{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2007-h2008","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2008-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2007-h2008"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n29 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n30 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\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 A UDJTJNG STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 14, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Whitfield 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 ofthe Whitfield County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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 Whitfield 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. \r\nIn our opinion, the financial statements referred to previously 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 Whitfield County Board of Education, as of June 30, 2008, and \r\n2008ARL-11 \r\n \r\n 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated July 14, 2009, on our consideration of the Whitfield 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. \r\nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 27 respectively, are not a required part of the basic financial statements but are 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. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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. \r\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. \r\nRespectfully submitted, \r\n~ uJ.\u003cid~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:mb 2008ARL-11 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2008, and June 30, 2007. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2008 and 2007 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $174.3 million and $161.8 million, respectively, for the fiscal years ended June 30, 2008, and 2007. Of these amounts $13.9 million and $10.5 million, respectively, for fiscal years 2008 and 2007 are available for spending at the School District's discretion. \r\n The School District had $ 128.2 million and $120.1 million, respectively, in expenses for the fiscal years ended June 30, 2008, and June 30, 2007, relating to governmental activities. Only $82.3 million and $77.1 million of the above mentioned expenses for 2008 and 2007 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $58.3 million and $54.4 million, respectively, for 2008 and 2007 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $58.3 million or 41.5% of all revenues totaling $140.6 million for fiscal year 2008 and $54.4 million or 41.4% of all revenues totaling $131.6 million for fiscal year 2007. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Whitfield County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\n11 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal years 2008 and 2007. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 76,097,170 132,361,350 \r\n \r\n$ 79,911,134 125,503,425 \r\n \r\nTotal Assets \r\n \r\n$ 208,458,520 $ 205,414,559 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 18,437,527 15,748,537 \r\n \r\n$ 14,764,083 28,826,445 \r\n \r\nTotal Liabilities \r\n \r\n$ 34,186,064 $ 43,590,528 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 132,906,034 27,476,490 13,889,932 \r\n \r\n$ 120,662,865 30,625,163 10,536,003 \r\n \r\nTotal Net Assets \r\n \r\n$ 174,272.456 $ 161,824,031 \r\n \r\nTable 2 shows the Changes in Net Assets for fiscal years ending June 30, 2008, and June 30, 2007. \r\n \r\nIV \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR E_NDED JUNE 30, 2008 \r\n \r\nTable 2 Change in Net Assets \r\n \r\nRevenues Program Revenues: \r\nCharges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\n$ 2,296,911 78,937,048 1,105,795 \r\n \r\n$ 2,187,705 74,394,286 557,612 \r\n \r\nTotal Program Revenues \r\n \r\n$ 82,339,754 $ 77,139,603 \r\n \r\nGeneral Revenues: \r\n \r\nTaxes \r\n \r\nProperty Taxes \r\n \r\nFor Maintenance and Operations \r\n \r\n$ 28,025,637 \r\n \r\nRailroad Cars \r\n \r\n30,215 \r\n \r\nSales Taxes \r\n \r\nSpecial Purpose Local Option Sales Tax \r\n \r\nFor Capital Projects \r\n \r\n13,076,769 \r\n \r\nIntangible Recording Tax \r\n \r\n619,710 \r\n \r\nReal Estate \r\n \r\n122,656 \r\n \r\nGrants and Contributions not Restricted to \r\n \r\nSpecific Programs \r\n \r\n10,284,235 \r\n \r\nInvestment Earnings \r\n \r\n2,401,203 \r\n \r\nMiscellaneous \r\n \r\n3,706,665 \r\n \r\n$ 25,766,816 \r\n13,237,194 580,562 345,548 \r\n8,273,440 2,420,906 3,800,931 \r\n \r\nTotal General Revenues \r\n \r\n$ 58,267,090 $ 54A25,397 \r\n \r\nTotal Revenues \r\n \r\n$ 140,606,844 $ 131,565,000 \r\n \r\nProgram Expenses 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 Operations ofNon-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 83,903,126 \r\n4,380,261 2,768,531 2,779,678 \r\n644,696 7,730,603 \r\n448,908 8,091,488 5,680,419 2,146,907 \r\n889,112 \r\n560,706 6,942,898 1,191,085 \r\n \r\n$ 78,245,225 \r\n4,213,414 2,713,874 2,750,380 \r\n586,632 7,269,339 \r\n775,140 7,621,139 5,198,278 1,873,060 \r\n936,323 \r\n584,318 7,024,875 \r\n273,300 \r\n \r\nTotal Expenses \r\n \r\n$ 128,158,418 $ 120,065,297 \r\n \r\nIncrease in Net Assets \r\n \r\n$ I2A48A26 $ I IA99)03 \r\n \r\nV \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 Year 2007 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 Year 2007 \r\n \r\nInstruction \r\n \r\n$ 83,903,126 $ 78,245,225 $25,265,297 $25,003,681 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n4,380,261 4,213,414 3,417,337 2,715,158 \r\n \r\nImprovement of Instructional Services \r\n \r\n2,768,531 2,713,874 1,654,541 1,458,384 \r\n \r\nEducational Media Services \r\n \r\n2,779,678 2,750,380 \r\n \r\n968,844 1,070,937 \r\n \r\nGeneral Administration \r\n \r\n644,696 \r\n \r\n586,632 -1,507,144 -1,463,146 \r\n \r\nSchool Administration \r\n \r\n7,730,603 7,269,339 3,866,895 3,562,433 \r\n \r\nBusiness Administration \r\n \r\n448,908 \r\n \r\n775,140 \r\n \r\n425,744 \r\n \r\n746,722 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n8,091,488 7,621,139 3,575,550 3,209,210 \r\n \r\nStudent Transportation Services \r\n \r\n5,680,419 5,198,278 3,749,145 2,922,980 \r\n \r\nCentral Support Services \r\n \r\n2,146,907 1,873,060 2,043,613 1,762,326 \r\n \r\nOther Support Services \r\n \r\n889,112 \r\n \r\n936,323 \r\n \r\n752,180 \r\n \r\n828,651 \r\n \r\nOperations ofNon-Instructional Services \r\n \r\nCommunity Services \r\n \r\n560,706 \r\n \r\n584,318 \r\n \r\n560,676 \r\n \r\n581,271 \r\n \r\nFood Services \r\n \r\n6,942,898 7,024,875 -145,099 \r\n \r\n253,786 \r\n \r\nInterest on Short-Term and Long-_Term Debt 1,191,085 \r\n \r\n273.300 1,191,085 \r\n \r\n273.300 \r\n \r\nTotal Expenses \r\n \r\n$128,158.418 $120,065.297 $ ~5,818,664 $ 42,925,693 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $139.5 million and total expenditures of $147.6 million for fiscal year 2008 and total revenues of $132.3 million and total expenditures of $123.2 million for fiscal year 2007. The increase in expenditures is due to an increase in ESPLOST activity. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal years 2008 and 2007, the School District amended its general fund budget as needed. \r\n \r\nVI \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nDuring fiscal year 2008 the General Fund had final actual revenues totaling $123.6 million, which exceeded the final budgeted amounts of $113.8 million by $9.8 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting principles relative to local, state and Federal revenues. Property taxes exceeded budgeted revenues $0.83 million due to growth in the tax digest. State revenues exceeded budgeted revenues $4.6 million due to state supplemental budget adjustments relative to enrollment growth and increases in state grants. Federal revenue budget exceeded actual revenues $0.69 million due to decrease in Federal grants. Miscellaneous revenues exceeded budgeted revenues $3.8 million due to unbudgeted revenues from school activity accounts of $3.7 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return was better than anticipated and interest was maximized through better than expected cash flow. \r\nDuring fiscal year 2007 the General Fund had final actual revenues totaling $117.2 million, which exceeded the final budgeted amounts of $103 .1 million by $14.1 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting principles relative to local, state and Federal revenues. Local taxes exceeded budgeted revenues $1.2 million due to growth in the tax digest. State revenues exceeded budgeted revenues $3 .4 million due to state supplemental budget adjustments relative to enrollment growth and increases in state grants. Federal revenue exceeded budgeted revenues $4.5 million due to conservative budgeting. Miscellaneous revenues exceeded budgeted revenues $3.8 million due to unbudgeted revenues from school activity accounts of $3 .8 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return was better than anticipated and interest was maximized through better than expected cash flow. \r\nDuring the fiscal year 2008, the General Fund had final actual expenditures totaling $120.5 million, which exceeded the final budgeted amount of $116.9 million by $3.6 million. The total expenditures include unbudgeted expenditures from school activity accounts of $3.6 million. \r\nDuring the fiscal year 2007, the General Fund had final actual expenditures totaling $116.0 million, which exceeded the final budgeted amount of $106.5 million by $9.5 million. The instructional budgeted expenditures exceeded actual expenditures $6.2 million due to increase services funded through Federal and state grants. The total expenditures include unbudgeted in last years expenditures from school activity accounts of $2.2 million. \r\nGeneral Fund revenues exceeded expenditures and other financing uses resulting in a surplus of $3,097,493 for the fiscal year 2008. General Fund revenues and other financing uses exceeded expenditures resulting in a surplus of$1,176,450 that was funded with reserves in the fiscal year 2007. \r\nVll \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\n \r\nCapital Assets \r\n \r\nAt the fiscal years ended June 30, 2008, and June 30, 2007, the School District had $132.4 million and $125.5 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 7,416,174 7,600,428 \r\n106,113,782 5,780,673 5,450,293 \r\n \r\n$ 5,648,417 533,156 \r\n107,321,221 6,170,953 5,829,678 \r\n \r\nTotal \r\n \r\n$ 132,361,350 $ 125,503,425 \r\n \r\nIn accordance with the 2006 referendum pass by 2/3's of the voters, the School District has numerous construction projects in progress including a new elementary and high school, additions and renovations. \r\n \r\nDebt \r\n \r\nAt the fiscal years ending June 30, 2008, and June 30, 2007, the School District had $15.7 million and $28.8 million, respectively, in bonds outstanding. The School District issued no bonds during the fiscal year 2008. Table 5 summarizes the School District's long-term debt. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\nCompensated Absences Bonds Payable \r\n \r\n$ 283,537 $ 256,446 \r\n \r\n15,465,000 \r\n \r\n28,570.000 \r\n \r\nTotal \r\n \r\n$ 15,748.537 $ 28,826,446 \r\n \r\nVlll \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nAt June 30, 2008, and June 30, 2007, the School District's assigned bond rating was \"Aa2\" as determined by Moody's Investors Services, Inc. Current Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n Economic Recession - Decreases in total State funding for education have been forecasted as a result of slowing state tax revenues. Whitfield County Schools continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our customers. The School District continues to provide an increasing amount of local monies to meet various mandated educational requirements. Whitfield County School District remains optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District will continue to meet its obligation to the citizens of Whitfield County in accordance with the 2006 ESPLOST referendum. This referendum includes plans for renovations, classroom technology, new elementary and high schools and other capital needs that may arise. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nlX \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,080,478.68 \r\n \r\n57,507,365.89 \r\n \r\n3,442,562.23 9,491,526.77 \r\n987,177.76 240,913.97 142,399.04 204,745.45 15,016,602.15 117,344,747.64 \r\n \r\n$ 208,458,519.58 \r\n \r\n$ \r\n \r\n1,025,710.30 \r\n \r\n14,295,306.01 \r\n \r\n465,194.10 \r\n \r\n2,314,252.53 \r\n \r\n337,063.54 \r\n \r\n5,555,000.00 10,193,536.86 \r\n \r\n$ \r\n \r\n34,186,063.34 \r\n \r\n$ 132,906,034.48 \r\n1,412,376.88 439,390.02 \r\n25,624,722.99 13,889,931.87 \r\n$ 174,272,456.24 \r\n \r\n$ 208,458,519.58 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -I- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2008 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 83,903,125.54 $ \r\n4,380,260.55 2,768,530.96 2,779,678.19 \r\n644,696.35 7,730,602.78 \r\n448,908.11 8,091,487.68 5,680,418.50 2,146,907.49 \r\n889,112.49 \r\n560,705.85 6,942,898.18 1,191,084.61 \r\n$ 128,158,417.28 $ \r\n \r\n488,167.57 55,000.00 \r\n1,753,743.92 \r\n \r\nNet Assets - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2 - \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ 57,403,544.54 $ \r\n962,923.14 1,113,990.31 1,788,898.77 2,150,582.36 3,844,494.73 \r\n23,163.96 4,452,286.61 1,687,788.00 \r\n103,294.57 136,932.31 \r\n29.45 5,269,118.81 \r\n$ 78,937,047.56 $ \r\n \r\n746,116.60 $ \r\n21,935.80 1,257.57 \r\n19,212.73 8,650.76 \r\n243,486.00 \r\n65,135.14 \r\n1,105,794.60 $ \r\n \r\n-25,265,296.83 \r\n-3,417,337.41 -1,654,540.65 \r\n-968,843.62 1,507,143.58 -3,866,895.32 -425,744.15 -3,575,550.31 -3,749, 144.50 -2,043,612.92 -752,180.18 \r\n-560,676.40 145,099.69 -1 191 084.61 \r\n-45,818,663.63 \r\n \r\n$ \r\n \r\n28,025,636.67 \r\n \r\n13,076,769.49 772,580.80 \r\n10,284,234.70 2,401,202.59 3,706,664.90 \r\n \r\n$ \r\n \r\n58,267,089.15 \r\n \r\n$ \r\n \r\n12,448,425.52 \r\n \r\n161,824,030.72 \r\n \r\n$ \r\n \r\n174,272,456.24 \r\n \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local lnterfund Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Accounts Payable - lnterfund Salaries and Benefits Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service Capital Projects \r\nUnreserved Designated for Student Activities Designated for Self-Insurance Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,080,478.68 \r\n \r\n$ 4,080,478.68 \r\n \r\n14,157,265.25 $ 43,325,306.67 $ 24,793.97 57,507,365.89 \r\n \r\n985,983.81 9,491,526.77 \r\n987,177.76 240,913.97 \r\n141,240.04 204,745.45 \r\n \r\n2,136,817.43 \r\n \r\n1,159.00 \r\n \r\n111,770.55 \r\n \r\n3, 122,801.24 9,491,526.77 \r\n987,177.76 240,913.97 111,770.55 142,399.04 204,745.45 \r\n \r\n$ 30,289,331.73 $ 45,463,283.10 $ 136,564.52 $ 75,889,179.35 \r\n \r\n$ 546,283.86 $ 14,295,306.01 \r\n \r\n479,426.44 111,770.55 \r\n2,314,252.53 337,063.54 \r\n \r\n$ 14,841,589.87 $ 3,242,513.06 \r\n \r\n$ 1,025,710.30 111,770.55 \r\n14,295,306.01 2,314,252.53 337,063.54 \r\n$ 18,084,102.93 \r\n \r\n$ 1,412,376.88 \r\n \r\n$ 1,412,376.88 \r\n \r\n$ 302,825.50 $ 136,564.52 \r\n \r\n439,390.02 \r\n \r\n41,917,944.54 \r\n \r\n41,917,944.54 \r\n \r\n1,175,234.07 790,216.79 \r\n \r\n1,175,234.07 790,216.79 \r\n \r\n12,069,914.12 \r\n \r\n12,069,914.12 \r\n \r\n$ 15,447,741.86 $ 42,220,770.04 $ 136,564.52 $ 57,805,076.42 \r\n \r\n$ 30,289,331.73 $ 45,463,283.10 $ 136,564.52 $ 75,889,179.35 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2008 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\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. \r\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: \r\nBonds Payable Compensated Absences Claims and Judgments \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 57,805,076.42 \r\n \r\n$ 7,416,174.07 7,600,428.08 9,020,341.76 \r\n121,322,320.20 12,404,867.26 -25,402,781.58 \r\n \r\n132,361,349.79 \r\n \r\n319,760.99 \r\n \r\n$ -15,465,000.00 -283,536.86 -465 194.10 \r\n \r\n-16,213,730.96 \r\n \r\n$ 174,272,456.24 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement.  5 . \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nSale of Equipment Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 26,883,098.16 \r\n \r\n772,580.80 $ 13,076,769.49 \r\n \r\n78,856,598.96 \r\n \r\n862,308.60 \r\n \r\n9,880,578.59 \r\n \r\n2,296,911.49 \r\n \r\n519,247.74 \r\n \r\n1,878,284.39 $ \r\n \r\n4,422,904.10 \r\n \r\n$ 123,631,919.84 $ 15,817,362.48 $ \r\n \r\n$ 3,670.46 \r\n \r\n26,883,098.16 13,849,350.29 79,718,907.56 \r\n9,880,578.59 2,296,911.49 2,401,202.59 4,422,904.10 \r\n \r\n3,670.46 $ 139,452,952.78 \r\n \r\n$ 78,578,108.43 $ 1,892,248.20 \r\n \r\n$ 80,470,356.63 \r\n \r\n4,380,260.55 2,768,530.96 2,617,407.15 \r\n637,756.63 7,585,405.01 \r\n447,808.11 8,091,064.70 5,122,296.63 2,169,737.38 \r\n889,112.49 560,705.85 6,638,684.06 \r\n \r\n192,953.45 1,100.00 \r\n348,717.13 80,680.30 \r\n10,330,395.13 \r\n \r\n4,380,260.55 2,768,530.96 2,617,407.15 \r\n637,756.63 7,778,358.46 \r\n448,908.11 8,439,781.83 5,122,296.63 2,250,417.68 \r\n889,112.49 560,705.85 6,638,684.06 10,330,395.13 \r\n \r\n$ 13,105,000.00 1,191,084.61 \r\n \r\n13,105,000.00 1,191,084.61 \r\n \r\n$ 120,486,877.95 $ 12,846,094.21 $ 14,296,084.61 $ 147,629,056.77 \r\n \r\n$ 3,145,041.89 $ 2,971,268.27 $ -14,292,414.15 $ -8, 176,103.99 \r\n \r\n$ \r\n \r\n11,351.50 \r\n \r\n$ \r\n \r\n11,351.50 \r\n \r\n$ \r\n \r\n58,900.00 $ 9,531,909.79 \r\n \r\n9,590,809.79 \r\n \r\n-58,900.00 -9,531,909.79 \r\n \r\n-9,590,809.79 \r\n \r\n$ \r\n \r\n-47,548.50 $ -9,473,009.79 $ 9,531,909.79 $ \r\n \r\n11,351.50 \r\n \r\n$ 3,097,493.39 $ -6,501, 741.52 $ -4,760,504.36 $ -8, 164,752.49 \r\n \r\n12,350,248.47 48,722,511.56 \r\n \r\n4,897,068.88 65,969,828.91 \r\n \r\nFund Balances - Ending \r\n \r\n$ 15,447,741.86 $ 42,220,770.04 $ 136,564.52 $ 57,805,076.42 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\n \r\n$ -8, 164,752.49 \r\n \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\n \r\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: \r\n \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\n \r\n$ 10,023,169.68 -3, 161,739.04 \r\n \r\n6,861,430.64 \r\n \r\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. \r\n \r\n1,142,538.51 \r\n \r\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. \r\n \r\n-3,505.75 \r\n \r\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: \r\n \r\nBond Principal Retirements \r\n \r\n13,105,000.00 \r\n \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\n \r\nIncrease in Compensated Absences Increase in Claims and Judgments \r\nTotal Additional Expenditures \r\n \r\n$ -27,091.29 -465 194.10 \r\n \r\n-492,285.39 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 12,448,425.52 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n-7- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\nAGENCY FUNDS \r\n$ 200,354.23 56,954.55 \r\n$ 257,308.78 \r\n$ 257,308.78 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit The Whitfield County Career Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements ofthe Charter School have been blended with the School District's general fund. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Whitfield County Board of Education. \r\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. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\n-9- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\nThe School District reports the following major governmental funds: \r\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. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and employee flexible spending accounts. \r\nBASIS OF ACCOUNTING \r\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. \r\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. \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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 and compensated absences, 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 are reported as other financing sources. \r\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 \r\nrestricted and unrestricted net assets available to finance the program. It is the School District's \r\npolicy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\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. \r\nINVESTMENTS \r\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: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\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. \r\n \r\nRECEIVABLES \r\n \r\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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on October 26, 2007 (levy date). Taxes were due on December 28, 2007 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The Whitfield 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, 2008, for maintenance and operations amounted to $26,883,098.16. \r\n \r\nThe tax millage rate levied for the 2007 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n15.219 mills \r\n \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $13,076,769.49 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. \r\nINVENTORIES \r\nCONSUMABLE SUPPLIES On the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expense/expenditure are recorded as the inventory items are used. \r\nFOOD INVENTORIES On the basic 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. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). 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 ofassets 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. \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nCapitalization Policy \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 \r\n \r\nEstimated Useful Life \r\nNIA 15 years 70 years 10 to 12 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nMembers ofthe Teachers Retirement System ofGeorgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\nVacation leave of IO days is awarded on a fiscal year basis to personnel employed on an eleven and twelve month basis. No other employees are eligible to earn vacation leave. Personnel employed 15 or more years accrue 15 days ofvacation. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\n \r\n2006 2007 2008 \r\n \r\nBeginning of Year Liability \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nEnd of Year Liability \r\n \r\n$ 234,104.00 $ 226,273.00 $ 223,201.00 $ 237,176.00 $ 237,176.00 $ 204,690.61 $ 185,421.04 $ 256,445.57 $ 256,445.57 $ 221,053.72 $ 193,962.43 $ 283,536.86 \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. \r\n \r\nIn the District-wide and the 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 \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\naccounting 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 ofthe 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 of Net Assets. \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\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. \r\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. \r\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. \r\nNote 3: DEPOSITS AND INVESTMENTS \r\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. 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. At June 30, 2008, $2,510,505.96 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\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, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and \r\n \r\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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2008, the bank balances were $10,269,687.38. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\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 \r\ntrust department or agent but not in the School District's name. \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$2,510,505.96 \r\n \r\n2 \r\n \r\n93,571.38 \r\n \r\n3 \r\n \r\n7,123,646.07 \r\n \r\nTotal \r\n \r\n$9,727,723.41 \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2008, the carrying value ofthe School District's total investments was $57,524,197.76, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, 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 of the State of Georgia, Office ofTreasury 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. \r\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, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. \r\nNote 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNote 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\nTotal Capital Assets Not Being Depreciated \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\nTotal Capital Assets, Being Depreciated, Net \r\nGovernmental Activity Capital Assets - Net \r\n \r\nBalances Jul)' 1, 2007 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2008 \r\n \r\n$ 5,648,416.67 $1,767,757.40 $ 533,155.80 7,067,272.28 \r\n$ 6,181,572.47 $ 8,835,029.68 $ \r\n \r\n0.00 $ 7,416,174.07 7,600,428.08 \r\n0.00 $ 15,016,602.15 \r\n \r\n$120,797,790.20 $ 524,530.00 \r\n \r\n$121,322,320.20 \r\n \r\n11,874,424.26 \r\n \r\n568,328.00 $ 37,885.00 12,404,867.26 \r\n \r\n8,925,059.76 \r\n \r\n95,282.00 \r\n \r\n9,020,341.76 \r\n \r\n13,476,569.25 5,703,471.07 3,095,381.47 \r\n \r\n1,731,969.00 955,103.04 474,667.00 \r\n \r\n34,379.25 \r\n \r\n15,208,538.25 6,624,194.86 3,570,048.47 \r\n \r\n$ I 19,321,852.43 $-1,973,599.04 $ 3,505.75 $117,344,747.64 \r\n \r\n$125,503,424.90 $ 6,861,430 64 $ 3,505.75 $ J32,361,342.72 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 2,008,210.16 \r\n \r\n$ 80,429.78 4,611.00 70,445.36 31,718.83 \r\n727,499.54 \r\n \r\n914,704.51 238,824.37 \r\n \r\n$ 3,161,739.04 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: \r\n \r\nDistrict-wide Capital Proiects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nDebt Service Funds \r\n \r\nRestricted Investments: Debt Services Capital Acquisitions \r\n \r\n$ 302,825.50 \r\n \r\n$ \r\n \r\n$25,669,116.01 $ 17,353,365.16 \r\n \r\n24,793.97 \r\n \r\n- I8 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 7: INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2008, consisted of the following: \r\n \r\nDistrict-wide Capital Projects Debt Service Fund \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\n$ 111,770.55 $ 111,770.55 \r\n \r\nTotal \r\n \r\n$ 111,770.55 $ 111,170.55 \r\n \r\nTransfer is to move funds due to a fiscal year 2005 transfer made per audit but not on the general ledger. \r\n \r\nNote 8: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2008, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects Debt Service Fund \r\n \r\n$ 58,900.00 $ 9,531,909.79 \r\n \r\nTotal \r\n \r\n$ ss,200.00 $ 9,53 L909.19 \r\n \r\nTransfers are used (1) to move SPLOST collections from the Capital Projects Fund to the Debt Service Fund and (2) to move local funds from the General Fund to the Capital Projects Fund for renovations of the Operations facility. \r\nNote 9: RISK MANAGEMENT \r\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. \r\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 \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 9: RISK MANAGEMENT \r\n \r\nadminister 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. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2007 2008 \r\n \r\n$ \r\n \r\n0.00 $ 465,510.00 $ 272,610.00 $ 192,900.00 \r\n \r\n$ 192,900.00 $ 1,017,997.00 $ 745,702.90 $ 465,194.10 \r\n \r\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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2007 2008 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\n$ \r\n \r\n0.00 $ 19,685.00 $ \r\n \r\n$ \r\n \r\n0.00 $ 27,332.50 $ \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n19,685.00 $ \r\n \r\n0.00 \r\n \r\n27,332.50 $ \r\n \r\n0.00 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$100,000.00 $100,000.00 \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment and mobile units. 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 $359,006.73. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2009 2010 2011 2012 \r\n \r\n$ 340,429.20 340,429.20 340,429.20 168,519.62 \r\n \r\nTotal \r\n \r\n$ 1,189!807.22 \r\n \r\nNote 11: LONG-TERM DEBT \r\n \r\nCOMPENSATED ABSENCES Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2006 General Government - Series 2007 \r\n \r\n3.610 % $ 9,910,000.00 \r\n \r\n4.00% - 5.00% \r\n \r\n5,555,000.00 \r\n \r\n$ 15,465,000.00 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \r\n \r\nBalance Jul:i: I, 2007 \r\n \r\nGovernmental Funds \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2008 \r\n \r\nDue Within One Year (I) \r\n \r\nG.O. Bonds Compensated Absences \r\n \r\n$28,570,000.00 \r\n \r\n$13, I05,000.00 $15,465,000.00 $ 5,555,000.00 \r\n \r\n256,445.57 $ 221,053.72 \r\n \r\n193,962.43 \r\n \r\n283,536.86 \r\n \r\nBalance June 30, 2008 \r\n \r\n$28,826,445.57 $ 221,053.12 $13,298,962.43 $15,748,536.86 $ 5,555,QQQ,QQ \r\n \r\n(I) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 11: LONG-TERM DEBT \r\n \r\nAt June 30, 2008, payments due by fiscal year which includes principal and interest for these items \r\n \r\nare as follows: \r\n \r\nGeneral Obligation \r\n \r\nFiscal Year \r\n \r\nDebt \r\n \r\nEnded June 30 \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2009 2010 2011 2012 2013 2014- 2017 \r\n \r\n$ 5,555,000.00 9,910,000.00 \r\n \r\n$ 605,651.00 357,751.00 357,751.00 357,751.00 357,751.00 \r\n1,431,004.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$15.465.000.00 $3,467,659.00 \r\n \r\nNote 12: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $2,115,570.04 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $2,085,281.01 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $15,716.03 \r\n \r\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 $14,573.00 \r\n \r\nNote 13: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008, together with funding available: \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 13: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nAntioch Elementary School Career Academy Dug Gap Elementary School Eastbrook Middle School Eastside Elementary School New Elementary - Cedar Ridge New High School Northwest High School Southeast High School Varnell Elementary School \r\n \r\n$ 1,886,501.34 399,496.00 137,077.00 216,423.00 74,547.50 \r\n1,641,261.89 1,968,569.00 1,998,506.71 \r\n950,828.93 2,193,689.90 \r\n \r\n$ 907,684.16 \r\n1,407,611.00 1,205,014.00 \r\n \r\n$11,466.901.27 $3,520,309.16 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 14: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\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. \r\n \r\nNote 15: SUBSEQUENT EVENTS \r\n \r\nIn the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $68,335,000.00. The proceeds from these bonds will be used for acquisition, construction, equipping, and furnishing ofnew school buildings; the addition, renovation, repair and improvement to existing school buildings and equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition ofland; and the acquisition and purchase of any real property necessary and desirable therefore, both real and personal. \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 16: POSTEMPLOYMENT BENEFITS \r\n \r\nGeorgia Retiree Health Benefit Fund \r\n \r\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. \r\n \r\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. \r\n \r\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: \r\n \r\nTeachers Non-Certificated Employees \r\n \r\n18.534% of state-based salaries $162.72 per month \r\n \r\nThe School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $10,711,828.84, which equaled the required contribution. \r\n \r\nNote 17: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\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. \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 17: RETIREMENT PLANS \r\n \r\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: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2008 2007 2006 \r\n \r\n100% 100% 100% \r\n \r\n$6,214,113.52 $ 5,868,585.66 $ 5,439,526.00 \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ 26,053,021.00 $ 26,053,021.00 $ 26,883,098.16 \r\n \r\n772,580.80 \r\n \r\n74,216,859.00 \r\n \r\n74,216,859.00 \r\n \r\n78,856,598.96 \r\n \r\n10,567,626.00 \r\n \r\n10,567,626.00 \r\n \r\n9,880,578.59 \r\n \r\n2,011,819.00 \r\n \r\n2,011,819.00 \r\n \r\n2,296,911.49 \r\n \r\n322,998.00 \r\n \r\n322,998.00 \r\n \r\n519,247.74 \r\n \r\n620,313.00 \r\n \r\n620,313.00 \r\n \r\n4,422,904.10 \r\n \r\n$ 113,792,636.00 $ 113,792,636.00 $ 123,631,919.84 \r\n \r\n$ 77,848,391.00 $ 77,848,391.00 $ 78,578,108.43 \r\n \r\n4,248,459.00 2,914,976.00 2,713,280.00 \r\n542,792.00 7,151,046.00 \r\n624,072.00 7,240,261.00 4,723,197.00 2,027,757.00 \r\n211,532.00 10,000.00 \r\n6,616,864.00 \r\n \r\n4,248,459.00 2,914,976.00 2,713,280.00 \r\n542,792.00 7,151,046.00 \r\n624,072.00 7,240,261.00 4,723,197.00 2,027,757.00 \r\n211,532.00 10,000.00 \r\n6,616,864.00 \r\n \r\n4,380,260.55 2,768,530.96 2,617,407.15 \r\n637,756.63 7,585,405.01 \r\n447,808.11 8,091,064.70 5,122,296.63 2,169,737.38 \r\n889,112.49 560,705.85 6,638,684.06 \r\n \r\n$ 116,872,627.00 $ 116,872,627.00 $ 120,486,877.95 \r\n \r\n$ -3,079,991.00 $ -3,079,991.00 $ \r\n \r\n3,145,041.89 \r\n \r\n$ \r\n \r\n236,084.00 $ \r\n \r\n236,084.00 $ \r\n \r\n-576 084.00 \r\n \r\n-576 084.00 \r\n \r\n11,351.50 -58,900.00 \r\n \r\n$ \r\n \r\n-340,000.00 $ \r\n \r\n-340,000.00 $ \r\n \r\n-47 548.50 \r\n \r\n$ -3,419,991.00 $ -3,419,991.00 $ 3,097,493.39 \r\n \r\n11,103,080.74 \r\n \r\n11,113,225.62 \r\n \r\n12,350,248.47 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n7,693,234.62 $ 15447741.86 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n 27  \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education Safe and Drug-Free Schools and Communities - State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 6,396,235.75 \r\n \r\n$ 6,396,235.75 \r\n \r\n10.550 10.665 \r\n \r\nN/A \r\n \r\n358,245.72 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n$ 6,754,481.47 \r\n \r\n84.027 84.173 \r\n \r\nNIA $ 2,333,455.91 \r\n \r\nN/A \r\n \r\n80,124.95 \r\n \r\n$ 2,413,580.86 \r\n \r\n84.048 84.196 84.365 84.367 84.011 84.186 84.298 84.010 \r\n \r\nN/A \r\n \r\n92,201.71 \r\n \r\nNIA \r\n \r\n31,587.15 \r\n \r\nN/A \r\n \r\n303,252.61 \r\n \r\nN/A \r\n \r\n430,808.57 \r\n \r\nN/A \r\n \r\n64,676.80 \r\n \r\nN/A \r\n \r\n36,732.90 \r\n \r\nNIA \r\n \r\n16,771.31 \r\n \r\nNIA \r\n \r\n1,722,999.75 \r\n \r\n$ 5,112,611.66 \r\n \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n$ 11,867,093.13 \r\n \r\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. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($1,172,472.22) were not maintained separately and are included in the 2008 National School Lunch Program. \r\n(3) Funds earned on this program in the amount of $5,828.53 do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Whitfield 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. \r\nSee notes to the basic financial statements. \r\n \r\n- 28- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\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 Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Graduation Coaches Health Insurance Middle School Remediation Grant National Teacher Certification Preschool Handicapped Program Teachers' Retirement Virtual Schools \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nGENERAL \r\n \r\nCAPITAL PROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 422,267.56 \r\n \r\n$ \r\n \r\n422,267.56 \r\n \r\n4,991,238.00 595,759.00 \r\n11,368,805.00 996,755.00 \r\n4,959,272.00 468,339.00 \r\n8,069,517.00 7,062,272.00 3,081,756.00 6,121,964.00 2,922,069.00 \r\n31,515.00 667,914.00 2,837,992.00 1,530,182.00 465,628.00 281,383.00 \r\n1,637,767.00 3,041,311.00 3,636,912.00 \r\n1,430,695.00 243,486.00 244,219.00 34,653.00 \r\n9,556,644.00 354,188.00 235,579.57 \r\n-1,223,530.00 \r\n377,642.06 2,085,281.01 \r\n11,663.00 181,570.00 100,826.73 \r\n15,716.03 2,775.00 \r\n \r\n4,991,238.00 595,759.00 \r\n11,368,805.00 996,755.00 \r\n4,959,272.00 468,339.00 \r\n8,069,517.00 7,062,272.00 3,081,756.00 6,121,964.00 2,922,069.00 \r\n31,515.00 667,914.00 2,837,992.00 1,530,182.00 465,628.00 281,383.00 \r\n1,637,767.00 3,041,311.00 3,636,912.00 \r\n1,430,695.00 243,486.00 244,219.00 34,653.00 \r\n9,556,644.00 354,188.00 235,579.57 \r\n-1,223,530.00 \r\n377,642.06 2,085,281.01 \r\n11,663.00 181,570.00 100,826.73 \r\n15,716.03 2,775.00 \r\n \r\n$ \r\n \r\n862,308.60 \r\n \r\n14,573.00 \r\n \r\n862,308.60 14 573.00 \r\n \r\n$ 78,856,598.96 $ \r\n \r\n862,308.60 $ 79, 7181907.56 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n-29- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nAcquisitions, construction and equipping of a new elementary school, a new middle school and a new high school, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore; renovations and improvements at existing schools, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore; the acquisition, construction and equipping of a central warehouse facility; the acquisition of school buses; and systemwide technology improvements. \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair, and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore, both real and personal. \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 53,531,937.00 $ 75,211,707.03 $ 2,390,014.10 $ 52,598,709.38 Ongoing \r\n \r\n96,100,000.00 \r\n \r\n91,200,000.00 7,363,423.52 \r\n \r\n667,385.29 Ongoing \r\n \r\n$ 149,631,937.00 $ 166,411,707.03 $ 9,753,437.62 $ 53,266,094.67 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. \r\n(3) The voters of Whitfield 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASED EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\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) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n5,582,046.00 $ 5,609,730.62 $ 127,301.46 $ 5,737,032.08 \r\n \r\n668,114.00 \r\n \r\n553,417.67 \r\n \r\n390.04 \r\n \r\n553,807.71 \r\n \r\n12,720,280.00 12,986,635.96 \r\n \r\n511,824.60 \r\n \r\n13,498,460.56 \r\n \r\n1,121,394.00 \r\n \r\n1,252,624.32 \r\n \r\n5,820.83 \r\n \r\n1,258,445.15 \r\n \r\n5,571,971.00 \r\n \r\n6,061,556.12 \r\n \r\n190,007.99 \r\n \r\n6,251,564.11 \r\n \r\n540,661.00 9,047,995.00 7,896,990.00 3,455,895.00 6,909,290.00 \r\n3,232,442.00 34,709.00 \r\n747,777.00 3,168,198.00 \r\n \r\n548,799.64 10,648,090.35 \r\n9,915,147.39 2,775,268.29 \r\n23,279.27 878,233.01 4,444,823.07 429,207.61 \r\n4,224.83 3,260,025.68 \r\n95,372.10 1,184,960.57 3,055,731.09 \r\n \r\n1,094.07 386,196.66 396,828.21 278,907.38 \r\n17,905.66 551.22 \r\n45,840.88 1,915.57 \r\n11,768.37 \r\n10,837.53 29 179.44 \r\n \r\n549,893.71 11,034,287.01 10,311,975.60 \r\n3,054,175.67 \r\n41,184.93 878,784.23 4,490,663.95 431,123.18 \r\n4,224.83 3,271,794.05 \r\n95,372.10 1,195,798.10 3,084,910.53 \r\n \r\n$ \r\n \r\n60,697,762.00 $ 63,727,127.59 $ 2,016,369.91 $ 65,743,497.50 \r\n \r\n1,715,952.00 318 978.00 \r\n \r\n2,354,575.95 345,803.87 \r\n \r\n179,641.55 \r\n \r\n2,534,217.50 345,803.87 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n62,732,692.00 $ 66,427,507.41 $ 2,196,011.46 $ 68,623,518.87 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 14, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\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 \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofWhitfield County Board ofEducation as ofand for the year ended June 30, 2008, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated July 14, 2009. 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield County Board ofEducation'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 Whitfield County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Whitfield County Board of Education's internal control over financial reporting. \r\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. \r\n2008YB-30 \r\n \r\n A control deficiency exists when the design or operation of a 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 Whitfield 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 ofthe Whitfield County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Whitfield County Board ofEducation's internal control. We consider item FS-7551-08-01, in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \r\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 Whitfield County Board of Education's internal control. \r\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 believe that the significant deficiency described above is not a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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. \r\nWe noted certain matters that we have reported to management of Whitfield County Board of Education in a separate letter dated July 14, 2009. \r\nWhitfield County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Whitfield County Board of Education's response and, accordingly, we express no opinion on it. \r\n2008YB-30 \r\n \r\n This report is intended solely for the information and use ofmanagement, members ofthe Whitfield 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. \r\nRespectfully submitted, \r\n~ w..:f)~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:mb 2008YB-30 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n[2] \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education 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 ofits major Federal programs for the year ended June 30, 2008. Whitfield County Board ofEducation'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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 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 Whitfield County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2008SA-15 \r\n \r\n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Whitfield County Board ofEducation's compliance with those requirements. \r\nIn our opinion, the Whitfield 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, 2008. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements, which is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7551-08-01. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Whitfield County Board of Education's internal control over compliance. \r\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 ofcompliance 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. \r\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. \r\nOur consideration ofthe 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. \r\nWhitfield County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Whitfield County Board of Education's response and, accordingly, we express no opinion on it. \r\n2008SA-15 \r\n \r\n This report is intended solely for the information and use ofmanagement, members ofthe Whitfield 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. \r\n \r\nRWH:mb 2008SA-15 \r\n \r\nRespectfully submitted, \r\n~ w..:fd~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-06-01 FS-7551-07-01 \r\n \r\nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Finding Control Number: FS-7551-07-01 \r\n \r\nA Business Advisory Committee has been created that consist of eight members and is chaired by the Chief Financial Officer of the School District. \r\n \r\nPurpose: To support and assess the financial and accounting activities of the School District to ensure sound fiscal management and internal controls while gaining a greater understanding of our best practices. \r\n \r\nDuties:  Perform annual internal control audits  Assess, review, and revise procedures manual.  Assess, review, and revise internal control audit questionnaire and procedures.  Train and support new accounting personnel through orientation meetings and mentoring teams.  Discuss and communicate specific accounting and fiscal procedures to gain a better understanding of internal controls.  Design and assist with interviews for potential accounting personnel. \r\n \r\nMembers: Four School Bookkeepers (3 year terms) Business Department (permanent members) \r\n \r\nRound table meetings of school bookkeepers are periodically held for the purpose of communicating improvements in procedures and internal control deficiencies associated with the prior year findings. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement significant deficiency related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nThe significant deficiency described above is not considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Whitfield County Board of Education did not disclose any significant deficiencies in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510{a) ofOMB Circular A-133 The Whitfield County Board of Education's audit did not disclose an audit finding required to be reported by section .510(a) of 0MB Circular A-133; however, we noted a certain instance of noncompliance which is included in section IV of this report. \r\n \r\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 \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $356,187.64. \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7551-08-01 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-7551-07-01 and FS-7551-06-01) from the years ended June 30, 2007, and June 30, 2006, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nCash and Cash Equivalents The bank reconciliation function was not separated from the record keeping and voucher payment functions. \r\n \r\nRevenues/Recei vab Ies/Receipts Deposit preparation was not separated from the record keeping and cash custody functions. \r\n \r\nDuring our tests of transactions we noted instances where:  Receipts did not have adequate supporting documentation.  Receipts were not deposited in a timely manner.  Revenues were not recorded in the proper amount. \r\n \r\nExpenditures/Liabilities/Disbursements During our tests of transactions we noted instances where: \r\n Vouchers did not have an approved purchase order.  Vouchers did not always show documentation in the proper account. \r\n \r\n-2 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7551-08-01 \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \r\n \r\nEffect: \r\n \r\nErrors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation: \r\n \r\nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures Nonmaterial Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-7551-08-01 \r\n \r\nCondition: \r\n \r\nA review ofthe Child Nutrition Cluster (CFDA 10.553 and 10.555) program revealed an expenditure which was considered to be unallowable and not in compliance with grant requirements. \r\n \r\nCriteria: \r\n \r\nProvisions of 0MB Circular A-87, Cost Principles for Determining Allowable Costs, required that \"to be allowable under Federal awards, costs must be ... necessary and reasonable for proper and efficient performance and administration of the Federal award\". \r\n \r\nQuestioned Cost: $1,161.46 \r\n \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures Nonmaterial Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Finding Control Number: FA-7551-08-01 \r\n \r\nInformation: \r\n \r\nA review of expenditures charged to the Child Nutrition Cluster revealed a purchase which was considered unallowable. Items were purchased as part ofthe promotion ofa School Breakfast Program and given away in a drawing to students that had participated in the School Breakfast Program. \r\n \r\nCause: \r\n \r\nThe School District failed to ensure that all Child Nutrition Program expenditures were allowable in accordance with program guidelines and 0MB Circular A-87. \r\n \r\nEffect: \r\n \r\nThe School District's purchase ofgift items are not an allowable expenditure of this Federal program. \r\n \r\nRecommendation: \r\n \r\nThe School District should ensure that all costs are allowable under 0MB Circular A-87. The Georgia Department of Education should further review this matter to determine if a reclaim of funds is necessary. \r\n \r\n-4 - \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2008 \r\nFinding Control Number: FS-7551-08-01 \r\nWe concur with this finding. During the fiscal year 2009, a Business Advisory Committee (BAC) was created and designed to support and assess the financial and accounting activities ofthe district to ensure sound fiscal management over internal controls. Duties of the committee include the following: \r\n Perform annual internal control audits.  Assess, review and revise procedures manual.  Assess, review and revise internal control audit questionnaires and procedures.  Train and support new accounting personnel through orientation meetings and mentoring \r\nteams.  Discuss and communicate specific accounting and fiscal procedures to gain a better \r\nunderstanding of internal controls.  Design and assist with interviews for potential accounting personnel. \r\nThe committee membership will be comprised of four bookkeepers and four central office financial personnel. Each member will serve a 4 year term. \r\nFinding Control Number: FA-7551-08-01 \r\nWe concur with this finding. A new procedure was implemented July 1, 2009, that requires prior approval of all promotional programs by the food service director before related expenditures. \r\nContact Person: Kenny Sheppard, Chief Financial Officer Telephone: (706) 217-6701, Fax: (706) 217-6703 Email: ksheppard@whitfield.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2006-h2007","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2007-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2006-h2007"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n29 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n30 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\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 \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 14, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Whitfield 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 ofthe Whitfield County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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 Whitfield 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. \r\n \r\n2007ARL-11 \r\n \r\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 of the Whitfield County Board of Education, as of June 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 14, 2008, on our consideration of the Whitfield 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. \r\nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through viii and page 27 respectively, are not a required part ofthe basic financial statements but are 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. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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. \r\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. \r\nRespectfully submitted, \r\n' \r\nLu.~ \r\nell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2007ARL-11 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2007, and June 30, 2006. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2007 and 2006 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $161.8 million and $150.3 million, respectively, for the fiscal years ended June 30, 2007, and 2006. Of these amounts $10.5 and $10.1 million, respectively, for fiscal years 2007 and 2006 are available for spending at the School District's discretion. \r\n The School District had $120.1 million and $109.6 million, respectively, in expenses for the fiscal years ended June 30, 2007, and June 30, 2006, relating to governmental activities. Only $77.1 million and $73.2 million of the above mentioned expenses for 2007 and 2006 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $54.4 million and $51.2 million, respectively, for 2007 and 2006 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $54.4 million or 41.4% of all revenues totaling $131.6 million for fiscal year 2007 and $51.2 million or 41.2% of all revenues totaling $124.3 million for fiscal year 2006. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nFiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Whitfield County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDISTRICT-WIDE STATEMENTS \r\nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \r\nFUND FINANCIAL STATEMENTS \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\nGovernmental Funds: Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial \r\nii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nresources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \r\n \r\nFiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal years 2007 and 2006. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 79,911,134 $ 47,779,469 \r\n \r\n125,503,425 \r\n \r\n127,175,729 \r\n \r\nTotal Assets \r\n \r\n$ 205,414,559 $ 174,955,198 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 14,764,083 $ 15,083,695 \r\n \r\n28,826,445 \r\n \r\n9,547,176 \r\n \r\nTotal Liabilities \r\n \r\n$ 43,590,528 $ 24,630,871 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 120,662,865 30,625,163 10,536,003 \r\n \r\n$ 124,900,022 15,308,769 10,115,536 \r\n \r\nTotal Net Assets \r\n \r\n$ 161,824,031 $ 150,324,327 \r\n \r\nTable 2 shows the Changes in Net Assets for fiscal years ending June 30, 2007, and June 30, 2006. \r\n \r\nlll \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nTable 2 Change in Net Assets \r\n \r\nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\n$ 2,187,705 74,394,286 557,612 \r\n \r\n$ 1,872,883 66,658,020 4,629,686 \r\n \r\nTotal Program Revenues \r\n \r\n$ 77,139,603 $ 73,160,589 \r\n \r\nGeneral Revenues: \r\n \r\nTaxes \r\n \r\nProperty Taxes \r\n \r\nFor Maintenance and Operations \r\n \r\n$ \r\n \r\nSales Taxes \r\n \r\nSpecial Purpose Local Option Sales Tax \r\n \r\nFor Capital Projects \r\n \r\nIntangible Recording Tax \r\n \r\nReal Estate \r\n \r\nGrants and Contributions not Restricted to \r\n \r\nSpecific Programs \r\n \r\nInvestment Earnings \r\n \r\nMiscellaneous \r\n \r\n25,766,816 \r\n13,237,194 580,562 345,548 \r\n8,273,440 2,420,906 3,800,931 \r\n \r\n$ 25,055,889 \r\n13,498,946 439,441 205,023 \r\n6,681,124 1,160,736 4,138,207 \r\n \r\nTotal General Revenues \r\n \r\n$ 54,425,397 $ 51,179,366 \r\n \r\nTotal Revenues \r\n \r\n$ 131,565,000 $ 124,339,955 \r\n \r\nProgram Expenses 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 Operations ofNon-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 78,245,225 \r\n4,213,414 2,713,874 2,750,380 \r\n586,632 7,269,339 \r\n775,140 7,621,139 5,198,278 1,873,060 \r\n936,323 \r\n584,318 7,024,875 \r\n273,300 \r\n \r\n$ 69,799,495 \r\n4,602,661 2,252,468 2,541,247 1,178,738 6,171,178 1,188,413 7,349,033 4,176,291 1,634,283 1,079,943 \r\n652,528 6,533,228 \r\n413,023 \r\n \r\nTotal Expenses Increase in Net Assets \r\n \r\n$ 120,065,297 $ I IA99!703 \r\n \r\n$ 109,572,529 \r\n \r\n$ \r\n \r\n' \r\n14)67A26 \r\n \r\nIV \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 Year 2006 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 Year 2006 \r\n \r\nInstruction \r\n \r\n$ 78,245,225 $ 69,799,495 $ 25,003,681 $ 16,732,740 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n4,213,414 4,602,661 2,715,158 3,058,599 \r\n \r\nImprovement of Instructional Services \r\n \r\n2,713,874 2,252,468 1,458,384 1,208,672 \r\n \r\nEducational Media Services \r\n \r\n2,750,380 2,541,247 1,070,937 1,255,295 \r\n \r\nGeneral Administration \r\n \r\n586,632 1,178,738 -1,463,146 -583,421 \r\n \r\nSchool Administration \r\n \r\n7,269,339 6,171,178 3,562,433 3,517,723 \r\n \r\nBusiness Administration \r\n \r\n775,140 1,188,413 \r\n \r\n746,722 1,188,413 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n7,621,139 7,349,033 3,209,210 3,705,680 \r\n \r\nStudent Transportation Services \r\n \r\n5,198,278 4,176,291 2,922,980 2,439,854 \r\n \r\nCentral Support Services \r\n \r\n1,873,060 1,634,283 1,762,326 1,617,303 \r\n \r\nOther Support Services \r\n \r\n936,323 1,079,943 \r\n \r\n828,651 \r\n \r\n946,067 \r\n \r\nOperations ofNon-Instructional Services \r\n \r\nCommunity Services \r\n \r\n584,318 \r\n \r\n652,528 \r\n \r\n581,271 \r\n \r\n649,840 \r\n \r\nFood Services \r\n \r\n7,024,875 6,533,228 \r\n \r\n253,786 \r\n \r\n262,152 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n273,300 \r\n \r\n413,023 \r\n \r\n273,300 \r\n \r\n413,023 \r\n \r\nTotal Expenses \r\n \r\n$120,065.297 $109.572.529 $ 42,925,693 $ 36,411.940 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $132.3 million and total expenditures of$123.2 million for fiscal year 2007 and total revenues of $124.9 million and total expenditures of $132.1 million for fiscal year 2006. The decrease in expenditures is due to a decrease in construction activity. \r\n \r\nGENERAL FUND BUDGETING HIGHLIGHTS \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal years 2007 and 2006, the School District amended its general fund budget as needed. \r\n \r\nV \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nDuring fiscal year 2007, the General Fund had final actual revenues totaling $117.2 million, which exceeded the final budgeted amounts of $103 .1 million by $14.1 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting principles relative to local, State and Federal revenues. Local taxes exceeded budgeted revenues $1.2 million due to growth in the tax digest. State revenues exceeded budgeted revenues $3 .4 million due to State supplemental budget adjustments relative to enrollment growth and increases in State grants. Federal revenue exceeded budgeted revenues $4.5 million due to conservative budgeting. Miscellaneous revenues exceeded budgeted revenues $3.8 due to unbudgeted revenues from school activity accounts of $3.8 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return was better than anticipated and interest was maximized through better than expected cash flow. \r\nDuring fiscal year 2006, the General Fund had final actual revenues totaling $106.3 million, which exceeded the final budgeted amounts of $97.1 million by $9.2 million. This difference (final actual vs. final budget) was primarily due to an increase in State revenues over original budget by $3.5 million and actual miscellaneous revenue from primarily school activity accounts, over original budget by $4.1 million. Other differences include increase in Federal funding over budget, conservative budgeting relative to sales tax (real estate transfer and intangible taxes) and conservative budgeting relative to investment income all resulting in $1.6 million actual over budget. \r\nDuring the fiscal year 2007, the General Fund had final actual expenditures totaling $116.0 million, which exceeded the final budgeted amount of $106.5 million by $9.5 million. The instructional budgeted expenditures exceeded actual expenditures $6.2 million due to increase services funded through Federal and State grants. The total expenditures include unbudgeted expenditures from school activity accounts of $2.2 million. \r\nFinal actual expenditures and other financing uses during fiscal year 2006, totaling $108.1 million represented an increase from the final budgeted amount of $101.2 million. The increase in actual expenditures versus final budgeted expenditures totaling $6.8 million was primarily due to increase in actual instructional expenses of $1.4 million due to increased Federal funding and growing enrollment and school activity related expenses of $3.5 million. \r\nGeneral fund revenues exceeded expenditures and other financing uses resulting in a surplus of $1,176,450 for the fiscal year 2007. General fund expenditures and other financing uses exceeded revenues resulting in a deficit of $2,051,800 that was funded with reserves in the fiscal year 2006. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt the fiscal years ended June 30, 2007, and June 30, 2006, the School District had $125.5 million and $127.2 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School \r\nVI \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nDistrict completed construction of a new elementary school and a new middle school during the fiscal year. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 5,648,417 533,156 \r\n107,321,221 6,170,953 5,829,678 \r\n \r\n$ 4,275,610 21,482,515 91,595,699 4,821,404 5,000,501 \r\n \r\nTotal \r\n \r\n$ 1251503.425 $ 12711751729 \r\n \r\nDue to the ongoing growth in the county, the School District has numerous construction projects including new buildings, additions and renovations. \r\n \r\nDebt \r\n \r\nAt the fiscal years ending June 30, 2007 and June 30, 2006, the School District had $28.8 million and $9.5 million, respectively, in debt outstanding. The School District issued two bonds during the fiscal year totaling $23.9 million. Table 5 summarizes the School District's debt for general obligation bonds. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\nCompensated Absences Bonds Payable \r\n \r\n$ 256,446 $ 237,176 \r\n \r\n28,570,000 \r\n \r\n9,310,000 \r\n \r\nTotal \r\n \r\n$ 28,826,446 $ 9,547,176 \r\n \r\nAt June 30, 2007, and June 30, 2006, the School District's assigned bond rating was \"Aa2\" as determined by Moody's Investors Services, Inc. \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nCURRENT ISSUES Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n Economic Slowdown - Increases in total State funding for education have been minimal and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. The School District continues to provide an increasing amount of local monies to meet various mandated educational requirements. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the Whitfield County School District remains optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nVlll \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,325,933.95 \r\n \r\n61,289,424.02 \r\n \r\n395,926.21 2,425,945.64 8,944,425.20 1,411,001.24 \r\n878,208.57 240,269.58 \r\n \r\n5,648,416.67 533,155.80 \r\n8,925,059.76 120,797,790.20 \r\n11,874,424.26 -22,275,421. 79 \r\n \r\n$ 205,414,559.31 \r\n \r\n$ \r\n \r\n970,449.76 \r\n \r\n13,744,928.13 \r\n \r\n48,705.13 \r\n \r\n13,105,000.00 15,721,445.57 \r\n \r\n$ \r\n \r\n43,590,528.59 \r\n \r\n$ 120,662,865.36 \r\n991,467.51 5,379,359.11 24,254,335.30 10,536,003.44 \r\n$ 161,824,030.72 \r\n \r\n$ 205,414,559.31 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2007 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 78,245,225.19 $ \r\n4,213,414.30 2,713,873.74 2,750,380.21 \r\n586,631.71 7,269,338.65 \r\n775,139.78 7,621,138.73 5,198,278.42 1,873,059.68 \r\n936,322.67 \r\n584,318.55 7,024,875.12 \r\n273,300.00 \r\n$ 120,065,296.75 $ \r\n \r\n7,744.35 366,676.35 \r\n1,813,284.43 2,187,705.13 \r\n \r\nNet Assets - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2 - \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n53,165,070.05 $ \r\n \r\n1,131,579.98 1,255,489.26 1,676,880.96 2,049,588.31 3,704,791.36 \r\n28,418.27 4,410,855.52 1,799,777.15 \r\n110,733.27 107,671.52 \r\n \r\n3,047.55 4,950,382.84 \r\n \r\n$ \r\n \r\n74,394,286.04 $ \r\n \r\n68,730.25 $ \r\n2,562.32 189.73 \r\n2,114.16 1,072.68 475,521.60 \r\n7,421.75 \r\n557 612.49 $ \r\n \r\n-25,003,680.54 \r\n-2,715,157.97 -1,458,384.48 -1,070,936.93 1,463,146.33 -3,562,433.13 \r\n-746,721.51 -3,209,210.53 -2,922,979.67 -1,762,326.41 \r\n-828,651.15 \r\n-581,271.00 -253, 786.10 -273 300.00 \r\n-42,925,693.09 \r\n \r\n$ \r\n \r\n25,766,815.42 \r\n \r\n13,237,194.21 580,562.47 345,548.04 \r\n8,273,440.14 2,420,905.79 3,800,930.74 \r\n \r\n$ \r\n \r\n54,425,396.81 \r\n \r\n$ \r\n \r\n11,499,703.72 \r\n \r\n150,324,327.00 \r\n \r\n$ \r\n \r\n161,824,030.72 \r\n \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Designated for Student Activities Designated for Self Insurance Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,873,484.17 $ 452,449.78 \r\n \r\n$ 4,325,933.95 \r\n \r\n10,407,210.48 45,985,144.66 $ 4,897,068.88 61,289,424.02 \r\n \r\n1,117,847.12 8,944,425.20 1,411,001.24 \r\n878,208.57 240,269.58 \r\n \r\n395,926.21 2,130,876.04 \r\n \r\n395,926.21 3,248,723.16 8,944,425.20 1,411,001.24 \r\n878,208.57 240,269.58 \r\n \r\n$ 26,872,446.36 $ 48,964,396.69 $ 4,897,068.88 $ 80,733,911.93 \r\n \r\n$ 777,269.76 $ 13,744,928.13 \r\n$ 14,522,197.89 $ \r\n \r\n193,180.00 48 705.13 \r\n241 885.13 \r\n \r\n$ 970,449.76 13,744,928.13 48 705.13 \r\n$ 14,764,083.02 \r\n \r\n$ 811,023.05 \r\n \r\n$ 811,023.05 \r\n \r\n$ 482,290.23 $ 4,897,068.88 \r\n \r\n5,379,359.11 \r\n \r\n240,269.53 \r\n \r\n240,269.53 \r\n \r\n48,240,221.33 \r\n \r\n48,240,221.33 \r\n \r\n1,033,514.28 1,123,287.47 \r\n \r\n1,033,514.28 1,123,287.47 \r\n \r\n9142154.14 \r\n \r\n9142154.14 \r\n \r\n$ 12,350,248.47 $ 48,722,511.56 $ 4,897,068.88 $ 65,969,828.91 \r\n \r\n$ 26,872,446.36 $ 48,964,396.69 $ 4,897,068.88 $ 80,733,911.93 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\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. \r\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: \r\nBonds Payable Compensated Absences \r\nTotal Long-Term Liabilities \r\n \r\n$ 65,969,828.91 \r\n \r\n$ 5,648,416.67 533,155.80 \r\n8,925,059.76 120,797,790.20 \r\n11,874,424.26 -22,275,421. 79 \r\n \r\n125,503,424.90 \r\n \r\n-822,777.52 \r\n \r\n$ -28,570,000.00 -256 445.57 \r\n \r\n-28,826,445.57 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 161,824,030.72 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nAccrued Interest on Bonds Sold Proceeds of Long-Term Capital Related Debt Premiums on Bonds Sold Sale of Equipment Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 26,534,159.94 \r\n \r\n926,110.51 $ 13,237,194.21 \r\n \r\n72,350,106.10 \r\n \r\n107,992.50 \r\n \r\n9,994,269.93 \r\n \r\n2,187,705.13 \r\n \r\n655,649.43 \r\n \r\n1,761,331.23 $ \r\n \r\n4,533,098.66 \r\n \r\n$ 117181 099.70 $ 15,106,517.94 $ \r\n \r\n$ \r\n3,925.13 \r\n \r\n26,534,159.94 14,163,304.72 72,458,098.60 \r\n9,994,269.93 2,187,705.13 2,420,905.79 4,533,098.66 \r\n \r\n3 925.13 $ 132,291,542.77 \r\n \r\n$ 75,230,963.77 \r\n \r\n$ 75,230,963.77 \r\n \r\n4,213,414.30 2,713,873.74 2,633,789.11 \r\n577,991.18 7,180,978.76 \r\n490,193.83 $ \r\n7,582,788.01 5,293,758.05 1,888,136.87 \r\n936,322.67 584,318.55 6,696,145.39 \r\n \r\n284,945.95 1,923,296.72 \r\n \r\n4,213,414.30 2,713,873.74 2,633,789.11 \r\n577,991.18 7,180,978.76 \r\n775,139.78 7,582,788.01 5,293,758.05 1,888,136.87 \r\n936,322.67 584,318.55 6,696,145.39 1,923,296.72 \r\n \r\n$ 4,650,000.00 \r\n273,300.00 \r\n \r\n4,650,000.00 273 300.00 \r\n \r\n$ 116,022,674.23 $ 2,208,242.67 $ 4,923,300.00 $ 123,154,216.90 \r\n \r\n$ 1,158,425.47 $ 12,898,275.27 $ -4,919,374.87 $ 9,137,325.87 \r\n \r\n$ \r\n \r\n22,777.22 $ \r\n \r\n22,777.22 \r\n \r\n$ 23,910,000.00 \r\n \r\n23,910,000.00 \r\n \r\n130,493.50 \r\n \r\n130,493.50 \r\n \r\n$ \r\n \r\n18,025.00 \r\n \r\n18,025.00 \r\n \r\n4,858,043.53 \r\n \r\n4,858,043.53 \r\n \r\n-4,858,043.53 \r\n \r\n-4,858,043.53 \r\n \r\n$ \r\n \r\n18,025.00 $ 19,182,449.97 $ 4,880,820.75 $ 24,081,295.72 \r\n \r\n$ 1,176,450.47 $ 32,080,725.24 $ \r\n \r\n-38,554.12 $ 33,218,621.59 \r\n \r\n11 173 798.00 16,641,786.32 \r\n \r\n4,935,623.00 \r\n \r\n32,751,207.32 \r\n \r\nFund Balances - Ending \r\n \r\n$ 12,350,248.47 $ 48,722,511.56 $ 4,897,068.88 $ 65,969,828.91 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\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. \r\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: \r\nGeneral Obligation Bonds Issued $23,910,000 \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nBond Principal Retirements \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nIncrease in Compensated Absences \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 33,218,621.59 \r\n \r\n$ 1,247,578.28 -2,919,881.71 \r\n \r\n-1,672,303.43 \r\n \r\n-767,344.87 \r\n \r\n-23,910,000.00 \r\n \r\n4,650,000.00 \r\n \r\n-19,269.57 $ 11 A99,703.72 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\nAGENCY FUNDS \r\n$ 223,982.95 55,035.52 \r\n$ 279,018.47 \r\n$ 279,018.47 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit The Whitfield County Career Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements ofthe Charter School have been blended with the School District's general fund. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Whitfield County Board of Education. \r\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. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\nThe School District reports the following major governmental funds: \r\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. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and employee flexible spending accounts. \r\nBASIS OF ACCOUNTING \r\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. \r\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. \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this tnethod, 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 and compensated absences, 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 are reported as other financing sources. \r\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. \r\nCASH AND CASH EQUIVALENTS \r\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. \r\nINVESTMENTS \r\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: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\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. \r\n \r\nRECEIVABLES \r\n \r\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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2006 tax digest year (calendar year) on October 20, 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 Whitfield 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 $26,534,159.94. \r\n \r\nThe tax millage rate levied for the 2006 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n15.934 mills \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $13,237,194.21 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. \r\nINVENTORIES \r\nCONSUMABLE SUPPLIES On the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expense/expenditure are recorded as the inventory items are used. \r\nFOOD INVENTORIES On the basic 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. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). 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 ofassets 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. 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. \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 \r\n \r\nNIA 15 years 70 years 10 to 12 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\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. \r\n \r\nNET ASSETS \r\n \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\n \r\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. \r\n \r\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. \r\n \r\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. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\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 \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nbeen secured by surety bond, by guarantee of insurance, orby 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. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\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, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\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. \r\nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $8,246,884.97. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \r\nby its trust department or agent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n620,137.76 \r\n \r\n3 \r\n \r\n7,112,571.93 \r\n \r\nTotal \r\n \r\n$ 7,732,709.69 \r\n \r\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. \r\n \r\nInvestment Type \r\n \r\nFair Value \r\n \r\nInvestment Maturity Less Than 1 Year \r\n \r\nDebt Securities Repurchase Agreements \r\n \r\n$22,557,987.63 $22,557,987.63 \r\n \r\nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \r\n \r\n38,635,522.36 \r\n \r\nTotal Investments \r\n \r\n$61,193.509.99 \r\n \r\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 and Extended Asset 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. \r\n \r\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 \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nshare. 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. \r\n \r\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. \r\n \r\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. At June 30, $22,557,987.63 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \r\n \r\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. \r\n \r\nThe investments subject to credit quality risk are reflected below: \r\n \r\nRated Debt Investments \r\n \r\nFair Value \r\n \r\nQuality Ratings AAA \r\n \r\nDebt Securities Repurchase Agreements \r\n \r\n$22,557,987.63 $22,557,987.63 \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\nTotal Capital Assets Not Being Depreciated \r\nCapital Assets Being Depreciated Building and Building Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Building and Building Improvements Equipment Land Improvements \r\nTotal Capital Assets, Being Depreciated, Net \r\nGovernmental Activity Capital Assets - Net \r\n \r\nBalances Juix I, 2006 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2007 \r\n \r\n$ 4,275,610.39 $ 1,372,806.28 \r\n \r\n$ 5,648,416.67 \r\n \r\n21,482,515.09 1,723,986.75 $22,673,346.04 \r\n \r\n533,155.80 \r\n \r\n$ 25,758,125.48 $ 3,096,793.03 $22,673,346.04 $ 6,181,572.47 \r\n \r\n$103,472,233.57 $17,325,556.63 \r\n \r\n$120,797,790.20 \r\n \r\n9,863,223.34 2,238,375.92 $ 227,175.00 11,874,424.26 \r\n \r\n7,664,861.02 1,260,198.74 \r\n \r\n8,925,059.76 \r\n \r\n11,876,535.25 5,041,819.34 2,664,360.49 \r\n \r\n1,600,034.00 888,826.73 431,020.98 \r\n \r\n227,175.00 \r\n \r\n13,476,569.25 5,703,471.07 3,095,381.47 \r\n \r\n$101,417,602.85 $17,904,249.58 $ \r\n \r\n0.00 $119,321,852.43 \r\n \r\n$121,115,728 33 $21 QOI 042 61 $22,613,346 Q4 $125 5Q3,424,2Q \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 1,858,316.95 \r\n \r\n$ 69,279.41 5,130.00 \r\n57,162.31 29,003.04 700,322.30 \r\n \r\n860,897.06 200,667.70 \r\n \r\n$2,919,881.71 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows: \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Debt Services Capital Acquisitions \r\n \r\n$ 151,971.33 $ 300,478.45 \r\n \r\n$ 482,290.23 \r\n \r\n$ 4,897,068.88 \r\n \r\n$21,555,768.77 $23,947,085.66 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2007, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nDebt Service Funds \r\n \r\n$ 4,858,043.50 \r\n \r\nTransfers are used to move SPLOST collections from the Capital Projects Fund to the Debt Service Fund. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\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. \r\n \r\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. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\naccounts for claims 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2006 2007 \r\n \r\n$ \r\n \r\n0.00 $ 521,132.00 $ 521,132.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 465,510.00 $ 272,610.00 $ 192,900.00 \r\n \r\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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n2006 2007 \r\n \r\n$ \r\n \r\n0.00 $ 10,034.00 $ 10,034.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 19,685.00 $ 19,685.00 $ \r\n \r\n0.00 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 100,000.00 $ 100,000.00 \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nWhitfield County Board ofEducation has entered into various leases as lessee for office equipment and mobile units. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2007, for governmental funds amounted to $353,607.10. Future minimum lease payments for these leases are as follows: \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2008 2009 2010 2011 2012 \r\n \r\n$ 340,429.20 340,429.20 340,429.20 340,429.20 168,519.62 \r\n \r\nTotal \r\n \r\n$ 1,530,236.42 \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nCOMPENSATED ABSENCES Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 General Government - Series 2006 General Government - Series 2007 \r\n \r\n2.00% - 3.20% 3.610% \r\n4.00%- 5.00% \r\n \r\n$ 4,660,000.00 9,910,000.00 14,000,000.00 \r\n \r\n$28,570,000.00 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \r\n \r\n-22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCompensated Obligation \r\n \r\nAbsences ( 1) \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2006 \r\n \r\n$ 237,176.00 $ 9,310,000.00 $ 9,547,176.00 \r\n \r\nAdditions Annual Leave Earned G.O. Bonds \r\n \r\n204,690.61 \r\n \r\n204,690.61 \r\n \r\n23,910,000.00 23,910,000.00 \r\n \r\nDeductions Annual Leave Utilized Debt Retired \r\n \r\n185,421.04 \r\n \r\n185,421.04 \r\n \r\n4,650,000.00 4,650,000.00 \r\n \r\nBalance June 30, 2007 \r\n \r\n$ 256,445.57 $28,570,000.00 $28,826,445.57 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$_ _ _o_.o_o $13,Ios,ooo.oo $13,Ios,ooo.oo \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2008 2009 2010 2011 2012 2013 - 2017 2018 \r\n \r\n$13,105,000.00 5,555,000.00 \r\n9,910,000.00 \r\n \r\n$ 719,359.11 774,551.00 481,701.00 357,751.00 357,751.00 \r\n1,788,755.00 178,875.50 \r\n \r\nTotal Principal and Interest \r\n \r\n$28,570,000.00 $4,658,743.61 \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 11: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $1,821,364.25 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $1,789,541.25 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $17,402.00 \r\n \r\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 $14,421.00 \r\n \r\nNote 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nAntioch Elementary School Career Academy Dug Gap Elementary School Eastbrook Middle School Eastside Elementary School New Elementary New High School Northwest High School Southeast High School Varnell Elementary School \r\n \r\n$ 205,355.00 425,935.00 169,645.00 267,855.00 77,725.00 852,500.00 \r\n2,414,285.00 210,000.00 175,000.00 218,750.00 \r\n \r\n$ 5.017,050.00 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2007 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\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. \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\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. \r\n \r\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: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2007 2006 2005 \r\n \r\n100% 100% 100% \r\n \r\n$ 5,868,585.66 $ 5,439,526.00 $ 5,111,840.00 \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nInventory - Net Change in Period \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ 25,346,741.00 $ 25,346,741.00 $ 26,534,159.94 \r\n \r\n190,000.00 \r\n \r\n190,000.00 \r\n \r\n926,110.51 \r\n \r\n68,955,301.00 \r\n \r\n68,955,301.00 \r\n \r\n72,350,106.10 \r\n \r\n5,535,861.00 \r\n \r\n5,535,861.00 \r\n \r\n9,994,269.93 \r\n \r\n2,039,800.00 \r\n \r\n2,039,800.00 \r\n \r\n2,187,705.13 \r\n \r\n318,000.00 \r\n \r\n318,000.00 \r\n \r\n655,649.43 \r\n \r\n685,300.00 \r\n \r\n685,300.00 \r\n \r\n4,533,098.66 \r\n \r\n$ 103,071,003.00 $ 103,071,003.00 $ 117,181,099.70 \r\n \r\n$ 69,007,210.32 $ 69,007,210.32 $ 75,230,963.77 \r\n \r\n3,578,979.00 2,253,722.00 2,727,147.00 \r\n429,961.00 6,961,139.00 \r\n640,332.00 7,371,578.00 5,264,776.00 1,943,414.00 \r\n43,619.00 \r\n6,383,284.00 \r\n \r\n3,578,979.00 2,253,722.00 2,727,147.00 \r\n429,961.00 6,961,139.00 \r\n640,332.00 7,269,578.00 5,264,776.00 1,943,414.00 \r\n43,619.00 \r\n6,383,284.00 \r\n \r\n4,213,414.30 2,713,873.74 2,633,789.11 \r\n577,991.18 7,180,978.76 \r\n490,193.83 7,582,788.01 5,293,758.05 1,888,136.87 \r\n936,322.67 584,318.55 6,696,145.39 \r\n \r\n$ 106,605,161.32 $ 106,503,161.32 $ 116,022,674.23 \r\n \r\n$ -3,534, 158.32 $ -3,432, 158.32 $ \r\n \r\n1,158,425.47 \r\n \r\n$ \r\n \r\n110,323.00 $ \r\n \r\n110,323.00 $ \r\n \r\n-510 323.00 \r\n \r\n-510,323.00 \r\n \r\n18,025.00 \r\n \r\n$ \r\n \r\n-400,000.00 $ \r\n \r\n-400,000.00 $ \r\n \r\n18,025.00 \r\n \r\n$ -3,934, 158.32 $ -3,832, 158.32 $ \r\n \r\n1,176,450.47 \r\n \r\n9,619,293.20 \r\n \r\n9,619,293.20 \r\n \r\n11,173,798.00 \r\n \r\n20,638.04 \r\n \r\n20,638.04 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n5,705,772.92 $ \r\n \r\n5,807,772.92 $ 12,350,248.47 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\n \r\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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U. S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Mathematics and Science Partnerships Migrant 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 \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n10.550 10.665 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 5,806,904.00 \r\n \r\n$ 5,806,904.00 \r\n \r\nN/A \r\n \r\n440,653.19 \r\n \r\nNIA \r\n \r\n(3) \r\n \r\n$ 6,247,557.19 \r\n \r\n* 84.027 * 84.173 \r\n84.196 84.365 84.318 * 84.367 84.366 84.011 84.186 84.298 * 84.010 84.048 \r\n \r\nN/A $ 2,288,178.76 \r\n \r\nNIA \r\n \r\n53,696.82 \r\n \r\n$ 2,341,875.58 \r\n \r\nN/A \r\n \r\n69,992.90 \r\n \r\nNIA \r\n \r\n263,758.43 \r\n \r\nN/A \r\n \r\n17,380.25 \r\n \r\nNIA \r\n \r\n357,094.73 \r\n \r\nNIA \r\n \r\n72,803.26 \r\n \r\nN/A \r\n \r\n67,312.14 \r\n \r\nNIA \r\n \r\n18,453.78 \r\n \r\nN/A \r\n \r\n17,077.00 \r\n \r\nN/A \r\n \r\n1,990,771.16 \r\n \r\nN/A \r\n \r\n133 531.87 \r\n \r\n$ 5,350,051.10 \r\n \r\nTotal Federal Financial Assistance \r\n \r\n$ 11,597,608.29 \r\n \r\nNIA= Not Available \r\nNotes to the Schedule of Expenditures of Federal Awards \r\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. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($1,079,087.34) were not maintained separately and are included in the 2007 National School Lunch Program. \r\n(3) Funds earned on this program in the amount of $5,841.00 do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Whitfield 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. \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\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 Bus Replacement - State Bonds Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance K-8 Statewide Reading and Math Grants Middle School Remediation Grant National Teacher Certification Preschool Handicapped Program Teachers' Retirement Virtual Schools \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 250,730.97 \r\n \r\n$ 250,730.97 \r\n \r\n4,558,452.00 565,946.00 \r\n10,490,362.00 958,236.00 \r\n4,672,341.00 540,622.00 \r\n7,520,161.00 6,431,630.00 2,897,430.00 7,045,918.00 1,424,120.00 \r\n22,082.00 615,596.00 1,412,787.00 2,636,001.00 431,419.00 266,770.00 \r\n1,528,163.00 2,855,882.00 3,549,270.00 \r\n1,522,826.00 149,620.00 300,000.00 242,444.00 45,454.00 37,717.00 \r\n7,500,470.00 337,472.00 342,338.02 \r\n-1,279,183.00 \r\n160,300.00 1,789,541.25 \r\n184,163.98 3,239.98 \r\n193,455.00 114,305.90 \r\n17,402.00 200.00 \r\n \r\n4,558,452.00 565,946.00 \r\n10,490,362.00 958,236.00 \r\n4,672,341.00 540,622.00 \r\n7,520,161.00 6,431,630.00 2,897,430.00 7,045,918.00 1,424,120.00 \r\n22,082.00 615,596.00 1,412,787.00 2,636,001.00 431,419.00 266,770.00 \r\n1,528,163.00 2,855,882.00 3,549,270.00 \r\n1,522,826.00 149,620.00 300,000.00 242,444.00 45,454.00 37,717.00 \r\n7,500,470.00 337,472.00 342,338.02 \r\n-1,279,183.00 \r\n160,300.00 1,789,541.25 \r\n184,163.98 3,239.98 \r\n193,455.00 114,305.90 \r\n17,402.00 200.00 \r\n \r\n$ \r\n \r\n107,992.50 \r\n \r\n14 421.00 \r\n \r\n107,992.50 14 421.00 \r\n \r\n$ 72,350,106.10 $ \r\n \r\n107,992.50 $ 72,458,098.60 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nAcquisitions, construction and equipping of a new elementary school, a new middle school and a new high school, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore; renovations and improvements at existing schools, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore; the acquisition, construction and equipping of a central warehouse facility; the acquisition of school buses; and system-wide technology improvements. \r\nAcquisition, construction, equipping and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore, both real and personal. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEAR (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 53,531,937.00 $ 53,531,937.00 $ 1,814,157.38 $ 50,784,552.00 Ongoing \r\n \r\nOngoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Whitfield 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nGifted Student  Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n5,139,888.00 $ 5,277,614.51 $ \r\n \r\n626,998.00 \r\n \r\n446,968.46 \r\n \r\n11,758,621.00 12,086,959.65 \r\n \r\n1,073,987.00 \r\n \r\n1,205,556.01 \r\n \r\n5,291,626.00 \r\n \r\n5,782,663.24 \r\n \r\n600,326.00 8,480,651.00 7,258,010.00 3,237,500.00 6,706,352.00 \r\n2,763,502.00 28,764.00 \r\n694,106.00 2,886,751.00 \r\n \r\n711,933.82 10,234,080.10 \r\n9,907,510.18 2,422,877.52 \r\n119.86 917,900.42 4,127,564.38 380,976.03 2,763,964.82 \r\n90,591.93 1,032,778.89 2 976 153.64 \r\n \r\n171,772.51 $ 338.14 \r\n564,205.55 4,321.57 \r\n237,179.35 \r\n \r\n5,449,387.02 447,306.60 \r\n12,651,165.20 1,209,877.58 6,019,842.59 \r\n \r\n1,082.19 738,038.76 470,846.11 214,860.55 \r\n \r\n713,016.01 10,972,118.86 10,378,356.29 \r\n2,637,738.07 \r\n \r\n16,840.58 80.58 \r\n24,602.38 958.30 \r\n15,162.15 \r\n68,182.06 13 099.79 \r\n \r\n16,960.44 917,981.00 4,152,166.76 381,934.33 2,779,126.97 \r\n90,591.93 1,100,960.95 2,989,253.43 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n56,547,082.00 $ 60,366,213.46 $ 2,541,570.57 $ 62,907,784.03 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n1,591,159.00 303 900.00 \r\n \r\n2,265,811.20 \r\n \r\n254,999.23 328,621.47 \r\n \r\n2,520,810.43 328 621.47 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n58442141.00 $ 62,632,024.66 $ 3,125,191.27 $ 65,757,215.93 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n 31  \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 14, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\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 \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofWhitfield County Board ofEducation as ofand for the year ended June 30, 2007, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated March 14, 2008. 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield County Board ofEducation'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 Whitfield County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness ofthe Whitfield County Board of Education's internal control over financial reporting. \r\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. \r\n2007YB-30 \r\n \r\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 Whitfield 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 ofthe Whitfield County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the Whitfield County Board ofEducation's internal control. We consider item FS-7551-07-01 in the accompanying Schedule ofFindings and Questioned Costs to be a significant deficiency in internal control over financial reporting. \r\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 Whitfield County Board of Education's internal control. \r\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 believe that the significant deficiency described above is not a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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. \r\nWe noted certain matters that we have reported to management of Whitfield County Board of Education in a separate letter dated March 14, 2008. \r\nWhitfield County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Whitfield County Board of Education's response and, accordingly, we express no opinion on it. \r\n2007YB-30 \r\n \r\n This report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n~w.J..k Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:gp 2007YB-30 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 14, 2008 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. Whitfield County Board ofEducation'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 ofits major Federal programs is the responsibility of Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 Whitfield 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 Whitfield County Board of Education's compliance with those requirements. \r\n2007SA-10 \r\n \r\n In our opinion, the Whitfield County Board ofEducation 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, 2007. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Whitfield County Board of Education's internal control over compliance. \r\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 ofcompliance 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. \r\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. \r\nOur consideration ofthe 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. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2007SA-10 \r\n \r\nsell W. Hinton, CPA, CGFM State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-05-01 FS-7551-06-01 FS-75 51-06-02 \r\n \r\nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Finding Control Number: FS-7551-06-01 \r\n \r\nRound table meetings of school bookkeepers are held for the purpose of communicating improvements in procedures and internal control deficiencies associated with the prior year findings. Items discussed include the following: \r\n \r\n The importance of the building level administrator/principal rece1vmg and reviewing the monthly bank statements prior to the bookkeeper's reconciliation procedures and reviewing the reconciliation documents upon reconciliation completion. \r\n \r\n The importance of authorization for all purchases before purchase is actually procured. \r\n \r\n Invoices must be maintained to support all purchases. \r\n \r\n School purchase cards must have the following controls: \r\n \r\no Vendor must require purchase order/requisition to use cards o No traditional credit cards allowed o Must maintain tight physical control over card \r\n \r\n If purchase order is not applicable, a check request authorization should accompany support documentation. \r\n \r\nIn addition to the bookkeeper meetings, bookkeepers are required to reconcile bank statements by the 15th ofthe succeeding month. LSA financial records are integrated into the system's general ledger on a monthly basis. The School District has updated the procedural manual (Pupil Activity Manual) providing support for bookkeepers relative to \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Finding Control Number: FS-75 51-06-0 I internal control issues. The Pupil Activity Manual can be accessed through the School District's web site and will be updated periodically. Beginning in fiscal year 2008, randomly selected schools will be subject to surprise internal audits. These internal audits will be performed to examine selected transactions to ensure that procedures are being implemented. We expect that the finding will be either partially or fully resolved for the fiscal year 2008 audit. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement significant deficiency related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nThe significant deficiency described above is not considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Whitfield County Board of Education did not disclose any significant deficiencies in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n \r\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 84.173 Special Education - Preschool Grants 84.367 Improving Teacher Quality State Grants \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $348,103.48. \r\n \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7551-07-01 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-7551-06-01 and FS-7551-05-01) from the years ended June 30, 2006, and June 30, 2005, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment function. \r\n \r\nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Seventy-five transactions were selected for testing and it was noted that six gate receipts did not have adequate supporting documentation and one receipt did not have a bank deposit ticket.  Only five receipts were tested at one school because numerous errors were noted. The receipting process in place at that school was not effective to prevent or detect misstatements in a timely manner. \r\n \r\nExpenditures/Liabilities/Disbursements \r\n One hundred transactions were selected for testing and the following problems were noted: 1. Twenty-seven vouchers did not have a purchase order, 2. three vouchers did not include an invoice, 3. two invoices were dated prior to the purchase order date, and 4. twenty-three vouchers did not have proper approval. \r\n \r\n-2- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7551-07-01 \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \r\n \r\nEffect: \r\n \r\nErrors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation: \r\n \r\nManagement should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n-3- \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2007 \r\nFinding Control Number: FS-7551-07-01 \r\nWe concur with this finding. Additional training will be scheduled for school bookkeepers for the purpose of communicating the internal control deficiencies and reviewing internal control procedures associated with the prior year findings. These meetings will begin in May 2008. Future training meetings will be scheduled as necessary. We will continue to monitor our progress regarding these deficiencies by periodically reviewing internal control compliance with our Accounting Procedures Manual. Reviews and updates of our Accounting Procedures Manual (http://www.whitfield.kl2.ga.us/finance/) will be performed periodically to ensure that accounting controls are properly documented. \r\nContact Person: Kenny Sheppard, Chief Financial Officer Phone: (706) 217-6701 Fax: (706) 217-6703 E-mail Address: ksheppard@whitfield.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2005-h2006","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2006-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2005-h2006"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON# GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30# 2006 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n9 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n10 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n30 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n31 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n33 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\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 \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 858-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMay 18, 2007 \r\n \r\nHonorable Sonny Perdue, Governor .Members of the General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members ofthe Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Whitfield 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 ofthe Whitfield County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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. \r\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 ofthe Whitfield 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. \r\n2006ARL-11 \r\n \r\n In accordance with Government Auditing Standards, we have also issued our report dated May 18, 2007. on our consideration of the Whitfield 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. \r\nManagement's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 27 respectively. are not a required part of the basic financial statements but are 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. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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. \r\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. \r\nRespectfully submitted, \r\n~~ro~~P~~ State Auditor \r\nRWH:as 2006ARL-11 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2006, and June 30, 2005. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2006 and 2005 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $150.3 million and $135.6 million, respectively, for the fiscal years ended June 30, 2006, and June 30, 2005. Of these amounts, $10.1 million and $12.5 million, respectively, for fiscal years 2006 and 2005 are available for spending at the School District's discretion. \r\n The School District had $109.6 million and $98.6 million, respectively, in expenses for the fiscal years ended June 30, 2006, and June 30, 2005, relating to governmental activities. Only $73.2 million and $68.3 million of the above mentioned expenses for 2006 and 2005 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $51.2 million and $51.4 million, respectively, for 2006 and 2005 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $51.2 million or 41.2% of all revenues totaling $124.3 million for fiscal year 2006 and $51.4 million or 43.0% of all revenues totaling $119.7 million for fiscal year 2005. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The Governmental Funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Whitfield County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Assets and the Statement of Activities reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at yearend available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Recall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal years 2006 and 2005. \r\n- lll - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2006 \r\n \r\nYear 2005 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 47,779,469 $ 56,801,847 \r\n \r\n127,175,729 \r\n \r\n109,183,789 \r\n \r\nTotal Assets \r\n \r\n$ 174,955,198 $ 165,985,636 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 15,083,695 $ 16,379,631 \r\n \r\n9,547,176 \r\n \r\n14,049,104 \r\n \r\nTotal Liabilities \r\n \r\n$ 24,630,871 $ 30,428,735 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 124,900,022 15,308,769 10,115,536 \r\n \r\n$ 103,476,160 19,575,549 12,505,192 \r\n \r\nTotal Net Assets \r\n \r\n$ 150,324.327 $ 135,556.901 \r\n \r\nTable 2 shows the Changes in Net Assets for fiscal years ending June 30, 2006, and June 30, 2005. \r\n \r\n- lV - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nTable 2 Change in Net Assets \r\n \r\nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear2006 \r\n \r\nYear2005 \r\n \r\n$ 1,872,883 66,658,020 426292686 \r\n \r\n$ 2,170,126 61,523,131 425592755 \r\n \r\nTotal Program Revenues \r\n \r\n$ 7321602589 $ 6822532012 \r\n \r\nGeneral Revenues: \r\n \r\nTaxes \r\n \r\nProperty Taxes \r\n \r\nFor Maintenance and Operations \r\n \r\n$ 25,055,889 \r\n \r\nRailroad Cars \r\n \r\nSales Taxes \r\n \r\nSpecial Purpose Local Option Sales Tax \r\n \r\nFor Capital Pr~ects \r\n \r\n13,498,946 \r\n \r\nIntangible Recor ing Tax \r\n \r\n439,441 \r\n \r\nReal Estate \r\n \r\n205,023 \r\n \r\nGrants and Contributions not Restricted to \r\n \r\nSpecific Programs \r\n \r\n6,681,124 \r\n \r\nInvestment Earnings \r\n \r\n1,160,736 \r\n \r\nMiscellaneous \r\n \r\n421382207 \r\n \r\n$ 24,480,665 58,286 \r\n12,411,074 658,970 \r\n8,500,428 1,878,087 3A342052 \r\n \r\nTotal General Revenues \r\n \r\n$ 5121792366 $ 51A212562 \r\n \r\nTotal Revenues \r\n \r\n$ 12423392955 $ 11926742574 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and OJ?eration of Plant Student Transportation Services Central Support Services Other Support Services Operations ofNon-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 69,799,495 \r\n4,602,661 2,252,468 2,541,247 1,178,738 6,171,178 1,188,413 7,349,033 4,176,291 1,634,283 1,079,943 \r\n652,528 6,533,228 \r\n4132023 \r\n \r\n$ 63,752,957 \r\n4,131,663 1,809,425 2,380,920 \r\n821,619 5,771,771 1,165,193 6,160,459 3,655,965 1,238,437 1,060,778 \r\n600,188 5,483,893 \r\n5302785 \r\n \r\nTotal Expenses \r\n \r\n$ 10925722529 $ 9825642053 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 14.:Z6:Z.426 $ 21 1110.s21 \r\n \r\n-v- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2006 Year 2005 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2006 Year 2005 \r\n \r\nInstruction \r\n \r\n$ 69,799,495 $63,752,957 $ 16,732,740 $ 14,147,828 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n4,602,661 4,131,663 3,058,599 2,960,650 \r\n \r\nImprovement of Instructional Services \r\n \r\n2,252,468 1,809,425 1,208,672 \r\n \r\n981,524 \r\n \r\nEducational Media Services \r\n \r\n2,541,247 2,380,920 1,255,295 1,015,566 \r\n \r\nGeneral Administration \r\n \r\n1,178,738 \r\n \r\n821,619 -583,421 -830,203 \r\n \r\nSchool Administration \r\n \r\n6,171,178 5,771,771 3,517,723 3,195,508 \r\n \r\nBusiness Administration \r\n \r\n1,188,413 1,165,193 1,188,413 1,160,599 \r\n \r\nMaintenance and Operation ofPlant \r\n \r\n7,349,033 6,160,459 3,705,680 2,704,046 \r\n \r\nStudent Transportation Services \r\n \r\n4,176,291 3,655,965 2,439,854 2,082,149 \r\n \r\nCentral Support Services \r\n \r\n1,634,283 1,238,437 1,617,303 1,222,105 \r\n \r\nOther Support Services \r\n \r\n1,079,943 1,060,778 \r\n \r\n946,067 \r\n \r\n958,528 \r\n \r\nOperations ofNon-Instructional Services \r\n \r\nCommunity Services \r\n \r\n652,528 \r\n \r\n600,188 \r\n \r\n649,840 \r\n \r\n599,954 \r\n \r\nFood Services \r\n \r\n6,533,228 5,483,893 \r\n \r\n262,152 -417,998 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n413.023 \r\n \r\n530.785 \r\n \r\n413.023 \r\n \r\n530.785 \r\n \r\nTotal Expenses \r\n \r\n$109.572.529 $ 98.564.053 $36,411.940$ 30,311.041 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $124.9 million and total expenditures of $132.1 million for fiscal year 2006 and total revenues of $119.7 million and total expenditures of $129.4 million for fiscal year 2005. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal years 2006 and 2005, the School District amended its general fund budget as needed. \r\n \r\nDuring fiscal year 2006, the General Fund had final actual revenues totaling $106.3 million, which exceeded the final budgeted amounts of $97.1 million by $9.2 million. This difference \r\n \r\n- VI - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n(final actual vs. final budget) was primarily due to an increase in state revenues over original budget by $3 .5 million and actual miscellaneous revenue from primarily school activity accounts, over original budget by $4.1 million. Other differences include increase in Federal funding over budget, conservative budgeting relative to sales tax (real estate transfer and intangible taxes) and conservative budgeting relative to investment income all resulting in $1.6 million actual over budget. \r\nDuring fiscal year 2005, the General Fund had final actual revenues totaling $101.3 million, which exceeded the final budgeted amounts of $94.4 million by $6.9 million. This difference (final actual vs. final budget) was primarily due to an increase in state revenues over original budget by $1.7 million and actual miscellaneous revenue from primarily school activity accounts, over original budget by $3.5 million. Other differences include increase in Federal funding over budget, conservative budgeting relative to sales tax (real estate transfer and intangible taxes) and conservative budgeting relative to investment income all resulting in $1.7 million actual over budget. \r\nFinal actual expenditures during fiscal year 2006, totaling $108.1 million represented an increase from the final budgeted amount of $101.2 million. The increase in actual expenditures versus final budgeted expenditures totaling $6.8 million was primarily due to increase in actual instructional expenses of $1.4 million due to increased Federal funding and growing enrollment and school activity related expenses of $3.5 million. \r\nFinal actual expenditures during fiscal year 2005, totaling $95.8 million represented an increase from the final budgeted amount of $91.0 million. The increase in actual expenditures versus final budgeted expenditures totaling $4.8 million was primarily due to increase in actual instructional expenses of $2.1 million due to increased Federal funding and growing enrollment and school activity related expenses of $3.4 million. A decrease of $0.62 million in actual expenditures verses final budgeted expenditures relative to central support services was due to conservative budgeting relative to technology. \r\nGeneral fund expenditures and other financing uses exceeded revenues resulting in a deficit of $2,051,800 that was funded with reserves in the fiscal year 2006. General fund revenues and other financing sources exceeded expenditures and other financing uses resulting in a surplus of $5,349,459 for the fiscal year 2005. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt the fiscal years ended June 30, 2006, and June 30, 2005, the School District had $127.2 million and $109.2 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. \r\n- Vll - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2006 \r\n \r\nYear 2005 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 4,275,610 21,482,515 91,595,699 4,821,404 5,000,501 \r\n \r\n$ 4,275,610 31,115,218 69,734,884 3,236,008 822,069 \r\n \r\nTotal \r\n \r\n$ 127,175.729 $ 109,183,789 \r\n \r\nDue to the ongoing growth in the county, the School District has numerous construction projects including new buildings, additions and renovations. \r\n \r\nDebt \r\n \r\nAt June 30, 2006, and June 30, 2005, the School District had $9.5 million and $14.0 million, respectively, in debt. Table 5 summarizes the School District's debt for fiscal years 2006 and 2005. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2006 \r\n \r\nYear 2005 \r\n \r\nCompensated Absences Bonds Payable \r\n \r\n$ 237,176 $ 234,104 \r\n \r\n9,310,000 \r\n \r\n13,815,000 \r\n \r\nTotal \r\n \r\n$ 9,547.176 $ 14,049.104 \r\n \r\nAt June 30, 2006 and June 30, 2005, the School District's assigned bond rating was \"Aa2\" as determined by Moody's Investors Services, Inc. \r\n \r\n- viii - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nCurrent Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n Economic Slowdown - Increases in total State funding for education have been minimal and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. The School District continues to provide an increasing amount of local monies to meet various mandated educational requirements. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the Whitfield County School District remains optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's \r\naccountability for the money it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\n- lX - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2006 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n9,754,132 \r\n \r\n23,492,653 \r\n \r\n3,031,872 9,050,881 1,520,891 \r\n714,645 214,395 \r\n \r\n4,275,610 21,482,515 \r\n7,664,861 103,472,234 \r\n9,863,223 -19,582,714 \r\n \r\n$==1==7=14,~95;;,;;5i.;1.,~98= \r\n \r\n$ \r\n \r\n4,035,176 \r\n \r\n9,657,087 \r\n \r\n411,691 \r\n \r\n979,741 \r\n \r\n4,650,000 4,897,176 \r\n \r\n$ \r\n \r\n24,630,871 \r\n \r\n$ \r\n \r\n124,900,022 \r\n \r\n765,653 4,935,623 9,607,493 10,115,536 \r\n \r\n$ \r\n \r\n150,324,327 \r\n \r\n$ ==1=7=4,_95=5=1,=98= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2006 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n69,799,495 $ \r\n \r\n4,602,661 2,252,468 2,541,247 1,178,738 6,171,178 1,188,413 7,349,033 4,176,291 1,634,283 1,079,943 \r\n \r\n652,528 6,533,228 \r\n413,023 \r\n \r\n$ 109,572,529 $ \r\n \r\n112,733 \r\n38 378 2,118 \r\n14,943 \r\n1,183 585 \r\n44,151 \r\n2,112 1,694,642 \r\n118721883 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -2- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n48,910,779 $ \r\n \r\n1,544,024 1,043,418 1,283,834 1,761,194 2,638,512 \r\n \r\n3,519,527 1,512,718 \r\n6,500 89,725 \r\n \r\n576 4,347,213 \r\n \r\n$ \r\n \r\n66,658,020 $ \r\n \r\n4,043,243 $ \r\n965 122,643 223,134 \r\n10,480 \r\n229,221 416291686 $ \r\n \r\n-16,732,740 \r\n-3,058,599 -1,208,672 -1,255,295 \r\n583,421 -3,517,723 -1,188,413 -3,705,680 -2,439,854 -1,617,303 \r\n-946,067 \r\n-649,840 -262,152 -413,023 \r\n-36,411,940 \r\n \r\n$ \r\n \r\n25,055,889 \r\n \r\n13,498,946 439,441 205,023 \r\n6,681,124 1,160,736 4,138,207 \r\n \r\n$ \r\n \r\n51,179,366 \r\n \r\n$ \r\n \r\n14,767,426 \r\n \r\n135,556,901 \r\n \r\n$===1=50.,.3..2.=4==,3..,27_ \r\n \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2006 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 8,274,490 $ 1,479,642 \r\n \r\n$ \r\n \r\n3,755,694 \r\n \r\n14,801,336 $ 4,935,623 \r\n \r\n891,959 9,050,881 1,520,891 \r\n712,695 214,395 \r\n \r\n2,195,346 1,950 \r\n \r\n9,754,132 23,492,653 \r\n3,087,305 9,050,881 1,520,891 \r\n714,645 214 395 \r\n \r\nTotal Assets \r\n \r\n$ 24,421,005 $ 18,478,274 $ 4,935,623 $ ===4=7=,8=3=4,=90=2= \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\n \r\n$ 3,590,120 $ 9,657,087 \r\n$ 13,247,207 $ \r\n \r\n445,056 \r\n411,691 979 741 \r\n1,836,488 \r\n \r\n$ \r\n \r\n607,195 \r\n \r\n$ \r\n \r\n214,395 \r\n \r\n$ 16,641,786 \r\n \r\n1,612,297 \r\n \r\n8,739,911 \r\n \r\n$ 11.173,798 $ 16,641,786 $ \r\n \r\n$ $ $ 4,935,623 \r\n4,935,623 $ \r\n \r\n4,035,176 9,657,087 \r\n411,691 979 741 \r\n15,083,695 \r\n607,195 4,935,623 \r\n214,395 16,641,786 \r\n1,612,297 \r\n8 739 911 \r\n32,751,207 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 24,421,005 $ 18,478,274 $ 4,935,623 $ ==~47~,8~34~,9~02:.,, \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\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. \r\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: \r\nBonds Payable Compensated Absences \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 32,751,207 \r\n \r\n$ 4,275,610 21,482,515 7,664,861 103,472,234 9,863,223 -19,582,714 \r\n \r\n127,175,729 \r\n \r\n-55,433 \r\n \r\n$ -9,310,000 -237,176 \r\n \r\n-9,547,176 \r\n \r\n$ 150,324,327 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES {USES} \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 25,642,578 \r\n \r\n644,464 $ 13,498,946 \r\n \r\n62,766,494 \r\n \r\n4,406,552 \r\n \r\n10,114,884 \r\n \r\n1,872,883 \r\n \r\n510,620 \r\n \r\n649,656 $ \r\n \r\n4,823,052 \r\n \r\n$ 106,374,975 $ 18,555,154 $ \r\n \r\n$ \r\n460 \r\n \r\n25,642,578 14,143,410 67,173,046 10,114,884 \r\n1,872,883 1,160,736 4,823,052 \r\n \r\n460 $ 124,930,589 \r\n \r\n$ 68,062,655 \r\n \r\n$ 68,062,655 \r\n \r\n4,602,661 2,252,468 2,495,146 \r\n947,088 6,359,057 1,188,413 7,302,377 5,139,179 1,631,600 1,079,943 \r\n652,528 6,348,666 \r\n$ 19,090,538 \r\n \r\n4,602,661 2,252,468 2,495,146 \r\n947,088 6,359,057 1,188,413 7,302,377 5,139,179 1,631,600 1,079,943 \r\n652,528 6,348,666 19,090,538 \r\n \r\n$ 4,505,000 413,023 \r\n \r\n4,505,000 413,023 \r\n \r\n$ 108,061,781 $ 19,090,538 $ 4,918,023 $ 132,070,342 \r\n \r\n$ -1,686,806 $ -535,364 $ -4,917,563 $ -7,139,753 \r\n \r\n$ 364,994 $ 4,997,204 $ \r\n \r\n$ -364,994 \r\n \r\n-4,997,204 \r\n \r\n$ -364,994 $ -4,632,210 $ 4,997,204 $ \r\n \r\n$ -2,051,800 $ -5,167,594 $ \r\n \r\n79,641 $ \r\n \r\n13,225,598 21,809,380 \r\n \r\n4,855,982 \r\n \r\n5,362,198 -5,362,198 \r\n0 -7,139,753 \r\n39,890,960 \r\n \r\n$ 11,173,798 $ 16,641,786 $ 4,935,623 $ 32,751,207 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\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. \r\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: \r\nBond Principal Retirements \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nIncrease in Compensated Absences \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -7,139,753 \r\n \r\n$ 20,274,682 -2,282,742 \r\n \r\n17,991,940 -586,689 \r\n \r\n4,505,000 \r\n \r\n-3,072 $ 14,767,426 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2006 \r\nASSETS Cash and Cash Equivalents Investments \r\nCertificate of Deposit Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\nAGENCY FUNDS \r\n$ 222,056 101,725 33A48 \r\n$ ======3=57='=22=9= \r\n$ =====3=5=7'=22=9= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit The Whitfield County Career Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost ofits operations. The financial statements ofthe Charter School have been blended with the School District's general fund. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Whitfield County Board of Education. \r\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. \r\nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\nThe School District reports the following major governmental funds: \r\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. \r\n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and employee flexible spending accounts. \r\nBASIS OF ACCOUNTING \r\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. \r\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. \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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 and compensated absences, 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 are reported as other financing sources. \r\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. \r\nCASH AND CASH EQUIVALENTS \r\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. \r\nINVESTMENTS \r\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: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\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. \r\n \r\nRECEIVABLES \r\n \r\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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2005 tax digest year (calendar year) on October 20, 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 Whitfield 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 $25,642,578. \r\n \r\nThe tax millage rate levied for the 2005 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n16.115 mills \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $13,498,946 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. \r\nINVENTORIES \r\nCONSUMABLE SUPPLIES On the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expense/expenditure are recorded as the inventory items are used. \r\nFOOD INVENTORIES On the basic 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. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). 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 ofassets 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. \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n20,000 \r\n \r\n15 years \r\n \r\n$ 100,000 \r\n \r\n70 years \r\n \r\n$ \r\n \r\n10,000 10 to 12 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\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. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\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. \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\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, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2006, the bank balances were $14,223,072. The amounts ofthe total bank balances are classified into four categories of custodial credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \r\nCategory 4 - Uncollateralized. \r\n \r\nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 445,681 \r\n \r\n2 \r\n \r\n700,399 \r\n \r\n3 \r\n \r\n13,076,992 \r\n \r\n4 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$ 14,223,012 \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\nCATEGORIZATION OF INVESTMENTS Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event of a failure ofthe counterparty to a transaction, the School District will not be able to recover the value of the 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. \r\nInvestments are classified as to custodial credit risk by the categories described below: \r\nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \r\nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \r\nCategory 3 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent, but not in the School District's name. \r\nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \r\nAt June 30, 2006, the carrying value of the School District's total investments was $23,421,627 which is materially the same as fair value. These investments included funds in the amount of $3,721,804 invested in the Local Government Investment Pool administered by the State ofGeorgia, 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 of the 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: \r\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 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 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. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\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. \r\n \r\nFunds of$93 invested in U. S. Treasury Money Market Mutual Funds (open-end mutual funds) are not required to be classified by categories of custodial credit risk. \r\n \r\nThe investments are classified as to custodial credit risk categories as follows: \r\n \r\nType oflnvestment \r\nDebt Securities Repurchase Agreements \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\nFair Value \r\n \r\n$===:!!.o $ 12,629.230 $===-o $ 12,622,130 $ 12 699,730 \r\n \r\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. \r\n \r\nAt June 30, 2006, the School District's investment consisted ofRepurchase Agreements which had an investment maturity of 1 - 5 years. \r\n \r\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. \r\n \r\nThe U. S. Treasury Money Market Mutual Fund (Open-End) has a credit quality rating ofAAA by Moody's and Standard and Poor's. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\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 \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nBalances July 1, 2005 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2006 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 4,275,610 \r\n \r\n$ 4,275,610 \r\n \r\n31,115,218 $ 18,154,071 $ 27,786,774 21,482,515 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 35,390,828 $ 18,154,071 $ 27,786,774 $ 25,758,125 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 80,300,650 $ 23,171,584 \r\n \r\n8,438,694 \r\n \r\n2,312,148 $ \r\n \r\n3,241,208 \r\n \r\n4,423,653 \r\n \r\n$ 103,472,234 \r\n \r\n887,619 \r\n \r\n9,863,223 \r\n \r\n7,664,861 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n10,565,766 5,202,686 2,419,139 \r\n \r\n1,310,769 726,752 245,221 \r\n \r\n887,619 \r\n \r\n11,876,535 5,041,819 2,664,360 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 73,792,961 $ 27,624,643 $ \r\n \r\n0 $ 101,417,604 \r\n \r\nGovernmental Activity Capital Assets - Net $ 102,183,282 $ 45,118,114 $ 21,186.,11~ $ 122,125,222 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 1,428,592 \r\n \r\n$ \r\n \r\n46,101 \r\n \r\n5,130 \r\n \r\n35,322 \r\n \r\n29,262 \r\n \r\n612,450 \r\n \r\n728,265 125,885 \r\n \r\n$ 2,282,742 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\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: \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nDistrict-wide Ca12ital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Debt Services Capital Acquisitions \r\n \r\n$ 648,035 $ 632,668 \r\n$ 4,935,623 $ 7,661,542 $ 7,139,794 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2006, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects \r\nDebt Service Fund \r\n \r\n$ 364,994 $ 4,997,204 \r\n \r\nTotal \r\n \r\n$ 364,99~ $ 4,297,2Q4 \r\n \r\nTransfers are used to provide supplemental funding for local capital construction projects and to move excess SPLOST collections from Capital Projects Fund to the Debt Service Fund. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\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. \r\n \r\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 \r\n \r\n-20- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nsystem 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. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. An excess coverage insurance policy covers individual claims in excess of $250,000 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n2005 2006 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n449,101 $ \r\n \r\n449 101 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n521,132 $ \r\n \r\n521,132 $ \r\n \r\n0 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEndofYear Liability \r\n \r\n2005 2006 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n13,069 $ \r\n \r\n13,069 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n10,034 $ \r\n \r\n10 034 $ \r\n \r\n0 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 100,000 $ 100,000 \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nWhitfield County Board ofEducation has entered into various leases as lessee for office equipment and mobile units. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2006, for governmental funds amounted to $288,158. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2007 2008 \r\n \r\n$ 237,337 64,661 \r\n \r\nTotal Note 10: LONG-TERM DEBT \r\n \r\n$==3-01-,9~9=8 \r\n \r\nCOMPENSATED ABSENCES Compensated 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. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n2.00% - 4.50% $ 9,310.000 \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2006, were as follows: \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCompensated Obligation \r\n \r\nAbsences ( I) \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2005 \r\n \r\n$ 234,104 $ 13,815,000 $ 14,049,104 \r\n \r\nAdditions Annual Leave Earned \r\n \r\n226,273 \r\n \r\n226,273 \r\n \r\nDeductions Annual Leave Utilized Debt Retired \r\n \r\n223,201 \r\n \r\n4,505,000 \r\n \r\n223,201 4,505,000 \r\n \r\nBalance June 30, 2006 \r\n \r\n$ 237.176 $ 9,310,000 $ 9,547.176 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$_ _ _ _0 $ 4,650,000 $ 4,650,000 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2006, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2007 2008 \r\n \r\n$ 4,650,000 $ 4,660,000 \r\n \r\n273,300 99,450 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 9,310.Q00 $ 372.750 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\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: \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nSA0lS-755-350 03/02S-755-025/03G/02S-755-042 Whitfield County Career Academy \r\n \r\n$ 235,553 $ 401,398 \r\n \r\n481,233 \r\n \r\n281,974 \r\n \r\n653,712 \r\n \r\n$ 1!370!498 $ 683!372 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\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. \r\n \r\nNote 13: SUBSEQUENT EVENTS \r\n \r\nOn September 19, 2006, the voters of Whitfield County voted in favor of a Special Purpose Local Option Sales Tax Referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated in part on the Official Ballot of Whitfield County, is as follows: \r\n \r\n\"Shall a total of $96,100,000 in aggregate principal amount of Whitfield County School System general obligation debt (the \"Whitfield Bonds\") be issued for the purpose ofproviding funds to pay (i) a portion of the costs of the following projects for the Whitfield County School System: (a) the acquisition, construction, equipping and furnishing of new school buildings and facilities, including, but not limited to, a new high school and a new elementary school, (b) the addition, renovation, repair and improvement to existing school buildings and facilities, (c) the acquisition and purchase oftechnology and safety equipment, including, but not limited to, computer hardware and software and security and safety equipment, (d) the acquisition and purchase ofschool buses and other transportation or maintenance vehicles, (e) the acquisition of land, and (f) the acquisition and purchase of any property necessary and desirable therefor, both real and personal (the \"Whitfield Projects\"), (ii) capitalized interest on the Whitfield Bonds through and including April 1, 2007 and (iii) the costs of issuing the \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2006 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 13: SUBSEQUENT EVENTS \r\n \r\nWhitfield Bonds, and shall a special one percent sales and use tax be continued in Whitfield County for a period oftime not to exceed 20 calendar quarters and for the raising ofnot more than $115,000,000 to be distributed between the Whitfield County School System and the City of Dalton School System...\" \r\n \r\nThe Whitfield County School District issued bonds in the amount of $9,910,000 on December 5, 2006, and $14,000,000 on March 1, 2007, for the purpose of capital projects for Whitfield County School System. \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2006 2005 2004 \r\n \r\n100% 100% 100% \r\n \r\n$ 5,439,526 $ 5,111,840 $ 5,137,815 \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n25,272,888 $ \r\n \r\n25,272,888 $ \r\n \r\n25,642,578 \r\n \r\n190,000 \r\n \r\n190,000 \r\n \r\n644,464 \r\n \r\n59,302,899 \r\n \r\n59,229,876 \r\n \r\n62,766,494 \r\n \r\n8,905,980 \r\n \r\n9,432,608 \r\n \r\n10,114,884 \r\n \r\n2,231,698 \r\n \r\n2,231,698 \r\n \r\n1,872,883 \r\n \r\n63,000 \r\n \r\n63,000 \r\n \r\n510,620 \r\n \r\n704 982 \r\n \r\n704 982 \r\n \r\n4 823 052 \r\n \r\n$ \r\n \r\n96 671 447 $ \r\n \r\n97,125,052 $ \r\n \r\n106 374 975 \r\n \r\n$ \r\n \r\n66,494,065 $ \r\n \r\n66,617,950 $ \r\n \r\n68,062,655 \r\n \r\n4,281,959 2,064,914 2,311,322 \r\n782,710 6,344,998 \r\n693,463 6,699,136 4,589,343 1,948,576 \r\n111,920 20,180 \r\n4,358,038 \r\n \r\n4,350,822 2,144,458 2,521,322 \r\n758,922 6,406,498 \r\n693,463 6,699,136 4,600,573 1,948,576 \r\n111,920 20,180 \r\n4 358 038 \r\n \r\n4,602,661 2,252,468 2,495,146 \r\n947,088 6,359,057 1,188,413 7,302,377 5,139,179 1,631,600 1,079,943 \r\n652,528 6,348,666 \r\n \r\n$ \r\n \r\n100,700,624 $ \r\n \r\n101,231,858 $ \r\n \r\n108 061 781 \r\n \r\n$ \r\n \r\n-4 029 177 $ \r\n \r\n-4 106 806 $ \r\n \r\n-1 686 806 \r\n \r\n$ \r\n \r\n5,221,274 $ \r\n \r\n5,221,274 \r\n \r\n-5 221 274 \r\n \r\n-5,221,274 $ \r\n \r\n-364 994 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n-364 994 \r\n \r\n$ \r\n \r\n-4,029,177 $ \r\n \r\n-4, 106,806 $ \r\n \r\n-2,051,800 \r\n \r\n13,290,253 \r\n \r\n13,290,253 \r\n \r\n13,225,598 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n9 261 076 $ \r\n \r\n9183447$ \r\n \r\n11173 798 \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Hurricane Education Recovery Improving Teacher Quality State Grants Mathematics and Science Partnerships Migrant Education State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \r\nTotal U. S. Department of Education \r\nLabor, U.S. Department of Pass-Through From Georgia Department of Education Workforce Investment Act Adult Program \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n. 10.553 . 10.555 \r\n \r\nN/A NIA $ \r\n$ \r\n \r\n(2) 5,753,530 \r\n5,753,530 \r\n \r\n10.550 10.665 \r\n \r\nN/A N/A \r\n$ \r\n \r\n243,215 (3) 5,996,745 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n2,344,701 111 335 \r\n2,456,036 \r\n \r\n84.332 84.196 84.365 84.318 84.938 84.367 84.366 84.011 84.298 84.010 84.048 \r\n \r\nN/A N/A N/A N/A NIA N/A N/A NIA N/A NIA N/A \r\n$ \r\n \r\n107,607 68,162 263,266 97,564 (4) 509,650 83,547 87,905 37,938 2,175,941 127 171 \r\n6 014 787 \r\n \r\n17.258 \r\n \r\nN/A $ \r\n \r\n15 000 \r\n \r\n$===12='=02=6=,5=3=2 \r\n \r\n- 28- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\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. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($974,134) were not maintained separately and are included in the 2006 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $5,783, do not require reporting of expenditures. (4) Funds earned on the Hurricane Education Recovery program, in the amount of $47,379, do not require reporting \r\nof expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Whitfield County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\n \r\n$ \r\n \r\n141,415 \r\n \r\n$ \r\n \r\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 Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Limited School Choice Program National Teacher Certification Preschool Handicapped Program Safe Schools Grant Virtual Schools State Grant \r\n \r\n4,277,418 502,697 \r\n9,439,866 851,039 \r\n4,498,379 439,732 \r\n7,029,060 6,114,144 2,540,302 5,247,960 2,147,944 \r\n43,053 578,736 2,338,300 1,273,111 399,470 250,466 \r\n1,423,642 2,566,990 3,478,285 \r\n1,324,072 223,134 244,836 45,722 29,172 \r\n6,000,223 316,176 \r\n1,334,601 -2,929,846 \r\n217,743 172,012 112,723 \r\n10,214 250 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n$ 4,406,552 \r\n \r\nCONTRACT Education, Georgia Department of Foreign Language Model Program \r\n \r\n83453 \r\n \r\nTOTAL \r\n141,415 \r\n4,277,418 502,697 \r\n9,439,866 851,039 \r\n4,498,379 439,732 \r\n7,029,060 6,114,144 2,540,302 5,247,960 2,147,944 \r\n43,053 578,736 2,338,300 1,273,111 399,470 250,466 \r\n1,423,642 2,566,990 3,478,285 \r\n1,324,072 223,134 244,836 45,722 29,172 \r\n6,000,223 316,176 \r\n1,334,601 -2,929,846 \r\n217,743 172,012 112,723 10,214 \r\n250 \r\n4,406,552 \r\n83453 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n$ 62,766,494 $ 4,406,552 $==-=6,.,,7,,..17=3=,04=6= - 30- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nAcquisitions, construction and equipping of a new elementary school, a new middle school and a new high school, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore; renovations and improvements at existing schools, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefore; the acquisition, construction and equipping of a central warehouse facility; the acquisition of school buses; and system-wide technology improvements. \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 53,531,937 $ 53,531,937 $ 19,137,497 $ 31,647,055 Ongoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \r\n(3) The voters of Whitfield 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategoryV \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n4,861,995 $ \r\n568,545 10,697,572 \r\n976,776 5,104,449 \r\n \r\n4,650,585 $ \r\n473,913 10,868,843 \r\n950,170 5,326,113 \r\n \r\n512,080 8,029,984 6,901,365 2,864,769 6,036,197 \r\n \r\n795,971 9,170,297 9,107,125 2,066,526 \r\n2,876 1,042,164 3,516,233 \r\n362,712 \r\n \r\n2,419,500 50,523 \r\n656,503 2 630 713 \r\n \r\n2,154,423 100,055 893,770 \r\n2,415,442 \r\n \r\n146,212 $ \r\n4,030 324,948 \r\n9,491 134,116 \r\n4,784 291,821 873,272 348,325 \r\n16,444 6,581 \r\n26,569 4,768 667 \r\n32,043 1,748 \r\n20,630 20,226 \r\n \r\n4,796,797 477,943 \r\n11,193,791 959,661 \r\n5,460,229 \r\n800,755 9,462,118 9,980,397 2,414,851 \r\n19,320 1,048,745 3,542,802 \r\n367,480 667 \r\n2,186,466 101,803 914,400 \r\n2,435,668 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n52,310,971 $ 53,897,218 $ \r\n \r\n2,266,675 $ \r\n \r\n56,163,893 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n1,446,329 286 665 \r\n \r\n2,065,006 96 359 \r\n \r\n334,796 169 119 \r\n \r\n2,399,802 265,478 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n54,043,965 $ 56,058,583 $ \r\n \r\n2,770,590 $ =====5=8,,..8.2..9..,,1=7=3 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMay 18, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members ofthe Whitfield County Board of Education \r\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 \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofWhitfield County Board ofEducation as ofand for the year ended June 30, 2006, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated May 18, 2007. 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield County Board ofEducation'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 Whitfield 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 ofFindings and Questioned Costs as items FS-7551-06-01 and FS-7551-06-02. \r\n2006YB-30 \r\n \r\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. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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. \r\nThis report is intended solely for the information and use of the management and members of the Whitfield County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n4)~ \r\nRus ell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2006YB-30 \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 858-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMay 18, 2007 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2006. Whitfield County Board ofEducation'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 ofWhitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 Whitfield County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2006SA-10 \r\n \r\n circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Whitfield County Board of Education's compliance with those requirements. \r\nIn our opinion, the Whitfield County Board ofEducation 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, 2006. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\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 ofthe 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. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n~~w..J::\\~ \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2006SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-04-01 FS-7551-05-01 FS-7551-05-02 \r\n \r\nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-7551-05-01 \r\n \r\nA meeting ofschool bookkeepers was held for the purpose ofcommunicating the internal control deficiencies associated with the prior year findings. Items discussed included the following: \r\n \r\n The importance of the building level administrator/principal rece1vmg and reviewing the monthly bank statements prior to the bookkeeper's reconciliation procedures and reviewing the reconciliation documents upon reconciliation completion. \r\n \r\n The importance of documented authorization for all purchases before purchase is actually procured. \r\n \r\n Original invoices must be maintained to support all purchases. \r\n \r\n School credit and purchase cards must have the following controls: \r\n Must have purchase order/requisition to use cards.  No traditional credit cards allowed.  Must maintain tight physical control over card. \r\n \r\n Ifpurchase order is not applicable, a check request authorization should accompany support documentation. \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Finding Control Number: FS-7551-05-01 In addition to the bookkeeper meeting, bookkeepers are required to reconcile bank statements by the 15th ofthe succeeding month. Also, financial records are integrated into the systems general ledger on a monthly basis. The School District provides support for bookkeepers relative to internal control issues through a procedure manual and consultation. The prior year audit report was issued in May of 2006. There was not sufficient time to address this finding for the fiscal year 2006 audit. We expect that the finding will be either partially or fully resolved in the fiscal year 2007 audit. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements General Ledger \r\n \r\nNone ofthe reportable conditions described above are considered to be material weaknesses. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n \r\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 \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $362,391. \r\n \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Reportable Condition Finding Control Number: FS-7551-06-01 \r\n \r\nCondition: \r\n \r\nThis is a repeat finding (FS-7551-05-01 and FS-7551-04-01) from the years ended June 30, 2005, and June 30, 2004, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCriteria: \r\n \r\nThe School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nCash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment function.  The activity for two bank accounts and one certificate of deposit was not included on the financial statements. The total cash balance for the two accounts was $13,649 at June 30, 2006, and the certificate of deposit's balance was $45,203 at June 30, 2006. \r\n \r\nRevenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Receipt activity totaling $148,059 for two school accounts was omitted from the financial statements. \r\n \r\nExpenditures/Liabilities/Disbursements  Inquiry revealed the use of credit cards by school personnel without obtaining approved purchase orders or requisitions. In addition, no control procedures exist for the use of credit cards by school personnel. \r\n \r\nCause: \r\n \r\nThese deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \r\n \r\n-2- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Reportable Condition Finding Control Number: FS-7551-06-01 \r\n \r\nEffect: \r\n \r\nErrors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation: \r\n \r\nManagement should revise and monitor controls to provide reasonable assurance that transactions are recorded and processed according to established procedures. \r\n \r\nGENERAL LEDGER Incomplete General Ledger/DE046 Financial Report Reportable Condition Finding Control Number: FS-7551-06-02 \r\n \r\nCondition: \r\n \r\nThe School District failed to include Long-Term Debt activity in the DE046 financial report submitted to the Georgia Department of Education. \r\n \r\nCriteria: \r\n \r\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. \r\n \r\nQuestioned Cost: NIA \r\n \r\nInformation: \r\n \r\nLong-Term debt was not recorded in the School District's general ledger as required. An audit adjustment was proposed to record General Obligation Bonds of $9,310,000 and Compensated Absences debt of $237,176. \r\n \r\nCause: \r\n \r\nManagement failed to comply with the requirements of the Georgia Department of Education regarding financial reporting. \r\n \r\nEffect: \r\n \r\nThe failure ofthe School District to maintain a complete and accurate general ledger can lead to inaccurate internal and external reporting. \r\n \r\nRecommendation: \r\n \r\nThe School District should implement controls to ensure that Georgia Department of Education's policies and procedures are followed and implement procedures to ensure that all financial data is properly recorded in the general ledger and reported in the DE046. \r\n \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2006 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-4 - \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2006 \r\nFinding Control Number: FS-7551-06-01 \r\nWe concur with this finding. Additional training meetings for school bookkeepers will be scheduled for the purpose of communicating the internal control deficiencies associated with the prior year findings. In addition to the training meetings, bookkeepers will be required to reconcile bank statements by the 15th of the succeeding month. Also, financial records will be integrated into the system's general ledger on a monthly basis. \r\nFinding Control Number: FS-7551-06-02 \r\nWe concur with this finding. The ChiefFinancial Officer will implement procedures to assure that long-term debt transactions are properly posted and reported in accordance with Generally Accepted Accounting Principles and the requirements ofthe Georgia Department of Education. \r\nContact Person: Kenny Sheppard, Chief Financial Officer Phone: (706) 217-6701 Fax Number: (706) 217-6703 E-mail Address: ksheppard@whitfield.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2004-h2005","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"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-bw59-b2004-h2005"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2004-h2005"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2003-h2004","title":"Whitfield County Board of Education, Dalton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2004-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004"],"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-bw59-b2003-h2004"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2003-h2004"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n4 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n7 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n8 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n9 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nIO \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nI I \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n27 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n30 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n32 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n33 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\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 \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJune 22, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Whitfield 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 ofthe Whitfield County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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. \r\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 Whitfield 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. \r\n2004ARL-11 \r\n \r\n The Whitfield 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 22, 2005, on our consideration of the Whitfield 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 read in conjunction with this report in considering the results of our audit. \r\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. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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. \r\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 of Georgia Annotated section 506-24. \r\nRespectfully submitted, \r\n~-~LD.c4d* 1 ~ssell W. Hinton State Auditor \r\nRWH:gp 2004ARL-11 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2004 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n9,899,071 \r\n \r\n41,469,399 \r\n \r\n3,635,256 6,978,324 \r\n950,504 378,766 112,785 \r\n \r\n4,275,610 8,676,265 3,241,208 74,937,317 8,044,139 -16 441 213 \r\n \r\n$ ==~14~6~,1;,;;5~7,:a;,4~31= \r\n \r\n$ \r\n \r\n2,896,112 \r\n \r\n8,929,871 \r\n \r\n1,130,163 \r\n \r\n325,658 \r\n \r\n2,060 \r\n \r\n4,370,000 13,815,000 \r\n \r\n$ \r\n \r\n31468864 \r\n \r\n$ \r\n \r\n83,422,543 \r\n \r\n690,483 4,661,630 18,160,636 7 753 275 \r\n \r\n$ \r\n \r\n114,688,567 \r\n \r\n$ ==.;.14,;,;6;;,.,1~5;,;,7;,,;4,;;;,31~ \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30. 2004 \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction Support Services \r\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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ \r\n \r\n63,017,417 $ \r\n \r\n3,759,771 2,177,045 2,305,002 \r\n642,433 5,591,620 \r\n951,323 5,912,200 2,629,901 1,254,517 1,336,975 \r\n \r\n717,435 4,848,530 \r\n624,825 \r\n \r\n329,312 1,655 \r\n1,758,944 \r\n \r\nTotal Governmental Activities \r\n \r\n$==;;,;;.9,5=,=7=68.;,;9,;9;4.= $ \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n2,089,911 \r\n \r\nTotal General Revenues \r\n \r\nChange in Net Assets \r\n \r\nNet Assets - Beginning of Year \r\n \r\nNet Assets - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n43,558,467 $ \r\n \r\n839,412 995,008 1,234,430 1,617,698 2,475,138 \r\n4,424 3,282,989 1,333,878 \r\n10,598 430,046 \r\n \r\n47 3,320,763 \r\n \r\n$ \r\n \r\n59,102,898 $ \r\n \r\n46,162 $ \r\n998 151 783 926 279,701 \r\n2,695 \r\n331 416 $ \r\n \r\n-19,083,476 \r\n-2,920,359 -1,182,037 -1,069,574 \r\n975,416 -3,115,699 \r\n-946,899 -2,626,630 -1,016,322 -1,243,919 \r\n-906,929 \r\n-717,388 233,872 -624 825 \r\n-34,244,769 \r\n \r\n$ \r\n \r\n24,479,879 \r\n \r\n11,846,730 753,466 72,366 \r\n5,663,054 939,722 \r\n2,638,989 \r\n \r\n$ \r\n \r\n46,394,206 \r\n \r\n$ \r\n \r\n12,149,437 \r\n \r\n102,539,130 \r\n \r\n$===1=14=-=,6=8=8=,5=67= \r\n \r\n-5- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2004 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n6,514,688 $ \r\n \r\n3,384,383 \r\n \r\n$ \r\n \r\n9,899,071 \r\n \r\n3,608,317 \r\n \r\n33,199,452 $ \r\n \r\n4,661,630 \r\n \r\n41,469,399 \r\n \r\n988,777 6,978,324 \r\n950,504 378,766 112 785 \r\n \r\n2,078,860 \r\n \r\n3,067,637 6,978,324 \r\n950,504 378,766 112,785 \r\n \r\nTotal Assets \r\n \r\n$ 19,532,161 $ 38,662,695 $ \r\n \r\n4,661,630 $ 62,856,486 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\n \r\n$ \r\n \r\n2,724,091 $ \r\n \r\n8,929,871 \r\n \r\n2 060 $ 11,656,022 $ \r\n \r\n172,021 1,130,163 \r\n325,658 \r\n1,627,842 \r\n \r\n$ \r\n \r\n2,896,112 \r\n \r\n8,929,871 \r\n \r\n1,130,163 \r\n \r\n325,658 \r\n \r\n2,060 \r\n \r\n$ 13,283,864 \r\n \r\n$ \r\n \r\n577,698 \r\n \r\n$ \r\n \r\n577,698 \r\n \r\n$ \r\n \r\n4,661,630 \r\n \r\n4,661,630 \r\n \r\n112,785 \r\n \r\n112,785 \r\n \r\n$ 37,034,853 \r\n \r\n37,034,853 \r\n \r\n1,552,244 \r\n \r\n1,552,244 \r\n \r\n5,633,412 \r\n \r\n5,633,412 \r\n \r\n$ \r\n \r\n7,876,139 $ 37,034,853 $ \r\n \r\n4,661,630 $ 49,572,622 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 19,532,161 $ 38,662,695 $ \r\n \r\n4,661,630 $ 62,856,486 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2004 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\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. \r\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: \r\nBonds Payable \r\n \r\n$ 49,572,622 \r\n \r\n$ 4,275,610 8,676,265 3,241,208 \r\n74,937,317 8,044,139 \r\n-16 441 213 \r\n \r\n82,733,326 \r\n \r\n567,619 \r\n \r\n-18,185,000 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 114,688,567 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2004 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES} \r\nSale of Equipment Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 24,170,040 \r\n \r\n825,832 $ 11,846,730 \r\n \r\n56,394,575 \r\n \r\n51,715 \r\n \r\n8,021,947 \r\n \r\n2,089,911 \r\n \r\n59,781 \r\n \r\n879,897 $ \r\n \r\n3,275 711 \r\n \r\n$ 94,837,797 $ 12,778,342 $ \r\n \r\n$ 44 \r\n \r\n24,170,040 12,672,562 56,446,290 \r\n8,021,947 2,089,911 \r\n939,722 3,275,711 \r\n \r\n44 $ 107,616,183 \r\n \r\n$ 62,881,680 \r\n \r\n$ 62,881,680 \r\n \r\n3,759,771 2,177,045 2,300,551 \r\n641,760 5,588,131 \r\n951,323 5,908,071 3,352,643 1,254,517 1,336,975 \r\n717,435 4,836,513 \r\n$ \r\n \r\n11,787,231 \r\n \r\n3,759,771 2,177,045 2,300,551 \r\n641,760 5,588,131 \r\n951,323 5,908,071 3,352,643 1,254,517 1,336,975 \r\n717,435 4,836,513 11,787,231 \r\n \r\n$ 4,160,000 624,825 \r\n \r\n4,160,000 624,825 \r\n \r\n$ 95,706,415 $ 11,787,231 $ 4,784,825 $ 112,278,471 \r\n \r\n$ \r\n \r\n-868,618 $ \r\n \r\n991,111 $ -4,784 781 $ -4,662,288 \r\n \r\n$ \r\n \r\n954 \r\n \r\n$ \r\n \r\n$ \r\n \r\n276,417 $ 4,952,585 \r\n \r\n-276,417 \r\n \r\n-4,952,585 \r\n \r\n$ \r\n \r\n-275,463 $ -4,676,168 $ 4,952,585 $ \r\n \r\n$ -1,144,081 $ -3,685,057 $ \r\n \r\n167,804 $ \r\n \r\n9,020,220 \r\n \r\n40,719,910 \r\n \r\n4,493,826 \r\n \r\n954 5,229,002 -5,229,002 \r\n954 \r\n-4,661,334 \r\n54,233,956 \r\n \r\nFund Balances - Ending \r\n \r\n$ 7,876,139 $ 37,034,853 $ 4,661,630 $ 49,572,622 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2004 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\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. \r\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. \r\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: \r\nBond Principal Retirements \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -4,661,334 \r\n \r\n$ 14,107,411 -1,757,934 \r\n \r\n12,349,477 \r\n \r\n309,839 \r\n \r\n-8,545 \r\n \r\n4,160,000 $ 12 149 437 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\nAGENCY FUNDS $ ======3==10='=72=8= \r\n$ ==3=10='=72=8= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Whitfield County Board of Education. \r\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. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\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. \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe School District reports the following major governmental funds: \r\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. \r\n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and Special Purpose Local Option Sales Tax proceeds to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts. \r\nBASIS OF ACCOUNTING \r\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. \r\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. \r\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 \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\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. \r\nCASH AND CASH EQUIVALENTS \r\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. \r\nINVESTMENTS \r\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: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on December 22, 2003 (levy date). Taxes were due on February 22, 2004 (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 Whitfield 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, 2004, for maintenance and operations amounted to $24,170,040. \r\n \r\nThe tax millage rate levied for the 2003 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n16.162 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $11,846,730 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. \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic 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 converted to a single inventory system effective fiscal year 2004. For items that are both donated food commodities and purchased foods, the higher price ofthe item is reported on the single inventory. 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 expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). 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 of art. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Vehicles and Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n20,000 \r\n \r\n15 years \r\n \r\n$ 100,000 \r\n \r\n70 years \r\n \r\n$ \r\n \r\n10,000 10 to 12 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\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 \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nand pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\nNote 3: DEPOSITS AND INVESTMENTS \r\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. 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. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\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, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\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. \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $15,117,344. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 464,264 \r\n \r\n2 \r\n \r\n14,501,351 \r\n \r\n3 \r\n \r\n151,729 \r\n \r\nTotal \r\n \r\n$ 15,117,344 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \r\nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \r\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. \r\n \r\nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \r\n \r\nAt June 30, 2004, the carrying value of the School District's total investments was $41,387,709 which is materially the same as fair value. The investments are classified as to risk categories as follows: \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nTYJ:1e oflnvestment \r\n \r\nU. S. Government \r\n \r\n$ \r\n \r\nRepurchase Agreements \r\n \r\nTotal \r\n \r\n$ \r\n \r\nLocal Government Investment Pools \r\n \r\nTotal Investments \r\n \r\nRisk Categories 2 \r\n \r\n0 $ \r\n \r\n35,268 $ \r\n \r\n33,623,616 \r\n \r\n$ 33,658,884 $ \r\n \r\nCarrying \r\n \r\nFair \r\n \r\n3 \r\n \r\nAmount \r\n \r\nValue \r\n \r\n0 $ \r\n \r\n35,268 $ \r\n \r\n35,268 \r\n \r\n33,623,616 \r\n \r\n33,623,616 \r\n \r\n$ 33,658,884 $ 33,658,884 \r\n \r\n7,728,825 \r\n \r\n7,728,825 \r\n \r\n$ 41 38:Z :Z02 $ 41,38:Z :Z02 \r\n \r\nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State of Georgia, 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: \r\n \r\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 (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 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, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years. \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2003 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2004 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,960,811 $ 1,314,799 \r\n \r\n$ 4,275,610 \r\n \r\n4,231.978 11,999,811 $ 7,555,524 \r\n \r\n8,676,265 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 7,192,789 $ 13,314,610 $ 7,555,524 $ 12,951,875 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 67,381,793 $ 7,331,442 3,241,208 \r\n \r\n7,555,524 792,801 $ \r\n \r\n$ 74,937,317 \r\n \r\n80,104 \r\n \r\n8,044,139 \r\n \r\n3,241,208 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n8,441,298 4,121,129 2,192,411 \r\n \r\n1,016,570 621,417 119 947 \r\n \r\n71,559 \r\n \r\n9,457,868 4,670,987 2,312,358 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 63,199,605 $ 6,590,391 $ \r\n \r\n8 545 $ 69,781,451 \r\n \r\nGovernmental Activity Capital Assets - Net $ 70,392.394 $ 19,905.001 $ 7,564.069 $ 82,733.326 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 1,034,968 \r\n \r\n$ \r\n \r\n33,936 \r\n \r\n5,130 \r\n \r\n26,604 \r\n \r\n31,479 \r\n \r\n534,186 \r\n \r\n631,335 91,631 \r\n \r\n$ 1,757,934 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and Georgia State Financing and Investment Commission (GSFIC) funds are reported as restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2004, were as follows: \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nDistrict-wide Ca~ital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Debt Services Capital Acquisitions \r\n \r\n$ 1,443,976 $ 1,940,407 \r\n$ 4,661,630 $ 17,060,819 $ 16,138,633 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2004, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects Debt Service Fund \r\n \r\n$ 276,417 $ 4,952,585 \r\n \r\nTotal \r\n \r\n$ 276,417 $ 4,952.585 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects, and to move excess SPLOST collections from the Capital Projects Fund to the Debt Service Fund. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\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. \r\n \r\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 \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\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. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. An excess coverage insurance policy covers individual claims in excess of $225,000 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2003 2004 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n186,051 $ \r\n \r\n186,051 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n78 316 $ \r\n \r\n78 316 $ \r\n \r\n0 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2003 2004 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n3 161 $ \r\n \r\n3 161 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n30,385 $ \r\n \r\n30 385 $ \r\n \r\n0 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 100,000 $ 100,000 \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nWhitfield County Board ofEducation has entered into various leases as lessee for office equipment and mobile units. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2004, for governmental funds amounted to $364,628. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2005 \r\n \r\n$ 360,410 \r\n \r\n2006 \r\n \r\n283,024 \r\n \r\n2007 \r\n \r\n236,255 \r\n \r\n2008 \r\n \r\n64,660 \r\n \r\nTotal Note 10: LONG-TERM DEBT \r\n \r\n$==9=='4\"\"\"'4==34===9 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n2.00% - 4.50% $ 18.185.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nGovernmental Funds General \r\nObligation Bonds \r\n \r\nBalance July 1, 2003 \r\n \r\n$ 22,345,000 \r\n \r\nDeductions Debt Retired \r\n \r\n4,160,000 \r\n \r\nBalance June 30, 2004 \r\n \r\n$ 18,185,000 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ 4,370,000 \r\n \r\nAt June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2005 2006 2007 2008 \r\n \r\n$ 4,370,000 $ 4,505,000 4,650,000 4,660,000 \r\n \r\n530,785 413,023 273,300 \r\n99 450 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 18,185,000 $ 1,316,558 \r\n \r\nNote 11: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $769,268 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $761,425 \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 11: ON-BEHALF PAYMENTS \r\n \r\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 $7,843 \r\n \r\nNote 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2004: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nCohutta Elementary School Renovations North Whitfield Middle School Classroom Renovations Westside Middle School Classroom Renovations New Career Academy - New Construction \r\n \r\n$ 955,919 2,852,842 3,102,698 10,236,080 \r\n \r\n$ 17!147!539 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\nNote 13: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\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. \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\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 \r\n \r\n- 24- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 14: RETIREMENT PLANS \r\n \r\nemployer 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. \r\n \r\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: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2004 2003 2002 \r\n \r\n100% 100% 100% \r\n \r\n$ 5,137,815 $ 5,027,391 $ 4,597,632 \r\n \r\n- 25 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES {USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n24,199,420 $ \r\n \r\n24,199,420 $ \r\n \r\n24,170,040 \r\n \r\n365,000 \r\n \r\n365,000 \r\n \r\n825,832 \r\n \r\n56,013,828 \r\n \r\n56,200,362 \r\n \r\n56,394,575 \r\n \r\n6,690,529 \r\n \r\n7,159,603 \r\n \r\n8,021,947 \r\n \r\n2,119,200 \r\n \r\n2,119,200 \r\n \r\n2,089,911 \r\n \r\n27,500 \r\n \r\n27,500 \r\n \r\n59,781 \r\n \r\n683,723 \r\n \r\n683,723 \r\n \r\n3,275 711 \r\n \r\n$ \r\n \r\n90,099,200 $ \r\n \r\n90,754,808 $ \r\n \r\n94 837 797 \r\n \r\n$ \r\n \r\n61,896,595 $ \r\n \r\n61,892,899 $ \r\n \r\n62,881,680 \r\n \r\n3,663,764 \r\n \r\n3,800,897 \r\n \r\n1,656,273 \r\n \r\n2,050,507 \r\n \r\n3,759,771 \r\n \r\n2,192,071 \r\n \r\n2,254,681 \r\n \r\n2,177,045 \r\n \r\n607,435 \r\n \r\n636,306 \r\n \r\n2,300,551 \r\n \r\n5,511,218 \r\n \r\n5,514,282 \r\n \r\n641,760 \r\n \r\n517,773 \r\n \r\n517,773 \r\n \r\n5,588,131 \r\n \r\n5,330,539 \r\n \r\n5,330,539 \r\n \r\n951,323 \r\n \r\n3,315,669 \r\n \r\n3,297,035 \r\n \r\n5,908,071 \r\n \r\n1,103,622 \r\n \r\n1,103,622 \r\n \r\n3,352,643 \r\n \r\n1,254,517 \r\n \r\n97,919 \r\n \r\n337,839 \r\n \r\n1,336,975 \r\n \r\n28,528 \r\n \r\n28,528 \r\n \r\n717,435 \r\n \r\n4,359,338 \r\n \r\n4,359,518 \r\n \r\n4,836,513 \r\n \r\n342,446 \r\n \r\n342 446 \r\n \r\n$ \r\n \r\n90,623,190 $ \r\n \r\n91,466,872 $ \r\n \r\n95,706,415 \r\n \r\n$ \r\n \r\n-523,990 $ \r\n \r\n-712,064 $ \r\n \r\n-868,618 \r\n \r\n$ \r\n \r\n1,214,506 $ \r\n \r\n1,214,506 $ \r\n \r\n-1 337 085 \r\n \r\n-1,314,506 \r\n \r\n954 -276 417 \r\n \r\n$ \r\n \r\n-122,579 $ \r\n \r\n-100 000 $ \r\n \r\n-275 463 \r\n \r\n$ \r\n \r\n-646,569 $ \r\n \r\n-812,064 $ \r\n \r\n-1,144,081 \r\n \r\n6,304,814 \r\n \r\n6,304,814 \r\n \r\n9,020,220 \r\n \r\n-84,965 \r\n \r\n-84 965 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n5,573,280 $ \r\n \r\n5,407,785 $===7,..,8=76=!,,:13=9= \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\n \r\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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U. S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading Excellence - Local Reading Improvement State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Migrant Education \r\nTotal U. S. Department of Education \r\nTotal Federal Financial Assistance \r\nNIA = Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n. 10.553 . 10.555 \r\n \r\nN/A N/A $ \r\n$ \r\n \r\n(2) 4 245 911 \r\n4,245,911 \r\n \r\n10.550 10.665 \r\n \r\nN/A N/A \r\n$ \r\n \r\n270,988 (3l 4,516,899 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n1,701,717 30 151 \r\n1,731,868 \r\n \r\n84.332 84.365 \r\n. 84.318 84.367 84.338 84.298 84.010 84.048 \r\n84.011 \r\n \r\nN/A N/A N/A \r\nN/A \r\nN/A N/A \r\nN/A \r\nN/A \r\nN/A \r\n$ \r\n \r\n179,965 105,370 \r\n39,048 456,073 659,286 \r\n60,496 1,605,086 \r\n115,424 \r\n62,602 \r\n5,015,218 \r\n \r\n$===9=\"''=53=2=1' =17= \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\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. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($319,442) were not maintained separately and are included in the 2004 National School Lunch Program. \r\n(3) Funds earned on this program in the amount of $5.580 do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Whitfield 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Leaming Pre-Kindergarten Program \r\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 Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative 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 Nursing Services Principal Supplements Vocational Supervisors Migrant Education Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Limited School Choice Program Mentor Teachers National Teacher Certification Preschool Handicapped Program Lottery Program Student Information System \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n75,028 \r\n \r\n$ \r\n \r\n75,028 \r\n \r\n3,717,260 389,430 \r\n8,118,034 1,194,634 3,956,819 \r\n702,643 6,710,731 5,233,100 1,987,915 \r\n44,682 896,913 3,085,721 1,271,266 \r\n11,901 1,941,682 \r\n64,403 510,716 1,739,642 1,146,900 352,335 228,408 \r\n1,322,084 2,371,169 3,252,864 \r\n1,181,895 279,701 238,745 47,118 72,060 658 \r\n5,028,343 319,442 80,671 \r\n-2,673,877 \r\n36,701 88,421 761,425 153,824 \r\n8,743 67,667 168,572 \r\n115,890 \r\n \r\n3,717,260 389,430 \r\n8,118,034 1,194,634 3,956,819 \r\n702,643 6,710,731 5,233,100 1,987,915 \r\n44,682 896,913 3,085,721 1,271,266 \r\n11,901 1,941,682 \r\n64,403 510,716 1,739,642 1,146,900 352,335 228,408 \r\n1,322,084 2,371,169 3,252,864 \r\n1,181,895 279,701 238,745 47,118 72,060 658 \r\n5,028,343 319,442 80,671 \r\n-2,673,877 \r\n36,701 88,421 761,425 153,824 \r\n8,743 67,667 168,572 \r\n115,890 \r\n \r\n- 30 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Education, Georgia Department of Foreign Language in Elementary School \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n51,715 $ \r\n \r\n51,715 \r\n \r\n$ \r\n \r\n7,843 \r\n \r\n7,843 \r\n \r\n84453 \r\n \r\n84,453 \r\n \r\n$ 56,394,575 $===5=1=7=15= $ 56,446,290 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nConstruction of additional classrooms, instructional space at nine elementary schools, four middle schools and two high schools, as well as remodeling and renovating existing classrooms, media centers, offices, kitchens, cafeterias, gymnasiums, auditoriums, restrooms, roofs, parking areas and grounds at these schools and providing furnishings, equipment and fixtures therefor \r\nAcquisitions, construction and equipping of a new elementary school, a new middle school and a new high school, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefor; renovations and improvements at existing schools, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefor; the acquisition, construction and equipping of a central warehouse facility; the acquisition of school buses; and system-wide technology improvements \r\n \r\nORIGINAL ESTIMATED \r\nCOST(1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 46,753,759 $ \r\n \r\n53,719,500 $ \r\n \r\n8,211,827 $ \r\n \r\n42,668,086 \r\n \r\nOngoing \r\n \r\n53,531,937 \r\n \r\n53,531,937 \r\n \r\n3,923,814 \r\n \r\n1,715,944 Ongoing \r\n \r\n$ 100,285,696 $ 107,251,437 $ 12,135,641 $ 44,384,030 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Whitfield 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 32 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\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) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n4,209,594 $ 5,552,504 $ \r\n \r\n208,372 $ \r\n \r\n5,760,876 \r\n \r\n452,542 \r\n \r\n422,824 \r\n \r\n5,822 \r\n \r\n428,646 \r\n \r\n9,267,968 \r\n \r\n8,841,877 \r\n \r\n667,826 \r\n \r\n9,509,703 \r\n \r\n1,380,082 \r\n \r\n1,564,040 \r\n \r\n13,031 \r\n \r\n1,577,071 \r\n \r\n4,514,797 \r\n \r\n4,526,478 \r\n \r\n250,547 \r\n \r\n4,777,025 \r\n \r\n813,884 7,742,346 5,945,452 2,260,523 5,962,192 \r\n2,182,717 71,036 \r\n584,332 1,937,204 \r\n \r\n771,564 8,974,464 8,017,436 1,676,578 \r\n4,313 1,038,433 3,514,471 \r\n396,195 \r\n2,185,397 164,461 918,451 \r\n1,723,643 \r\n \r\n7,245 507,096 327,490 238,078 \r\n15,892 19,745 52,906 \r\n8,700 46 \r\n24,869 1,469 \r\n20,642 14 203 \r\n \r\n778,809 9,481,560 8,344,926 1,914,656 \r\n20,205 1,058,178 3,567,377 \r\n404,895 46 \r\n2,210,266 165,930 939,093 \r\n1737846 \r\n \r\n$ \r\n \r\n47,324,669 $ 50,293,129 $ \r\n \r\n2,383,979 $ \r\n \r\n52,677,108 \r\n \r\n1,304,626 260,054 \r\n \r\n1,925,402 104,242 \r\n \r\n184,263 114,916 \r\n \r\n2,109,665 219,158 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n48,889,349 $ 52,322,773 $ \r\n \r\n2,683,158 $ ==:,;;5~5.;;,0=05;;,.;,9;,;;3;.;.1 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJune 22, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\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 \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Whitfield County Board ofEducation as ofand for the year ended June 30, 2004, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated June 22, 2005. 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal 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 Whitfield County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7551-0401. \r\n2004YB-30 \r\n \r\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 the reportable condition described above is not a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, 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. \r\nThis report is intended solely for the information and use of the management and members of the Whitfield County Board of Education and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2004YB-30 \r\n \r\nState Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJune 22, 2005 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2004. Whitfield County Board ofEducation'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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 Whitfield 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 Whitfield County Board ofEducation's compliance with those requirements. \r\n2004SA-10 \r\n \r\n In our opinion, the Whitfield County Board ofEducation 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. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\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. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n \r\nRWH:gp 2004SA-10 \r\n \r\n~to~~ State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-03-01 \r\n \r\nUnresolved - See Corrective Action/Reponses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7551-03-01 \r\n \r\nFiscal year 2003 was the first year that our School District was required to provide principal account information for examination by the Georgia Department of Audits in accordance with Governmental Accounting Standards Board pronouncement 34 (GASB 34). Management acknowledges the weakness in internal controls and is continuing to address these findings accordingly. Management will continue to improve accounting skills among school financial personnel through training and periodic updates of procedures within the Business Service Manual. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement reportable condition related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nThe reportable condition described above is not considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \r\n \r\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 84.367 Improving Teacher Quality State Grants \r\n \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-7551-04-01 \r\nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \r\nCash and Cash Equivalents  The bank reconciliation function is not separated from the record keeping and voucher payment functions.  The cash per the bank reconciliations does not agree to the cash per financial statements provided by the School District. The cash per financial statements is understated $37,312.78 when compared to the per book amounts per the reconciliations at June 30, 2004.  The activity for three bank accounts was not included on the financial statements. These three accounts' cash balances at June 30, 2004 totaled $61,962.55.  There are also eight (8) bank accounts totaling $34,297.49 that are incorrectly categorized under the School District's FEI number at three local area banks. These accounts are for various clubs and committees that are not the property of the School District. \r\nRevenues/Receivables/Receipts  Deposit preparation is not separated from the record keeping and cash custody functions.  Based on a review of 50 items, 41 receipts did not contain the necessary supporting documentation.  Four items were recorded incorrectly in the general ledger.  Receipt activity totaling $115,037.63 for three school activity accounts was omitted from the financial statements. \r\nExpenditures/Liabilities/Disbursements  Based on a review of 50 items, none ofthe disbursements contained the necessary supporting documentation indicating the approval ofa purchase order and the authorization for payment of invoice.  Fifteen items had purchase orders that were issued after the invoice date.  Fourteen items did not include documentation, via signature, that the goods had been received.  Two items did not have invoices attached to the voucher documentation.  Expenditure activity totaling $62,451.69 for three school activity accounts was omitted from the financial statements. \r\n-2- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2004 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-7551-04-01 These deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal account sites, for the accounting functions and their failure to ensure established controls were functioning as designed. Management should implement additional procedures to ensure that the key accounting functions of custody, record keeping and authorization are segregated and the controls are properly documented. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3- \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2004 \r\nFinding Control Number: FS-7551-04-01 \r\nWe concur with this finding. Management will update the Business Service Manual to address the weaknesses addressed in the above-referenced finding. This update will include procedures that will strengthen internal controls over financial management. These procedures include, but are not limited to, improvements relative to segregation of duties, designing and adopting uniform forms, and communicating the updated procedures through periodic training sessions. Management plans on communicating with local financial institutions and auxiliary groups relative to procedures for new accounts. Additional training relative to software implemented during fiscal year 2004 will be performed. \r\nContact Person: Kenny Sheppard, Comptroller Phone: (706) 217-6701 Fax Number: (706) 217-6703 E-mail Address: ksheppard@whitfield.kl2.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2002-h2003","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2003-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2002-h2003"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nSTATE OF GEORGIA \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\nRussell W. Hinton State Auditor \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\n3 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n4 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\n7 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n8 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n9 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n11 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n12 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n29 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n30 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n32 \r\n \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n34 \r\n \r\n5 ALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\nBY PROGRAM \r\n \r\n35 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 10, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) ofthe Whitfield 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 ofthe Whitfield County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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. \r\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 Whitfield 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. \r\n2003-34ARL-11 \r\n \r\n The Whitfield 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. \r\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. \r\nAs described in Note 2, the Whitfield County Board of Education has implemented a new financial reporting model as required by provisions ofGovernmental 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. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 10, 2004, on our consideration of the Whitfield County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 29 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. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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. \r\n2003-34ARL-11 \r\n \r\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 of Georgia Annotated section 506-24. \r\nRespectfully submitted, \r\n \r\nRWH:as 2003-34ARL-11 \r\n \r\nState Auditor \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30. 2003 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable. Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\nEXHIBIT\"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n9,970.470 \r\n \r\n46,477.515 \r\n \r\n3.021.408 7,079.970 \r\n931.068 729,556 123,344 \r\n \r\n2,960.811 4,231,978 3,241,208 67.381,793 7,331,442 -14,754,838 \r\n \r\n$ ===13=8'67,=2=5,=72=5= \r\n \r\n$ \r\n \r\n2,945,979 \r\n \r\n8,793,321 \r\n \r\n1,712,204 \r\n \r\n380,504 \r\n \r\n9,587 \r\n \r\n4,160,000 18,185,000 \r\n \r\n$ \r\n \r\n36,186,595 \r\n \r\n$ \r\n \r\n69,131,321 \r\n \r\n261,372 432,454 4,493,826 19.635,983 8 584 174 \r\n \r\n$ \r\n \r\n102,539,130 \r\n \r\n$ ===13=8=7'=2=5'=7=25= \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2003 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 66,288,033 $ \r\n4,733,212 2,283,029 2,415,784 \r\n604,970 5,640,805 \r\n828,168 6,230,637 4,225,481 1,169,472 \r\n382,412 \r\n984,260 5,115,463 \r\n666,425 \r\n$ 101,568,151 $ \r\n \r\n2,810,070 \r\n60 1,671,137 4,481,267 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n44,698,414 \r\n \r\n853,543 732,125 1,226,957 1,448,051 2,396,995 \r\n4,819 3,278,778 1,389,833 $ \r\n8,897 383,488 \r\n \r\n99,438 3,173,428 \r\n \r\n$ \r\n \r\n59,694,766 $ \r\n \r\n$ 278,495 278 495 $ \r\n \r\n-18,779,549 \r\n-3,879,669 -1,550,904 -1, 188,827 \r\n843,081 -3,243,810 \r\n-823,349 -2,951,799 -2,557,153 -1, 160,575 \r\n1,076 \r\n-884,822 -270,898 -666,425 \r\n-37, 113,623 \r\n \r\n$ \r\n \r\n22,289,682 \r\n \r\n28,489 \r\n \r\n11,244,253 544,464 121,111 \r\n4,617,013 989,712 \r\n2,031,220 \r\n \r\n$ \r\n \r\n41,865,944 \r\n \r\n$ \r\n \r\n4,752,321 \r\n \r\n97,786,809 \r\n \r\n$ ===10=2=,5=3=9,=13=0= \r\n \r\n-5- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2003 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Designated for Self-Insurance Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n3,472,124 $ 6,498,346 \r\n \r\n$ \r\n \r\n9,970,470 \r\n \r\n7,693,026 \r\n \r\n34,290,663 $ 4,493,826 \r\n \r\n46,477,515 \r\n \r\n845,901 7,079,970 \r\n931,068 580,103 123 344 \r\n \r\n1,917,727 149,453 \r\n \r\n2,763,628 7,079,970 \r\n931,068 729,556 123 344 \r\n \r\n$ 20,725,536 $ 42,856,189 $ 4,493,826 $ 68,075,551 \r\n \r\n$ 2,902,408 $ \r\n \r\n43,571 \r\n \r\n8,793,321 \r\n \r\n1,712,204 \r\n \r\n380,504 \r\n \r\n9,587 \r\n \r\n$ 11,705,316 $ 2,136,279 \r\n \r\n$ \r\n \r\n2,945,979 \r\n \r\n8,793,321 \r\n \r\n1,712,204 \r\n \r\n380,504 \r\n \r\n9 587 \r\n \r\n$ 13,841,595 \r\n \r\n$ \r\n \r\n261,372 \r\n \r\n$ \r\n \r\n261,372 \r\n \r\n309,110 \r\n \r\n309,110 \r\n \r\n$ 4,493,826 \r\n \r\n4,493,826 \r\n \r\n123,344 \r\n \r\n123,344 \r\n \r\n$ 40,719,910 \r\n \r\n40,719,910 \r\n \r\n1,731,816 \r\n \r\n1,731,816 \r\n \r\n6,594,578 \r\n \r\n6,594,578 \r\n \r\n$ \r\n \r\n9,020,220 $ 40,719,910 $ 4,493,826 $ 54,233,956 \r\n \r\n$ 20,725,536 $ 42,856,189 $ 4,493,826 $ 68,075,551 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2003 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\n \r\n$ 54,233,956 \r\n \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\n \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\n \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\n \r\n$ 2,960,811 4,231,978 3,241,208 \r\n67,381,793 7,331,442 \r\n-14,754,838 \r\n \r\n70,392,394 \r\n \r\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. \r\n \r\n257,780 \r\n \r\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: \r\n \r\nBonds Payable \r\n \r\n-22,345,000 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 102,539,130 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2003 \r\n \r\nEXHIBIT\"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nInterest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES {USES} \r\nSale of Equipment Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 22,766,124 \r\n \r\n665,575 $ 11,244,253 \r\n \r\n56,969,120 \r\n \r\n7,621,154 \r\n \r\n4,481,267 \r\n \r\n127,937 \r\n \r\n861,819 $ \r\n \r\n1,998,850 \r\n \r\n21,390 \r\n \r\n$ 94,630,027 $ 12,127,462 $ \r\n \r\n$ -44 \r\n \r\n22,766,124 11,909,828 56,969,120 7,621,154 4,481,267 \r\n989,712 2,020,240 \r\n \r\n-44 $ 106,757,445 \r\n \r\n$ 63,499,771 \r\n \r\n4,733,212 2,283,029 2,321,553 \r\n587,524 5,568,910 \r\n816,069 6,255,091 2,804,432 1,169,472 \r\n414,897 984,260 4,931,799 \r\n \r\n$ \r\n \r\n12,099 \r\n \r\n12,616,189 \r\n \r\n$ \r\n \r\n$ 96,370,019 $ 12,628,288 $ \r\n \r\n$ -1,739,992 $ -500,826 $ \r\n \r\n$ 63,499,771 \r\n \r\n4,733,212 2,283,029 2,321,553 \r\n587,524 5,568,910 \r\n828,168 6,255,091 2,804,432 1,169,472 \r\n414,897 984,260 4,931,799 12,616,189 \r\n \r\n666,425 \r\n \r\n666,425 \r\n \r\n666,425 $ 109,664,732 \r\n \r\n-666,469 $ -2,907,287 \r\n \r\n$ \r\n \r\n10,980 \r\n \r\n$ \r\n \r\n10,980 \r\n \r\n$ 117,274 $ 5,109,621 \r\n \r\n5,226,895 \r\n \r\n-117 274 \r\n \r\n-5,109,621 \r\n \r\n-5,226,895 \r\n \r\n$ -106,294 $ -4,992,347 $ 5,109,621 $ \r\n \r\n10 980 \r\n \r\n$ -1,846,286 $ -5,493,173 $ 4,443,152 $ -2,896,307 \r\n \r\n10,866,506 46,213,083 \r\n \r\n50,674 \r\n \r\n57,130,263 \r\n \r\n$ 9,020,220 $ 40,719,910 $ 4,493,826 $ 54,233,956 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30. 2003 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\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. \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -2,896,307 \r\n \r\n$ 9,588,489 -1,491,908 \r\n \r\n8,096,581 -447 953 \r\n \r\n$ =====4,=75=2=,3=2=1 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2003 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT\"G\" \r\nAGENCY FUNDS $ ====23=1=,5.3..5= \r\n$ =====2=3=1,...,53=5= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30. 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield 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. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Whitfield County Board of Education. \r\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. \r\nThe Statement ofActivities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\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. \r\nThe School District reports the following major governmental funds: \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\n District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds and Special Purpose Local Option Sales Tax proceeds to be used for the acquisition, construction or renovation of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts. \r\nBASIS OF ACCOUNTING \r\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. \r\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. \r\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. \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\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. \r\n \r\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. \r\n \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \r\n \r\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 $418,619 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$884,623 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \r\n \r\nGeneral Fund Balance July 1, 2002 \r\n \r\n$ 9,352,626 \r\n \r\nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \r\n \r\n418,619 884,623 \r\n \r\nAdd: Change in Inventory Method Adjustment to July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n67,664 142,974 \r\n \r\nGeneral Fund Balance July 1, 2002 (Restated) \r\n \r\n$ 10.866.506 \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nCHANGES IN ACCOUNTING PRINCIPLES \r\n \r\nThe Whitfield 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. \r\n \r\nThe provisions of GASB Statement No. 34 require the inclusion of a Statement ofNet Assets. The elements comprising Net Assets - Beginning include the following: \r\n \r\nGeneral Fund (Restated) July 1, 2002 Capital Projects Fund Debt Service Fund \r\n \r\n$ 10,866,506 46,213,083 50,674 \r\n \r\nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable \r\n \r\n$ 57,130,263 75,558,743 -13,262,930 705,733 -22,345,000 \r\n \r\nNet Assets Beginning (See Exhibit \"B\") \r\n \r\n$ 97!7861809 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\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. \r\n \r\nINVESTMENTS \r\n \r\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: \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2002 tax digest year (calendar year) on October 14, 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 Whitfield 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, 2003, for maintenance and operations amounted to $22,289,682. \r\n \r\nThe tax millage rate levied for the 2002 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n18.401 mills \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $11,244,253 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. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES On the basic 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. \r\n \r\nCAPITAL ASSETS \r\n \r\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. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Vehicles and Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n20,000 \r\n \r\n15 years \r\n \r\n$ 100,000 \r\n \r\n70 years \r\n \r\n$ \r\n \r\n10,000 10 to 12 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nGENERAL OBLIGATION BONDS \r\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. \r\nNote 3: DEPOSITS AND INVESTMENTS \r\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 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 ofoperating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\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, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2003, the bank balances were $15,035,215. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 566,384 \r\n \r\n2 \r\n \r\n13,444,139 \r\n \r\n3 \r\n \r\n1,024,692 \r\n \r\nTotal \r\n \r\n$ 15,035.215 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \r\nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name. \r\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. \r\n \r\nFunds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nAt June 30, 2003, the carrying value of the School District's total investments was $46,364,141 which is materially the same as fair value. The investments are classified as to risk categories as follows: \r\n \r\nT~e of Investment \r\n \r\nU.S. Government \r\n \r\n$ \r\n \r\nRepurchase Agreements \r\n \r\nTotal \r\n \r\n$ \r\n \r\nLocal Government Investment Pools \r\n \r\nTotal Investments \r\n \r\nRisk Categories 2 \r\n \r\n0 $ \r\n \r\n35,161 $ \r\n \r\n25,002,800 \r\n \r\n0 $ 25 037.961 $ \r\n \r\nCarrying \r\n \r\nFair \r\n \r\n3 \r\n \r\nAmount \r\n \r\nValue \r\n \r\n0 $ \r\n \r\n35,161 $ \r\n \r\n35,161 \r\n \r\n25,002,800 25,002,800 \r\n \r\n0 $ 25,037,961 $ 25,037,961 \r\n \r\n21,326,180 \r\n \r\n21,326,180 \r\n \r\n$ 46.364 141 $ 46364141 \r\n \r\nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, 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: \r\n \r\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 of1940. The pool's primary objectives are safety ofcapital, 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, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2003, was 30 days. The average investment duration for Fund 6 on June 30, 2003, was 0.39 years. \r\n \r\n- 20- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30. 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances \r\nJuly 1. 2002 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2003 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,653,548 $ 307,263 \r\n \r\n$ 2,960,811 \r\n \r\n21,137,947 \r\n \r\n8,694,839 $ 25,600,808 \r\n \r\n4,231,978 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 23,791,495 $ 9,002,102 $ 25,600,808 $ 7,192,789 \r\n \r\nCapital Assets Being Depreciated Buildings and Building Improvements Equipment Land Improvements \r\n \r\n$ 41,780,985 $ 25,600,808 $ \r\n \r\n6,777,455 \r\n \r\n553,987 \r\n \r\n3,208,808 \r\n \r\n32,400 \r\n \r\n0 $ 67,381,793 7,331,442 3,241,208 \r\n \r\nLess Accumulated Depreciation for: Buildings and Building Improvements Equipment Land Improvements \r\n \r\n7,662,709 3,529,471 2,070,750 \r\n \r\n778,589 591,658 121.661 \r\n \r\n8,441,298 4,121,129 2,192,411 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 38,504,318 $ 24,695,287 $ \r\n \r\n0 $ 63,199,605 \r\n \r\nGovernmental Activity Capital Assets - Net $ 62,295.813 $ 33,697.389 $ 25,600.808 $ 70.392.394 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 819,898 \r\n \r\n$ \r\n \r\n27,709 \r\n \r\n5,130 \r\n \r\n21,141 \r\n \r\n32,204 \r\n \r\n510,940 \r\n \r\n597,124 74,886 \r\n \r\n$ 1,491,908 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and property tax levied specifically for retirement ofoutstanding bond principal, interest and paying agent's fees (Debt Service Funds) 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: \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Capital Acquisitions \r\nRestricted Investments: Debt Services Capital Acquisitions \r\n \r\n$ 1,723,618 $ 4,774,728 \r\n$ 4,493,826 $ 17,607,704 $ 16,682,959 \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2003, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects Debt Service Funds \r\n \r\n$ 117,274 $ 5,109,621 \r\n \r\nTotal \r\n \r\n$ 117.274 $ 5,109.621 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to (1) the Districtwide Capital Projects Fund as required match or supplemental funding source for capital construction projects, and to (2) move excess SPLOST collections from the Capital Projects Fund to the Debt Service Fund. \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\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. \r\n \r\n-22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\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. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. An excess coverage insurance policy covers individual claims in excess of $225,000 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n2002 2003 \r\n \r\n$ \r\n \r\n0 $ 228,484 $ 228,484 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ 186,051 $ 186,051 $ \r\n \r\n0 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30. 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\n2002 2003 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liability \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n4464 $ \r\n \r\n4464 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n3 161 $ \r\n \r\n3 161 $ \r\n \r\n0 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 100,000 $ 100,000 \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nWhitfield County Board ofEducation has entered into various leases as lessee for office equipment and mobile units. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2003, for governmental funds amounted to $279,505. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2004 2005 2006 2007 2008 \r\n \r\n$ 349,058 344,990 269,769 226,648 61,304 \r\n \r\nTotal \r\n \r\n$ 1,251,769 \r\n \r\nNote 10: SHORT-TERM DEBT \r\n \r\nThe School District obtained temporary loans to construct a house for the vocational department to sell, depositing the proceeds in its General Fund. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\n-24- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30. 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 10: SHORT-TERM DEBT \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTemporary Loans $ Note 11: LONG-TERM DEBT \r\n \r\n40,730 $ \r\n \r\n13,180 $ \r\n \r\n53.910 $====0 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n2.00% - 4.50% $ 22,345.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \r\n \r\nGovernmental Funds General \r\nObligation Bonds \r\n \r\nBalance July 1, 2002 \r\n \r\n$ 22,345,000 \r\n \r\nAdditions \r\n \r\n0 \r\n \r\nBalance June 30, 2003 \r\n \r\n$ 22,345.000 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ 4,160.000 \r\n \r\nAt June 30, 2003, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\n- 25 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 11: LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2004 2005 2006 2007 2008 \r\n \r\n$ 4,160,000 $ 4,370,000 4,505,000 4,650,000 4,660,000 \r\n \r\n624,825 530,785 413,023 273,300 \r\n99,450 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 2223452000 $ 129412383 \r\n \r\nNote 12: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and costs in the amount of $836,458 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $676,430 \r\n \r\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 $160,028 \r\n \r\nNote 13: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2003: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nCohutta Elementary School Renovations Southeast High School North Classroom Renovations Northwest High School Classroom Renovations \r\n \r\n$ 3,057,784 440,377 472,634 \r\n \r\n$ 329702795 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \r\n-26- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30. 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 14: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\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. \r\n \r\nNote 15: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\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. \r\n \r\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: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2003 2002 2001 \r\n \r\n100% 100% 100% \r\n \r\n$ 5,027,391 $ 4,597,632 $ 5,110,381 \r\n \r\n-27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\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 Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n25,092,728 $ \r\n \r\n25,092,728 $ \r\n \r\n22,766,124 \r\n \r\n665,575 \r\n \r\n56,097,929 \r\n \r\n56,682,263 \r\n \r\n56,969,120 \r\n \r\n5,283,809 \r\n \r\n7,549,063 \r\n \r\n7,621,154 \r\n \r\n1,960,200 \r\n \r\n1,960,200 \r\n \r\n2,269,435 \r\n \r\n196,000 \r\n \r\n196,000 \r\n \r\n127,937 \r\n \r\n647,199 \r\n \r\n647 199 \r\n \r\n4,210,682 \r\n \r\n$ \r\n \r\n89,277,865 $ \r\n \r\n92,127,453 $ \r\n \r\n94,630,027 \r\n \r\n$ \r\n \r\n62,017,712 $ \r\n \r\n63,840,972 $ \r\n \r\n63,499,771 \r\n \r\n3,382,005 1,803,259 2,259,334 \r\n701,836 5,407,548 \r\n501,628 5,098,085 2,839,803 \r\n853,540 146,682 117,240 4,345,679 60 000 \r\n \r\n3,545,083 2,186,307 2,322,307 \r\n750,290 5,442,524 \r\n501,628 5,098,085 2,859,348 \r\n853,540 380,897 117,240 4,346,079 \r\n60,000 \r\n \r\n4,733,212 2,283,029 2,321,553 \r\n587,524 5,568,910 \r\n816,069 6,255,091 2,804,432 1,169,472 \r\n414,897 984,260 4,931,799 \r\n \r\n$ \r\n \r\n89,534,351 $ \r\n \r\n92,304,300 $ \r\n \r\n96,370,019 \r\n \r\n$ \r\n \r\n-256 486 $ \r\n \r\n-176 847 $ \r\n \r\n-1 739 992 \r\n \r\n$ \r\n \r\n1,174,247 $ \r\n \r\n1,174,247 $ \r\n \r\n-1 664 247 \r\n \r\n-1 664 247 \r\n \r\n10,980 -117274 \r\n \r\n$ \r\n \r\n-490,000 $ \r\n \r\n-490 000 $ \r\n \r\n-106 294 \r\n \r\n$ \r\n \r\n-746,486 $ \r\n \r\n-666,847 $ \r\n \r\n-1,846,286 \r\n \r\n6,804,459 \r\n \r\n6,804,459 \r\n \r\n10,866,506 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n6,057,973 $ \r\n \r\n6 137 612 $ \r\n \r\n9,020,220 \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual (1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\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 \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office ofTreasury and Fiscal Services National Forest Reserve Funds \r\nTotal U.S. Department of Agriculture \r\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 Preschool \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Comprehensive School Reform Demonstration Grant Grants to Local Educational Agencies School Improvement Title II Enhancing Education Through Technology Improving Teacher Quality Title Ill Limited English Proficient TitleV Innovative Education Program Strategies Title VII Immigrant Education Reading Excellence - Local Reading Improvement Vocational Education - Basic Grants to States High School Program Basic Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\nN/A $ \r\n$ \r\n \r\n(2) 4,628,923 \r\n4,628,923 \r\n \r\n10.550 10.665 \r\n \r\nN/A N/A \r\n$ \r\n \r\n279,173 (3} 4,908,096 \r\n \r\n* 84.027 * 84.027 * 84.173 \r\n \r\nN/A $ \r\nNIA \r\nN/A \r\n$ \r\n \r\n1,467,214 29,011 79 417 \r\n1,575,642 \r\n \r\n84.332 \r\n \r\nN/A \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n84.318 \r\n \r\nN/A \r\n \r\n84.367 \r\n \r\nN/A \r\n \r\n84.365 \r\n \r\nN/A \r\n \r\n84.298 \r\n \r\nN/A \r\n \r\n84.162 \r\n \r\nN/A \r\n \r\n* 84.338 \r\n \r\nN/A \r\n \r\n84.048 \r\n \r\nNIA \r\n \r\n50,620 1,577,972 \r\n38,351 \r\n47,130 293,035 \r\n113,548 \r\n60,459 \r\n25,153 838,300 \r\n103,091 \r\n \r\n- 30- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nEducation, U.S. Department of Other Programs Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n84.011 \r\n \r\nN/A $ $ \r\n \r\n61468 4,784,769 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$ ===9==,6=9=2i!:,8=65= \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amount shown for the Food Distribution 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. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($588,253) were not maintained separately and are included in the 2003 National School Lunch Program. \r\n(3) Funds earned on this program in the amount of $5,514 do not require reporting of expenditures. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Whitfield 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2003 \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program 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) 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 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 Apprenticeship Program Health Insurance Mentor Teachers Pay for Performance Preschool Handicapped Program Lottery Programs Assistive Technology Computers in the Classroom \r\nOffice of School Readiness Pre-Kindergarten Program \r\n- 32- \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n3,516,736 \r\n \r\n432,621 \r\n \r\n8,230,189 \r\n \r\n1,311,926 \r\n \r\n4,007,228 \r\n \r\n769,228 \r\n \r\n7,300,107 \r\n \r\n5,065,401 \r\n \r\n1,946,776 \r\n \r\n27,895 863,205 2,652,050 1,102,417 \r\n14,789 1,773,659 \r\n48,250 524,253 1,495,395 1,146,577 376,663 224,149 \r\n \r\n1,293,458 2,289,744 3,248,501 \r\n \r\n1,229,275 278,495 239,706 48,511 69,744 3,835 \r\n4,611,500 318,852 70,498 \r\n-1,384,643 \r\n100,434 161,013 \r\n29,585 676,430 \r\n11,122 91,200 171,997 \r\n17,503 252,945 \r\n \r\n71,920 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2003 \r\nAGENCY/FUNDING GRANTS Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACT Education, Georgia Department of Foreign Language In Elementary School \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n160,028 \r\n \r\n77 953 \r\n \r\n$ ===5=6=,9=6=9\"=1,=20=== \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nConstruction of a new elementary school. parking areas and grounds and providing furnishings. equipment and fixtures therefor \r\nConstruction of additional classrooms, instructional space at nine elementary schools, four middle schools and two high schools, as well as remodeling and renovating existing classrooms, media centers, offices, kitchens, cafeterias, gymnasiums, auditoriums, restrooms, roofs, parking areas and grounds at these schools and providing furnishings, equipment and fixtures therefor \r\nAcquisitions, construction and equipping of a new elementary school, a new middle school and a new high school, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefor; renovations and improvements at existing schools, including the acquisition of any furniture, fixtures and equipment necessary or desirable therefor; the acquisition, construction and equipping of a central warehouse facility; the acquisition of school buses; and system-wide technology improvements \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1} \r\n \r\nCURRENT ESTIMATED COSTS(2} \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR(3} \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEAR(3} \r\n \r\nPROJECT STATUS \r\n \r\n$ 2.153.000 $ 6,488,397 \r\n \r\n$ 6,488,397 Completed \r\n \r\n46,753,759 \r\n \r\n53,719,500 $ 12,361,495 \r\n \r\n30,306,591 Ongoing \r\n \r\n53,531,937 \r\n \r\n53,531,937 \r\n \r\n815 944 \r\n \r\n900 000 Ongoing \r\n \r\n$ 102,438,696 $ 113,739,834 $ 13,177,439 $ 37,694,988 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 34- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory Ill \r\n \r\nCategory IV \r\n \r\nCategoryV \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n3,966,739 $ 494,988 \r\n9,245,808 1,462,490 4,501,797 \r\n874,941 8,150,824 5,718,027 2,186,055 5,303,769 \r\n1,957,208 55,539 \r\n587,200 1,628,651 \r\n \r\n5,748,721 $ 421,150 \r\n9,432,026 1,357,178 4,512,131 \r\n673,038 8,767,584 8,597,087 1,823,843 \r\n4,063 971,131 3,422,097 372,987 \r\n48 1,507,971 \r\n183,342 914,245 1,482,623 \r\n \r\n148,740 $ 6,661 \r\n436,175 20,886 \r\n268,177 \r\n9,746 553,719 621,362 234,274 \r\n16,351 5,472 19,722 3,153 32 \r\n30,897 1,419 \r\n17,532 12,254 \r\n \r\n5,897,461 427,811 \r\n9,868,201 1,378,064 4,780,308 \r\n682,784 9,321,303 9,218,449 2,058,117 \r\n20,414 976,603 3,441,819 376,140 \r\n80 1,538,868 \r\n184,761 931,777 1494877 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n46,134,036 $ 50,191,265 $ 2,406,572 $ 52,597,837 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n1,288,728 254 170 \r\n \r\n1,916,861 191,819 \r\n \r\n211,183 131 715 \r\n \r\n2,128,044 323,534 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n47,676,934 $ 52,299,945 $ 2,749,470 $ ====5=5,=04=9=,4=1=5 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 35- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 10, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofWhitfield County Board ofEducation as ofand for the year ended June 30, 2003, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated June 10, 2004. 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. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Whitfield 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2003-34YB-30 \r\n \r\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 Whitfield County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7551-0301. \r\nA material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n \r\nRWH:as 2003-34YB-30 \r\n \r\nState Auditor \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 10, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2003. Whitfield County Board ofEducation'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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 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 Whitfield 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 Whitfield County Board ofEducation's compliance with those requirements. \r\n2003SA-10 \r\n \r\n In our opinion, the Whitfield County Board ofEducation 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, 2003. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \r\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. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nq,,Q9 Respectfully submitted, \r\n~ellW.Hi~n State Auditor \r\nRWH:as 2003SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-01-01 FS-7551-01-02 FS-7551-02-01 FS-75 51-02-02 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was unqualified. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement reportable condition related to the following control categories. \r\n \r\nCash and Cash Equivalents Revenues/Receivables/Receipts \r\n \r\nExpenditures/LiabilitieslDisbursements \r\n \r\nThe reportable condition described above is not considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\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 84.027 Individuals with Disabilities Act - Part B - Special Education Capacity Building Improvement 84.027 Individuals with Disabilities Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Act - Part B - Special Education Preschool 84.338 Reading Excellence - Local Reading Improvement \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7551-03-01 \r\nOur examination of the principal's accounts disclosed weaknesses in internal control as discussed below: \r\nCash and Cash Equivalents  The bank reconciliation function is not separated from the record keeping and voucher payment functions.  Thirteen ofthe nineteen principal account reconciliations between bank statements and the general ledger at June 30, 2003 do not agree with the general ledger's ending balance that was provided to the auditors for review. The total variances discovered between the reconciled amount per the bank reconciliation and the ending cash balance per the financial statements is $77,976. \r\n-2 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7551-03-01 \r\n Two bank accounts were listed under a separate tax identification number at the banking institution. It is unclear whether or not these two bank accounts are listed as public funds accounts and are collateralized appropriately. The total bank balance ofthese two accounts atJune 30, 2003 was $21,751. \r\n Two bank accounts were discovered during external confirmation procedures that were not included in the financial statements. The balances ofthe two accounts at June 30, 2003 were $39,001. \r\nRevenues/Receivables/Receipts  Deposit preparation is not separated from the record keeping and cash custody functions.  Based on a sample of 40 items, 39 receipts did not contain the necessary supporting documentation.  Receipts are not categorized by revenue type on the financial statements.  One school did not have adequate documentation to ensure deposits were made in a timely manner. \r\nExpenditures/Liabilities/Disbursements  Based on a sample of40 items, none ofthe disbursements contained the necessary supporting documentation indicating the approval ofa purchase order and the authorization for payment of invoice.  Two checks were made payable to cash.  Disbursements are not categorized by expenditure type on the general ledger. \r\nThese deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible, at the various principal account sites, for the accounting functions and their failure to ensure established controls were functioning as designed. Management should implement additional procedures to ensure that the key accounting functions of custody, record keeping and authorization are segregated. \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2003 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7551-03-01 Management's Response: This is the first year that our School District was required to provide principal account information for examination by the Georgia Department ofAudits in accordance with Governmental Accounting Standard Board pronouncement 34 (GASB 34). Management recognizes that there are weaknesses in the internal controls and will address the findings accordingly. Management will implement updates to the Business Service Manual and improve training and accounting knowledge among school financial personnel. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-4- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2001-h2002","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2002-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2001-h2002"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"..-.- \r\n \r\n.- \r\n \r\n..' \r\n \r\n., \r\n \r\n\" \r\n,: (, \r\n \r\n-, \r\n \r\n'. \r\n,', \" \r\n',: . \r\n,, ' \r\n \r\n. '..' ..... \r\n\" :'.,l \" :'., \r\n \r\n,\u003e \r\n \r\n,.I.. \". ~ ~ .~' ~ , \" ,'\" .\" \r\n \r\n\"\" \r\n \r\n\" ., . ~ ... \r\n \r\n, \r\n \r\n, \r\n \r\n\"';1\\ ,\\.' \" \r\n \r\n\" :. 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' ..\" ' \r\n \r\nJ \r\n' \r\n \r\n. ..\" \" ' \r\n \r\nr.:: l.::, \r\n \r\n\" \r\n \r\n-J'J \r\n \r\n./, \r\n \r\n, , , .l \" \r\n \r\n.\\ \r\n \r\n\" \r\n..'' , \r\n \r\n~ : . - ..., \r\n \r\nr \r\n \r\n,\" \r\n \r\n'. -; \r\n \r\n~\" ~ \r\n \r\nI \r\n \r\n' ~, .. \r\n \r\n-., \r\n \r\n. :.', \r\n \r\n.\": \r\n \r\n.. ~ .. \r\n \r\n\", \r\n \r\nOJ \r\n \r\n\"\" ' \r\n., ,'/ , ,\" \r\n \r\n.\" .... \r\nI.'.. \r\n \r\n.\" \r\n \r\n'. \r\n-, \r\n \r\n,. r .: \r\n,: \r\n \r\n't, J \r\n \r\n,'-t.' \r\n \r\n.,I , \r\n \r\n.\" \r\n,\" , .,' \r\n \r\n WHITFIELD COUNTY BOARD OF EDUcATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n6 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n22 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n24 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n26 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n28 \r\n \r\nSCHEDULES \r\n \r\nI SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n30 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n32 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n35 \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCAnON PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n36 \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\n37 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\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 WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMS CIRCULAR A-133 \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR (404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa\u003c;hmgton Street. S.W Suite 214 Atldnta. Georgia 30334-X400 \r\nJuly 25, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements of the Whitfield County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Whitfield County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opInion. \r\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: \r\n \r\n2002ARL-13 \r\n \r\n * The general-purpose financial statements of the Board of Education did not contain a \r\nGeneral Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to confonn to generally accepted accounting principles. \r\n* School activity accounts maintained at the individual schools are not included in the \r\ngeneral-purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \r\nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been detennined, but are believed to be material. \r\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 of the Whitfield County Board of Education as ofJune 30, 2002, and the results of its operations for the year then ended, in confonnity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated July 25, 2003, on our consideration of the Whitfield County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfonned in accordance with Government Auditing Standards and sh.ould be read in conjunction with this report in considering the results of our audit. \r\nOur audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Whitfield County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-I33, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such infonnation 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 ofthe matters referred to in the third paragraph, such infonnation is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\n2002ARL-I3 \r\n \r\n A copy of this 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. \r\nRespectfully submitted, \r\n~.~ \r\nRu ell W. Hinton State Auditor \r\nRWH:gp 2002ARlr 13 \r\n \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 1 1 1 \r\n1 \r\nI \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2002 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventones Food Donated Commodities Purchased Food \r\nAmount Available In Debt service Fund \r\nAmount to be Provided In Future Years For Payment of Bond Debt \r\n \r\nGENERAL FUND \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ 2,084,528 80 $ \r\n \r\n144,75021 \r\n \r\n9,472,73713 \r\n \r\n$ 47,732.04074 \r\n \r\n8,344,497 14 \r\n \r\n816,86595 \r\n \r\n1,909,300 15 \r\n \r\n35.02146 32.642.52 \r\n \r\nTotal Assets \r\n \r\n$ 19,901,76307 $ 1,029,280 14 $ 49,641.34089 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salanes Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retalnages Payable Deferred Revenue General Obligation Bonds Payable \r\nTotal liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Bus Replacement Funds For Debt service For Expired Grant Balance/Questioned Costs For Inventones Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved DeSignated for Self-Insurance UndesIQnated \r\nTotal Fund EqUity \r\n \r\n$ 2,797,05936 $ 7,711,34750 40,72998 \r\n \r\n$ 131,50220 479,117 91 \r\n \r\n342,746 82 \r\n \r\n4109 \r\n \r\n2,348,77841 736,73169 \r\n \r\n$ 10.549,136 84 $ 610,661 20 $ 3,428,256 92 \r\n \r\n$ \r\n \r\n296,666 94 \r\n \r\n$ \r\n1,074,902 72 7,981 ,056 57 $ 9,352.626 23 $ \r\n \r\n35,02146 32,64252 \r\n$ \r\n \r\n20,206,650 48 24,908,50649 \r\n1,097,927 00 \r\n \r\n350.954 96 \r\n \r\n000 \r\n \r\n418,61894 $ 46,213,08397 \r\n \r\nTotal Liabilities and Fund Equrty \r\n \r\n$ 19.901 ,76307 $ 1,029,28014 $ 49,641,34089 \r\n \r\nThe notes to the general-purpose finanCial statements are an Integral part of thIS statement - 2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\n$ \r\n \r\n50,674 11 \r\n \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM \r\nDEBT \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ 2,229,27901 $ 9,542,886 41 \r\n \r\n57,255,451 98 \r\n \r\n25,336,21920 \r\n \r\n11,070,663 24 \r\n \r\n12,311,77976 \r\n \r\n$ \r\n \r\n50,67411 \r\n \r\n22,294,32589 \r\n \r\n35,02146 32,64252 50,67411 \r\n22,294,325 89 \r\n \r\n64,53947 22,88032 \r\n \r\n$ \r\n \r\n50,67411 $ 22,345,000 00 $ 92,968,05821 $ 47,278,30516 \r\n \r\n$ \r\n \r\n342.74682 $ \r\n \r\n2,928,561 56 \r\n \r\n8,190,465 41 \r\n \r\n40,72998 \r\n \r\n$ 22,345,00000 \r\n \r\n2,348,77841 736,73169 4109 \r\n22,345,00000 \r\n \r\n934,23761 2,603,502 64 7,405,43952 \r\n40,72998 36344 \r\n118,07909 967,07243 \r\n279.89 \r\n \r\n$ 22,345,00000 $ 36,933,054 96 $ 12,069,704 60 \r\n \r\n$ \r\n \r\n50,67411 \r\n \r\n000 \r\n \r\n$ \r\n \r\n50,67411 \r\n \r\n$ \r\n \r\n296,66694 \r\n \r\n50,67411 \r\n \r\n$ \r\n \r\n1,491 35 \r\n \r\n35,02146 32,64252 20,206,650 48 24,908,506 49 1,097,92700 \r\n \r\n64,53947 22,88032 \r\n27,900,68071 \r\n \r\n1,074,902 72 8,332,011 53 \r\n \r\n1,289,593 39 5,929,41532 \r\n \r\n$ 56,035,003 25 $ 35,208,600 56 \r\n \r\n$ \r\n \r\n50,67411 $ 22,345,000 00 $ 92,968,05821 $ 47,278,30516 \r\n \r\n- 3- \r\n \r\n ---- - ------------------------ \r\nWHITFIELD COUNTY BOARD OF EpUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil ServiceS Improvement of Instructional Services Educabonal Media ServiceS General AdministratIOn School Administration BUSiness Administration Maintenance and Operation of Plant Student Transportal1on Services Central Support ServiceS Other Support ServiceS Food ServiceS Operation Communtly Services Operations \r\nCapItal Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nAccrued Interest on Bonds Sold Premiums on Bonds Sold Proceeds from General Obligation Bonds \r\nPar Value Operating Transfers In Operating Transfers Out \r\nTotal Other FinanCing Sources (Uses) \r\nExcess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FlnallClng Uses \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change In Penod Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 54,338,38062 $ 5,47020 \r\n23,478,142 91 2,435,504 65 \r\n$ 80,257,498.38 $ \r\n \r\n825,980 61 5,552,74084 \r\n1,596,904 71 \r\n7,975,62616 \r\n \r\n$ 54,926,796,59 $ \r\n2,699,503 25 1,627,03796 2,221,68781 \r\n593,656 59 4,866,270 45 \r\n768,030 46 5,267,006 75 2,217,03291 \r\n964,25677 \r\n741,13110 18,96671 \r\n$ 76,911,377 35 $ \r\n$ 3,346,12103 $ \r\n \r\n2,421,58585 \r\n364,77046 244,427.96 \r\n54,34444 123,809 68 144,44956 \r\n107,19290 \r\n121,68639 4,832,88543 \r\n2,45000 \r\n8,417,60267 \r\n-441,97651 \r\n \r\n$ \r\n \r\n-421,06339 \r\n \r\n$ \r\n \r\n-421,06339 \r\n \r\n$ 2,925,057.64 $ 6,427,568.59 \r\n \r\n-441,97651 880,35126 \r\n \r\n-29,51801 9,76220 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n9,352,626 23 $=~4=1=8=,6=18==94== \r\n \r\nThe notes to the general-purpose finanCial statements are an Integral part of thiS statement. -4- \r\n \r\n EXHIBIT\"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n291,30840 \r\n \r\n11,071,452 25 862,92757 $ \r\n \r\n$ 12,225,688 22 $ \r\n \r\n$ 69223 \r\n \r\n55,455,669 63 $ 5,558,211 04 \r\n34,549,59516 4,896,029 16 \r\n \r\n51,292,22566 4,446,68519 \r\n35,464,646 60 5,186,71170 \r\n \r\n69223 $ 100,459,504 99 $ 96,390,26915 \r\n \r\n$ \r\n \r\n$ \r\n \r\n244,22900 \r\n \r\n37697 \r\n \r\n16,593,01473 $ 16,837,62070 $ $ -4,611,932.48 $ \r\n \r\n000 $ 57,348,38244 $ 52,784,18897 \r\n \r\n3,064,273 71 1,871,465 92 2,276,03225 \r\n717,466 27 5.Q10,720,01 1,012,25946 5,267,383 72 2,324,22581 \r\n964,25677 121,68639 4.832,885 43 743,581 10 16,611,981 44 \r\n \r\n1,984,859 88 1,768,831 03 2.224,88683 \r\n693,67997 4,896,270 02 \r\n954,596 69 4,767,23908 3,274,484 69 \r\n487,41128 18,477.11 \r\n4,257,800.80 756,77698 \r\n6,439,44707 \r\n \r\n000 $ 102,166,60072 $ 85,308,950 40 \r\n \r\n69223 $ 1,707,09573 $ 11,081,31875 \r\n \r\n$ \r\n \r\n$ \r\n \r\n158,27235 \r\n \r\n22,345,00000 421,06339 \r\n \r\n$ 22,924,335 74 $ \r\n \r\n$ 18,312,40326 $ 27,900,68071 \r\n \r\n49,98188 $ \r\n \r\n49,98188 158,27235 \r\n \r\n22,345,00000 421,06339 -421,06339 \r\n \r\n49,98188 $ 22,553,254 23 \r\n \r\n50,674 11 $ 20,846,15850 $ 11,081,31875 \r\n \r\n000 \r\n \r\n35,208.600 56 \r\n \r\n24,152,964 47 \r\n \r\n-29,51801 9,76220 \r\n \r\n-14,371 42 -11,31124 \r\n \r\n$ 46,213,08397 $ \r\n \r\n50,674 11 $ 56,035,00325 $ 35,208,60056 \r\n \r\n- 5- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - INON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nEXHIBIT \"C\" \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil ServiceS Improvement of Instrucl10nal ServiceS Educational Media ServiceS General Administration School Administration BUSiness Administration Maintenance and OperatIOn of Plant Student TransportatIOn Services Central Support Servrces Other Support ServICeS Food Services OperatIOn Enterpnse OperalJons Community Servrces Operations \r\nCapital Outlay \r\nTotal expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nExcess of Revenues over (under) Expenditures and Other Fmanclng Uses \r\nFUND BALANCE JULY 1 2001 \r\nFUND BALANCE JUNE 30 2002 \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 51,407,85200 $ 54,338,380 62 \r\n \r\n5,47020 \r\n \r\n23,403,92500 \r\n \r\n23,478,142 91 \r\n \r\n1,007,31500 \r\n \r\n2,435,504 65 \r\n \r\n$ 75,819,09200 $ 80,257,49838 \r\n \r\n$ 54,222,81400 $ 54,926 796 59 \r\n \r\n2,378,388 00 1,637,76300 2,216,13900 \r\n608.36100 5.110,80500 \r\n837,03100 5.107,70800 2,580.31900 \r\n675.89800 \r\n \r\n2,699,503 25 1,627,03796 2,221,68781 \r\n593.656 59 4,866,270 45 \r\n768.03046 5,26700675 2.217,03291 \r\n964,256 77 \r\n \r\n2,000 00 113,04900 \r\n60,00000 \r\n \r\n741,13110 18.96671 \r\n \r\n$ 75.550.27500 $ 76.911,377 35 \r\n \r\n$ 268,817 00 $ 3,346,121 03 \r\n \r\n-421.06339 \r\n \r\n$ 268,817 00 $ 2.925,05764 \r\n \r\n7,970,91236 \r\n \r\n6.427.56859 \r\n \r\n$ 8 239,72936 $ \r\n1 \r\n \r\n91352,62623 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\n$ 636,50000 $ 825,98061 \r\n \r\n4,181,95100 \r\n \r\n5,552,74084 \r\n \r\n1,948,70000 \r\n \r\n1,596,904 71 \r\n \r\n$ 6,767,15100 $ 7,975,626 16 \r\n \r\n$ 1,460,907 00 $ 2,421,58585 \r\n \r\n196,02800 57,62000 \r\n121.58900 \r\n \r\n364,77046 244,42796 \r\n54,34444 123,80968 144,44956 \r\n \r\n150,68600 4,172.11000 \r\n \r\n107.19290 \r\n121,686 39 4,832.88543 \r\n2,45000 \r\n \r\n$ 6,158,940 00 $ 8.417.60267 $ 608,211 00 $ -441,97651 \r\n \r\n$ 608,21100 $ -441,97651 \r\n \r\n892.99332 \r\n \r\n792.93147 \r\n \r\n$ 1,501,204 32 $ 350,954 96 \r\n \r\nThe notes to the general-purpose finanCial statements are an mtegral part of thiS statement - 6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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. \r\nFUND ACCOUNTING \r\nThe School District uses funds and an account group 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. 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. \r\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. \r\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. \r\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: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include: \r\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. \r\n \r\n-7- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\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. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. \r\nBASIS OF ACCOUNTING \r\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 of these funds present increases (Le., 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. \r\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-Term Debt Account Group. \r\nGovernmental funds are accounted for using the modified accrual basis of accounting under which: \r\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. \r\n \r\n-8- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE.FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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 expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\nBUDGET \r\nThe Whitfield County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\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 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 provisions of the Quality Basic Education Act, OCGA Section 20-2-1 67(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. \r\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: \r\n \r\n- 9- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nSpecial Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 2001 \r\n \r\n$ 880,351.26 \r\n \r\nAdjustments Inventories - July 1, 2001 Food Donated Commodities Purchased Foods \r\n \r\n-64,539.47 -22,880.32 \r\n \r\nFund Balance July 1,2001 (Budget Basis) \r\n \r\n$ 792,931.47 \r\n \r\nExcess of Revenues and Other Financing Sources over (und~r) Expenditures and Other Financing Uses \r\n \r\n-441,976.51 \r\n \r\nFUND BALANCE JUNE 30, 2002 (Budget Basis) \r\n \r\n$ 350,954.96 \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\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. \r\n \r\nINVESTMENTS \r\n \r\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 and equity investments are reported at fair value. The Official Code of Georgia 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 of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 10,2001 (levy date). Taxes were due on December 20,2001 (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 Whitfield 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 during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $23,339,058.09. \r\n \r\nThe tax millage rate levied for the 2001 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n18.460 mills \r\n \r\n- 11 - \r\n \r\n ------------------ ---- \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $11,071,452.25 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. \r\nINVENTORIES \r\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 of purchase. 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. \r\nCOMPENSATED ABSENCES \r\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. \r\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. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major 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. \r\nINTERFUND TRANSACTIONS \r\nThe School District has the following types of interfund transactions: \r\n \r\n- 12 - \r\n \r\n  _. \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\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. \r\nOperating transfers are recorded for all interfund transactions other than reimbursements. \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\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 of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZAnON 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 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. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the 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 of operating funds placed in demand deposit checking accounts. \r\nAcceptable security for deposits consists of anyone of or any combination of the following: \r\n(I) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\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, \r\n- 13 - \r\n \r\n - - - - - - -- - - - - - - - - - - - - - - - - - - - \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $7,681,111.43. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized' with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2002, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 211,140.48 \r\n \r\n2 \r\n \r\n7,469,970.95 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 7,681.111.43 \r\n \r\nCATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: \r\n \r\nCategory 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name. \r\nCategory 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name, \r\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. \r\n \r\n- 14 - \r\n \r\n '. ~ .; \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nAt June 30, 2002, the carrying value of the School District's total investments was $57,289,700.89 which is materially the same as fair value. The investments are classified as to risk categories as follows: \r\n \r\nType of Investment \r\nU. S. Government Repurchase Agreements \r\nTotal \r\nLocal Government Investment Pools \r\nTotal Investments \r\n \r\nRisk Categories \r\n \r\n2 \r\n \r\n3 \r\n \r\nCarrying Amount \r\n \r\nFair Value \r\n \r\n$ 34,24891 \r\n \r\n$ 34.248.91 $ 34,24891 \r\n \r\n$ 932,478.57 \r\n \r\n$22,508.328 13 23,440,806.70 23,440,806 70 \r\n \r\n$--23.2 47857 $ 3424891 $22..5.fr8,ll8...U $23,475,055.61 $23,475,05561 \r\n \r\n33,814,645.28 33,814,64528 $57 289 700 89 $57 289 700 89 \r\n \r\nThe carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the School District owns no identifiable securities, The investment policy ofthe State of Georgia, 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: \r\n \r\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 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 $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\n \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years. \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n \r\nNote 4: INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the School District at June 30, 2002: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nCapital Projects Fund Bond Proceeds Lottery Project Special Purpose Local Option Sales Tax \r\n \r\n$ 411,780.00 1,153,076.54 \r\n \r\n$ 1,153,076.54 411,780.00 \r\n \r\n$ 1,564,856.54 $ 1.564,856.54 \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\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. \r\n \r\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) and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims \r\n \r\n- 16- \r\n \r\n II t:.. \r\n \r\nWHITFIELD COUNTY BOARD OF EOUCAnON \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\nwith expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2001 2002 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n$ \r\n \r\n0.00 $ 129,520.25 $ 129,520.25 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 228.484.18 $ 228.484.18 $ \r\n \r\n0.00 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis ofthe percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2001 2002 \r\n \r\n$ \r\n \r\n0.00 $ 22,738.00 $ 22,738.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n4.464.39 $ \r\n \r\n4.464.39 $ \r\n \r\n0.00 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 100,000.00 $ 100,000.00 \r\n \r\nNote 6: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2002, amounted to $398,563.08. Future minimum lease payments for these leases are as follows: \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-'PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 6: OPERATING LEASES \r\n \r\nYear Ending \r\n \r\nAmount \r\n \r\n2003 2004 2005 2006 2007 2008 \r\n \r\n$ 516,781.60 336,245.14 305,847.45 229,638.24 229,638.24 64,199.76 \r\n \r\nTotal \r\n \r\n$ 1.682,350.43 \r\n \r\nNote 7: GENERAL LONG-TERM DEBT \r\n \r\nGENERAL OBLIGAnON DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2002 \r\n \r\n2.00% - 4.50% $22.345,000.00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nBalance July 1, 2001 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\nAdditions G.O. Bonds \r\n \r\n22,345,000.00 \r\n \r\nBalance June 30, 2002 \r\n \r\n$22.345.000.00 \r\n \r\nAt June,30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 7: GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\n2003 2004 2005 2006 2007 2008 \r\n \r\n$ 666,425.00 4,784,825.00 4,900,785.00 4,918,022.50 4,923,300.00 4,759,450.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$24.952,807.50 \r\n \r\nNote 8: SHORT-TERM DEBT \r\n \r\nThe School District obtained temporary loans to construct a house for the vocational department to sell, depositing the proceeds in its General Fund. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nBeginning Balance \r\n \r\nAdditions \r\n \r\nPayments \r\n \r\nEnding Balance \r\n \r\nTemporary Loans \r\n \r\n$ 40,729-..28 $_ 40,729.98 $ 40,729.98 $ 40,729_.98 \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $805,245.60 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $683,556.60 \r\n \r\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$121,689.00 \r\n \r\n- 19- \r\n \r\n -------------------------- \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 10: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\n99G/98S-755-068 Antioch Elementary Classroom Addition Dawnville Elementary Phase I and II Dawnville Elementary Phase III Dug Gap Elementary Classroom and Gymnasium Addition Eastside Elementary Classroom Addition North Whitfield Middle CafeterialKitchen Addition Northwest High Classroom Renovations Northwest High Gymnasium Renovations Northwest High New Gymnasium Pleasant Grove Elementary Phase III Southeast High Classroom Renovations Southeast High Gymnasium Renovation Southeast High New P. E. Facility and Commons Addition Tunnel Hill Elementary Gymnasium Addition Valley Point Middle Additions \r\n \r\n$ 87,987.24 9,811.03 \r\n249,042.83 692,022.50 1,183,120.00 278,584.10 496,435.45 339,269.81 514,289.66 501,251.74 140,512.64 327,958.92 451,982.47 114,906.00 243,015.20 139,238.43 \r\n \r\n$ 5,769.428.02 \r\n \r\nThe amounts described in this note are not reflected in the general-purpose financial statements. \r\n \r\nNote 11: CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\nNote 12: ACCUMULATED EMPLOYEES' LEAVE \r\n \r\nIndividuals employed for a minimum of240 days of work within a fiscal year are eligible for annual leave. Leave is earned at a rate often days per year. Unused days may be accumulated and carried forward to the next fiscal year subject to a maximum of fifteen days. In the event of retirement, resignation or termination of employment, individuals employed for a minimum of twenty-four consecutive months are eligible for payment of earned but unused annual leave at their current rate of pay, limited to a maximum of twenty-five days. See Note 1 - Compensated Absences \r\n \r\n- 20- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2002 \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\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. \r\n \r\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: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% 100% \r\n \r\n$ 4,597,631.68 $ 5,110,380.58 $ 4,843,982.04 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n599,98691 \r\n \r\n24,348.83 $ \r\n \r\n145,851.14 \r\n \r\n35,021.46 32,642.52 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n691,999.72 $ ==1;..4=5:1::,8=5:::;1.=14== \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue \r\nTotal liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n136,78189 \r\n \r\n$ \r\n \r\n57,182.26 \r\n \r\n2,115.29 \r\n \r\n216,198.52 \r\n \r\n6,953.96 \r\n \r\n$ \r\n \r\n273,38078 $ \r\n \r\n145,851 14 \r\n \r\n$ \r\n \r\n35,021.46 \r\n \r\n32,642.52 \r\n \r\n350,954.96 $ \r\n \r\n$ \r\n \r\n418,618.94 $ \r\n \r\n0.00 0.00 \r\n \r\nTotal liabilities and Fund EqUity \r\n \r\n$ \r\n \r\n691,999.72 $ ====1=45=,8=:5=1..1...4.... \r\n \r\nSee notes to the general-purpose financial statements. - 22- \r\n \r\n EXHIBIT \"En \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n599,986.91 $ \r\n \r\n992,799.61 \r\n \r\n$ \r\n \r\n646,665.98 \r\n \r\n816,865.95 \r\n \r\n2,256,344.11 \r\n \r\n35,02146 32,64252 \r\n \r\n64,539.47 22,880.32 \r\n \r\n$ \r\n \r\n646,66598 $ 1A84,516.84 $ 3,336,563.51 \r\n \r\n$ \r\n \r\n318,454 81 $ \r\n \r\n455,236.70 $ 1,927,037.22 \r\n \r\n72,204 65 \r\n \r\n131,502.20 \r\n \r\n113,72396 \r\n \r\n255,96543 \r\n \r\n479,117.91 \r\n \r\n414,80774 \r\n \r\n36344 \r\n \r\n4109 \r\n \r\n4109 \r\n \r\n279.89 \r\n \r\n$ \r\n \r\n646,66598 $ 1,065,897 90 $ 2A56,21225 \r\n \r\n$ \r\n \r\n35,021.46 $ \r\n \r\n64,539.47 \r\n \r\n32,642.52 \r\n \r\n22,880.32 \r\n \r\n$ \r\n \r\nO::..:..=.;OO~ \r\n \r\n350,954.96 \r\n \r\n792,931.47 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n418,618 94 $ _----:8::..::8:..:::0J.::,3:,:::5..:...:1..::;26:::.... \r\n \r\n$ \r\n \r\n646,665.98 $ 1,484,51684 $ 3,336,563 51 \r\n \r\n- 23- \r\n \r\n - - - - - -- -- ------ \r\nWHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation Community Services Operations \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change In Penod Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n311,266.00 $ \r\n \r\n2,485,565.63 \r\n \r\n1,593,957.79 \r\n \r\n$ 4,390,789 42 $ \r\n \r\n514,71461 514,714.61 \r\n \r\n$ \r\n \r\n361,350.19 \r\n \r\n8,72189 \r\n \r\n$ 4,832,765.93 \r\n \r\n144,44956 73.47 \r\n11950 \r\n \r\n$ 4,832,76593 $ \r\n \r\n$ \r\n \r\n-441,976.51 $ \r\n \r\n880,351.26 \r\n \r\n514,71461 0.00 000 \r\n \r\n-29,518.01 9,76220 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n418,618.94 $====0....=00= \r\n \r\nSee notes to the general-purpose finanCial statements - 24- \r\n \r\n EXHIBIT\"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n825,98061 $ \r\n \r\n610,147.82 \r\n \r\n$ 3,067,17521 \r\n \r\n5,552,74084 \r\n \r\n4,446,407 82 \r\n \r\n2,946.92 \r\n \r\n1,596,904.71 \r\n \r\n1,592,31216 \r\n \r\n$ 3,070,122.13 $ 7,975,62616 $ 6,648,867.80 \r\n \r\n$ 2,060,23566 $ 2,421,585 85 $ 2,251,360.82 \r\n \r\n356,048.57 244,427.96 \r\n54,344 44 123,809.68 \r\n107,11943 121,686.39 \r\n2,450.00 \r\n \r\n364,77046 244,427.96 \r\n54,344 44 123,80968 144,449.56 107,192.90 121,68639 4,832,885.43 \r\n2,45000 \r\n \r\n116,327.44 92,317 11 49,618.09 96,518.12 2,80945 74081 18,477 11 \r\n4,252,331.80 \r\n \r\n$ 3,070,12213 $ 8,417,60267 $ 6,880,500 75 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n-441,976.51 $ \r\n \r\n-231,63295 \r\n \r\n0.00 \r\n \r\n880,351.26 \r\n \r\n1,137,666 87 \r\n \r\n-29,518.01 9,762.20 \r\n \r\n-14,371.42 -11,311.24 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n418,618.94 $ =~8~8~0,;,3~5,;,,;1.=26== \r\n \r\n- 25- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 \r\n \r\nASSETS Cash and Cash EqUivalents Investments Accounts Receivable Due from Other Funds \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nCash Overdraft Contracts Payable Retatnages Payable Due to Other Funds \r\nTotal Liabilities FUND EQUITY \r\nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undeslgnated Total Fund EqUity \r\nTotal Liabilities and Fund EqUity \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n000 \r\n \r\n$ 1,097,92700 \r\n \r\n$ 22,457,654 02 \r\n \r\n$ ===-==:=,;;,,0~Oo= $ 22,457,654 02 $ =====1!::,0=97:!:,9=2=7=0==0 \r\n \r\n$ 1,097,92700 \r\n1,153,07654 $ 2,251 ,00354 \r\n \r\n$ 20,206,65048 \r\n \r\n$ 1,097,92700 \r\n \r\n$ \r\n \r\n000 \r\n \r\n000 \r\n \r\n000 \r\n \r\n$ \r\n \r\n000 $ 20,206,650 48 $ 1,097,92700 \r\n \r\n$-====o~oo= $ 22,457,654 02 $=....1..,0..9..7:=;,9=2=7=0==0 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 26- \r\n \r\n EXHIBIT\"G\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n$ 25,274,386 72 1,909,30015 1,153,07654 $ \r\n \r\nLOTTERY PROJECT \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ 1,097,92700 $ 2,789,426 19 \r\n \r\n47,732,04074 \r\n \r\n24,281,003 26 \r\n \r\n1,909,30015 \r\n \r\n1,915,40278 \r\n \r\n411,78000 \r\n \r\n1,564,856 54 \r\n \r\n640,46500 \r\n \r\n$ 28,336,76341 $ \r\n \r\n411,78000 $ 52,304,12443 $ 29,626,29723 \r\n \r\n$ \r\n \r\n342,74682 \r\n \r\n1,936,99841 $ \r\n \r\n736,73169 \r\n \r\n411 ,78000 \r\n \r\n$ 3,428,256 92 $ \r\n \r\n$ 411,78000 \r\n4n78000 $ \r\n \r\n1,440,673.82 2,348,778.41 $ \r\n736,73169 1,564,856 54 \r\n6,091,04046 $ \r\n \r\n118,079.09 967,072 43 640,46500 \r\n1,725,61652 \r\n \r\n$ 24,908,506 49 000 $ \r\n$ 24,908,506 49 $ \r\n$ 28,336/6341 $ \r\n \r\n$ 20,206,65048 24,908,506 49 $ 27,900,68071 1,097,92700 \r\n \r\n000 \r\n \r\n000 \r\n \r\n000 \r\n \r\n000 $ 46,213,08397 $ 27,900,680 71 \r\n \r\n- 27- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002 \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Support Services BUSiness Admlnlslra!lon Maintenance and Operation of Plant \r\nCapital Outlay Salanes Employee Benefits Travel of Employees ProfesSional and Technical Services Rents Communication SupplieS Other Expenditures Land and Land Improvements BUilding and BUilding Improvements EqUipment \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nPremiums on Bonds Sold Proceeds from General Obligation Bonds \r\nPar Value Operating Transfers In Operating Transfers Oul \r\nTotal Other FinanCing Sources (Uses) \r\nExcess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCing Uses \r\nFUND BALANCE JULY 1 \r\nReSidual Equity Transfer \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n291,30840 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n198,61067 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n198,61067 $ \r\n \r\n291,30840 \r\n \r\n$ \r\n \r\n244,22900 \r\n \r\n15,00000 $ \r\n \r\n35,831 31 \r\n \r\n$ \r\n \r\n421,06339 \r\n \r\n1,138,076 54 \r\n \r\n$ \r\n \r\n421,06339 $ 1,397,30554 $ \r\n \r\n$ \r\n \r\n-421,06339 $ -1,198,694 87 $ \r\n \r\n202,69206 \r\n238,52337 52,78503 \r\n \r\n$ \r\n \r\n158,272 35 \r\n \r\n$ \r\n \r\n421,06339 \r\n \r\n22,345,000 00 $ \r\n-1,097,927 00 \r\n \r\n1,097,92700 \r\n \r\n$ \r\n \r\n421,06339 $ 21 ,405,345 35 $ \r\n \r\n1,097,927 00 \r\n \r\n$ \r\n \r\n000 $ 20,206,65048 $ \r\n \r\n1,150,71203 \r\n \r\n000 \r\n \r\n000 \r\n \r\n000 \r\n \r\n-52,78503 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ =====O=,oo:=, $ 20,206,650 48 $ ====-1',:,09=7=1:,9=2=7=0==0 \r\n \r\nSee notes to the general-purpose financial statements \r\n \r\n- 28- \r\n \r\n EXHIBIT\"H\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nLOTTERY PROJECT \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ 11.071,452 25 664,316 90 $ \r\n$ 11,735,76915 $ \r\n \r\n$ --:0\"-'0\"\"0'- \r\n \r\n291,30840 11,071,452 25 $ \r\n862,92757 \r\n \r\n11,499,653.52 1,374,751 16 \r\n \r\no00 $ _=1.2L,:2=25=.=68-8=2=2- $ 12,874,404 68 \r\n \r\n$ \r\n \r\n37697 \r\n \r\n159,07310 35,144 80 2,52028 \r\n466,16093 22,00600 64149 78,91832 3,82000 \r\n900,000 00 13,051,44619 $ \r\n-27,76650 \r\n \r\n$ 14,692,341 58 $ \r\n \r\n$ -2,956,57243 $ \r\n \r\n$ \r\n \r\n244,22900 \r\n \r\n37697 \r\n \r\n78,43682 9,950 00 \r\n \r\n159,07310 35,144 80 2,52028 \r\n516,99224 22,00600 64149 78,91832 3,82000 \r\n2,038,076 54 $ 13,753.63846 \r\n-17,81650 \r\n \r\n88,38682 $ 16,837,62070 $ \r\n \r\n-88,38682 $ -4,611,932 48 $ \r\n \r\n673,63255 5,396,553 49 \r\n329,59326 \r\n6,399,77930 \r\n6,474,62538 \r\n \r\n$ \r\n \r\n$ \r\n \r\n-88,38682 \r\n \r\n$ \r\n \r\n-88,38682 $ \r\n \r\n$ -3,044,95925 $ 27,900,68071 52,78503 \r\n \r\n$ \r\n \r\n158,27235 \r\n \r\n88,38682 \r\n \r\n22,345,000 00 1,607,377 21 $ -1,186,31382 \r\n \r\n1,370,490 60 -1,370,49060 \r\n \r\n88,38682 $ 22,924,33574 $ \r\n \r\n000 \r\n \r\n000 $ 18,312,40326 $ 6,474,62538 \r\n \r\n000 \r\n \r\n27,900,68071 \r\n \r\n21,426,05533 \r\n \r\n000 \r\n \r\n$ 24,908,506 49 $====O=.=OO~ $ 46,213,08397 $ 27,900,68071 \r\n \r\n- 29- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgnculture, U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of Education Food and Nutntlon Program Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutntlon Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutntlon Program Food Dlstnbutlon Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\nTotal U S Department of AgncuJture \r\nEducation, U S Department of SpeCial Education Cluster Pass-Through From Georgia Department of Education IndiViduals wrth Disabilities Education Act Part B - SpeCIal Education Flow Through CapaCity Building Improvement Preschool \r\nTotal SpeCial Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ComprehenSive School Reform Demonstration Project Elementary and Secondary Education Act Title I Grants to Local Educational AgenCIes TItle II Eisenhower ProfeSSional Development TItle III Technology literacy Challenge Fund Grants T,t1eVI Innovative Education Program Strategies Class SIZe Reduction Title VII Emergency Immigrant Education Vocational Education - BaSIC Grants to States High School Program BaSIC Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10553 10555 \r\n \r\nNlA \r\n \r\n$ 536,00512 \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n1,806,664,76 $ \r\n \r\n4,689.87018 (3) \r\n \r\n$ 2,342,66988 $ \r\n \r\n4,689,87018 \r\n \r\n10550 10665 \r\n \r\nNlA \r\n \r\n142.89575 \r\n \r\n142,89575 \r\n \r\nNlA \r\n \r\n5,47020 \r\n \r\n(4) \r\n \r\n$ 2,491,035 83 $ \r\n \r\n4,832,76593 \r\n \r\n84 027 84 027 84173 \r\n \r\nNlA \r\n \r\n$ 1,077,24651 $ \r\n \r\n1,077,246,51 \r\n \r\nNlA \r\n \r\n33,52587 \r\n \r\n33.52587 \r\n \r\nN/A \r\n \r\n111,07826 \r\n \r\n111,07826 \r\n \r\n$ 1,221,85064 $ \r\n \r\n1,221,85064 \r\n \r\n84 332 \r\n84 010 84 281 84 318 84 298 84 340 84.162 \r\n84 048 \r\n \r\nNlA \r\n \r\n50,211 41 \r\n \r\nNlA \r\n \r\n1,281,917 59 \r\n \r\nN/A \r\n \r\n57,98933 \r\n \r\nN/A \r\n \r\n1,50000 \r\n \r\nNlA \r\n \r\n54,42567 \r\n \r\nN/A \r\n \r\n225,35000 \r\n \r\nNlA \r\n \r\n49,16257 \r\n \r\nN/A \r\n \r\n70,73767 \r\n \r\n50.211 41 \r\n1,281.917 59 60,93625 1.50000 54,42567 \r\n225,35000 49,16257 \r\n70,73767 \r\n \r\n30 - \r\n \r\n WHITFiElD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nEducation. U S Department of Other Programs Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act TItle I Migrant Educallon \r\nTotal U S Department of Educallon \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n84 011 \r\n \r\nN/A \r\n \r\n$ 54.03033 $ \r\n \r\n54,03033 \r\n \r\n$ 3,067,175 21 $ \r\n \r\n3,070,122 13 \r\n \r\nTotal Federal FinanCIal Assistance \r\nNlA = Not Available \r\n \r\n$ 5.558,211 04 $ ====7=,9=02=.:,,8;;;8=8,;;;06= \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) The amounts shown for the Food Dlstnbutlon Program represents the Federally assigned value of nonmonetary assistance for donated commodities receIVed and/or consumed by the system dunng the current fiscal year \r\n(2) Expenditures for the School Breakfast Program were not maintained separately and are Included In the 2002 National School Lunch Program. \r\n(3) Expenditures for thiS program Include State, and/or Other Funds ExpendJlures are not maintained by fund source \r\n(4) Funds earned on thiS program do not require reporting of expenditures \r\n \r\nMajor Programs are Identified by an astensk (*) In front of the CFDA number \r\n \r\nThe School Dlstnct did not proVide Federal ASSistance to any SubreClplent \r\n \r\nThe accompanYing schedule of expendJlures of Federal awards Includes the Federal grant actIVIty of the Whitfield County Board of Education and IS presented on the modlfted accrual baSIS of accounting which IS the baSIS of accounting used In the presentation of the general-purpose finanCIal statements \r\n \r\nSee notes to the general-purpose finanCIal statements \r\n \r\n- 31 - \r\n \r\n ---------------------------- \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education. Georgia Department of Quality BaSIC Education Direct InstructIOnal Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Early InterventIOn (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervenllon (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program VocatIOnal Laboratory (9-12) Program Students wrth Disabilities Category I Category II Category III Category IV Gifted Student - Category VI Remedial EducatIOn Program Speaal EducatIOn IlInerant SpeCial Education Supplemental Speech Alternative Education Program English Speakers of Other Languages (ESOl) Deferred Summer Salanes - (Pnor Year) Deferred Summer Salanes - (Current Year) 20 Days Additional Instruction Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement NurSing ServiceS Pnnclpal Supplements VocatIOnal SUperviSOrs EducatIOn EqualIZation Funding Grant Food Sel'Vlces VocallOnal Education Other State Programs Apprenticeship Program Health Insurance JOint Evemng Programs K-3 Statewide Reading Program Mentor Teachers Outdoor Classrooms Post Secondary Options - Spnng Preschool Handicapped Program Lottery Programs Asslstlve Technology Computers In the Classroom \r\nGeorgia Institute of Technology Student Information System \r\nGeorgia State Flnancmg and Investment CommiSSion Reimbursement on Construction Projects \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,417,62200 459,97800 \r\n7,773,05700 1,157,90800 3,819,68200 \r\n777,07800 6,522,30800 4,901,38900 1,807,690 00 \r\n94,83300 960,19800 2,784,71600 929,30500 1,441,204 00 \r\n53,30300 35400 \r\n13,09000 479.57500 1,085,95300 -6,414,011 93 6,836,224 00 352,54900 1,177,83900 212,57400 6,745,33200 \r\n1,266,99200 361,354 00 239,70600 50,58100 69,744 00 \r\n3,370,64700 $ 311,266 00 \r\n240,23871 \r\n28,77967 683,55660 105,63515 151,47142 \r\n11,934 00 75000 49500 \r\n167,10500 \r\n8,80548 296.07684 \r\n141,644 20 \r\n \r\n$ 3,417,622 00 459,97800 \r\n7,773,05700 1,157,90800 3,819,68200 \r\n777,07800 6,522,308 00 4,901,38900 1,807,69000 \r\n94,83300 960,19800 2,784.71600 929,30500 1.441,204 00 \r\n53,30300 354 00 \r\n13,09000 479,57500 1,085,95300 -6,414,011 93 6,836,224 00 352,54900 1,177,839 00 212,57400 6,745,33200 \r\n1,266,99200 361,354 00 239.70600 50,581 00 69,744 00 \r\n3,370,64700 311,266 00 240,23871 \r\n28,77967 683,556 60 105,63515 151,47142 \r\n11,934 00 75000 49500 \r\n167,10500 \r\n8,80548 296,07684 \r\n141,64420 \r\n \r\n$ 291,308 40 \r\n \r\n291,30840 \r\n \r\n- 32- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"Z' \r\n \r\nAGENCY/FUNDING \r\nGRANTS OffICe of School Readiness Pre-Kmdergarten Program \r\nOffice of Traasury and Fiscal Services PublIC SChool Employees Retirement \r\nCONTRACT Education, Georgia Department of Foreign Language In Elementary SChool (FLES) \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 68.18809 \r\n \r\n$ \r\n \r\n121,68900 \r\n \r\n$ \r\n \r\n68,18809 \r\n \r\n121,68900 \r\n \r\n77,95300 \r\n \r\n77,95300 \r\n \r\n$ 54.338.38062 $ 825,98061 $ 291,30840 $ 55,455,66963 \r\n \r\nSee notes to the general-purpose finanCIal statements \r\n \r\n- 33- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENPED JUNE 30 2002 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nConstructIOn of a new elementary school, parking areas and grounds and providing furnishings, eqUipment and fixtures therefor \r\nConstrudlon of addillonal classrooms, InstruclJonal space at nine elementary schools, four middle schools and two high schools, as well as remodeling and renovating eXisting classrooms, media centers, offices, kitchens, cafetenas, gymnaSiums, audltonums, restrooms, roofs, parking areas and grounds at these schools and prOViding furnishings, equipment and fixtures therefor \r\nAcqUISition, constructIOn and eqUipping of a new elementary school. a new rnlddle school and a new high school, Including the acqUlSlllon of any fumlture, fixtures and eqUipment necessary or desirable therefor; renovations and Improvements at eXisting schools. including the acqulSlllon of any furniture. fixtures and equipment necessary or deSirable therefor, the acqUlslllOn, construction and equipping of a central warehouse facility, the acqUISition of school buses. and system-wide technology Improvements \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 2,153,00000 $ 6,488,361 18 $ 238,52337 $ 6,249,873 81 Ongoing \r\n \r\n46,753,75900 \r\n \r\n46,259,049 00 13.880,72840 16,425,862 11 Ongoing \r\n \r\n53,531,93700 \r\n \r\n53,531 ,93700 \r\n \r\n900.000 00 \r\n \r\nOngoing \r\n \r\n$ 102,438.696 00 $ 106,279,34718 $ 15,019,251 77 $ 22,675,73592 \r\n \r\n(1) The School Dlstnct's onglnal cost esllmate as speafied In the resolution calling for the ImposlllOn of the Local OpllOn Sales Tax \r\n(2) The School Dlstnd's current estrmate of total cost for the projects Includes all cost from project Incepllon to complellon \r\n(3) The voters of Whitfield County approved the Imposillon of a 1% sales tax to fund the above prOjects and retrre 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 \r\n \r\nSee notes to the general-purpose finanCial statements \r\n \r\n- 35- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM (aBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDIrect Instrucllonal Programs KJndergarten Program Kindergarten Program-Early Intervention Program Pnrnary Grades (1-3) Program Pnrnary 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 Vocattonal Laboratory (9-12) Program Students WIth Dlsabllrt1es category I Category II category III Category IV Category V Gifted Student - category VI Remedial Educallon Program A1tematlve Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedICI Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\nEDUCATION (1) \r\n \r\nELIGIBLE aBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n3,862.976 00 $ 5,685,899 98 $ 149.92290 $ 5,835,822.88 \r\n \r\n519,91800 \r\n \r\n511,24545 \r\n \r\n7.17984 \r\n \r\n518,42529 \r\n \r\n8,785.971 00 \r\n \r\n8,142,839.41 \r\n \r\n398.22542 \r\n \r\n8,541,064 83 \r\n \r\n1,308.797 00 \r\n \r\n1,052,284.22 \r\n \r\n15,66396 \r\n \r\n1,067,94818 \r\n \r\n4,307,32900 \r\n \r\n4,127,526.73 \r\n \r\n278,48688 \r\n \r\n4,406,01361 \r\n \r\n888,43900 7,372.236 00 5,540.094 00 2,043,252 00 5,405,70700 \r\n1.629,008 00 60,24900 \r\n542.06900 1.227.468 00 \r\n \r\n510,714 11 8,054,359.71 7.653,88242 1,866.865 50 \r\n77,54162 1,208.035 08 2,739,55344 \r\n384.92741 67,15735 \r\n1,384,837 97 200,106 70 767,15021 \r\n1,095,01420 \r\n \r\n9,60984 476,62441 534,56806 230,37045 \r\n15,05356 18.554 71 13.66099 \r\n1,486 43 3810 \r\n25.45650 1,44279 \r\n31,26325 10,06603 \r\n \r\n520,32395 8,530,984 12 8.188,45048 2.097,23595 \r\n92,59518 1,226.589 79 2,753,21443 \r\n386,41384 67,19545 \r\n1,410,294 47 201,54949 798,41346 \r\n1.105,080 23 \r\n \r\n$ \r\n \r\n43,493.51300 S 45,529.941 51 $ 2,217,67412 $ 47.747,61563 \r\n \r\n1,331,324.00 240,274.00 \r\n \r\n1.862,92757 232,63382 \r\n \r\n300,17665 160,434 83 \r\n \r\n2,163.104 22 393,06865 \r\n \r\nTOTAL aBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n45.065,111 00 $ 47,625.50290 $ 2,678,28560 $ 50.303,78850 \r\n \r\n(1) Compnsed of State Funds plus Local Five Mill Share \r\n \r\nSee notes to the general-purpose finanCIal statements. \r\n \r\n36 - \r\n \r\n . , '. I \r\n \r\nr ' .... \r\n \r\nI \r\n \r\n \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (aBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE \"5\" \r\n \r\nNorthwest Whitfield County High School Phoenix High School New Hope Elementary School Southeast Whitfield County High School Eastbrook Middle School North Whitfield Middle School Valley Point Middle School Westside Middle School Antioch Elementary School Eastside Elementary School Vamell Elementary School Cohutta Elementary School Pleasant Grove Elementary School Westside Elementary School Dawnville Elementary School Tunnel Hill Elementary School Dug Gap Elementary School Valley POint Elementary School Whitfield/Dalton Altemative (Gateway) Whitfield Special Education Center Whitfield County/Dalton CrossRoads Academy Central Office (Alternative Education Program) \r\nTOTAL \r\n(1) Compnsed of State Funds plus Local FIve Mill Share. \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE aBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n5,505,881.00 $ \r\n \r\n6,580,369.53 \r\n \r\n138,302.00 \r\n \r\n508,995.30 \r\n \r\n2,208,651.00 \r\n \r\n2,296,266.95 \r\n \r\n4,409,769.00 \r\n \r\n5,200,849.85 \r\n \r\n2,805,859.00 \r\n \r\n2,944,39544 \r\n \r\n3,438,47400 \r\n \r\n3,763,599.78 \r\n \r\n1,699,815.00 \r\n \r\n1,800,874.51 \r\n \r\n2,050,833 00 \r\n \r\n2,348,796.17 \r\n \r\n1,972,092.00 \r\n \r\n2,018,444.03 \r\n \r\n2,413,641 00 \r\n \r\n2,623,978 79 \r\n \r\n1,994,631.00 \r\n \r\n2,128,95018 \r\n \r\n1,431,037.00 \r\n \r\n1.564,325.43 \r\n \r\n2,256,839.00 \r\n \r\n2,162,65315 \r\n \r\n2,586,223.00 \r\n \r\n2,765,374.28 \r\n \r\n2,577,458.00 \r\n \r\n2,431,036.42 \r\n \r\n1,392,624.00 \r\n \r\n1,567,129.08 \r\n \r\n1,793,392 00 \r\n \r\n2,105,738 92 \r\n \r\n2,275,923.00 \r\n \r\n2,337,565.17 \r\n \r\n147,42097 \r\n \r\n40,927.97 \r\n \r\n409,92371 \r\n \r\n542,06900 \r\n \r\n$ \r\n \r\n43,493,51300 $ 47,747,61563 \r\n \r\nSee notes to the general-purpose financial statements. - 37- \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(4()4) 656 2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washmgton Street, S W Suite 214 Atlanta, Georgia 30334-8400 \r\nJuly 25, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of Whitfield County Board of Education as of and for the year ended June 30,2002, and have issued our report thereon dated July 25, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Whitfield County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield 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 \r\n2002YB-41 \r\n \r\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 of the internal control over financial reporting that, in ourjudgment, could adversely affect Whitfield 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 of Findings and Questioned Costs as item FS-7551-0202. \r\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 nonnal course of perfonning 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-7551-02-02 to be a material weakness. \r\nThis report is intended solely for the infonnation and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n~.~ \r\nRus ell W. Hinton State Auditor \r\nRWH:gp 2002YB-41 \r\n \r\n 1USSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa\u003c;hangton Street, S W. SUite 214 Atlanta, GeorgIa 30334-H400 \r\nJuly 25, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2002. Whitfield 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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 of the United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Whitfield 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 Whitfield County Board of Education's compliance with those requirements. \r\n2002SA-IO \r\n \r\n In our opinion, the Whitfield 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, 2002. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMS Circular A-133. \r\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 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. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\n----~~.~ Respectfully submitted, Ru ell W. Hinton State Auditor \r\nRWH:gp 2002SA-IO \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-98-01 FS-7551-00-01 FS-7551-01-01 FS-7551-0 1-02 \r\n \r\nPreviously Reported Corrective Action Implemented Further Action Not Warranted Unresolved - No Corrective Action Implemented Unresolved - No Corrective Action Implemented \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nGENERAL LEDGER Outstanding Loan Finding Control Number: FS-7551-0 1-01 \r\n \r\nThis condition occurred because the School District did not realize the loan should be retired on December 31,2001. The Fiscal Year 2001 audit revealed this finding; however, the audit was conducted subsequent to December 31, 2001, thereby resulting in the same finding for two audit periods. Subsequent repayment ofloan has been made in accordance with constitutional limitations. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7551-0 1-02 \r\n \r\nDue to current staffing limitations and budgetary considerations and GASB 34 implementation plans, the School District has decided not to pursue the recording of general fixed assets on the financial statements at this time. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-B3 The Whitfield County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3. \r\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 \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-B3. \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-755 1-02-0 I \r\nOn December 31,2001, the General Fund ofthe Whitfield County Board ofEducation had an unpaid loan outstanding in the amount of $16,759.93. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows: \r\n\"The governing authority ofany county, municipality or other political subdivision ofthis state may incur debt by obtaining temporary loans in each year to pay expenses... Such loans shall be payable on or before December 31 of the calendar year in which .such loan is made... \" \r\nThis condition occurred because the School District did not realize that the Board should retire the loan on December 31, 2001, as required. Repayment of loans should be made in conformity with constitutional limitations. \r\nManagement's Response: \r\nThis condition occurred because the School District did not realize the loan should be retired on December 31, 2001. The fiscal year 2001 audit revealed this finding; however, the audit was conducted subsequent to December 31, 2001, thereby resulting in the same finding for the audit periods June 30, 2001 and June 30, 2002. Subsequent repayment of the loan has been made in accordance with constitutional limitations. \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7551-02-02 \r\nThe Whitfield County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance 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. \r\n-2- \r\n \r\n ,; \r\nWHITFIELD COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2002 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7551-02-02 Management's Response: Due to current staff limitations, budgetary considerations and GASB 34 implementation plans, the School District has decided not to pursue the recording of general fixed assets as part ofthe audited financial statements. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2000-h2001","title":"Whitfield County Board of Education, Dalton, 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."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2000-h2001"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":".. , '. ', - \r\n\\. :., \r\n \r\n\", \r\n',' \r\n,\" \r\n-\" \r\n \r\ni' \r\n \r\n\"I \r\n.., , \r\n' \r\n \r\n..\" .. '.. \r\n\\-:1- \r\n \r\n\" \r\n \r\n\" \r\n\" \r\n \r\n~, \",' .. t \r\n \r\n'., .' , \u003c \r\n \r\n, \r\n \r\n, \r\n \r\n.-,. \r\n \r\n' \r\n \r\n\" ',' \r\n \r\n' \r\n \r\n.' . \r\n \r\nI \\ :  , \r\n \r\n. -:. \r\n \r\n! .. ~ .. 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' \r\n \r\n, ~-'\" \r\n \r\n\" \r\n \r\n\" ~, , I \r\n \r\n' \r\n \r\n'\" \r\n \r\n,\" .. \r\n \r\n,, \r\n \r\n1'\" \r\n \r\nI \r\n \r\n ,\"~  \r\n \r\n.' ,'1 \r\n \r\n0,' ., \r\n \r\n/ '\": ..... .. \r\n \r\n..:.- ..,. . \r\n \r\n\" \r\n \r\n,\" \r\n \r\n\"v \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nGENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET - \r\n \r\nALL FUND TYPES \r\n \r\n2 \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDmJRES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\n. ALL GOVERNMENTAL FUND TYPES \r\n \r\n4 \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDmJRES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\n6 \r\n \r\nD NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n7 \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n20 \r\n \r\nF \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDmJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n22- \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n24 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDmJRES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n26 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n28 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n30 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n33 \r\n \r\nALLOTMENTS AND EXPENDITURES \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\n \r\n4 \r\n \r\nBY PROGRAM \r\n \r\n34 \r\n \r\nS \r\n \r\nBY SITE \r\n \r\n3S \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \r\nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Wa,hmglOn Stree!, S W. SUIlC 214 Allanta. Georgia ~\u003cl:'34-X40() \r\nMarch 14,2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general-purpose financial statements of the Whitfield County Board of Education, as of and for the year ended June 30, 200 I, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Whitfield County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. \r\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 fmancial 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. \r\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: \r\n \r\n200lARL-13 \r\n \r\n * The general-purpose financial statements of the Board of Education did not contain a \r\nGeneral 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. \r\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. \r\nThe aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \r\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 of the Whitfield County Board of Education as oOune 30, 200 I, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 14, 2002, on our consideration of the Whitfield County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Whitfield County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. \r\n2001ARL-13 \r\n \r\n A copy ofthis report has been filed as a pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24. \r\nRespectfully SUb~:dJ.. \r\n \r\nRWH:as 200IARL-13 \r\n \r\nR sell W. Hinton State Auditor \r\n \r\n ~ffiLDCOUNTYBOARDOFEDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food Donated CommodilJes Purchased Food \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ 6,753,460.22 \r\n \r\n1,055,215.94 \r\n \r\n8,140,032.87 $ 2,256,344.11 \r\n \r\n64,539.47 22,880.32 \r\n \r\nTotal Assets \r\n \r\n$ 15,948,709.03 $ 2,343,763.90 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue \r\nTotaillabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Self-Insurance Undeslgnated \r\nTotal Fund Equity \r\n \r\n$ , 934,237.61 \r\n \r\n$ 2,489,n8.68 \r\n \r\n113,723.96 \r\n \r\n6,990,631 ,78 \r\n \r\n414,807.74 \r\n \r\n40,729.98 \r\n \r\n363.44 \r\n \r\n279.89 $ 9,521,140.44 $ 1,463,412.64 \r\n \r\n$ \r\n \r\n1,491.35 \r\n \r\n$ \r\n \r\n64,539.47 \r\n \r\n22,880.32 \r\n \r\n1,289,593.39 5,136,483.85 \r\n$ 6,427,568.59 $ \r\n \r\n792,931.47 880,351.26 \r\n \r\nTotal liabilities and Fund Equity \r\n \r\n$ 15,948,709.03 $ 2,343,763.90 \r\n \r\nThe notes to the general-purpose finanCIal statements are an Integral part of thIS statement - 2- \r\n \r\n EXHIBIT \"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ 2.789,426.19 $ 9,542.886.41 $ 7,149.665.05 \r\n \r\n24.281.003.26 \r\n \r\n25.336,219.20 \r\n \r\n24.515.031.72 \r\n \r\n1.915,402.78 \r\n \r\n12.311,n9.76 \r\n \r\n10,133,907.31 \r\n \r\n64.539.47 22.880.32 \r\n \r\n78.910.89 34.191.56 \r\n \r\n$ 28,985.832.23 $ 47,278.305.16 $ 41.911.706.53 \r\n \r\n$ \r\n \r\n934.237.61 \r\n \r\n2,603.502.64 $ 2,114.730..11 \r\n \r\n7,405,439.52 \r\n \r\n6.903.822.49 \r\n \r\n40.729.98 \r\n \r\n7.500.000.00 \r\n \r\n363.44 \r\n \r\nn2.65 \r\n \r\n~ \r\n \r\n118.079.09 \r\n \r\n967,072.43 \r\n \r\n118,079.09 967,072.43 \r\n \r\n611,466.35 627,950.46 \r\n \r\n279.89 \r\n \r\n$ 1.085.151.52 $ 12.069,704.60 $ 17.758,742.06 \r\n \r\n$ \r\n \r\n1,491.35 $ \r\n \r\n1,491.35 \r\n \r\n$ 27,900.680.71 \r\n \r\n64.539.47 22.880.32 27.900,680.71 \r\n \r\n78.910.89 34.191.56 21,426.055.33 \r\n \r\n1,289,593.39 \r\n \r\n901,769.05 \r\n \r\n0.00 \r\n \r\n5,929.415.32 \r\n \r\n1,710,546.29 \r\n \r\n$ 27,900.680.71 $ 35.208,600.56 $ 24,152,964.47 \r\n \r\n$ 28.985,832.23 $ 47,278,30516 $ 41,911,706.53 \r\n \r\n-3- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administrallon Maintenance and Operallon of Plant Student Transportallon services Central Support Services Other Support Services Food services Operation Enterprise Operations Community Services Operations \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 50,682,077.84 $ 277.37 \r\n23,964,993,08 2,219,648.38 \r\n$ 76,866,996,67 $ \r\n \r\n610,147,82 4,446,407,82 \r\n1,592,31216 \r\n6,648,867,80 \r\n \r\n$ 50,532,828,15 $ \r\n1,868,532.44 1,676,513,92 2,175,268,74 \r\n597,161.85 4,893,460,57 \r\n954,596,69 4,767,239,08 3,273,743,88 \r\n487,411.28 \r\n5,469.00 \r\n756,776.98 39,667,77 \r\n$ 72,028,670.35 $ \r\n$ 4,838,326,32 $ \r\n1,589,242,27 \r\n \r\n2,251,360,82 116,327,44 92,317,11 49,618,09 96,518,12 2,809.45 \r\n740,81 18,477.11 4,252,331,80 \r\n6,880,500.75 -231,632.95 1,137,666,87 \r\n \r\n-14,371.42 -11,311,24 \r\n \r\n$ 6,427,568.59 $ ====8=80..,3=:5=1';,;:26= \r\n \r\nThe notes to the general-purpose finanCial statements are an integral part Of, thiS statement. -4- \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n(Memorandum Only) \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ 51,292,225.66 $ 48,994,589.10 \r\n \r\n4,446,685.19 \r\n \r\n4,041,259.97 \r\n \r\n$ 11,499,653.52 \r\n \r\n35,464,646.60 \r\n \r\n33,047,123.80 \r\n \r\n1,374,751.16 \r\n \r\n5,186,711.70 \r\n \r\n4,927,300.94 \r\n \r\n$ 12,874,404.68 $ 96,390,269.15 $ 91,010,273.81 \r\n \r\n$ 52,784,188.97 $ 48,148,463.12 \r\n \r\n$ 6,399,779.30 \r\n \r\n1,984,859.88 1,768,831.03 2,224,886.83 \r\n693,679.97 4,896,270.02 \r\n954,596.69 4,767,239.08 3,274,484.69 \r\n487,411.28 18,4n.11 \r\n4,257,800.80 \r\n756,776.98 6,439,447.07 \r\n \r\n2,852,925.88 1,911,129.50 2,024,830.44 \r\n679,956.23 4,320,858.70 \r\n538,616.36 .4,626,843.51 2,453,813.31 \r\n507,386.61 12,728.92 \r\n3,660,944.30 2,013.10 \r\n615,723.74 10,781,664.67 \r\n \r\n$ 6,399,779.30 $ 85,308,950.40 $ 83,137,898.39 \r\n \r\n$ 6,474,625.38 $ 11,081,318.75 $ 7,872,375.42 \r\n \r\n21,426,055.33 \r\n \r\n24,152,964.47 \r\n \r\n16,260,325.61 \r\n \r\n-14,371.42 -11,311.24 \r\n \r\n10,611.04 9,652.40 \r\n \r\n$ 27,900,680.71 $ 35,208,600.56 $ 24,152,964.47 \r\n \r\n-5- \r\n \r\n WHITFIELD COUNTY BOARp OF EDUCATION COMBINEP STATEMENT Of REVENUES, EXPENPITURES ANp CHANGES IN FUNP BALANCES \r\nBUDGET ANP ACTUAL - (NON-GAAP BASIS) GENERAL ANP SPECIAL REVENUE fUNDS \r\nYEAR ENpED JUNE 30 2001 \r\n \r\nEXHIBIT C \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\n$ 48.442.694 00 $ 49.802,460 76 \r\n \r\n277 37 \r\n \r\n22,214.897.00 \r\n \r\n23.964.99308 \r\n \r\n998,98500 \r\n \r\n2.219.64838 \r\n \r\nTotal Rellenues \r\n \r\n$ 71.656.57600 $ 75,987,37959 \r\n \r\nEXPENPITURES \r\n \r\nCurrent InstructIOn Support Serl/lces Pupil Serl/lCes Improllement of InstruclJonal SeNlCes Educational Media Serl/lCes General Administration School AdminIstration BUSiness AdministratIOn Maintenance and Operation of Plant Student Transportation Serl/lees Central Support Serl/lees Other Support Sari/ices Food SeNlCes Operation Enterpnse OperatIOns Community Serl/lces Operations \r\nCapital Outlay \r\n \r\n$ 48.626,647,00 $ 49.860.43548 \r\n \r\n3,620.440 00 2.340.76700 2.238.84700 \r\n604.78800 4,769.559 00 \r\n873,96400 5.027.836 00 2,632.799 00 \r\n522.75800 \r\n \r\n1,849,183 17 1.657.47408 2,150.31663 \r\n590.20067 4.829.961 09 \r\n950.113,24 4.735,270.37 3,250.985.93 \r\n482,55517 \r\n \r\n6.00000 2,50000 75.49300 35.00000 \r\n \r\n5.46900 \r\n747.420 67 39.66777 \r\n \r\nTotal expenditures \r\n \r\n$ 71.597,39800 $ 71.149,05327 \r\n \r\nExcess of Rellenues oller (under) expenditures \r\n \r\n$ \r\n \r\n59.17800 $ 4,838.326,32 \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOther Sources Other Uses \r\n \r\n$ \r\n \r\n849.38700 \r\n \r\n-649.36700 \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ \r\n \r\n000 \r\n \r\nExcess of Rellenues and Other Flnancmg Sources oller (under) expenditures and Other Financing Uses $ \r\n \r\n59.17800 $ 4.838.326 32 \r\n \r\nFUND BALANCE JULY 1, 2Q00 \r\n \r\n3,409,055 11 \r\n \r\n1.589,24227 \r\n \r\nFUND BALANCE JUNE 30, 2001 \r\n \r\n$ 3.468.233 11 $ 6,427.56859 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS) \r\n \r\n$ 560,19200 $ 610.147,82 \r\n \r\n3.404.022 00 \r\n \r\n4,446.407 62 \r\n \r\n1,492.00000 \r\n \r\n1.592.31216 \r\n \r\n$ 5,476.21400 $ 6,648,867 80 \r\n \r\n$ 1,507,568.00 $ 2,251,360,82 \r\n \r\n191.05200 57.620.00 \r\n117.32800 \r\n \r\n116,32744 92.317 11 49.618.09 96,51812 \r\n2,80945 \r\n \r\n4.32500 \r\n66.321.00 3.596,200 00 \r\n \r\n74081 \r\n18,477 11 4,252.331 80 \r\n \r\n$ 5.540.41400 $ 6.680,500 75 \r\n \r\n$ \r\n \r\n-64,200 00 $ -231,63295 \r\n \r\n$ \r\n \r\n29.00000 \r\n \r\n-29,000 00 \r\n \r\n$ \r\n \r\n000 \r\n \r\n$ \r\n \r\n-64.20000 $ -231,63295 \r\n \r\n1.159.945 17 \r\n \r\n1.024.564 42 \r\n \r\n$ 1.095.74517 $ 792.93147 \r\n \r\nThe notes to the general-purpose finanaal statemen1s are an mtegral part of this statemenl -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHmIT liD\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The 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, \r\nFUND ACCOUNTING \r\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, \r\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. \r\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-pwpose financial statements. \r\nThe general-pwpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes, Funds presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities,' Governmental Fund Types include: \r\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. \r\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 pwposes. These funds are received primarily from the Georgia Department of Education and from,the Federal government to accomplish specific educational objectives. \r\n-7- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2001 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nBASIS OF ACCOUNTING \r\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. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\nGovernmental ~ds are accounted for using the modified accrual basis of accounting under which: \r\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. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 200 I. 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 expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\n \r\n-8- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIDIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBUDGET \r\n \r\nThe Whitfield County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\n \r\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 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 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. \r\n \r\nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual \r\n \r\npresents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the \r\n \r\nbudget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" ofthis \r\n \r\nreport: \r\n \r\n. \r\n \r\nSpecial Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 2000 \r\n \r\n$ 1,137,666.87 \r\n \r\nAdjustments Inventories - July 1,2000 Food Donated Commodities Purchased Foods \r\n \r\n-78,910.89 -34,191.56 \r\n \r\nFund Balance July 1,2000 (Budget Basis) \r\n \r\n$ 1,024,564.42 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n-231,632.95 \r\n \r\nFUND BALANCE JUNE 30, 2001 (Budget Basis) \r\n \r\n$ 792,931.47 \r\n \r\n- 9- \r\n \r\n -------------------------- \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCASH AND CASH EQUIVALENTS \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-tenn 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. \r\nINVESTMENTS \r\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: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\nRECEIVABLES \r\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 \r\n- 10- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nare 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. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 25, 2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001, The Whitfield 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 $23,807,995.53. \r\n \r\nThe tax millage rate levied for the 2000 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n18.583 mills \r\n \r\nSALES TAXES \r\n \r\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 $11,499,653.52 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $5,540,872.68 has been collected or on June 30, 2002, whichever occurs first. \r\n \r\nINVENTORIES \r\n \r\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 of purchase. 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. \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nCompensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation \r\n \r\n- 11 - \r\n \r\n - - - - - - - - - - - - - - - - - - - - , ' - - - ~-----~--- - - - \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2001 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nrelates 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. \r\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. \r\nINTERFUND TRANSACTIONS \r\nThe School District has the following type of interfund transactions: \r\nReimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions ofexpenditures in the fund that is reimbursed. \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\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. \r\nNote 2: DEPOSITS AND INVESTMENTS \r\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 \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less than \r\n11 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. \r\nAcceptable security for deposits consists of anyone of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n- 12- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIDIT liD\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30,2001 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\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, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $14,953,588.92. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e,g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2001, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 200,093.88 \r\n \r\n2 \r\n \r\n14,753,495.04 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$14.953.588.92 \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCATEGORIZATION OF INVESTMENTS At June 30,2001, the carrying value of the School District's total investments was $25,336,219.20 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 ofGeorgia, Office ofTreasury 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 of Treasury and Fiscal Services for the Local Government Investment Pool (Primaiy Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: \r\nThe Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 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 $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\nInvestments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury. obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. \r\nNote 3: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\nNote 4: INTERFUND ASSETS AND LIABILITIES \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund transactions of the School District at June 30, 2001: \r\n- 14- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 4: INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nCapital Projects Fund Georgia State Financing and Investment Commission \r\nSpecial Purpose Local Option Sales Tax Lottery Project \r\n \r\n$ 209,100.00 431,365.00 \r\n \r\n$ 640,465.00 \r\n \r\n$ 640.465.00 $ 640.465.00 \r\n \r\nNoteS: RISKMANAGEMENT \r\n \r\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. \r\n \r\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, 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. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\n2000 2001 \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liabihty \r\n \r\n$ \r\n \r\n0.00 $ 94,189.61 $ 94,189.61 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 129,520.25 $ 129,520.25 $ \r\n \r\n0.00 \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\nThe School District is self-insured 'Yith regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBegInning of Year LIability \r\n \r\nClaims and Changes In Esttmates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2000 2001 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n866.00 $ \r\n \r\n866.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 22,738.00 $ 22,738.00 $ \r\n \r\n0.00 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 50,000.00 $ 100,000.00 \r\n \r\nNote 6: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for facilities and office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $353,846.61. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nAmount \r\n \r\n2002 2003 2004 2005 2006 \r\n \r\n$ 398,563.08 351,343.12 106,606.90 76,209.21 34,521.48 \r\n \r\nTotal \r\n \r\n$ 967.243.79 \r\n \r\n- 16- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 200 I \r\n \r\nNote 7: SHORT-TERM DEBT \r\n \r\nThe School District issues tax anticipation notes and obtains temporary loans in advance ofproperty tax collections depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount ofshort-term debt to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred. \r\n \r\nTax AntiCIpatIOn Notes Temporary Loans \r\n \r\nBegmning Balance \r\n \r\nAddItions \r\n \r\nPayments \r\n \r\nEnding Balance \r\n \r\n$7,500,000.00 $_ _--'0=.0=0 $7.500,000.00 $_ _--'0::.:.;.0\"-\"'-0 \r\n \r\n$_ _--'0=.0=0 $ 40,729.98 $._ _--'0::.:.;.0\"-\"'-0 $ 40,729.98 \r\n \r\nNote 8: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $879,617.08 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$719,810.08 \r\n \r\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$159,807.00 \r\n \r\nNote 9: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available: \r\n \r\n- 17 - \r\n \r\n --------------------- ------------- \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHffiIT \"D\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\nNote 9: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n99-755-090 99G/98S-755-068 Dawnville Elementary School Additions Northwest Whitfield High School Fine Arts \r\nAddition Northwest Whitfield MidOle School Gymnasium \r\nRoof Pleasant Grove Elementary School Southeast Whitfield High School Fine Arts \r\nAddition Valley Point Middle School Additions \r\n \r\n$ 19,378.27 112,636.94 570,753.14 \r\n \r\n$ 291,308.40 \r\n \r\n319,041.38 \r\n \r\n103,987.99 522,574.00 \r\n \r\n341,594.00 2,305,710.00 \r\n \r\n$ 4,295,675,72 $ 291.308.40 \r\n \r\nThe amounts described in this note are not reflected in the general-purpose financial statements. \r\n \r\nNote 10: CONTINGENT LIABILITIES \r\n \r\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. \r\n \r\nNote 11: ACCUMULATED EMPLOYEES' LEAVE \r\n \r\nIndividuals employed for a minimum of240 days ofwork within a fiscal year are eligible for annual leave. Leave is earned at a rate often days per year. Unused days may be accumulated and carried forward to the next fiscal year subject to a maximum of fifteen days. In the event of retirement, resignation or termination of employment, individuals employed for a minimum of twenty-four consecutive months are eligible for payment of earned but unused annual leave at their current rate of pay, limited to a maximum of twenty-five days. See Note 1 - Compensated Absences \r\n \r\nNote 12: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHffiIT \"0\" \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2001 \r\n \r\nNote 12: RETIREMENT PLANS \r\n \r\nemployer 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. \r\n \r\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: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2001 2000 1999 \r\n \r\n100% 100% 100% \r\n \r\n$ 5,110,380.58 $ 4,843,982.04 $ 4,470,113.91 \r\n \r\n- 19- \r\n \r\n -------------- -----,--------- ---- -- - - ----------- --- \r\nWHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET \r\nSPEC~LREVENUEFUND \r\nJUNE 30, 2001 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nInventories Food Donated CommoditIes Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTIERY PROGRAMS \r\n \r\n$ \r\n \r\n992,799.61 \r\n \r\n52,473.19 $ \r\n \r\n240,192.00 \r\n \r\n64,539.47 22,880.32 \r\n \r\nTotal Assets \r\n \r\n$ 1,132,692.59 $ =====2=4=0=,1.9.2.=:.=00=. \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated \r\nTotal Fund Equity \r\nTotal liabilities and Fund Equity \r\n \r\n$ \r\n \r\n228,634.12 \r\n \r\n$ \r\n \r\n51,574.23 \r\n \r\n2,690.38 \r\n \r\n200,767.10 \r\n \r\n8,867.50 \r\n \r\n$ \r\n \r\n252,341.33 $ \r\n \r\n240,192.00 \r\n \r\n$ \r\n \r\n64,539.47 \r\n \r\n22,880.32 \r\n \r\n792,93147 $ \r\n \r\n$ \r\n \r\n880,351.26 $ \r\n \r\n0.00 0.00 \r\n \r\n$ 1,132,692.59 $ -=:===oi2i:i::4=0=1:,:=92.=:0.0... \r\n \r\nSee notes to the general-purpose financial statements. - 20 \r\n \r\n EXHIBIT\"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n992,799.61 $ 1,291,756.17 \r\n \r\n$ 1,963,678.92 \r\n \r\n2,256,344.11 \r\n \r\n1,128,323.41 \r\n \r\n64,539.47 22,880.32 \r\n \r\n78,910.89 34,191.56 \r\n \r\n$ 1,963,678.92 $ 3,336,563.51 $ 2,533,182.03 \r\n \r\n$ 1,698,403.10 $ 1,927,037.22 $ \r\n \r\n59,459.35 \r\n \r\n113,723.96 \r\n \r\n205,173.14 \r\n \r\n414,807.74 \r\n \r\n363.44 \r\n \r\n363.44 \r\n \r\n279.89 \r\n \r\n279.89 \r\n \r\n897,213.15 125,197.65 372,331.71 \r\nn2.65 \r\n \r\n$ 1,963,678.92 $ 2,456,212.25 $ 1,395,515.16 \r\n \r\n$ \r\n \r\n64,539.47 $ \r\n \r\n78,910.89 \r\n \r\n22,880.32 \r\n \r\n34,191.56 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n792,931.47 \r\n \r\n1,024,564.42 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n880,351.26 $ 1,137,666.87 \r\n \r\n$ 1,963,678.92 $ 3,336,563.51 $ 2,533,182.03 \r\n \r\n- 21 - \r\n \r\n -------------------- ----- ---- - \r\nWHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 3D, 2001 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Admimstration Student Transportation Services Other Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expend~ures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\nFUND BALANCE JUNE 30 \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n289,528,00 $ \r\n \r\n2,138,628,19 \r\n \r\n1,592.312.16 \r\n \r\n$ 4,020,468,35 $ \r\n \r\n320,619,82 320,619,82 \r\n \r\n$ \r\n \r\n308,093,74 \r\n \r\n9,520,07 \r\n \r\n$ 4,252,101,30 $ 4,252,101,30 $ $ -231,632,95 $ \r\n1,137,666,87 \r\n \r\n2,711.45 64,06 230,50 \r\n320,619,82 0,00 0,00 \r\n \r\n-14,371,42 -11,311,24 \r\n \r\n$ \r\n \r\n880,351.26 $ = = = = 0....,=00= \r\n \r\nSee notes to the general-purpose financial statements, - 22- \r\n \r\n EXHIBIT \"F\" \r\n \r\nFEDERAL \r\nPROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n610,147.82 $ \r\n \r\n625,747.66 \r\n \r\n$ 2,307,779.63 \r\n \r\n4,446,407.82 \r\n \r\n4,040,321.58 \r\n \r\n1,592,312.16 \r\n \r\n1,534,566.73 \r\n \r\n$ 2,307,779.63 $ 6,648,867.80 $ 6,200,635.97 \r\n \r\n$ 1,943,267.08 $ 2,251,360.82 $ 1,999,224.58 \r\n \r\n106,807.37 92,317.11 49,618.09 96,518.12 \r\n98.00 676.75 18,477.11 \r\n \r\n116,327.44 92,317.11 49,618.09 96,518.12 \r\n2,809.45 740.81 \r\n18,477.11 4,252,331.80 \r\n \r\n216,477.67 102,066.40 49,090.67 80,815.63 \r\n1,678.25 11,998.82 3,654,906.88 \r\n \r\n$ 2,307,779.63 $ 6,880,500.75 $ 6,116,258.90 \r\n \r\n$ \r\n \r\n0.00 $ -231,632.95 $ \r\n \r\n84,377.07 \r\n \r\n0.00 \r\n \r\n1,137,666.87 \r\n \r\n1,033,026.36 \r\n \r\n-14,371.42 -11,311.24 \r\n \r\n10,611.04 9,652.40 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n880,351.26 $ 1,137,666.87 \r\n \r\n- 23- \r\n \r\n - - - - - - - - - - - - - - - - - - - - -- ---------- \r\nWHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 \r\n \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\n$ 2,789,426.19 \r\n \r\n24,281,003.26 \r\n \r\n1,915,402.78 \r\n \r\n$ \r\n \r\n209,100.00 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n209,100.00 $ 28,985,832.23 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Contracts Payable Retainages Payable Due to Other Funds \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For SPLOST Projects Unreserved Undeslgnated \r\nTotal Fund EqUity \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n118,079.09 \r\n \r\n$ \r\n \r\n209,100.00 \r\n \r\n326,607.43 \r\n \r\n640,465.00 \r\n \r\n$ \r\n \r\n209,100.00 $ 1,085,151.52 \r\n \r\n$ 27,900.680,71 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n000 \r\n \r\n$ \r\n \r\n0.00 $ 27,900,680.71 \r\n \r\n$ \r\n \r\n209,100.00 $ 28,985,832.23 \r\n \r\nSee notes to the general-purpose financial statements. - 24- \r\n \r\n EXHIBIT\"G\" \r\n \r\nLOTIERY PROJECT \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ 2,789,42619 $ 6,185,141.69 \r\n \r\n24,281,003.26 \r\n \r\n14,655,205.73 \r\n \r\n1,915,402.78 \r\n \r\n1,947,916.72 \r\n \r\n$ \r\n \r\n431,365.00 \r\n \r\n640,465.00 \r\n \r\n1,200,488.82 \r\n \r\n$ \r\n \r\n431,365.00 $ 29,626,297.23 $ 23,988,752.96 \r\n \r\n$ \r\n \r\n122,792.00 \r\n \r\n$ \r\n \r\n118,079.09 \r\n \r\n611,466.35 \r\n \r\n$ \r\n \r\n431.365.00 \r\n \r\n967,072.43 \r\n \r\n627.950.46 \r\n \r\n640,465.00 \r\n \r\n1,200,488.82 \r\n \r\n$ \r\n \r\n431,365.00 $ 1,725,616.52 $ 2,562,697.63 \r\n \r\n$ 27,900,680.71 $ 21,426,055.33 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 27,900,680.71 $ 21,426,055.33 \r\n \r\n$ \r\n \r\n431,365.00 $ 29,626,297.23 $ 23,988,752.96 \r\n \r\n- 25- \r\n \r\n - ------ ------- -------- \r\nWHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2001 \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION . \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nREVENUES \r\n \r\nState Funds Taxes Other Funds \r\n \r\n$ \r\n \r\n0.00 $ 11,499,653.52 \r\n \r\n1,374,751.16 \r\n \r\nTotal Revenues \r\n \r\nI \r\n \r\n\" \r\n \r\nEXPENDITURES \r\n \r\n$ \r\n \r\n0.00 $ 12,874,404.68 \r\n \r\nCapital Outlay Land and Land Improvements Building and Building Improvements Equipment \r\n \r\n$ \r\n \r\n1,405.00 $ \r\n \r\n672,227.55 \r\n \r\n258,564.31 \r\n \r\n4,211,438.95 \r\n \r\n70,036.32 \r\n \r\n145,622.20 \r\n \r\nTotal Expenditures \r\n \r\n$ \r\n \r\n330,005.63 $ 5,029,288.70 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ \r\n \r\n-330,005.63 $ 7,845,115.98 \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOperating Transfers In Operating Transfers Out \r\n \r\n$ \r\n \r\n330,005.63 \r\n \r\n$ -1,370,490.60 \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ \r\n \r\n330,005.63 $ -1,370,490.60 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n$ \r\n \r\n0.00 $ 6,474,625.38 \r\n \r\nFUND BALANCE JULY 1 \r\n \r\n0.00 \r\n \r\n21,426,055.33 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$====O~.=OO;;\". $ 27,900,680.71 \r\n \r\nSee notes to the general-purpose financial statements. - 26- \r\n \r\n EXHIBIT -H\" \r\n \r\nLOTTERY PROJECT \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ 3,585,041.98 \r\n \r\n$ \r\n \r\n0.00 $ 11,499,653.52 \r\n \r\n11,732,920.98 \r\n \r\n1,374,751.16 \r\n \r\n936,421.83 \r\n \r\n$ \r\n \r\n0.00 $ 12,874,404.68 $ 16,254,384.79 \r\n \r\n$ \r\n \r\n$ \r\n \r\n926,550.23 \r\n \r\n113,934.74 \r\n \r\n$ 1,040,484.97 $ \r\n \r\n$ -1,040,484.97 $ \r\n \r\n673,632.55 $ 5,396,553.49 \r\n329,593.26 \r\n \r\n9,385.78 10,041,362.02 \r\n658,172.75 \r\n \r\n6,399,779.30 $ 10,708,920.55 \r\n \r\n6,474,625.38 $ 5,545,464.24 \r\n \r\n$ 1,040,484.97 $ 1,370,490.60 $ 5,168,662.30 \r\n \r\n-1 ,370,490.60 \r\n \r\n-5,168,662.30 \r\n \r\n$ 1,040,484.97 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ 6,474,625.38 $ 5,545,464.24 \r\n \r\n0.00 \r\n \r\n21,426,055.33 \r\n \r\n15,880,591.09 \r\n \r\n$==:0=====,0=.0=0= $ 27,900,680.71 $ 21,426,055.33 \r\n \r\n- 27- \r\n \r\n - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---- ------~ \r\nWHITFIELD COUNT' -',\\;;\u003c0 OF EDUCATION SCHEDULE OF EXPENDIl u:.JES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nAgnculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program Nabonal School Lunch Program \r\n \r\n10.553 10.555 \r\n \r\nTotal Child Nutrition Cluster \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From OffIce of Treasury and Fiscal servICes National Forest Reserve Funds \r\n \r\n10.550 10665 \r\n \r\nTotal U S Department of Agnculture \r\n \r\nEducation, U. S Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Speclal Education AowThrough capaclty Building Improvement Preschool \r\n \r\n84 027 84.027 84173 \r\n \r\nTotal Special Education Cluster \r\n \r\nOther Programs Pass-Through From Georgia Department of Educallon Elementary and Secondary Education Act Title I Grants to Local Educational Agencles Tille II Eisenhower Professional Development Tille VI Innovative Educallon Program Strategies Class Size Reduction Tille VII Immigrant Education Vocational Education BaSIC Grants to States High School Program Basic Grant Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Agency Title I MlQrant Education \r\n \r\n84.010 84.281 84.298 84.340 84.162 \r\n84.048 \r\n84.011 \r\n \r\nTotal U. S. Department of Education \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nN/A \r\n \r\n$ 398,711.25 \r\n \r\n(2) \r\n \r\nNlA \r\n \r\n1,566,72349 $ 4,080,211.18 (3) \r\n \r\n$ 1,965,434.74 $ 4,080,211 18 \r\n \r\nNlA \r\n \r\n173,193.45 \r\n \r\n171,890 12 \r\n \r\nNlA \r\n \r\n277.37 \r\n \r\n(4) \r\n \r\n$ 2,138,905.56 $ 4,252,101.30 \r\n \r\nNlA $ 878,675.25 $ \r\n \r\nNlA \r\n \r\n2,133.62 \r\n \r\nNJA \r\n \r\n79,113.46 \r\n \r\n$ 959,922 33 $ \r\n \r\n878,675.25 2,133.62 \r\n79,11346 \r\n959,922.33 \r\n \r\nNlA \r\n \r\n907,910.80 \r\n \r\n907,910.80 \r\n \r\nNJA \r\n \r\n38,113.64 \r\n \r\n38,113.64 \r\n \r\nNlA \r\n \r\n49,697.81 \r\n \r\n49,69781 \r\n \r\nNlA \r\n \r\n180,57664 \r\n \r\n180,57664 \r\n \r\nNlA \r\n \r\n58,66511 \r\n \r\n58,66511 \r\n \r\nNlA \r\n \r\n64,259.08 \r\n \r\n64,259.08 \r\n \r\nNJA \r\n \r\n48,634.22 \r\n \r\n48,634.22 \r\n \r\n$ 2,307,77963 $ 2,307,779.63 \r\n \r\nTotal Federal Fmanclal Assistance \r\nNlA =Not Available \r\n \r\n- 28- \r\n \r\n$ 4,446,685.19 $ 6,559,880.93 \r\n \r\n WHITFIELD COUNTY BOARP OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENpED JUNE 30, 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food DistributJon Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the current fiscal year \r\n(2) Expenditures for the School Breakfast Program were not maintained separately and are Induded In the 2001 National School Lunch Program. \r\n(3) Expenditures for this program Indude State. and/or Other FUnds Expenditures are not malOtalOed by fund source, \r\n(4) Funds earned on this program do not reqUire reportlOg of expenditures, \r\nMajor Programs are Identified by an asterisk (*) 10 front of the CFDA number, \r\nThe School District did not provide Federal AsSistance to any SUbreaplent \r\nThe accompanying schedule of expenditures of Federal awards Indudes the Federal grant actIVIty of the Whitfield 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 finandal statements, \r\n \r\nsee notes to the general-purpose financial statements, \r\n \r\n- 29 \r\n \r\n WHITFIELP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost KJndergarten Program KJndergarten Program - Earty Intervention Program Pnmary Grades (1-3) Program Primary Grades - Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Special Education Itinerant Special Education Supplemental Speech Alternative Education Program English Speakers of Other Languages (ESOL) Deferred Summer Salaries - (Prior Year) Deferred Summer Salartes - (Current Year) Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing services PnnClpal Supplements Vocational Supervisors Education Equalization Funding Grant Food services Vocational Education Other State Programs Apprenticeship Program At-Risk Summer School Program Foreign Language In Elementary School (FLES) Health Insurance Innovative Programs Mentor Teachers Outdoor Classrooms Preschool Handicapped Program Remedial Summer School Lottery Programs Computers In the Classroom \r\nOffice of School Readiness Pre-KIndergarten Program \r\nOffice of Treasury and Fiscal Sel'l(ices Public SChool Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,819,357.00 423,050.00 \r\n7,648,586.00 1,073,706.00 3,894,202.00 6,393,308.00 4,903.507.00 1,742,024.00 \r\n42,193.00 932,682.00 2,439,770.00 788,347.00 1,267,020.00 392,387.00 \r\n132.00 9,301.00 474,606.00 927,532.00 -5,853,740.00 6,414,011.93 1,140,753,00 295,151.00 6,642,407.00 \r\n \r\n$ 2,819,357.00 423,050.00 \r\n7,648,586.00 1.073,706.00 3,894,202.00 6,393,308.00 4,903.507.00 1.742,024,00 \r\n42,193.00 932,682.00 2,439,770,00 788.347.00 1.267,020.00 392,387.00 \r\n132.00 9,301.00 474,606,00 927,532.00 -5,853,740.00 6,414.011.93 1,140.753.00 295.151.00 6.642,407.00 \r\n \r\n1,161,328.00 345,756.00 239,464.00 49,658.00 64.865.00 \r\n2,591.658.00 $ \r\n63,582.65 \r\n \r\n289,528.00 \r\n \r\n40,000.00 16,550.28 49,199.23 719.810.08 \r\n5,000.00 1,830.00 \r\n750.00 1n.073.98 \r\n11,107.50 \r\n \r\n240,192.00 \r\n \r\n1,161.328.00 345,756.00 239,464.00 49,658.00 64,865.00 \r\n2,591,658.00 289.528.00 63.582.65 \r\n40,000.00 16,550.28 49,199.23 719,810.08 \r\n5,000.00 1,830.00 \r\n750.00 177,073.98 \r\n11,107.50 \r\n240,192.00 \r\n \r\n80,427.82 \r\n \r\n80,427.82 \r\n \r\n159,807.00 \r\n \r\n159,807.00 \r\n \r\n- 30- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCYIFUNDING \r\nCONTRACTS Community Affairs, Georgia Department of Local Assistance Grant \r\nEducation, Georgia Department of Georgia's Reading Challenge Reading First Program \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n15.253.19 \r\n \r\n87.860.00 71,232.00 \r\n \r\n$ \r\n \r\n15,253.19 \r\n \r\n87,860.00 71,232.00 \r\n \r\n$ 50,682,077.84 $ 610,147.82 $ 51,292,225.66 \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 31 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION ~ ,ILE OF APPROVED LOCAL OPTION SALES TAX pROJECTS \r\nYEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"3\" \r\n \r\npROJECT \r\n \r\nORIGINAL \r\nESTIMATED \r\nCOST P) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\nConstruction of a new elementary school, parking areas and grounds and proViding furnishings, equipment and fixtures therefor $ \r\n \r\n2,153.000 00 $ \r\n \r\n5.919,868 18 $ \r\n \r\n330,00563 $ 5,919,86818 Ongoing \r\n \r\nConstruction of addlbonal classrooms, InstruetJonal space at nine elementary \r\nschools, four middle schools and two high \r\nschools, as well as remodeling and renovebng eXlsbng classrooms, media centers, offices, kitchens, cafetenas. gymnasiums, audltonums, restrooms, roofs. parking areas and grounds at these schools and proVIding furnishings. equipment and fixtures therefor \r\n \r\n46,153,159 00 \r\n \r\n46,258,049 00 \r\n \r\n6,069,11361 \r\n \r\n10,356,08844 OngOing \r\n \r\n$ 481906,15900 $ 52,117,911 18 $ 6,399,17930 $ 16.215,95662 \r\n(1) The School Dlstnct's onglnal cost esbmate as spBCIfied In the resolutlon calling tor the Imposrtlon of the Local Opbon Sales Tax \r\n(2) The School Dlstnet's current esbmate of total cost for the projBcls Includes all cost from projBCt Incepbon to completion \r\n(3) The voters of Whitfield County approved the Imposrnon of a 1% sales tax to fund the above projects Amounts expended for these projects may Include sales tax proceeds, state, local property \r\ntaxes and/or other funds over the life of the projBets \r\n \r\nSee notes to the general-purpose finanCIal statements \r\n \r\n- 33 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (aBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE aBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPnmary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents wlIh Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\ncategory III \r\n \r\ncategory IV \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Educabon Program \r\n \r\nAltema~e EducalJon Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n3,193,493,00 $ 479,191,00 \r\n8,663,575,00 1,216,189.00 4,410,973,00 7,241,718.00 5,554,216.00 1,973,196.00 4,771,429,00 \r\n1,435,157.00 444,458.00 537.587.00 \r\n1,050,61900 \r\n \r\n5,241,83214 $ 606,175,22 \r\n7,419,780,02 761,985.01 \r\n4,115,891,21 7,692,114,07 7,188,72191 1,840,859,93 \r\n719.352.79 1,124,586.94 1,988,043.01 \r\n370,547,09 1,141,71669 \r\n435,094.87 723.435,96 734,718.62 \r\n \r\n96,31310 $ 13,793,62 219,461,84 24,20628 183,356.77 256,960.84 397,656.04 407,444,15 \r\n38,53990 28.734 96 \r\n8,000 00 31,442.26 \r\n6,354 42 16,739,70 6,83186 \r\n \r\n5,338,145,24 619,968.84 \r\n7,639,241,86 786,191.29 \r\n4,299,247.98 7,949,074,91 7,586.3n.95 2.248,304.08 \r\n757,892,69 1,153.321 90 1,988.043.01 \r\n378,547.09 1,173,15895 \r\n441,44929 740.17566 741,550.48 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ 40.971,801,00 $ 42,104,855,48 $ 1,735,835.74 $ 43.840,691.22 \r\n \r\nMedia center Program Slaff and Professional Development \r\n \r\n1,292,134.00 334,320,00 \r\n \r\n1,768,86367 265,317.54 \r\n \r\n340,381,92 92,345.26 \r\n \r\n2.109,245,59 357,662,80 \r\n \r\nTOTAL aBE FORMULA FUNDS \r\n \r\n$ 42,598,255.00 S 44,139,036,69 $ 2,168,562,92 $ 46,307,599.61 \r\n \r\n(1) Compnsed of State Funds plus Local Five Mill Share \r\n \r\nSee notes to the general-purpose finanCIal statements \r\n \r\n- 34- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"5\" \r\n \r\nNorthwest Whitfield County High School Phoenix High School New Hope Elementary School Southeast Whitfield County High School Eastbrook Middle School North Whitfield Middle School Valley Point Middle School Westside Middle School Antioch Elementary School Eastside Elementary School Varnell Elementary School Cohutta Elementary School Pleasant Grove Elementary School Westside Elementary School Dawnville Elementary School Tunnel Hill Elementary School Dug Gap Elementary School Valley Point Elementary School WhitfieldlDalton Alternative (Gateway) Whitfield Special Education Center Whitfield CountylDalton CrossRoads Academy Central Office (Alternative Education Program) \r\nTOTAL \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\n$ \r\n \r\n5,230,143.00 $ \r\n \r\n6,043,443.61 \r\n \r\n170,624.00 \r\n \r\n387,597,72 \r\n \r\n1,929,410,00 \r\n \r\n1,668,580.73 \r\n \r\n4,152,489.00 \r\n \r\n4,912,110.07 \r\n \r\n2,834,724.00 \r\n \r\n2,613,774.26 \r\n \r\n3,316,492.00 \r\n \r\n3,216,349.19 \r\n \r\n1,546,665.00 \r\n \r\n1,729,493.38 \r\n \r\n1,969,854.00 \r\n \r\n2,101,002,59 \r\n \r\n1,842,091.00 \r\n \r\n1,929,061.66 \r\n \r\n2,592,363.00 \r\n \r\n2,505,992.66 \r\n \r\n1,924,398.00 \r\n \r\n2,025,866,93 \r\n \r\n1,308,725.00 \r\n \r\n1,498,862.74 \r\n \r\n1,980,540.00 \r\n \r\n2,037,804.81 \r\n \r\n2,555,028.00 \r\n \r\n2,641,444.48 \r\n \r\n1,894,131.00 \r\n \r\n2,034,773.44 \r\n \r\n1,385,806.00 \r\n \r\n1,534,538,91 \r\n \r\n1,625,608,00 \r\n \r\n1,959,221.18 \r\n \r\n2,175,123.00 \r\n \r\n2,132,198.33 \r\n \r\n395,413.44 \r\n \r\n348,760.65 \r\n \r\n69,955.94 \r\n \r\n537,587.00 \r\n \r\n54,444.50 \r\n \r\n$ \r\n \r\n40,971,801.00 $ 43,840,691.22 \r\n \r\nSee notes to the general-purpose financial statements. - 35- \r\n \r\n SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUS1\u003eEll W. HINTON \r\nSTATE AUDITOR (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 Wa!\u003ehmgton Street. S. Suite 214 \r\nAtlanta. Georgia 30334-8400 \r\nMarch 14, 2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of Whitfield County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated March 14, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose fmancial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether Whitfield 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 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. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered Whitfield County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal \r\n2001YB-40 \r\n \r\n control over financial reporting. flowever, we noted a certain matter involving the internal control over financial reporting and its cperation 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 Whitfield County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7551-0 102. \r\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, the reportable condition described above is considered to be a material weakness. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n \r\nRWH:as 2001YB-40 \r\n \r\nRu ell W. Hinton State Auditor \r\n \r\n RUSSELL \\\\'. HINTON \r\nSTATE AUDITOR (404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S w.. SUite 214 \r\nAtlanta. Georgia 30334-8400 \r\nMarch 14,2002 \r\n \r\nHonorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance of Whitfield County Board of Education with the types of \r\nu.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular \r\nA-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Whitfield County Board ofEducation'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 ofWhitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\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 ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Whitfield 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 Whitfield County Board ofEducation's compliance with those requirements. \r\n200ISA-IO \r\n \r\n In our opinion, the Whitfield County Board ofEducation 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. \r\nInternal Control Over Compliance \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33. \r\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. \r\nThis report is intended solely for the information and use of the management, members of the Whitfield 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. \r\nRespectfully submitted, \r\n~\\.O~ \r\nR ell W. Hinton State Auditor \r\nRWH:as 2001SA-1O \r\n \r\n SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-98-01 FS-7551-99-01 FS-755 1-00-01 \r\n \r\nUnresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - No Corrective Action Implemented \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $1,491.35 Finding Control Number: FS-7551-98-01 \r\n \r\nThe underexpenditure of Quality Basic Education (QBE) funds of $1,491.35 for the Remedial Education will be returned to the Georgia Department ofEducation through an increase in the School District's Local Five Mill Share for the QBE programs in a subsequerit fiscal period. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7551-00-01 \r\n \r\nDue to current staffing limitations and budgetary considerations, the School District had decided not to pursue the recording of fixed assets on the accounting statements. \r\n \r\n SECTIONN FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a'financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the fmancial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-133 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-I33. \r\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 \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" program's was $300,000.00. \r\n9. Low Risk Auditee The Whitfield County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education. \r\n \r\n --------------------- \r\nWHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2001 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-7551-01-01 \r\nOn December 31,2000, the General Fund ofthe Whitfield County Board ofEducation had an unpaid loan outstanding in the amount of $17,023.35. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows: \r\n\"The governing authority of any county, municipality or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses... Such loans shall be payable on or before December 31 ofthe calendar year in which such loan is made ... \" \r\nThis condition occurred because the Board did not realize the loan should be retired on December 31, 2000, as required. Repayment of loans should be made in conformity with constitutional limitations. \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7551-01-02 \r\nThe Whitfield 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. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. 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. \r\nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b1999-h2000","title":"Whitfield County Board of Education, Dalton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2000-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, issued in 2001?; ceased with fiscal year ended June 30, 2008, issued in 2009?","Report year covers fiscal year.","Fiscal year ended June 30, 2000, issued in 2001?; title from cover.","Fiscal year ended June 30, 2008, issued in 2009?"],"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":["Auditors' reports--Georgia","Financial statements--Georgia","Whitfield County (Ga.). Board of Education--Appropriations and expenditures"],"dcterms_title":["Whitfield County Board of Education, Dalton, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000"],"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-bw59-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Auditors' reports--Georgia--Periodicals.","Financial statements--Georgia--Periodicals.","Georgia Government Documents--Serial"],"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Periodicals--fast"],"fulltext":"STATE OF GEORGIA \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\nGrA \r\n \r\nA 800 \r\n \r\n \r\n \r\n RI \r\n \r\n:J.fa \r\n \r\nWSCf \r\n \r\n19'1'1 --1000 \r\n \r\n00 00000 0 0 \r\n1776 \r\n \r\nI \r\n \r\n \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nDALTON, GEORGIA \r\n \r\n- \r\n \r\n. \r\n \r\nREPORT ON AUDIT \r\n \r\n \r\nOF THE FINANCIAL STATEMENTS \r\n \r\nFOR THE FISCAL YEAR ENDED JUNE 30,2000 \r\n \r\nRussell W. Hinton \r\nstate Auditor \r\n \r\n WHnrmLD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHffiITS \r\n \r\nGENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nCOMBINED STATEMENTS - OVERVIEW \r\n \r\nA \r\n \r\nCOMBINED BALANCE SHEET \r\n \r\nALL FUND TYPES \r\n \r\nB \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nALL GOVERNMENTAL FUND TYPES \r\n \r\nC \r\n \r\nCOMBINED STATEMENT OF REVENUES, EXPENDITURES AND \r\n \r\nCHANGES IN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n(NON-GAAP BASIS) \r\n \r\n. \r\n \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nE \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nFCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\nSCHEDULES \r\n \r\n \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nANALYSIS OF \r\n \r\nEXPENDITURE REQUIREMENTS \r\n \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS \r\n \r\n4 \r\n \r\nOVERALL \r\n \r\n5 \r\n \r\nBY PROGRAM \r\n \r\nPage \r\n2 \r\n4 \r\n6 7 \r\n \r\n \r\n20 22 \r\n24 \r\n26 \r\n28 30 31 33 34 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-B3 \r\n \r\nSECTION III \r\n \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nS \r\n \r\nY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  \r\n \r\n \r\nSECTION I FINANCIAL \r\n \r\n- \r\n \r\n \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 15,2001 \r\n \r\nHonorable Roy E, Barnes, Governor Members of the General Assembly . Members of the State Board of Education \r\nand Superintendent and Members ofthe Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying general purpose financial statements of the Whitfield County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Whitfield County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. \r\nExcept as discussed in the following para~aph, we conducted our audit in accordance with auditing standards general)y accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller GeBeral of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. \r\nWe did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures. \r\n \r\n2000ARL-13A \r\n \r\n As described in the notes to the general pmpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \r\n* The general pmpose financial statements ofthe Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. \r\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. \r\nThe aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. \r\nIn our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Whitfield County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 15, 2001, on our consideration of the Whitfield County Board of Education's internal control over finflIlcial 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. \r\nOur audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Whitfield County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of \r\nManagement and Budget Circular A-B3, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the \r\ngeneral purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth \r\nparagraph, such information is fairly stated, in all material respects, in relation to the general purpose \r\nfinancial statements taken as a whole. \r\n2000ARL-13A \r\n \r\n A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- \r\n6-24. \r\nRespectfully submitted, \r\n \r\nRWH:jb 2000ARL-13A \r\n \r\n- ~ .::::tt~\".....:: \r\nRu ell W. Hinton State Auditor \r\n \r\n \r\ni \r\n \r\n \r\n \r\n \r\n  \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nInventories Food Donated Commodities Purchased Food \r\n \r\nGOVERNMENTAL FUND \r\n \r\nSPECIAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nFUND \r\n \r\nFUND \r\n \r\n$ \r\n \r\n569,980.34 $ \r\n \r\n394,543.02 \r\n \r\n9,859,825.99 \r\n \r\n7,057,667.18 \r\n \r\n1,128,323.41 \r\n \r\n78,910.89 34,191.56 \r\n \r\nTotal Assets \r\n \r\n$ 17,487,473.51 $ 1,635,968.88 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Self-Insurance Deficit Undesignated \r\nTotal Fund Equity \r\n \r\n-- \r\n-- \r\n \r\n$ 1,866,740.46 $ \r\n6,531,490.78 7,500,000.00 \r\n, \r\n$ 15,898,231.24 $ \r\n \r\n125,197.65 372,331.71 \r\n772.65 \r\n498,302.01 \r\n \r\n \r\n \r\n$ \r\n \r\n1,491.35 \r\n \r\n$ \r\n \r\n78,910.89 \r\n \r\n34,191.56 \r\n \r\n901,769.05 \r\n \r\n685,981.87 \r\n \r\n1,024,564.42 \r\n \r\n$ 1,589,242.27 $ 1,137,666.87 \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ 17,487,473.51 $ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -2- \r\n \r\n1,635,968.88 \r\n \r\n EXHIBIT \"A\" \r\n \r\nTYPES CAPITAL \r\nPROJECTS FUND \r\n \r\nTOTALS \r\n \r\n(Memorandum OnIY~)~~_ \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ 6,185,141.69 $ 7,149,665.05 $ 16,846,201.48 \r\n \r\n14,655,205.73 \r\n \r\n24,515,031.72 \r\n \r\n6,743,221.80 \r\n \r\n1,947,916.72 \r\n \r\n10,133,907.31 \r\n \r\n8,797,236.78 \r\n \r\n78,910.89  34,191.56 \r\n \r\n68,299.85 24,539.16 \r\n \r\n$ 22,788,264.14 $ 41,911,706.53 $ 32,479,499.07 \r\n \r\n$ \r\n \r\n122,792.00 $ 2,114,730.11 $ 2,244,011.64 \r\n \r\n6,903,822.49 \r\n \r\n6,606,685.21 \r\n \r\n7,500,000.00 \r\n \r\n6,500,000.00 \r\n \r\n772.65 \r\n \r\n611,466.35 \r\n \r\n611,466.35 \r\n \r\n542,686.58 \r\n \r\n627,950.46 \r\n \r\n627,950.46 \r\n \r\n325,790.03 \r\n \r\n$ 1,362,208.81 $ 17,758,742.06 $ 16,219,173.46 \r\n \r\n \r\n \r\n$ \r\n \r\n1,491.35 $ \r\n \r\n1,491.35 \r\n \r\n$ 21,426,055.33 \r\n \r\n78,910.89 34,191.56 21,426,055.33 \r\n \r\n68,299.85 24,539.16 15,559,128.06 321,463.03 \r\n \r\n901,769.05 \r\n \r\n607,558.64 \r\n \r\n-1,262,341.83 \r\n \r\n0.00 \r\n \r\n1,710,546.29 \r\n \r\n940,187.35 \r\n \r\n$ 21,426,055.33 $ 24,152,964.47 $ 16,260,325.61 \r\n \r\n$ 22,788,264.14 $ 41,911,706.53 $ 32,479,499.07 -3- \r\n \r\n ------_._---- \r\nWHITFIELD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\nTotal Revenues \r\n \r\nEXPENDITURES \r\n \r\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 Enterprise Operations Community Services Operations \r\nCapital Outlay \r\n \r\n \r\n \r\nTotal Expenditures \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOperating Transfers In Operating Transfers Out \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\nExcess of Revenues and Other Financing Sources \r\n \r\nover (under) Expenditures and Other Financing Uses \r\n \r\n \r\n \r\nFUND BALANCE JULY 1 \r\n \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 44,783,799.46 $ \r\n938.39 21,314,202.82 \r\n2,456,312.38 \r\n$ 68,555,253.05 $ \r\n \r\n625,747.66 4,040,321.58 \r\n1,534,566.73 \r\n6,200,635.97 \r\n \r\n$ 46,149,238.54 $ 1,999,224.58 \r\n \r\n2,636,448.21 1,809,063.10 1,975,739.77 \r\n599,140.60 4,320,858.70 \r\n538,616.36 4,626,843.51 2,452,135.06 \r\n507,386.61 730.10 \r\n6,037.42 2,013.10 615,723.74 72,744.12 \r\n \r\n216,477.67 102,066.40 49,090.67 80,815.63 \r\n1,678.25 \r\n11,998.82 3,654,906.88 \r\n \r\n$ 66,312,718.94 $ _....:6~,1.:..:1~6=,2::::.:58:::.:..9~9::- \r\n \r\n$ \r\n \r\n2,242,534.11 $ _ _~84:..:.,c::3.:...:77:..:;.0~7_ \r\n \r\n$ 2,242,534.11 $ \r\n \r\n84,377.07 \r\n \r\n-653,291.84 \r\n \r\n1,033,026.36 \r\n \r\n10,611.04  9,652.40 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ 1,589,242.27 $ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -4- \r\n1 \r\n \r\n EXHIBIT \"B\" \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTALS \r\n \r\n_ _ _(Memorandum OnIX.L.) \r\n \r\n_ \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ 3,585,041.98 $ 48,994,589.10 $ 43,060,577.97 \r\n \r\n4,041,259.97 \r\n \r\n3,741,206.60 \r\n \r\n11,732,920.98 \r\n \r\n33,047,123.80 \r\n \r\n29,538,325.14 \r\n \r\n936,421.83 \r\n \r\n4,927,300.94 \r\n \r\n3,871,202.61 \r\n \r\n$ 16,254,384.79 $ 91,010,273.81 $ 80,211,312.32 \r\n \r\n$ 48,148,463.12 $ 45,212,149.16 \r\n \r\n$ 10,708,920.55 \r\n \r\n2,852,925.88 1,911,129.50 2,024,830.44 \r\n679,956.23 4,320,858.70 \r\n538,616.36 4,626,843.51 2,453,813.31 \r\n507.386.61 12,728.92 \r\n3.660.944.30 2,013.10 \r\n615,723.74 10,781.664.67 \r\n \r\n2,961,632.84 2,123,413.29 1,919,381.83 \r\n672.601.77 4,334,011.93 \r\n452.348.33 4,519,268.26 2,497,223.35 \r\n519.653.95 37,425.04 \r\n3,296.992.60 3,138.32 \r\n636,549.62 5,296.037.89 \r\n \r\n$ 10,708,920.55 $ 83,137,898.39 $ 74,481,828.18 \r\n \r\n$ 5,545,464.24 $ 7,872,375.42 $ 5,729,484.14 \r\n \r\n$ \r\n \r\n11,473.17 \r\n \r\n-11.473.17 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 5,545,464.24 $ 7.872.375.42 $ 5,729,484.14 \r\n \r\n15.880.591.09 \r\n \r\n16.260,325.61 \r\n \r\n10,537,217.63 \r\n \r\n10.611.04 9,652.40 \r\n \r\n-8.819.06 2.442.90 \r\n \r\n$ 21,426,055.33 $ 24,152,964.47 $ 161260,325.61 -5- \r\n \r\n WHITFIELD COUNTy BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL (NON-GAAP BASI) GENERAL AND SPECIAL REVENUE FUND \r\nYEAR ENDED JUNE 30. 2000 \r\n \r\nEXHIBIT 'C\" \r\n \r\nGENERAL FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS)_ \r\n \r\nREVENUES \r\n \r\nState Funds Federal Funds Taxes Other Funds \r\n \r\n$ 43.412.084.00 $ 44,783,799.46 \r\n \r\n30,000.00 \r\n \r\n938.39 \r\n \r\n21,174,425.00 21,314,202.82 \r\n \r\n663,739.00 \r\n \r\n2.456,312.38 \r\n \r\nTotal Revenues \r\n \r\n$ 65,280,248.00 $ 68,555,253.05 \r\n \r\nEXPENDITURES \r\n \r\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 Enterprise Operations Community Services Operations \r\nCapital Outlay \r\n \r\n$ 45,234,410.17 $ 46,149,238.54 \r\n \r\n2,801,135.25 1,891,980.00 1,990,108.00 \r\n561,190.00 4,601,489.70 \r\n467,175.00 4,852,536.00 2.458,089.00 \r\n355,992.75 \r\n6,750.00 2,100.00 51,900.00 110,000.00 \r\n \r\n2,636,448.21 1,809,063.10 1,975,739.77 \r\n599,140.60 4,320,858.70 \r\n538,616.36 4,626,843.51 2.452,135.06 \r\n507,386.61 730.10 \r\n6,037.42 2,013.10 615,723.74 72,744.12 \r\n \r\nTotal Expenditures \r\n \r\n$ 65,384,855.87 $ 66,312,718.94 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n$ -104,607.87 $ 2,242,534.11 \r\n \r\nOTHER FINANCING SOURQI; (USES) \r\n \r\nOther Sources Other Uses \r\n \r\n$ 571,043.00 \r\n-571,043.00 \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ \r\n \r\n0.00 \r\n \r\nExcess of Revenues and Other Financing Sources \r\nover (under) Expenditures and Other Financing Uses $ -104.607.87 $ 2,242,534.11 \r\n \r\nFUND BALANQE JL!LY 1. 1999 \r\n \r\n736,351.81 \r\n \r\n-653,291.84 \r\n \r\nAdjustments \r\n \r\n77,679.23 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nACTUAL \r\n \r\n(BUDGET \r\n \r\nBUDGET \r\n \r\nBASIS),-- \r\n \r\n$ 658,789.50 $ 625,747.66 \r\n \r\n3,808,584.00 \r\n \r\n4,040,321.58 \r\n \r\n1,388,713.08 \r\n \r\n1,534,566.73 \r\n \r\n$ 5,856,086.58 $ 6,200,635.97 \r\n \r\n$ 2,066,832.09 $ 1,999,224.58 \r\n \r\n210,547.00 131,448.00 49,659.00 126,141.00 \r\n \r\n216,477.67 102,066.40 49,090.67 80,815.63 \r\n \r\n5,068.00 \r\n66,171.00 3,082,619.00 \r\n \r\n1,678.25 \r\n11,998.82 3,654,906.88 \r\n \r\n$ 5,738,485.09 $ 6,116,258.90 $ 117,601.49 $ _......::84\"\"\"\",,3..:.;77:..:;.0::.:7_ \r\n \r\n$ \r\n \r\n28,500.00 \r\n \r\n-28,500.00 \r\n \r\n$ \r\n \r\n....l0~.0~0:.... \r\n \r\n$ 117.601.49 $ \r\n1,041,232.42 3,346.98 \r\n \r\n84,377.07 940,187.35 \r\n \r\nFL!ND BALANC~ JL!NE 3D. 200Q \r\n \r\n$ _ _7..0.9.,423.17 $ 1,589,242.27 \r\n \r\n$ 1,162,180.89 $ 1,024,564.42 \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -6- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. \r\nFUND ACCOUNTING \r\nThe Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\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 Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. \r\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. \r\n- \r\nThe general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \r\nGENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \r\nSPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that ar~ 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. \r\n \r\n-7- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nCAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. \r\nBASIS OF ACCOUNTING \r\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. \r\nLiabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. \r\nGovernmental funds are accounted for using the modified accrual basis ofaccounting under which: \r\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. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. \r\nExpenditures are generally recognized when the related fund liability is incurred. \r\nA substantial number ofpersonnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. \r\nBUDGET \r\nThe Whitfield County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \r\n \r\n- 8- \r\n \r\n WHITFIELD COUNfY BOARD OF EDUCAnON \r\n \r\nEXHmIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30. 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nThe budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\n \r\nThe Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit \"B\" of this report: \r\n \r\nSpecial Revenue \r\nFund \r\n \r\nFUND BALANCE JULY 1, 1999 \r\n \r\n$ 1,033,026.36 \r\n \r\nAdjustments Inventories - July 1, 1999 . Food. Donated Commodities Purchased Foods \r\n \r\n-68,299.85 -24,539.16 \r\n \r\nFund Balance July 1, 1999 (Budget Basis) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\n \r\n$ 940,187.35 \r\n \r\n84,377.07 \r\n \r\nFUND BALANCE JUNE 30, 2000 (Budget Basis) \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\nCOMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. \r\n \r\n- 9- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVESTMENTS \r\nCOMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n.(5) Prime banker's acceptances, \r\n(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions ofthe State of Georgia. \r\nRECEIVABLES \r\nReceivables consist ofgrant 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. \r\n \r\n-10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nPROPERTY TAXES \r\n \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 23, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Whitfield County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. \r\n \r\nThe tax millage rate levied for the 1999 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n18.6 mills \r\n \r\nSALES TAXES \r\n \r\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 $11,732,920.98 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $17,040,526,20 has been collected or on June 30, 2002, whichever occurs first. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES Inv~ntories 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 (weighted-average). 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 of purchase. 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. \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nCompensated absences represent obligations of the Board 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. \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nAdditionally, the dollar value of accumulated compensated absences at June 30, which will be \r\npayable from future resources has not been recorded in the General Long-Term Debt Account Group \r\nas this liability is also deemed to be immaterial to the fair presentation ofthese financial statements. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe Board has the following type of interfund transactions: \r\n \r\nReimbursements ofexpenditures initially made from a fund that are properly applicable to another \r\nfund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. \r\n \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\n \r\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. \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS \r\n \r\nOfficial Code of Georgia Annotated (OCGA) Section 45-R-12 provides that there shall not be on \r\n \r\n \r\n \r\ndeposit at any time in any depository for a time longer than ten days a sum ofmoney which has not \r\n \r\nbeen secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face \r\n \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less than \r\n \r\n. 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. \r\n \r\nIf a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe \r\n \r\nsecurities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool \r\n \r\nbalance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, \r\n \r\nwaive the requirement for security in the case ofoperating funds placed in demand deposit checking \r\n \r\naccounts. \r\n \r\nAcceptable security for deposits consists of anyone of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n- 12- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIDIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\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, \r\n \r\n(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and \r\n \r\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. \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $12,632,443.08. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n. \r\nCategory 1 - Cash that is insured (e,g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2- Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name, \r\nCategory 3- Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust \r\n department or agent but not in the Board's name.) \r\n \r\nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 200,000.00 \r\n \r\n2 \r\n \r\n12,432,443.08 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$12.232,443.08 \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 2: DEPOSITS AND INVESTMENTS \r\nCATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value ofthe Board's total investments was $24,515,031.72 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: \r\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 \r\nwhich follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not \r\nregistered 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 and is considered to be a Rule 2a7 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 $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of \r\n \r\nGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. \r\nInvestments in Georgia Fund 1 and Fund_6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. \r\nNote 3: NON-MONETARY TRANSACTIONS \r\nThe Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned \r\nvalue. See Note 1 - Inventories \r\n \r\n- 14- \r\n \r\n ---------------~ \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIDIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 4: INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status of all interfund \r\ntransactions of the Board at June 30, 2000: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nCapital Projects Fund Georgia State Financing and Investment Commission Special Purpose Local Option Sales Tax Lottery Project \r\n \r\n$ 540,992.00 659,496.82 \r\n \r\n$ 1,200,488.82 \r\n \r\n$ 1.200,488.82; $ 1,200,488.8~ \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\nThe Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. \r\n \r\nThe Board participates in the Georgia School Boards Association Risk and Insurance Management \r\nSystem, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to \r\nreduce 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 Board 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, 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. \r\n \r\nThe Board has established a limited risk management program for workers' compensation claims. A  \r\npremium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual \r\nclaims in excess of $200,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\n- 15 - \r\n \r\n - \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 5: RISK MANAGEMENT \r\n \r\nBeginning of Year Liability_ \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear LiabilityJ-_ \r\n \r\n1999 2000 \r\n \r\n$ \r\n \r\n0.00 $ 116,504.51 $ 116,504.51 $, \r\n \r\n-\"0:.:.::.0=0 \r\n \r\n$ \r\n \r\n0.00 $ 94,189.61 $ 94, 189.61 $ \r\n \r\n-\"'0.:. ::.0'=0 \r\n \r\nThe Board is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\n1999 2000 \r\n \r\nBeginning of Year Liability_ \r\n \r\nClaims and \r\nChanges in \r\nEstimates \r\n \r\nClaims Paid \r\n \r\nEnd ofYear Liabi1ity_ \r\n \r\n$ \r\n \r\n0.00 $ 2,542.00 $ 2,542.00 $, \r\n \r\n--\"0. :. ::.0=0 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n866.00 $ \r\n \r\n866.00 $,_ _-..\u003e0::.:.:.0=0 \r\n \r\nThe Board has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ 50,000'.00' $ 100,000.00 \r\n \r\nNote 6: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for facilities and office equipment. These leases are considered for accounting purposes to be operating leases. Lease \r\nexpenditures for the year ended June 30, 2000, amounted to $332,509.74. Future minimum lease \r\npayments for these leases are as follows: \r\n \r\n- 16- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIDIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 6: OPERATING LEASES \r\n \r\nYear Ending \r\n \r\nAmount \r\n \r\n2001 2002 2003 2004 \r\n \r\n$ 323,032.32 312,321.12 265,101.16 20,364.94 \r\n \r\nTotal \r\n \r\nNote 7: NOTES PAYABLE \r\n \r\nAtJune 30, 2000, short-term debt (temporary loans) amount to $7,500,000.00 with interest accruing at 4.49 percent. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 ofthe calendar year in which the loan was made. \r\n \r\nNote 8: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and expenditures in the amount of $876,872.30 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \r\n \r\nGeorgia Department ofEducation \r\n \r\nPaid to the Georgia Department of Community Health \r\n \r\n \r\n \r\nFor Health Insurance ofNon-Certified Personnel \r\n \r\nIn the amount of$707,501.30 \r\n \r\n- \r\n \r\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$169,371.00 \r\n \r\nNote 9: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed \r\nby the Board as of June 30, 2000, together with funding available: \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCAnON \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 9: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n99-755-090 99G/98S-755-068 Dawnville Elementary School Pleasant Grove Elementary School \r\n \r\n$ 105,384.23 613,733.64 \r\n2,210,071.40 1,783,210.00 \r\n \r\n$ 291,308.40 \r\n \r\n$ 4.71f,399.27 $ 291,308.40 \r\n \r\nThe amounts described in this note are not reflected in the general purpose financial statements. \r\n \r\nNote 10: CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and \r\n \r\nreview by grantor agencies. This could result in requests for reimbursement to the grantor agency \r\nfor any expenditures which are disallowed under grant terms. The Board believes that such \r\ndisallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 11: ACCUMULATED EMPLOYEES' LEAVE \r\n \r\nIndividuals employed for a minimum of240 days ofwork within a fiscal year are eligible for annual leave. Leave is earned at a rate often days per year. Unused days may be accumulated and carried forward to the next fiscal year subject to a maximum of fifteen days. In the event of retirement, resignation or termination of employment, individuals employed for a minimum of twenty-four consecutive months are eligible for payment of earned but unused annual leave at their current rate of pay, limited to a maximum of twenty-five days. See Note 1 - Compensated Absences \r\n \r\nNote 12: RETIREMENT PLANS . \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\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. \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\nEXHIBIT \"D\" \r\n \r\nNOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2000 \r\n \r\nNote 12: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2000 1999 1998 \r\n \r\n100% 100% 100% \r\n \r\n$ 4,843,982.04 $ 4,470,113.91 $ 4,336,486.25 \r\n \r\n \r\n \r\n- 19- \r\n \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable Inventories \r\nFood Donated Commodities Purchased Food \r\nTotal Assets \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ 1,286,498.89 $ \r\n \r\n5,257.28 \r\n \r\n78,910.89 34,191.56 \r\n \r\n$ \r\n \r\n1,399,601.34 $ ==~5*,2;;.;5=7=.2==8 \r\n \r\nLIABILITIES AND FUND EQUITY \r\n \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n70,660.93 $ \r\n \r\n191,273.54 \r\n \r\n1,415.22 3,842.06 \r\n \r\n$ \r\n \r\n261,934.47 . $ _ _---=5:.1.::,2::.=5..:.,;7.:=2=_8 \r\n \r\n$ \r\n \r\n78,910.89 \r\n \r\n34,191.56 \r\n \r\n1,024,564.42 $ \r\n \r\n$ 1,137,666.87 $ \r\n \r\n.::.:O..::.;OO=_ ..::.;O.~OO=- \r\n \r\nTotal Liabilities and Fund Equity \r\nSee notes to the general purpose financial statements. - 20- \r\n \r\n$ \r\n \r\n1,399,601.34 $ ==~5*,2;;.;5=7.=28== \r\n \r\n EXHIBIT \"E\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30,1999 \r\n \r\n$ 1,291,756.17 $ 1,159,412.72 \r\n \r\n$ 1,128,323.41 \r\n \r\n1,128,323.41 \r\n \r\n \r\n273,307.91 \r\n \r\n \r\n78,910.89 34,191.56 \r\n \r\n68,299.85 24,539.16 \r\n \r\n$ 1,128,323.41 $ 2,533,182.03 $ 1,525,559.64 \r\n \r\n$ \r\n \r\n897,213.15 $ \r\n \r\n897,213.15 $ \r\n \r\n78,45 3.95 \r\n \r\n53,121.50 \r\n \r\n125,197.65 \r\n \r\n100,745.73 \r\n \r\n177,216.11 \r\n \r\n372,331.71 \r\n \r\n313,333.60 \r\n \r\n772.65 \r\n \r\n772.65 \r\n \r\n$ 1,128,323.41 $ _......:.1,395,515.16 $ _ _;::;;49:::2:.L5:':.::3::.;3.:.=:28=.. \r\n \r\n$ \r\n \r\n78,910.89 $ \r\n \r\n68,299.85 \r\n \r\n34,191.56 \r\n \r\n24,539.16 \r\n \r\n$ \r\n \r\n~O:::..:.'O::.:O:.- \r\n \r\n1,024,564.42 \r\n \r\n940,187.35 \r\n \r\n$ \r\n \r\n0.00 $ _---:..l1,....;.;13:;.;.7,666.87 $ 1,033,026.36 \r\n \r\n \r\n \r\n$ 1,128,323.41 $ 2,533,182.03 $ 1,525,559.64 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\n \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOperating Tr.ansfers In \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures \r\nFUND BALANCE JULY 1 \r\nFood Inventory - Net Change in Period Donated Commodities Purchased Food \r\n \r\nSCHOOL FOOD \r\nSERVICES FUND \r\n \r\nLOTTERY PROGRAMS \r\n \r\n$ \r\n \r\n273,368.00 $ \r\n \r\n1,930,899.32 \r\n \r\n1,534,566.73 \r\n \r\n352,379.66 \r\n \r\n$ \r\n \r\n3,738,834.05 $ _ _=35=2=,3;.;.7=9.;.:;.66~ \r\n \r\n$ \r\n \r\n341,822.97 \r\n \r\n8,379.72 \r\n \r\n1,251.47 \r\n \r\n$ 3,654,456.98 \r\n \r\n475.60 449.90 \r\n \r\n$ \r\n \r\n3,654,456.98 $ _ _3;;.;;5=2=,3...;..79=.=66~ \r\n \r\n$ \r\n \r\n84,377.07 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n84,377.07 $ \r\n \r\n0.00 \r\n \r\n1,033,026.36 \r\n \r\n0.00 \r\n \r\n10,611.04 9,652.40 \r\n \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general purpose financial statements. \r\n- 22- \r\n \r\n \r\n$ 1,137,666.87 $ =====0.=00= \r\n \r\n  \r\nEXHIBIT \"F\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n625,747.66 $ \r\n \r\n584,547.30 \r\n \r\n$ 2,109,422.26 \r\n \r\n4,040,321.58 . \r\n \r\n3,739,050.11 \r\n \r\n1,534,566.73 \r\n \r\n1,322,647.51 \r\n \r\n$ 2,109,422.26 $ 6,200,635.97 $ 5,646,244.92 \r\n \r\n$ 1,657,401.61 $ 1,999,224.58 $ 1,746,124.76 \r\n \r\n208,097.95 102,066.40 49,090.67 \r\n79,564.16 1,678.25 \r\n11,523.22 \r\n \r\n216,477.67 102,066.40 49,090.67 80,815.63 \r\n1,678.25 11,998.82 3,654,906.88 \r\n \r\n162,739.85 119,240.39 50,788.28 91,185.46 \r\n4,590.19 21,265.28 3,292,3.11.35 \r\n \r\n$ 2,109,422.26 $ 6,116,258.90 $ 5,488,245.56 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n84,377.07 $\" \r\n \r\n157,999.36 \r\n \r\n \r\n \r\n \r\n11,473.17 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n84,377.07 $ \r\n \r\n169,472.53 \r\n \r\n0.00 \r\n \r\n1,033,026.36 \r\n \r\n869,929.99 \r\n \r\n10,611.04 9,652.40 \r\n \r\n-8,819.06 2,442.90 \r\n \r\n$ \r\n \r\n0.00 $ 1,137,666.87 $ 1,033,026.36 \r\n \r\n \r\n- 23- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \r\n \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds \r\nTotal Assets \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\n$ 6,185,141.69 \r\n \r\n14,655,205.73 \r\n \r\n1,947,916.72 \r\n \r\n$ _ _5=-4:.,::0.z9.:~,92::.:.=.:00=- \r\n \r\n$ \r\n \r\n540,992.00 $ 22,788,264.14 \r\n \r\nLIABILITIES AND FUND EQUITY \r\n \r\nLIABILITIES \r\n \r\nAccounts Payable Contracts Payable Retainages Payable Due to Other Funds \r\n \r\nTotal Liabilities \r\n \r\n- \r\n \r\n \r\nFUND EQUITY \r\n \r\nFund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated \r\n \r\nTotal Fund Equity \r\n \r\n \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n$ \r\n$ $ $ \r\n \r\n \r\n122,792.00 \r\n209,100.00 $ \r\n209,100.00 \r\n \r\n127,195.53 34,524.46 \r\n1,200,488.82 \r\n \r\n540,992.00 $ _ _1.;.z.,3=6=2=,2:.:;.08;:;..:.=...81.:- \r\n \r\n$ 21,426,055.33 \r\n \r\n----:0::..:..0:::.,:0:_ \r\n \r\n0.00 \r\n \r\n----:0::..:..0:::.,:0:_ $ 21 ,426,055.33 \r\n \r\n540,992.00 $ 22,788,264.14 \r\n \r\nSee notes to the general purpose financial statements. - 24- \r\n \r\n EXHIBIT \"G\" \r\n \r\nLOTTERY PROJECT \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30,1999 \r\n \r\n$ 6,185,141.69 $ 14,760,589.97 \r\n \r\n14,655,205.73 \r\n \r\n1,947,916.72 \r\n \r\n2,324,751.73 \r\n \r\n$ _ _=65::.;:9,\",-,4=9=6.:.=,82=.- \r\n \r\n1,200,488.82 \r\n \r\n$ \r\n \r\n659,496.82 $ 23,988,752.96 $ 17,085,341.70 \r\n \r\n \r\n \r\n$ \r\n \r\n$ \r\n \r\n275,170.82 \r\n \r\n384,326.00 \r\n \r\n \r\n \r\n$ \r\n \r\n659,496.82 $ \r\n \r\n122,792.00 $ 611,466.35 627,950.46 1,200,488.82 \r\n2,562,697.63 $ \r\n \r\n336,274.00 542,686.58 325,790.03 \r\n1,204,750.61 \r\n \r\n$ 21,426,055.33 $ 15,559,128.06 321,463.03 \r\n \r\n$ \r\n \r\n=O.:.=,OO~ \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n \r\n$ \r\n \r\n0.00 $ 21,426,055.33 $ 15,880,591.09 \r\n \r\n$ \r\n \r\n659,496.82 $ 23,988,752.96 $ 17,085,341.70 \r\n \r\n- 25- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\n.Capital Outlay Land and Land Improvements Building and Building Improvements Equipment \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers In Operating Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\n$ 2,046,100.98 $ 11,732,920.98 , 936,421.83 \r\n$ 2,046,100.98 $ 12,669,342.81 \r\n \r\n$ \r\n \r\n7,375.74 $ \r\n \r\n1,642.08 \r\n \r\n3,983,815.05 \r\n \r\n1,584,551.34 \r\n \r\n486,092.30 \r\n \r\n47,559.82 \r\n \r\n$ 4,477,283.09 $ _ _1\"\"\"6;;.:3;,.;;3.r.7;\"..;;;.5;;;.:3'.;;.24,,- \r\n \r\n$ -2,431,182.11 $ 11,035,589.57 \r\n \r\n$ 2,268,936.41 ------$ \r\n$ 2,268,936.41 $ \r\n \r\n-5,168,662.30 -5,168,662.30 \r\n \r\n$ \r\n \r\n-162,245.70 $ 5,866,927.27 \r\n \r\n162,245.70 \r\n \r\n15,559,128.06 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ ====0;;,;.=00.... $ 21,426,055.33 \r\n \r\nSee notes to the general purpose financial statements. \r\n- 26- \r\n \r\n EXHIBIT \"H\" \r\n \r\nLOTTERY PROJECT \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30,1999 \r\n \r\n$ 1,538,941.00 $ 3,585,041.98 $ \r\n \r\n575,674.62 \r\n \r\n11,732,920.98 \r\n \r\n10,650,978.97 \r\n \r\n936,421.83 \r\n \r\n589,076.35 \r\n \r\n$ 1,538,941.00 $ 16,254,384.79 $ 11,815,729.94 \r\n \r\n$ \r\n \r\n367.96 $ \r\n \r\n9,385.78 $ \r\n \r\n4,472,995.63 \r\n \r\n10,041,362.02 \r\n \r\n124,520.63 \r\n \r\n658,172.75 \r\n \r\n$ 4,597,884.22 $ 10,708,920.55 $ \r\n \r\n$ -3,058,943.22 $ 5,545,464.24 $ \r\n \r\n33,000.60 5,052,519.48 \r\n83,700..00 \r\n5,169,220.08 \r\n6,646,509.86 \r\n \r\n$ 2,899,725.89 $ 5,168,662.30 $ -5,168,662.30 \r\n \r\n$ 2,899,725.89 $ \r\n \r\n0.00 $ \r\n \r\n820,121.99 -820,121.99 \r\n0::..:.::.;00::,.. \r\n \r\n$ \r\n \r\n-159,217.33 $ 5,545,464.24 $ 6,646,509.86 \r\n \r\n159,217.33 \r\n \r\n15,880,591.09 \r\n \r\n9,234,081.23 \r\n \r\n$ =====0=.0.0.... $ 21,426,055.33 $ 15,880;591.09 \r\n \r\n- 27- \r\n \r\n WHITFIE!.D COUNTY BOAR,D OF EDUCATION SCHEDULE OF EXPENDITU~ES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\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 \r\n \r\n\" 10.553  10.555 \r\n \r\nTotal Child Nutrition Cluster \r\n \r\n, \r\n \r\nOther Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \r\n \r\n10.550 10,665 \r\n \r\nTotal U.S. Department of Agriculture \r\n \r\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 Preschool \r\n \r\n \r\n 84.027 \r\n 84,173 \r\n 84.173 \r\n \r\nTotal Special Education Cluster \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nElementary and Secondary Education Act \r\n \r\nTitle I \r\n \r\nGrants to Local Educational Agencies \r\n \r\n \r\n \r\nTitle II \r\n \r\nEisenhower Professional Development \r\n \r\n- \r\n \r\nTitle VI \r\n \r\nInnovative Education Program Strategies \r\n \r\nClass Size Reduction \r\n \r\nGoals 2000 \r\n \r\nState and Local Education Systemic Improvement Grants \r\n \r\nVocational Education - Basic Grants to States \r\n \r\nHigh School Program \r\n \r\nBasic Grant \r\n \r\nPass-Through From Hall County Board of Education \r\n \r\nd/b/a Piedmont Migrant Education Agency \r\n \r\nElementary and Secondary Education Act \r\n \r\nTitle I \r\n \r\nMigrant Education \r\n \r\nTotal U.S. Department of Education \r\n \r\n \r\n 84.010 \r\n84.281 84.298 84.340 84.276 \r\n84.048 \r\n84,011 \r\n \r\n \r\nLabor, U.S, Department of \r\nPass-Through From Coosa Valley Regional Development \r\nCenter Job Training Partnership Act \r\n \r\n17.250 \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nN/A $ 338,860.45 \r\n \r\nN/A \r\n \r\n1,377,231,08 $ \r\n \r\n$ 1,716,091.53 $ \r\n \r\n(2) \r\n3,439,649.19 (3) \r\n3,439,649.19 \r\n \r\nNlA \r\n \r\n214,807,79 \r\n \r\nN/A \r\n \r\n938,39 \r\n \r\n$ 1,931,837.71 $ \r\n \r\n214,807.79 \r\n(4) \r\n3,654,456.98 \r\n \r\nN/A $ 761,901.00 $ \r\n \r\nN/A \r\n \r\n57,099,63 \r\n \r\nN/A \r\n \r\n70,209.18 \r\n \r\n$ 889,209.81 $ \r\n \r\n761,901,00 57,099.63 70,209.18 \r\n889,209.81 \r\n \r\nN/A \r\n \r\n812,976.95 \r\n \r\n812,976.95 \r\n \r\nNlA \r\n \r\n31,470,98 \r\n \r\n31,470.98. \r\n \r\nN/A \r\n \r\n49,171,27 \r\n \r\n49,171.27 \r\n \r\nNlA \r\n \r\n164,214,34 \r\n \r\n164,214.34 \r\n \r\nNlA \r\n \r\n43,894.65 \r\n \r\n43,894,65 \r\n \r\nNlA \r\n \r\n69,058.00 \r\n \r\n69,058.00 \r\n \r\nNlA \r\n \r\n31,783.81 \r\n \r\n$ 2,091,779.81 $ \r\n \r\n31,783.81 2,091,779.81 \r\n \r\nNlA $ \r\n \r\n17,642.45 $ _ _......:.;17:...t:,64=2.:::.4~5 \r\n \r\nTotal Federal Financial Assistance \r\nNlA = Not Available \r\n \r\n28 \r\n \r\n$ 4,041,259.97 $ \r\n \r\n5,763,879.24 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30. 2000 \r\nNotes to the Sche,dyle of Expenditures of Flldliral Awards \r\n(1) . ,e amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary c~sistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. \r\n(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. \r\n(4) Funds eamed on this program do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe Board did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of FedeL': awards includes the Federal grant activity of the Whitfield 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. \r\n \r\n \r\nSCHEDULE \"1\" \r\n \r\n \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-29 - \r\n \r\n WHITFIELD COUNTY BOARD OF (;DUCATION SCHEDULE OF STATE REVENUE \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nSPECIAL \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nREVENUE \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\nGRANTS Education, Georgia Department of Quality Basic Education \r\nGeneral and Career Education Programs $ \r\nSpecial Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation \r\nRegular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Altemative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teacher Program Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay \r\n \r\n26,744,319.00 5,067,140.00 533,688.00 1,136,276.00 291,738.00 6,579,633.00 \r\n1,058,524.00 318,200.00 500.200,00 917.933.00 \r\n1.386,671,00 216,798,00 755,444.00 123,251.00 144,212,00 \r\n-5,534,970,00 -5,421,586,00 5,853,740.00 2,616,362.00 \r\n$ 16,451.23 \r\n127.111,00 40,000.00 32,255.77 707,501.30 \r\n5,000.00 11,988.00 82,000,00 182,088.00 11.289:32 \r\n \r\n273,368.00 \r\n \r\n37,217.80 251.929.00 \r\n$ \r\n \r\n$ 26,744,319.00 5,067,140.00 533,688.00 1,136,276.00 291,738.00 6,579,633.00 \r\n \r\n1,058,524.00 318,200.00 500.200,00 917,933.00 \r\n1,386,671.00 216,798,00 755,444.00 123.251.00 144.212.00 \r\n-5,534,970,00 -5,421,586.00 5,853,740.00 2,616,362.00 \r\n273,368.00 16,451.23 \r\n \r\n127,111.00 40.000.00 32,255.77 707.501,30 \r\n5,000.00 11,988.00 82,000.00 182,088.00 11.289.32 \r\n \r\n1,538,941.00 \r\n \r\n37,217.80 \r\n \r\n251,929.00 1,538,941.00 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n2.046,100.98 \r\n \r\n2,046,100.98 \r\n \r\nOffice of School Readiness Pre-Kindergarten Program \r\n \r\n63.232.86 \r\n \r\n63,232.86 \r\n \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\n169,371.00 \r\n \r\n169,371.00 \r\n \r\nCONTRACT Education. Georgia Department of Georgia's Reading Challenge \r\n \r\n111,170.84 \r\n \r\n111,170.84 \r\n \r\n$ 44,783,799.46 $ \r\n \r\n625,747.66 $ 3.585,041.98 $ 48,994,589.10 \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n30 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nConstruction of a new elementary school, parking areas and grounds and providing furnishings, equipment and fixtures therefor \r\nConstruction of additional classrooms, instructional space at nine elementary schools, four middle schools and two high schools, as well as remodeling and renovating existing classrooms, media centers, offices, kitchens, cafeterias, gymnasiums, auditoriums, restrooms, roofs, parking areas and grounds at these schools and providing furnishings, equipment and fixtures therefor \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1),--_ \r\n \r\n$ \r\n \r\n2,153,000.00 $ \r\n \r\n \r\n46,753,759.00 \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS \r\n \r\n5,919,868.18 $ \r\n \r\n4,477,283.09 $ 1,442,585.09 \r\n \r\n46,258,049.00 \r\n \r\n6,231,637.46 \r\n \r\n4,124,450.98 \r\n \r\n$ \r\n \r\n48,906,759.00 $ \r\n \r\n52,177,917.18 $ \r\n \r\n10,708,920.55 $ 5,567,036.07 \r\n \r\n(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. \r\nAmounts expended for these projects may include sales tax proceeds, state, local property \r\ntaxes and/or other funds over the life of the projects. \r\n \r\n  \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 31 - \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"4\" \r\n \r\nMinimum Expenditure Requirements (Total Allotment) \r\nExpenditures on Combined Program Basis Salaries (1) (2) Operations \r\nLess: Expenditures for Media Center Programs in Excess of Total Media Allotment \r\nExpenditures per Audit \r\n \r\nFOURTEEN WEIGHTED AND MEDIA CENTER \r\nPROGRAMS \r\n \r\n100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n34,234,335.00 $ \r\n \r\n9: :. :3:,: 4:. t. :1,:.::5.=.:2.~00:::.. \r\n \r\n$ \r\n \r\n39,552,719.45 \r\n \r\n2,434,781.89 $ _~2:.l,~15~7..!.:,6::..;4:.=.2:.=.3.:::..9 \r\n \r\n$ \r\n \r\n41,987,501.34 \r\n \r\n-781,273.53 \r\n$ _--=:4::..:.1l::,2~06~,2:::2~7.:.:::.8~1 \r\n \r\nAmount of Underexpenditure for Total Allotment \r\n \r\n$ \r\n \r\n0.00 $ ====..,;;0;.;,;;.0;,;;;.0 \r\n \r\nt')Iote: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. \r\n(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. \r\n \r\nSee notes to the general purpose financial statements. - 33 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - BY PROGRAM \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 \r\n \r\nGENERAL AND CAREER EDUCATION PROGRAMS \r\nKindergarten (\") Grades 1 - 3 (0) \r\nSub-Total- K-3 \r\nGrades 4 - 5 (0) \r\nGrades 6 - 8 (0) \r\nn Grades 9 - 12 \r\nHigh School Laboratories (0) \r\nVocational Education Laboratories (0) \r\nTotal General and Career Education Programs \r\nSPECIAL EDUCATION PROGRAMS \r\nRegular Programs Category I (0) Category II (0) Category III (0) Category IV (0) Category V (0) \r\nSub-Total- RegUlar Category VI (Gifted) (0) \r\nTotal Special Education Programs \r\nREMEDIAL EDUCATION PROGRAM t:\\ \r\nTotal Fourteen Weighted Programs \r\nMEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs \r\n \r\n \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF \r\n \r\nREQUIRED \r\n \r\nORIGINAL \r\n \r\n% \r\n \r\nORIGINAL \r\n \r\nMID-TERM \r\n \r\n$ 3,062,369.00 \r\n \r\n$ 2,756,132.10 $ \r\n \r\n0.00 \r\n \r\n8,019,037.00 \r\n \r\n7,217,133.30 \r\n \r\n$ 11,081,406.00 90 $ 9,973,265.40 $ \r\n \r\n0.00 \r\n \r\n3,672,657.00 90 \r\n \r\n3,305,391.30 \r\n \r\n360,478.00 \r\n \r\n5,594,468.00 90 \r\n \r\n5,035,021.20 \r\n \r\n60,365.00 \r\n \r\n3,392,530.00 90 \r\n \r\n3,053,277 .00 \r\n \r\n1,425,234.00 90 \r\n \r\n1,282,710.60 \r\n \r\n1,578,024.00 90 \r\n \r\n1,420,221.60 \r\n \r\n218,505.00 \r\n \r\n$ 26,744,319.00 \r\n \r\n$ 24,069,887.10 $ _......;6;.:3:.:;9.:.;:,3;.;.4;:;8'c::.00=.. \r\n \r\n$ 3,983,970.00 \r\n \r\n$ 3,585.573.90 $ \r\n \r\n94.739.00 \r\n \r\n$ 3,983,970.00 90 $ 3.585,573.90 $ \r\n \r\n94,739.00 \r\n \r\n1.083,170.00 90 \r\n \r\n974,853.00 \r\n \r\n$ 5.067,140.00 \r\n \r\n$ 4,560,426.90 $ _ _..:9;.;.4.\u003c.:.,7c::.39;:;.c::.00=.. \r\n \r\n$ \r\n \r\n533,688.00 90 $ \r\n \r\n480.319.20 $ \r\n \r\n0;:;.c::.00=.. \r\n \r\n$ 32,345,147.00 \r\n \r\n$ 29,110,633.20 $ _......;7..:3;.;.4.:.;:,0c::.87:..:.c::.00=.. \r\n \r\n$ \r\n \r\n923.173.00 90 $ \r\n \r\n830,855.70 $ \r\n \r\n213,103.00 100 \r\n \r\n213,103.00 \r\n \r\n$ 1,136.276.00 \r\n \r\n$ 1,043,958.70 $ \r\n \r\n18,824.00 1;.;;8.:.;.8;.::2..;.4.;.;:.00.;c. \r\n \r\nTotal Fourteen Weighted and Media Center Programs \r\n \r\n$ 33,481,423.00 \r\n \r\n$ 30.154.591.90 $ ..........7.5;;2;;,;9,~1,;;1.=00= \r\n \r\nSTAFF DEVEiLOPMENT PROGRA~ Cost of Instruction Professional Development \r\nTotal Staff Development Programs \r\n(') Identifies Fourteen Weighted Programs. \r\n(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. \r\nSee notes to the general purpose financial statements. \r\n \r\n$ \r\n \r\n94,730.00 \r\n \r\n197,008.00 \r\n \r\n$ \r\n \r\n94,730.00 $ \r\n \r\n197,008.00 \r\n \r\n8,380.92 -5,847.92 \r\n \r\n$ \r\n \r\n291,738.00 100 $ \r\n \r\n291,738.00 $ ==......=.2;;;;.5;;;;3,;;;,3.=00;;;, \r\n \r\n \r\n \r\n(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are inclUded on this analysis as required by program gUidelines. \r\n \r\n- 34 - \r\n \r\n SCHEDULE \"5\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES (1)(2) \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ 2,756,132.10 $ \r\n \r\n3,300,685.46 $ \r\n \r\n123,754.67 $ 3,424,440.13 \r\n \r\n7,217,133.30 \r\n \r\n8,548,507.21 \r\n \r\n456,187.23 \r\n \r\n9,004,694.44 \r\n \r\n$ 9,973,265.40 $ 11,849,192.67 $ \r\n \r\n579,941.90 $ 12,429,134.57 $ \r\n \r\n0.00 \r\n \r\n3,665,869.30 \r\n \r\n4,507,267.93 \r\n \r\n302,448.50 \r\n \r\n4,809,716.43 \r\n \r\n0.00 \r\n \r\n5,095,386.20 \r\n \r\n7,006,569.57 \r\n \r\n484,930.58 \r\n \r\n7,491,500.15 \r\n \r\n0.00 \r\n \r\n3,053,277.00 \r\n \r\n4,548,654.87 \r\n \r\n331,773.16 \r\n \r\n4,880,428.03 \r\n \r\n0.00 \r\n \r\n1,282,710.60 \r\n \r\n1,919,573.68 \r\n \r\n66,526.57 \r\n \r\n1,986,100.25 \r\n \r\n0.00 \r\n \r\n1,638,726.60 \r\n \r\n1,685,589.98 \r\n \r\n242,131.69 \r\n \r\n1,927,721.67 \r\n \r\n0.00 \r\n \r\n. $ 24,709,235.10 $ 31,516,848.70 $ 2,007,752.40 $ 33,524,601.10 \r\n \r\n$ 3,680,312.90 $ \r\n \r\n597,557.61 $ \r\n951,908.43 2,663,712.45 \r\n392,793.63 163.00 \r\n \r\n34,264.25 $ \r\n88,254.35 \r\n \r\n631,821.86 1,040,162.78 2,663,712.45 \r\n392,793.63 163.00 \r\n \r\n \r\n, \r\n \r\n$ 3,680,312.90 $ 4,606,135.12 $ \r\n \r\n122,518.60 $ 4,728,653.72 \r\n \r\n0.00 \r\n \r\n974,853.00 \r\n \r\n1,111,344.76 \r\n \r\n17,628.22 \r\n \r\n1,128,972.98 \r\n \r\n0.00 \r\n \r\n$ 4,655,165.90 $ \r\n \r\n5,717,479.88 $ \r\n \r\n140,146.82 $ 5,857,626.70 \r\n \r\n \r\n \r\n$ \r\n \r\n480,319.20 $ \r\n \r\n659,156.84 $ \r\n \r\n9,743.17 $ _ _6:;::6::,:;8:.!,:9,::,:;0:,::0,;0:;.:..:..,1 \r\n \r\n0.00 \r\n \r\n$ 29,844,720.20 $ 37,893,485.42 $ 2,157,642.39 $ 40,051,127.81 \r\n \r\n- \r\n \r\n$ \r\n \r\n849,679.70 $ \r\n \r\n1,659,234.03 \r\n \r\n$ 1,659,234.03 \r\n \r\n0.00 \r\n \r\n \r\n \r\n213,103.00 \r\n \r\n$ _ _2::.;7c:,7-,-1\",-=3.::;9';=c50:::. \r\n \r\n277,139.50 \r\n \r\n0.00 \r\n \r\n$ 1,062,782.70 $ \r\n \r\n1,659,234.03 $ \r\n \r\n277,139.50 $ 1,936,373.53 \r\n \r\n$ 30,907,502.90 $ \r\n \r\n39,552,719.45 $ \r\n, \r\n \r\n2,434,781.89 $ 41,987,501.34 $=.........................~O.;;;,OO;;, \r\n \r\n$ \r\n \r\n103,110.92 \r\n \r\n191,160.08 \r\n \r\n$ =....:2;;;9;.;4,;;,2.7..1..;,;;0,;;,0 \r\n \r\n$ \r\n \r\n191,257.90 $ \r\n \r\n191,257.90 \r\n \r\n191,160.08 \r\n \r\n191,160.08 \r\n \r\n$ \r\n \r\n382,417.98 $ \r\n \r\n382,417.98 $=...............==~O.=O,;;,O \r\n \r\n \r\n \r\n- 35  \r\n \r\n  \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400 \r\nJune 15,2001 \r\n \r\nHonorable Roy E. Barnes, Governor \r\n \r\nMembers of the General Assembly \r\n \r\nMembers of the State Board of Education \r\n \r\nand \r\n \r\nSuperintendent and Members of the \r\n \r\nWhitfield County Board of Education \r\n \r\nI \r\n \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nLadies and Gentlemen: \r\n \r\nWe have audited the financial statements ofWhitfield County Board of Education as ofand for the year ended June 30, 2000, and have issued our report thereon dated June 15,2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits \r\n \r\ncontained in Government Auditing Standards, issned by the Comptroller General of the United States. \r\n \r\nWe did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. \r\n \r\nCompliance \r\n \r\nAs part of obtaining reasonable assurance about whether Whitfield 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 obj ective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. \r\n \r\n2000YB-40A \r\n \r\n  \r\n \r\nInternal Control Over Financial Reporting \r\n \r\n \r\n \r\nIn planning and perfonning our audit, we considered Whitfield County BoaT\", ofEducation's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control 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 Whitfield County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable con\u003c.,dion is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-755 1-0001. \r\n \r\nA material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. \r\n \r\nThis report is intended solely for the infonnation and use ofmanagement, members ofthe Whitfield 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. \r\n \r\nRespectfully submitted, \r\n \r\n- \r\n \r\n \r\n \r\n \r\n \r\nRus ell W. Hinton. State Auditor \r\n \r\nRWH:jb 2000YB-40A \r\n \r\n \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 15,2001 \r\n \r\nHonorable Roy E. Barnes, Governor \r\n \r\nMembers of the General Assembly \r\n \r\nMembers of the State Board of Education \r\n \r\nand \r\n \r\n \r\n \r\nSuperintendent and Members ofthe \r\n \r\nWhitfield County Board of Education \r\n \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\n \r\nLadies and Gentlemen: \r\n \r\nCompliance \r\n \r\nWe have audited the compliance of Whitfield County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Whitfield County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield County Board of Education's compliance based on our audit. \r\n \r\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 OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Whitfield 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 Whitfield County Board ofEducation's compliance with those requirements. \r\n \r\n2000SA-lOA \r\n \r\n \r\n In our opinion, the Whitfield County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. \r\n \r\nInternal Control Over Compliance \r\n \r\nThe management of Whitfield 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 Whitfield County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. \r\n \r\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. \r\n \r\nThis report is intended solely for the information and use ofmanagement, members ofthe Whitfield 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. \r\n \r\nRespectfully submitted, \r\n \r\n \r\n \r\n \r\n \r\n- \r\n \r\nRu ell W. Hinton State Auditor \r\n \r\nRWH:jb 2000SA-IOA \r\n \r\n \r\n \r\n \r\n \r\n SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-98-01 FS-7551-98-03 FS-7551-99-01 \r\n \r\nUnresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - No Corrective Action Implemented \r\n \r\nCORRECTIVE ACTIONIRESPONSES  \r\nEXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $1,491.35 Finding Control Number: FS-7551-98-01 \r\n \r\nThe underexpenditure of Quality Basic Education (QBE) funds of $1,491.35 for the Remedial Education Program will be returned to the Georgia Department of Education through an increase in the Board's Local Five Mill Share for the QBE programs in a subsequent fiscal period. \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7551-99-01 \r\n \r\nDue to current staffing limitations and budgetary considerations, the Board has decided not to pursue the recording offixed assets on the accounting statements. \r\n \r\n \r\n \r\n \r\n  \r\n \r\nSECTION IV \r\n \r\n \r\n \r\nFINDINGS AND QUESTIONED COSTS \r\n \r\n \r\n \r\n- \r\n \r\n \r\n \r\n \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Whitfield County Board ofEducation's financial statements was \r\n, \r\nqualified for a scope limitation and for various departures from generally accepted accounting principles. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Whitfield County Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\nGeneral Fixed Assets \r\nThe reportable condition described above is considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the Whitfield County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Whitfield County Board ofEducation did not disclose any reportable conditions in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Whitfield County Board ofEducation's report on compliance \r\n- with requirements applicable to major programs was unqualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510(A) ofOMB Circular A-B3 The Whitfield County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3. \r\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 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education - Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool \r\n- 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n8. TYPe \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n \r\n9. Low Risk Auditee \r\n \r\nThe Whitfield County Board ofEducation did not qualify as a low risk auditee as defined by \r\n \r\nSection .530 ofOMB Circular A-133. \r\n \r\n/' \r\n \r\nIT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7551-00-01 \r\n \r\nThe Whitfield 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. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. \r\n \r\nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n-2- \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":9,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":9}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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