \n227,773.74 45,275.00 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n5,954,475.00 $ 5,938,23911 $ 358,932.66 $ 6,297,171.77 \n \n(1) Compnsed of State Funds plus Local Five Mlll Share. \n \nSee notes to the general-purpose financial statements. \n \n- 36- \n \n DOOLY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE} \nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 \n \nSCHEDULE \"5\" \n \nSITE Dooly County High School Dooly County Middle School Unadilla Elementary School Vienna Elementary School Central Office (Alternative Education Program) \nTOTAL \n(1) Comprised of State Funds plus Local Five Mill Share. \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \n \nELIGIBLE QBE PROGRAM COSTS \n \n$ \n \n1,451,585.00 $ \n \n1,692,460.81 \n \n1,136,726.00 \n \n1,129,074.27 \n \n1,039,021.00 \n \n992,227.13 \n \n2,020,943.00 \n \n2, 138,318.00 \n \n82,231.00 \n \n72,042.82 \n \n$ \n \n5,730,506.00 $ =====6.,.0..,24,...,=12=3=.0=3 \n \nSee notes to the general-purpose financial statements. - 37 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russi,:u. \\\\'. H1r.TON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S W., Suite 214 Atlanta, Georgia 30334-8400 \nJune 7, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements ofDooly County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated June 7, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-pwpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contzined in Government Auditing Standards, issued by the Comptroller General of the United States. \nCompliance \nAs part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Dooly County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the pwpose of expressing our opinion on the financial statements and not to provide assurance on the internal \n2001YB-41 \n \n control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dooly County 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-6461-01-01. \nA 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, we consider item FS-6461-01-01 to be a material weakness. \nThis report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \n~.ti::-\\,;_ \n \nRWH:as 2001YB-41 \n \nState Auditor \n \n Rus~EJ.L \\ \\1 H1NTON \nSTATE AUDITOR (404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n254 Washington Street, S. W., Suite 214 Atlanta, Georgia 30334-8400 \nJune 7, 2002 \n \nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Dooly County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance ofDooly County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Dooly County Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe 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 of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit. \nWe conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB 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 Dooly County 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 Dooly County Board of Education's compliance with those requirements. \n2001SA-10 \n \n In our opinion, the Dooly County 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, 2001. \nInternal Control Over Compliance \nThe management of Dooly County 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 Dooly County 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 0MB Circular A-133. \nOur 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. \nThis report is intended solely for the information and use ofthe management, members ofthe Dooly County 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. \nRespectfully submitted, \nwM;___ \n \nRWH:as 2001SA-10 \n \nState Auditor \n \n SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS~ QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6461-99-01 FS-6461-00-01 \n \nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6461-00-01 \n \nWe concur with this finding. The School District has begun to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. However, these procedures will not be placed in operation until fiscal year 2003. \n \n SECTIONN FINDINGS AND QUESTIONED COSTS \n \n DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2001 \nI SUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. \n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Dooly County Board of Education disclosed a financial statement reportable condition related to the following control category. \nGeneral Fixed Assets \nThe reportable condition described above is considered to be a material weakness. \n3. Noncompliance Material to the Financial Statements The audit ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. \n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dooly County Board of Education did not disclose any reportable conditions in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Dooly County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Dooly County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \n7. 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 \n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \n9. Low Risk Auditee The Dooly County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. \n- 1- \n \n --~--------- --- \nDOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30. 2001 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6461-01-01 The Dooly County 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. The condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2- \n \n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":8,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":8}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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