{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2007-h2008","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2008-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001?; ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: City of Bremen Board of Education, Haralson County, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (City of Bremen Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"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":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["City of Bremen Board of Education, Haralson County, 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-be33-bb6-b2007-h2008"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-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":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF BREMEN BOARD OF EDUCATION HARALSON COUNTY, 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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\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 MATIERS 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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 29, 2009 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members of the State Board of Education \r\nand Superintendent and Members ofthe City of Bremen 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 City of Bremen Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements of the Board's primary government as listed in the table of contents. These financial statements are the responsibility of the City of Bremen Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nExcept as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes 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 City of Bremen 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 opm1ons. \r\n \r\n2008ARL-25X \r\n \r\n The financial statements of Bremen Educational Foundation, Inc. (Foundation) have not been audited, and we were not engaged to audit the Foundation's financial statements as part of our audit ofthe School District's basic financial statements. The Foundation's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nBecause the Foundation's financial statements have not been audited, the scope ofour work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements of the Foundation as of and for the year ended June 30, 2008. \r\nIn addition, 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 for the City of Bremen Board of Education, as of June 30, 2008, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated April 29, 2009, on our consideration of the City of Bremen 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 x 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 City of Bremen 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, except for the matters discussed in the third paragraph on which we express no opinion, such information, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\n2008ARL-25X \r\n \r\n A 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\nRWH:as 2008ARL-25X \r\n \r\n~vJ-~~- \r\nRussell W. Hinton, CPA, CGFM \r\nState Auditor \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nINTRODUCTION \r\nThe School District's financial statements for the fiscal year ended June 30, 2008, includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Assets and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's General Fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement ofNet Assets and the Statement of Activities. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2008 are as follows: \r\nOn the District-wide financial statements: \r\n District-wide net assets at June 30, 2008, were $19.0 million. Net assets reflect the difference between all assets of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net assets at June 30, 2008, of $19.0 million represented an increase of $4.5 million in net assets when compared to the prior year. \r\n The School District had almost $17.3 million in expenses relating to governmental activities; approximately $15.0 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $6.8 million were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $6.8 million or about 31 % of all revenues totaling $21.8 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \r\n \r\nSource of Revenues \r\n \r\nGereral Revenue Property Taxes 123% \r\n \r\nGeneral Reveooe All Other 9.7% \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n The School District increased its outstanding bond debt $6.0 million through the sale of general obligation bonds for the purpose of Capital Outlay. This debt will be retired in part from a Special Option Local Sales Tax that was approved by the citizenry in conjunction with the Bond Sale. \r\nOn the Governmental Fund Statements: \r\n The General Fund unreserved fund balance of about $2.6 million at June 30, 2008, increased about $100,000.00 from the prior year. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views ofthe 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 '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. In the case ofthe City of Bremen School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 34 for the purposes ofthis report. \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\nSince City of Bremen School District has no operations that have been classified as \"Business Activities\", the 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 now than last year? The 'Statement of Net Assets' and the 'Statement of \r\n-11- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nActivities' 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 controi such as the property tax base, facility conditions, required educational programs, studeut-teacher ratios, and other factors. \r\nWhen analyzing District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement ofNet Assets: \r\n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \r\naccrual basis of accounting  Allocate net assets as follows: \r\no Net Assets invested in capital assets, net ofrelated debt o Restricted net assets are those with constraints placed on the use by external \r\nsources such as creditors, grantors, contributors or laws and regulations. o Unrestricted net assets are net assets that do not meet any of the above \r\nrestrictions. \r\nFund Financial Statements \r\nThe School District uses many funds or subfunds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \r\nThe School District has two kinds of funds as discussed below: \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out ofthose 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 be readily be converted to cash. The governmental fund statements provide a detailed short-term \r\n- 111 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nview 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 government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others 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 Districtwide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nNet assets, which is the difference between total assets and total liabilities, is one indicator ofthe financial condition of the School District. When revenues exceed expenses, the result is an increase in net assets. When expenses exceed revenues, the result is a decrease in net assets. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net assets, as measured in the Statement ofNet Assets, can be one way to measure the School District's financial health, or financial position Over time, increases or decreases in the School District's net assets - as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health ofthe School District. \r\nIn the case of the City of Bremen School District, assets exceeded liabilities by $19.0 million at June 30, 2008. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net asset category. For example, of the $19 million of net assets, about $1.4 million was restricted for bus replacement, continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District also had $15.7 million invested in capital assets (net of related debt e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\nThe remaining balance of unrestricted net assets of$1.9 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\n- iv - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nTable 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 8,080,176 $ 9,835,213 \r\n \r\n27,419,133 \r\n \r\n13,800,071 \r\n \r\nTotal Assets \r\n \r\n$ 35,499,309 $ 23,635,284 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 3,886,075 $ 2,553,950 \r\n \r\n12,600,000 \r\n \r\n6,600,000 \r\n \r\nTotal Liabilities \r\n \r\n$ 16,486,075 $ 9,153,950 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 15,707,863 1,418,319 1,887,052 \r\n \r\n$ 9,634,418 2,186,075 2,660,841 \r\n \r\nTotal Net Assets \r\n \r\n$ 19,013,234 $ 14,481,334 \r\n \r\nNet current assets increased $4.5 million in fiscal year 2008. This change in net assets is supported by Table 2 as presented below: \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. \r\n \r\n-v- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nTable 2 Change in Net Assets \r\n \r\nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\n$ 1,259,634 10,249,061 3,466,925 \r\n \r\n$ 1,216,111 9,641,985 \r\n700,087 \r\n \r\n Total Program Revenues \r\n \r\n$ 14,975,620 $ 11,558,183 \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 Debt Service \r\n \r\nFor Capital Projects \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\n2,691,988 \r\n927,255 1,098,145 \r\n1,063,462 455,757 596,973 \r\n \r\n$ 2,521,808 \r\n1,965,535 \r\n1,045,031 327,064 589,681 \r\n \r\nTotal General Revenues \r\n \r\n$ 6,833,580 $ 6,449,119 \r\n \r\nTotal Revenues \r\n \r\n$ 21,809,200 $ 18,007,302 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services \r\nGeneral Administration School Administration Business Administration Maintenance and OJ?eration of Plant Student Transportation Services \r\nCentral Support Services Other Support Services Operations ofNon-Instructional Services \r\nEnterprise Operations Food Services \r\nCommunity Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 10,925,898 \r\n587,939 411,474 246,809 358,124 893,806 123,205 1,885,386 158,511 \r\n9,037 73,371 \r\n416,235 676,781 \r\n3,891 506,833 \r\n \r\n$ 10,184,335 \r\n470,085 269,578 230,535 312,408 876,306 176,992 907,468 203,621 \r\n26,620 78,876 \r\n270,941 683,532 215,411 208,476 \r\n \r\nTotal Expenses \r\n \r\n$ 17,277,300 $ 15,115,184 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 4.531.900 $ 2.892.118 \r\n \r\n- vi- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\nThe increase in expenses for maintenance and operation for fiscal year 2008 compared to the prior year occurred because certain capital outlay costs for the new middle school and high school renovation did not reach the School District's threshold for capitalization and as a result were charged to maintenance and operation expenses. Additionally, for fiscal year 2008, the School District charged certain cost associated with the School District's After School Program to Enterprise Operations. These After School costs were charged to community services in the prior year, which accounts for the decrease in current year community services and increase in enterprise operations as compared to the prior year. \r\n \r\nCost of Providing Services \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 as compared to the prior fiscal year. \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 2008 Year 2007 \r\n \r\nNet Cost ofServices \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 Year 2007 \r\n \r\nInstruction \r\n \r\n$ 10,925,898 $ 10,184,335 $ -546,722 $ 1,758,290 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n587,939 \r\n \r\n470,085 \r\n \r\n439,224 \r\n \r\n329,195 \r\n \r\nhnprovement ofInstructional Services \r\n \r\n411,474 \r\n \r\n269,578 \r\n \r\n189,847 \r\n \r\n146,268 \r\n \r\nEducational Media Services \r\n \r\n246,809 \r\n \r\n230,535 \r\n \r\n22,958 \r\n \r\n23,631 \r\n \r\nGeneral Administration \r\n \r\n358,124 \r\n \r\n312,408 -223,260 -166,397 \r\n \r\nSchool Administration \r\n \r\n893,806 \r\n \r\n876,306 \r\n \r\n382,109 \r\n \r\n397,388 \r\n \r\nBusiness Administration \r\n \r\n123,205 \r\n \r\n176,992 \r\n \r\n120,353 \r\n \r\n174,558 \r\n \r\nMaintenance and Operation ofPlant \r\n \r\n1,885,386 \r\n \r\n907,468 1,306,559 \r\n \r\n376,633 \r\n \r\nStudent Transportation Services \r\n \r\n158,511 \r\n \r\n203,621 \r\n \r\n141,886 \r\n \r\n62,726 \r\n \r\nCentral Support Services \r\n \r\n9,037 \r\n \r\n26,621 \r\n \r\n9,037 \r\n \r\n26,620 \r\n \r\nOther Support Services \r\n \r\n73,371 \r\n \r\n78,876 \r\n \r\n72,212 \r\n \r\n78,048 \r\n \r\nOperations ofNon-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\n416,235 \r\n \r\n270,941 \r\n \r\n84,052 \r\n \r\n130,617 \r\n \r\nFood Services \r\n \r\n676,781 \r\n \r\n683,531 -207,299 \r\n \r\n-13,281 \r\n \r\nCommunity Services \r\n \r\n3,891 \r\n \r\n215,411 \r\n \r\n3,891 \r\n \r\n24,229 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n506,833 \r\n \r\n208,476 \r\n \r\n506,833 \r\n \r\n208,476 \r\n \r\nTotal Expenses \r\n \r\n$ 17.277.300 $ 15,115.184 $ 2,301.680 $ 3,557.001 \r\n \r\nThe table above indicates that the net costs ofproviding services decreased in fiscal year 2008 as compared to the prior fiscal year. However, the reader should remember that in fiscal year 2008 almost $3.5 million of capital grants revenue was reported and allocated against expenses compared to only $700,000 in the prior fiscal year. This increase of capital outlay funding in fiscal year 2008 blurs the comparability of the net costs of providing services on a year to year basis. \r\n \r\n-vu- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of$21.8 million and total expenditures ofalmost $31.5 million in fiscal year 2008. Additionally, the School District sold $6.0 million in General Obligation Debt and incurred another $0.6 million in Capital Lease debt during the fiscal year. Total governmental fund balances of $4.1 million at June 30, 2008, decreased $3.1 million from the prior year. This decrease in fund balance occurred primarily because the School District made significant expenditures for capital outlay purposes that was funded, in part, from reserves accumulated in prior years. \r\nGeneral Fund Budget Highlights \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 year 2008, the School District amended its general fund budget as needed. \r\nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\nFor the General Fund, the final actual revenues of $15.9 million were over the final budgeted amount of $14.4 million by $1.5 million. This difference (final actual vs. final budget) was primarily attributable to revenues for State Funds over final budget of $351,417, revenues for charges for services over final budget of$331,383, and miscellaneous revenues over final budget of$531,163. The School District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. Additionally, the School District did not include revenues for school activity accounts (included in miscellaneous revenues) in the final budget. \r\nThe General Fund's final actual expenditures of$16.0 million exceeded the final budget amount of almost $14.3 million by $1.7 million. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction exceeding the final budget of $564,689, and the fact that expenditures for enterprise operations of $416,234 and expenditures for capital outlay of$516,207 were not included in the School District's final budget. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt fiscal year ended June 30, 2008, the School District had $27.4 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, \r\n- vm - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\n \r\ntransportation and maintenance equipment. This year's additions (net of depreciation) totaled $13.6 million and were primarily expended on the School District's new Middle School which will open in fiscal year 2009. \r\n \r\nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \r\n \r\nTable4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\nLand Construction in Progress Land Improvements Buildings and Improvements Equipment \r\n \r\n$ 1,525,903 17,203,249 49,155 8,394,832 245,994 \r\n \r\n$ 1,009,996 3,891,100 52,589 8,579,037 267,349 \r\n \r\nTotal \r\n \r\n$ 27.419.133 $ 13.800.071 \r\n \r\nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \r\n \r\nLong-Term Debt \r\n \r\nAt June 30, 2008, the School District had $12.6 million in total debt outstanding which consisted of $12.0 million in general obligation bond debt and $600,000 in capital lease debt. Table 5 summarizes the School District's debt as compared to the prior fiscal year. \r\n \r\nTable5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2008 \r\n \r\nYear 2007 \r\n \r\nBonds Payable Capital Leases \r\n \r\n$ 12,000,000 $ 6,600,000 600,000 \r\n \r\nTotal \r\n \r\n$ 12.600.000 $ 6.600.000 \r\n \r\nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \r\n \r\n- ix- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 \r\nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \r\nCurrently known circumstances that are expected to have a significant effect on financial position or results ofoperations in future years are as follows: \r\n The School District is financially stable. The School District's current operating millage is 12.95, which produces approximately $193,380 per mill. The School District continues to grow with an average of 84 students per year over the last three years. The School District has just completed a new Middle School and made significant renovations at the High School. The School District does not have immediate plans for any significant capital outlay projects. \r\n The School District is financially challenged by the State's continuing reduction of revenue estimates and subsequent reduction of state revenue appropriations to local school districts. In August 2008, the State informed local school districts of funding cuts; the final amount of these funding reductions may not be known until June 2009, the last month of the fiscal year. The fiscal year 2010 state funding level for local school districts also may not be known until June 2009, while contracts for fiscal year 2010 must be offered to certified employees by April 15th 2009. The ongoing concern is that State funding may be further reduced after the fiscal year 2010 begins, budgets are in place, teacher contracts signed and local ad valorem taxes have been levied. The School District will continue to be a good steward of tax dollars while providing a quality educational experience for students. \r\n The School District will continue to face challenges from the implementation of the A+ Education Reform Act, which mandates lower teacher to student ratios. The School District will also continue to be impacted by the remedial actions required for under performing schools under the No Child Left Behind Act. In the midst ofthese challenges, the School District remains confident in the ability to maximize resources to provide the best possible educational experience for all ofour students. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis 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 Dr. Stanley McCain, Superintendent, City of Bremen Board of Education, 504 Laurel Street, Bremen, Georgia 30110. You may also email your questions to Dr. McCain at stanley.mccain@bremencs.com \r\n-x- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF NET ASSETS JUNE 30, 2008 \r\n \r\nEXHIBIT\"A\" \r\n \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government 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 Short-Term Debt 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 Governmental Activities Bremen Educational Foundation, Inc. \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nPRIMARY GOVERNMENT GOVERNMENTAL \r\nACTIVITIES \r\n \r\nCOMPONENT UNIT BREMEN \r\nEDUCATIONAL FOUNDATION, INC. \r\n \r\n$ \r\n \r\n5,256,197.58 $ \r\n \r\n1,000,000.00 \r\n \r\n494,474.66 1,209,252.14 \r\n95,152.00 25,099.87 \r\n \r\n1,525,903.00 17,203,248.82 \r\n120,084.00 11,020,081.00 \r\n565,461.00 -3 015 645.00 \r\n \r\n128,620.00 1,154,560.00 \r\n \r\n$ \r\n \r\n35.499,309.07 $ ====1.2.8.=3=1=8=0=.o=o \r\n \r\n$ \r\n \r\n1,257.41 \r\n \r\n1,772,588.76 \r\n \r\n545,000.00 \r\n \r\n773,253.05 \r\n \r\n752,467.44 \r\n \r\n41,508.00 \r\n \r\n676,000.00 11,924,000.00 \r\n \r\n$ \r\n \r\n16 486 074.66 \r\n \r\n$ \r\n \r\n15,707,862.73 \r\n \r\n11,154.00 145,992.80 844,223.13 416,949.68 \r\n \r\n1,887,052.07 $ \r\n \r\n$ \r\n \r\n19,013,234.41 $ \r\n \r\n1,283,180.00 1,283,180.00 \r\n \r\n$ 35,499,309.07 $ \r\n \r\n1 283 180.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nCOMPONENT UNIT \r\nBremen Educational Foundation, Inc. \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects For Debt Service 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$ 10,925,898.16 $ \r\n587,939.44 411,474.42 246,809.03 358,123.63 893,805.59 123,204.68 1,885,385.98 158,511.35 \r\n9,036.62 73,370.87 \r\n416,234.67 3,891.13 \r\n676,781.42 506,833.09 \r\n$ 17 277 300.08 $ \r\n \r\n541,390.41 \r\n332,182.13 386,061.43 1,259,633.97 \r\n \r\n$ ===1=3=7=4=1.=00= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n-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\n \r\nAND CHANGES IN NET ASSETS \r\n \r\nPRIMARY \r\n \r\nCOMPONENT UNIT \r\n \r\nGOVERNMENT \r\n \r\nBREMEN \r\n \r\nGOVERNMENTAL \r\n \r\nEDUCATIONAL \r\n \r\nACTIVITIES \r\n \r\nFOUNDATION, INC. \r\n \r\n$ \r\n \r\n7,780,113.73 $ \r\n \r\n148,715.17 221,627.83 223,850.51 480,428.18 496,339.41 \r\n2,852.03 546,111.28 \r\n13,523.73 \r\n \r\n1,158.70 \r\n \r\n334,340.83 $ 10,249,061.40 $ \r\n \r\n3,151,116.46 $ \r\n100,955.49 15,356.94 32,715.50 3,102.00 \r\n163,678.41 3,466,924.80 $ \r\n \r\n546,722.44 \r\n-439,224.27 -189,846.59 \r\n-22,958.52 223,260.04 -382, 109.24 -120,352.65 -1,306,559.20 -141,885.62 \r\n-9,036.62 -72,212.17 \r\n-84,052.54 -3,891.13 \r\n207,299.25 -506,833.09 \r\n-2,301,679.91 \r\n \r\n$ \r\n \r\n-13,741.00 \r\n \r\n$ \r\n \r\n2,691,987.69 \r\n \r\n1,098,144.73 927,255.50 \r\n1,063,462.00 455,756.57 $ 596,973.22 \r\n \r\n$ \r\n \r\n6,833,579.71 $ \r\n \r\n$ \r\n \r\n4,531,899.80 $ \r\n \r\n14 481 334.61 \r\n \r\n65,463.86 11 335.00 \r\n76 798.86 63,057.86 \r\n1,220,122.14 \r\n \r\n$ 19,013,234.41 $ ===1=,2=8=3\"=1'=80==00= \r\n \r\n-3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Short-Term Debt Contracts Payable Retainages Payable Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for Bus Replacement Continuation of Federal Programs Debt Service Capital Projects \r\nUnreserved Designated for Student Activities 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$ 2,130,363.57 $ 3,122,417.24 $ \r\n1,000,000.00 \r\n \r\n3,416.77 $ \r\n \r\n5,256,197.58 1,000,000.00 \r\n \r\n86,508.64 1,209,252.14 \r\n95,152.00 25,099.87 \r\n \r\n351,601.11 \r\n \r\n438,109.75 1,209,252.14 \r\n95,152.00 25,099.87 \r\n \r\n$ 4,546,376.22 $ 3,474,018.35 $ 3 416.77 $ 8,023,811.34 \r\n \r\n$ \r\n \r\n1,257.41 \r\n \r\n1,772,588.76 \r\n \r\n$ \r\n \r\n41 508.00 \r\n \r\n545,000.00 773,253.05 752,467.44 \r\n \r\n$ 1,815,354.17 $ 2,070,720.49 \r\n \r\n$ \r\n \r\n1,257.41 \r\n \r\n1,772,588.76 \r\n \r\n545,000.00 \r\n \r\n773,253.05 \r\n \r\n752,467.44 \r\n \r\n41 508.00 \r\n \r\n$ 3,886,074.66 \r\n \r\n$ \r\n \r\n11,154.00 \r\n \r\n$ \r\n \r\n145,992.80 \r\n \r\n$ 840,806.36 $ 3,416.77 \r\n \r\n562,491.50 \r\n \r\n11,154.00 145,992.80 844,223.13 562,491.50 \r\n \r\n244,593.87 \r\n \r\n244,593.87 \r\n \r\n2,329,281.38 \r\n \r\n2,329,281.38 \r\n \r\n$ 2,731,022.05 $ 1,403,297.86 $ 3 416.77 $ 4,137,736.68 \r\n \r\n$ 4,546,376.22$ 3,474,018.35$ 3416.77 $ 8,023,811.34 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 4,137,736.68 \r\n \r\n$ 1,525,903.00 17,203,248.82 120,084.00 11,020,081.00 565,461.00 -3,015,645.00 \r\n \r\n27,419,132.82 \r\n \r\n56,364.91 \r\n \r\n$ -12,000,000.00 -600,000.00 \r\n \r\n-12,600,000.00 \r\n \r\n$ 19,013,234.41 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY 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 Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Long-Term Capital Related Debt Capital Leases \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$ 2,690,609.42 $ \r\n10,505,511.57 810,113.83 \r\n1,259,633.97 134,073.60 581 163.61 \r\n \r\n1,098,144.73 $ \r\n3,463,822.80 \r\n319,694.51 15,809.61 \r\n \r\n$ \r\n927,255.50 \r\n1,988.46 \r\n \r\n2,690,609.42 2,025,400.23 13,969,334.37 \r\n810,113.83 1,259,633.97 \r\n455,756.57 596,973.22 \r\n \r\n$ 15,981,106.00 $ 4,897,471.65 $ 929,243.96 $ 21,807,821.61 \r\n \r\n$ 10,738,558.16 \r\n \r\n$ 10,738,558.16 \r\n \r\n587,939.44 \r\n \r\n411,474.42 \r\n \r\n246,809.03 \r\n \r\n351,958.27 $ \r\n \r\n163.36 \r\n \r\n892,892.59 \r\n \r\n121,204.68 \r\n \r\n2,000.00 \r\n \r\n866,509.76 \r\n \r\n14,702.98 \r\n \r\n129,474.35 \r\n \r\n9,036.62 \r\n \r\n73,370.87 \r\n \r\n416,234.67 \r\n \r\n3,891.13 \r\n \r\n667,050.42 \r\n \r\n516,207.00 14,340,051.06 \r\n \r\n587,939.44 411,474.42 246,809.03 352,121.63 892,892.59 123,204.68 881,212.74 129,474.35 \r\n9,036.62 73,370.87 416,234.67 \r\n3,891.13 667,050.42 14,856,258.06 \r\n \r\n$ \r\n61,915.00 \r\n \r\n600,000.00 444,918.09 \r\n \r\n600,000.00 61,915.00 \r\n444 918.09 \r\n \r\n$ 16,032,611.41 $ 14,418,832.40 $ 1,044,918.09 $ 31,496,361.90 \r\n \r\n$ -51 505.41 $ -9,521,360. 75 $ -115 674.13 $ -9,688,540.29 \r\n \r\n$ 6,000,000.00 \r\n600,000.00 \r\n \r\n$ 6,000,000.00 \r\n600,000.00 \r\n \r\n$ 6,600,000.00 \r\n \r\n$ 6,600,000.00 \r\n \r\n$ -51,505.41 $ -2,921,360. 75 $ -115,674.13 $ -3,088,540.29 \r\n \r\n2,782,527.46 \r\n \r\n4,324,658.61 \r\n \r\n119,090.90 \r\n \r\n7,226,276.97 \r\n \r\n$ 2,731,022.05 $ 1,403,297.86 $ \r\n \r\n3 416.77 $ 4,137,736.68 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\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 and capital lease issuance provide current financial resources to Governmental Funds; however, issuing debt increase Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from: \r\nGeneral Obligation Bonds Issued Capital Lease Issuance \r\nTotal Proceeds \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$ -3,088,540.29 \r\n \r\n$ 13,854,029.82 -234,968.00 \r\n \r\n13,619,061.82 \r\n \r\n1,378.27 \r\n \r\n$ -6,000,000.00 -600,000.00 \r\n \r\n-6,600,000.00 \r\n \r\n600,000.00 $ 4,531,899.80 \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 CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2008 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n$ \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Bremen 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\nDISCRETELY PRESENTED COMPONENT UNIT \r\nThe Bremen Educational Foundation, Inc. is a non-profit organization established in 2001 as a permanent endowment created by alumni and supporters of the Bremen City School District to support the tradition of excellence in the system. The purpose of the Foundation is to improve the quality of education in the system and act a fiscal agent for donors who wish to sponsor approved projects for the system, its teachers and students. (See Note \"16\") \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 City of Bremen Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the 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 of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 10 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 of internal 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 of the 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 of major capital facilities. \r\n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general long-term 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 clubs or individuals. \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\n- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund 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 of general 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 of cash 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 authorizes 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 of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code 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 of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\nRECEIVABLES \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\nPROPERTY TAXES \r\nThe City of Bremen fixed the property tax levy for the 2007 tax digest year (calendar year) on September 24, 2007 (levy date). Taxes were due on December 3, 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 Bremen City Clerk bills and collects the property taxes for the School District, withholds $3.50 per bill 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 fiscal year ended June 30, 2008, for maintenance and operations amounted to $2,690,609.42. \r\n \r\n- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nThe tax millage rate levied for the 2007 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.95 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 $2,025,400.23 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 of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \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. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment was known to the School District. \r\n \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \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$ 10,000.00 10 to 60 years \r\n \r\n$ 50,000.00 45 to 60 years \r\n \r\n$ 10,000.00 5 to 30 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. \r\n \r\nIn the District-wide and fund financial statements, the School District recognized bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, bond premiums and discounts, as well as issuance costs, should be deferred and amortized over the life of the bonds using the straight-line method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. \r\n \r\nGeneral 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 of outstanding 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\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\nFUND BALANCES RESERVED \r\nReserves represent those portions of fund balance equity that are legally segregated for a specific future use. \r\nUNRESERVED-DESIGNATED Designated fund balances represent tentative plans for future use of financial resources. \r\nNote 3: DEPOSITS \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 of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. At June 30, 2008, $1,182,864.00 of component unit deposits were not secured by surety bond, insurance or collateral as specified above. \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 \r\n- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS \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, notes, 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 $7,768,796.70. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\n \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, \r\nor Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n \r\nPRIMARY GOVERNMENT The School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n1,676,013.44 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 1,676,013.44 \r\n \r\nCOMPONENT UNIT At June 30, 2008, Bremen Educational Foundation, Inc.'s, bank balances of $1,283,180.00 were classified by custodial credit risk category as follows: \r\n \r\n- 17 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 1,182,864.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 1,182,864.00 \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\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 Julx 1, 2007 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2008 \r\n \r\n$ 1,009,996.00 $ 515,907.00 $ 3,891,100.00 13,312,148.82 \r\n$ 4,901,096.00 $ 13,828,055.82 $ \r\n \r\n0.00 $ 1,525,903.00 17,203,248.82 \r\n0.00 $18,729,151.82 \r\n \r\n$ 11,020,081.00 549,930.00 $ 120,084.00 \r\n \r\n25,974.00 $ \r\n \r\n$ 11,020,081.00 \r\n \r\n10,443.00 \r\n \r\n565,461.00 \r\n \r\n120,084.00 \r\n \r\n2,441,044.00 282,581.00 67,495.00 \r\n \r\n184,205.00 47,329.00 \r\n3 434.00 \r\n \r\n$ 8,898,975.00 $ -208,994.00 $ \r\n \r\n$ 13,8QQ,Q71.QQ $13,612 Q61.82 $ \r\n \r\n10,443.00 \r\n \r\n2,625,249.00 319,467.00 70,929.00 \r\n \r\n0.00 $ 8,689,981.00 \r\n \r\nQ,QQ $21,412,132 82 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n- 18 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 187,340.00 \r\n \r\n$ \r\n \r\n6,002.00 \r\n \r\n913.00 \r\n \r\n1,945.00 \r\n \r\n29,037.00 \r\n \r\n37,897.00 9,731.00 \r\n \r\n$ 2341968.00 \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 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: Debt Services Capital Acquisitions \r\n \r\n$ 840,806.36 \r\n \r\n$ \r\n \r\n$ 145,050.30 $ 2,136,560.58 \r\n \r\n3,416.77 \r\n \r\nNote 7: 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), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\n- 19 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nCoverage in the Georgia School Boards Association Risk and Insurance Management System includes Dishonesty and Faithful Performance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Employees \r\n \r\n$ 50,000.00 $ 50,000.00 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund from which that employee's salary and benefits were paid. Claims are accounted for 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 ofYear Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEndofYear Liability \r\n \r\n2007 2008 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,235.00 $ \r\n \r\n1,235.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,278.00 $ \r\n \r\n1,278.00 $ \r\n \r\n0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nNote 8: OPERATING LEASES \r\n \r\nCity of Bremen Board of Education has entered into various leases as lessee for mobile classroom and various copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2008, for governmental funds amounted to $38,530.00. Future minimum lease payments for these leases are as follows: \r\n \r\n-20- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: OPERATING LEASES \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2009 2010 2011 2012 \r\n \r\n$ 25,136.00 6,449.00 4,229.00 2,304.00 \r\n \r\nTotal \r\n \r\n$ 38,118.00 \r\n \r\nNote 9: SHORT-TERM DEBT \r\n \r\nThe School District issued tax anticipation notes in advance of sales tax collections, depositing the proceeds in its District-wide Capital Projects Fund. This short-term debt is to provide cash for the purchase of land until sales tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the 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\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $===='0-.0-0 $ 545,000.00 $====0~.0-0 $ 545,000.00 \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Bremen Board of Education entered into an agreement dated April 1, 2008, with the Georgia School Board Association for the construction and subsequent lease of property. The School District received $600,000.00 in cash for the financing of the property, which remained unspent at June 30, 2008. This unspent balance is classified as cash on the statement of net assets. Under the terms of the agreement, the School District will make annual payments through 2015. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of the inception. \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: LONG-TERM DEBT \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\n4.10% - 4.38% $ 6,000,000.00 \r\n \r\n3.869% \r\n \r\n6,000,000.00 \r\n \r\n$ 12,000,000.00 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: \r\n \r\nG.O. Bonds Capital Leases \r\n \r\nBalance July 1, 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 \r\n \r\n$ 6,600,000.00 $ 6,000,000.00 $ 600,000.00 $ 12,000,000.00 $ 600,000.00 \r\n \r\n_ _ _o=.o=o 600,000.00 _ _ _ _ 600.000.00 \r\n \r\n76.ooo.oo \r\n \r\n$ 6.600.000.00 $ 6.600.000.00 $ 600.000.00 $ 12.600.000.00 $ 676.000.00 \r\n \r\nAt June 30, 2008, 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\n2008 2009 2010 2011 2013 2014- 2018 2019 - 2023 \r\nTotal Principal and Interest \r\n \r\nCa2ital Leases \r\n \r\nPrinci2al \r\n \r\nInterest \r\n \r\nGeneral Obligation Debt \r\n \r\nPrinci2al \r\n \r\nInterest \r\n \r\n$ 76,000.00 $ 78,000.00 82,000.00 85,000.00 89,000.00 190,000.00 \r\n \r\n16,877.25 $ 15,117.40 12,867.10 10,501.40 8,049.16 8,279.96 \r\n \r\n600,000.00 625,000.00 645,000.00 670,000.00 695,000.00 3,925,000.00 4,840,000.00 \r\n \r\n$ 476,839.26 453,141.64 428,573.49 403,134.81 376,728.89 \r\n1,446,693.89 543,650.67 \r\n \r\n$ 600,000.00 $ 71,692.27 $ 12,000,000.00 $ 4,128,762.65 \r\n \r\nNote 11: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $303,134.25 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 $301,869.25 \r\n \r\n- 22 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \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$1,265.00 \r\n \r\nNote 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2008, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nBremen Elementary School Project (07-763-071) $ Bremen Middle School (07-763-015) Bremen Middle School - Sports Complex Bremen High School (07-763-070) \r\n \r\n154,366.20 $ 56,160.53 \r\n1,229.88 112,064.60 \r\n \r\n225,193.96 384,869.20 \r\n36,292.60 \r\n \r\n$ 323!821.21 $ 646!355.76 \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\nNote 14: 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 of Community Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 of the Official Code of Georgia Annotated, the authority to establish and amend the benefit provisions of the 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 of Community Health at 2 Peachtree Street, Atlanta, Georgia 30303. \r\n \r\n- 23 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 14: POSTEMPLOYMENT BENEFITS \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 $1,408,963.57, which equaled the required contribution. \r\n \r\nNote 15: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a costsharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 24- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2008 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 15: RETIREMENT PLANS \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2008 2007 2006 \r\n \r\n100% 100% 100% \r\n \r\n$ 841,659.90 $ 779,138.79 $ 779,112.43 \r\n \r\nNote 16: COMPONENT UNIT \r\n \r\nThe Bremen Educational Foundation, Inc. (Foundation) is a legally separate tax-exempt component unit of the City of Bremen Board of Education (School District). It was organized on December 17, 2001, as a Georgia Corporation pursuant to the provisions of the Georgia NonProfit Corporation Code. The Foundation's governing board consists of 8 members consisting of alumni and or local business persons plus ex-officio member to include the superintendent of the Bremen City School System. New members are elected by the Foundation Board. Although the School District does not control the timing or amount of receipts from the Foundation, the majority of resources or income thereon the Foundation holds and invests are restricted to the improvement of the quality of education of the School District and act as a fiscal agent for donors who wish to sponsor approved projects for the system, its teachers and students. Consequently, the Foundation is considered a component unit of the School District and is discretely presented in the School District's financial statements. \r\n \r\nThe Foundation utilizes the accrual method of accounting. The Foundation is subject to Statement of Financial Accounting Standards Board (FASB) 117, \"Financial Statement of Notfor-Profit Organizations\". As such, certain revenue recognition criteria and presentation features are different from Governmental Accounting Standards Board (GASB) revenue recognition criteria and presentation features. The Foundation's FASB financial statements were reclassified to GASB presentation in these financial statements. The Foundation's fiscal year is July 1, 2007, through June 30, 2008. \r\n \r\nDuring the year ended June 30, 2008, the Foundation made contributions in the form of grants and gifts to all three schools. These contributions totaled $ 8,000.00, with $2,000.00 to Jones Elementary School,$ 2,000.00 to Sewell Middle School, and $4,000.00 to Bremen High School. Scholarships to individuals and colleges totaled $5,250.00. \r\n \r\nComplete audited financial statements for the Foundation were not available as of the date of this report. Any inquiries or information about the Foundation can be obtained from Bremen Educational Foundation, Inc. The contacts are as follows: Mr. Vann Pelt, President, 810 Valley Run Drive, Bremen, Georgia 30110, 770-834-0738, Ext 134, e-mail address, ypelt@silvey.com or Ms. Joanie Lowe, Treasurer, 121 Buchanan Street, Bremen, Georgia 30110, 770-537-1110, e-mail address, joanielowe@bellsouth.net. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services \r\nCapital Outlay \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n2,500,000.00 $ \r\n \r\n2,500,000.00 $ \r\n \r\n2,690,609.42 \r\n \r\n9,944,623.00 \r\n \r\n10,154,094.00 \r\n \r\n10,505,511.57 \r\n \r\n723,927.00 \r\n \r\n726,627.00 \r\n \r\n810,113.83 \r\n \r\n928,250.00 \r\n \r\n928,250.00 \r\n \r\n1,259,633.97 \r\n \r\n82,400.00 \r\n \r\n82,400.00 \r\n \r\n134,073.60 \r\n \r\n50,000.00 \r\n \r\n50,000.00 \r\n \r\n581,163.61 \r\n \r\n$ 14,229,200.00 $ 14.441,371.00 $ 15,981,106.00 \r\n \r\n$ 10,142,969.31 $ 10,173,868.31 $ 10,738,558.16 \r\n \r\n529,828.56 364,864.00 238,246.13 343,352.38 844,735.90 115,891.50 834,208.45 \r\n87,054.93 14,600.00 110,148.20 \r\n646,750.00 530,000.00 \r\n \r\n529,328.56 365,660.00 238,246.13 343,537.38 844,735.90 115,891.50 834,208.45 \r\n87,054.93 14,600.00 110,148.22 \r\n649,250.00 \r\n \r\n587,939.44 411,474.42 246,809.03 351,958.27 892,892.59 121,204.68 866,509.76 129,474.35 \r\n9,036.62 73,370.87 416,234.67 \r\n3,891.13 667,050.42 516,207.00 \r\n \r\n$ 14,802,649.36 $ 14,306,529.38 $ 16,032,611.41 \r\n \r\n$ \r\n \r\n-573,449.36 $ \r\n \r\n134,841.62 $ \r\n \r\n-51,505.41 \r\n \r\n2,665,596.24 \r\n \r\n2,665,596.24 \r\n \r\n2,782,527.46 \r\n \r\n13,398.45 \r\n \r\n2,576.32 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n2,105,545.33 $ \r\n \r\n2,803,014.18 $ \r\n \r\n2.731,022.05 \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR 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) \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 English Language Acquisition Grants Improving Teacher Quality State Grants Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Tille 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\n10.553 10.555 \r\n \r\nNIA N/A $ \r\n$ \r\n \r\n(2) 560 745.25 \r\n560,745.25 \r\n \r\n10.550 \r\n \r\nNIA $ \r\n \r\n66499.17 627,244.42 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ NIA \r\n$ \r\n \r\n331,683.72 22 797.28 \r\n354,481.00 \r\n \r\n84.048 84.365 84.367 84.186 84.298 84.010 \r\n \r\nN/A NIA NIA N/A N/A NIA \r\n$ \r\n \r\n5,293.00 1,008.00 50,068.00 17,000.00 1,608.00 79153.14 \r\n508 611.14 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n$ ==1,=1=35..,.8=5=5=.5=6 \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 ($40,380.60) were not maintained separately and are included in the 2008 National School Lunch Program. \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 City of Bremen 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- 28 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Sparsity Grant - Alternative Program Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Comprehensive Academic Performance System (CAPS) Health Insurance High School Graduation Coach Middle School Graduation Coach Middle School Summer Remedial Program National Teacher Certification Preschool Handicapped Program Virtual Schools Grant \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$ 431,797.32 \r\n \r\n$ \r\n \r\n431,797.32 \r\n \r\n634,360.00 91,005.00 \r\n1,445,641.00 150,206.00 679,082.00 55,159.00 \r\n1,086,792.00 850,063.00 424,942.00 \r\n1,069,837.00 251,835.00 41,733.00 89,218.00 9,484.00 196,821.00 60,926.00 36,396.00 \r\n383,083.00 419,600.00 475,322.00 \r\n12,259.00 3,102.00 \r\n35,802.00 48,637.00 \r\n8,663.00 1,063,462.00 \r\n39,806.00 17,761.00 -154,982.00 \r\n61,538.00 301,869.25 \r\n70,886.00 42,096.00 \r\n962.00 3,327.00 65,206.00 \r\n550.00 \r\n \r\n634,360.00 91,005.00 \r\n1,445,641.00 150,206.00 679,082.00 55,159.00 \r\n1,086,792.00 850,063.00 424,942.00 \r\n1,069,837.00 251,835.00 41,733.00 89,218.00 9,484.00 196,821.00 60,926.00 36,396.00 \r\n383,083.00 419,600.00 475,322.00 \r\n12,259.00 3,102.00 \r\n35,802.00 48,637.00 \r\n8,663.00 1,063,462.00 \r\n39,806.00 17,761.00 -154,982.00 \r\n61,538.00 301,869.25 \r\n70,886.00 42,096.00 \r\n962.00 3,327.00 65,206.00 \r\n550.00 \r\n \r\n$ 3,463,822.80 \r\n1,265.00 \r\n \r\n3,463,822.80 1,265.00 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n$ 10,505,511.57 $ 3,463,822.80 $ 13,969,334.37 \r\n- 29- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nHARALSON COUNTY Acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection \r\ntherewith, adding to, renovating, repairing, \r\nimproving and equipping existing school buildings and other buildings and facilities, useful or desirable in connection therewith, including constructing, modifying and equipping classrooms, acquiring system-wide technology improvements, acquiring school transportation vehicles and acquiring the necessary property for such schools, both real and personal, and for the future school sites, all at a maximum cost of $4,900,000.00 \r\nCARROLL COUNTY Funding the acquisition, construction, renovation, modification, improvement, extending and equipping of projects throughout the City of Bremen School System, including, but without limitation, additions, renovations, and improvements of certain existing system facilities, system-wide technology improvements, the acquisition of school transportation vehicles; the acquisition of land for additional schools, and the acquisition of all property, both real and personal, deemed necessary and advisable therefore including the funding of capitalized interest on debt of the City of Bremen with respect to the Bremen School Projects (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $4,840,000.00 \r\nHARALSON COUNTY II Funding a portion of the costs of the acquisition, construction, equipping and furnishing of new school buildings and facilities, including, but not limited to, additional classrooms, a new middle school, a new fine arts center and new physical education/athletic facilities, the addition, renovation, repair and improvement to existing school buildings and facilities, including, but not limited to, all existing schools, existing physical education/athletic facilities and the high school cafeteria, the acquisition and purchase of system-wide technology and safety equipment, including, but not limited to, computer hardware and software and security and safety equipment, the acquisition and purchase of school vehicles, including, but not limited to, school buses and maintenance vehicles, the addition, renovation, repair, paving and improvement to driveways and parking facilities, the acquisition and purchase of any property necessary and desirable therefore, both real and personal and the purchase of land (the \"Bremen Projects\"), capitalized interest on the Bremen Bonds through and including October 1, 2007 \r\n \r\nORIGINAL ESTIMATED \r\nCOST{1) \r\n \r\nCURRENT ESTIMATED COSTS{2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR {3) \r\n \r\nAMOUNT EXPENDED IN PRIOR \r\nYEAR{3l \r\n \r\nPROJECT STATUS \r\n \r\n$ 4,900,000.00 $ 5,514,337.03 $ 1,374,737.20 $ 4,139,599.83 Ongoing \r\n \r\n4,840,000.00 4,840,000.00 \r\n \r\n621,750.00 \r\n \r\n3,320,968.09 Ongoing \r\n \r\n9,390,000.00 14,818,977.40 11,304,908.25 3,514,069.15 Ongoing \r\n \r\n-30- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2008 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \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\nCARROLL COUNTY II (TANS AND LEASE PURCHASE) \r\n \r\nConsisting of acquiring, constructing, adding to, \r\n \r\nrenovating, modifying, repairing, improving and \r\n \r\nequipping schools and other buildings and facilities \r\n \r\nand acquiring any property necessary or desirable \r\n \r\ntherefor, both real and personal; acquiring real \r\n \r\nestate for the construction of new schools and \r\n \r\nfacilities; constructing and equipping new schools \r\n \r\nand facilities and acquiring any property necessary \r\n \r\nor desirable therefor, both real and personal; \r\n \r\nincluding but not limited to the following without \r\n \r\nprioritizing any of such items: completion and \r\n \r\nequipping of Bremen Middle School; constructing \r\n \r\nand equipping a fourth and fifth grade academy \r\n \r\nat the Bremen Middle School site; acquiring real \r\n \r\nestate for the construction of new schools and \r\n \r\nfacilities, including a new 3-5 school site; \r\n \r\nconstructing and equipping a performing arts \r\n \r\ncenter; making system-wide technology \r\n \r\nimprovements; and acquiring maintenance and \r\n \r\ntransportation vehicles \r\n \r\n$ 5,530,000.00 $ \r\n \r\n5,530,000.00 $ \r\n \r\n1,070,117.87 \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEAR (3) \r\n \r\nPROJECT STATUS \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 Haralson County, Carroll County and the City of Bremen 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- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 \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 OPERATIONS \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 Grades (6-8) 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 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\n699,568.00 $ 694,368.57 $ \r\n \r\n100,361.00 \r\n \r\n132,026.48 \r\n \r\n1,575,335.00 2,139,130.95 \r\n \r\n164,682.00 \r\n \r\n126,920.48 \r\n \r\n748,529.00 \r\n \r\n875,444.15 \r\n \r\n60,838.00 \r\n \r\n56,400.52 \r\n \r\n1,184,004.00 934,812.00 472,682.00 \r\n1,180,970.00 \r\n271,738.00 46,723.00 97,612.00 8 989.00 \r\n \r\n1,349,917.80 1,466,217.76 \r\n299,287.77 \r\n142,485.32 44,231.00 \r\n451,397.36 212,397.18 \r\n94,128.26 70,940.15 53,326.93 116,042.79 \r\n8,990.76 \r\n \r\n20,321.25 $ \r\n584.06 84,687.28 \r\n1,156.63 58,118.37 \r\n \r\n714,689.82 132,610.54 2,223,818.23 128,077.11 933,562.52 \r\n \r\n158.24 6,366.36 48,300.56 88,717.87 \r\n550.00 \r\n \r\n56,558.76 6,366.36 \r\n1,398,218.36 1,554,935.63 \r\n299,837.77 \r\n \r\n605.32 60.00 \r\n551.01 353.96 \r\n \r\n143,090.64 44,231.00 451,457.36 212,397.18 94,128.26 71,491.16 53,326.93 116,396.75 \r\n8,990.76 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n7,546,843.00 $ 8,333,654.23 $ 310,530.91 $ 8,644,185.14 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n216,007.00 40,430.00 \r\n \r\n204,144.09 3,658.12 \r\n \r\n37,141.43 57,103.18 \r\n \r\n241,285.52 60,761.30 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n7,803,280.00 $ 8,541,456.44 $ 404,775.52 $ 8,946,231.96 \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- 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\nApril 29, 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 City of Bremen 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 City of Bremen Board of Education as of and for the year ended June 30, 2008, which collectively comprise City of Bremen Board of Education's basic financial statements and have issued our report thereon dated April 29, 2009. This report was qualified for a scope limitation, as identified in the auditor's report on the basic financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nThe financial statements of Bremen Educational Foundation, Inc. (Foundation) have not been audited, and we were not engaged to audit the Foundation's financial statements as part of our audit ofthe School District's basic financial statements. The Foundation's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Bremen Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion \r\n2008YB-10X \r\n \r\n on the effectiveness of the City of Bremen Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City ofBremen Board of Education's internal control over financial reporting. \r\nA 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 City ofBremen Board ofEducation'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 City ofBremen Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the City ofBremen Board of Education'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 a material misstatement ofthe financial statements will not be prevented or detected by the City ofBremen 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 or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Bremen 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 management, members of the City of Bremen Board ofEducation, 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 \r\nRWH:as 2008YB-10X \r\n \r\n~--illW.~ Ru eH W. Hinton, CPA, CGFM State 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\nApril 29, 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 City of Bremen 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 ofCity ofBremen Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2008. City of Bremen 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 City of Bremen Board of Education's management. Our responsibility is to express an opinion on City of Bremen 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 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 City ofBremen Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2008SA-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 City of Bremen Board of Education's compliance with those requirements. \r\nIn our opinion, the City ofBremen 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. \r\nInternal Control Over Compliance \r\nThe management of City of Bremen Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City ofBremen 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\n2008SA-10 \r\n \r\n This report is intended solely for the information and use of management, members ofthe City of Bremen 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~CQ~~ Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2008SA-10 \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City ofBremen Board of Education's financial statements was unqualified for all opinion units with the exception of the Board's discretely presented component unit. Those financial statements have not been audited and we express no opinion on them. \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City ofBremen Board ofEducation did not disclose any significant deficiencies related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the City ofBremen Board of Education did not disclose any significant deficiencies in internal control over major programs. \r\n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the City ofBremen Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The City ofBremen Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \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\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The City ofBremen Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2006-h2007","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. 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(online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"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":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["City of Bremen Board of Education, Haralson County, 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-be33-bb6-b2006-h2007"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-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":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF BREMEN BOARD OF EDUCATION \r\nHARALSON COUNTY, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS FOR 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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\nCOMPONENT UNIT FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\n4 \r\n \r\nD \r\n \r\nSTATEMENT OF SUPPORT, REVENUES, EXPENSES AND \r\n \r\nCHANGES IN NET ASSETS \r\n \r\n5 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nE \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \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\nG \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\nH \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\nI \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n10 \r\n \r\nJ \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n11 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \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\nGENERALFUND \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\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\n35 \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\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - TABLE OF CONTENTS - \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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 18, 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 City of Bremen 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 J) of the City of Bremen Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements of the Board's primary government as listed in the table of contents. These financial statements are the responsibility of the City of Bremen Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nExcept as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes 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 City of Bremen 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 opm1ons. \r\n \r\n2007 ARL-25X \r\n \r\n The financial statements of Bremen Educational Foundation, Inc. (Foundation) have not been audited, and we were not engaged to audit the Foundation's financial statements as part of our audit ofthe School District's basic financial statements. The Foundation's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nBecause the Foundation's financial statements have not been audited, the scope ofour work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements of the Foundation as of and for the year ended June 30, 2007. \r\nIn addition, 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 for the City of Bremen Board of Education, as of June 30, 2007, 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\nIn accordance with Government Auditing Standards, we have also issued our report dated March 18, 2008, on our consideration of the City of Bremen 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 x 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 City of Bremen 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, except for the matters discussed in the third paragraph on which we express no opinion, such information, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\n2007 ARL-25X \r\n \r\n A 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~w.4d Russell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2007 ARL-25X \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nINTRODUCTION \r\nThe School District's financial statements for the fiscal year ended June 30, 2007, includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Assets and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's General Fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Assets and the Statement of Activities. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2007 are as follows: \r\nOn the District-wide financial statements: \r\n District-wide net assets at June 30, 2007, were $14.5 million. Net assets reflect the difference between all assets of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net assets at June 30, 2007, of $14.5 represented an increase of $2.9 in net assets when compared to the pnor year. \r\n The School District had $15.l million in expenses relating to governmental activities; only $11.6 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $6.4 million were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $6.4 million or about 36% of all revenues totaling $18 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \r\n \r\nSource of Revenues \r\n \r\nGeneral Revenue Property Taxes 14.0% General Revenue Sales Taxes 10.9% \r\nGeneral Revenue All Other 10.9% \r\n \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nThe School District increased its outstanding bond debt $6 million through the sale of general obligation bonds for the purpose of Capital Outlay. This debt will be retired in part of a Special Purpose Local Option Sales Tax that was approved by the citizenry in conjunction with the Bond Sale. \r\nOn the fund financial statements: \r\n Among major funds, the General Fund had $15.1 million in revenues, and $14.5 million in expenditures. The General Fund balance of almost $2.8 million at June 30, 2007, increased almost $600,000 from the prior year. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThese financial Statements consists of three parts: management's discussion and analysis (this section), the basic financial statements including notes to the 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 '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. In the case of the City of Bremen School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \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\nSince City of Bremen School District has no operations that have been classified as \"Business Activities\", the 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 School District-wide financial statements, a reader might ask the question, are we in a better \r\n- ii - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nfinancial position now 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, student-teacher ratios, and other factors. \r\nWhen analyzing District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Assets: \r\n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \r\naccrual basis of accounting  Allocate net assets as follows: \r\no Net Assets invested in capital assets, net ofrelated debt o Restricted net assets are those with constraints placed on the use by external \r\nsources such as creditors, grantors, contributors or laws and regulations. o Unrestricted net assets are net assets that do not meet any of the above \r\nrestrictions. \r\nFund Financial Statements \r\nThe School District uses many funds or subfunds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor Funds as defined by generally accepted accounting principles. \r\nThe School District has two kinds of funds as discussed below: \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 \r\n- iii - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nreadily 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 government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others 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 Districtwide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nNet assets, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net assets. When expenses exceed revenues, the result is a decrease in net assets. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net assets, as measured in the Statement of Net Assets, can be one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net assets - as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \r\nIn the case of the City of Bremen School District, assets exceeded liabilities by $14.5 million at June 30, 2007. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net asset category. For example, of the $14.5 million of net assets, about $2.2 million was restricted for bus replacement, continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District also had $9.6 million invested in capital assets (net of related debt) (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\nThe remaining balance of unrestricted net assets of almost $2.7 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\n- IV - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nTable 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 9,835,213 13,800.071 \r\n \r\n$ 5,137,770 9,853,819 \r\n \r\nTotal Assets \r\n \r\n$ 23,635,284 $ 14,991.589 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 2,553,950 6,600,000 \r\n \r\n$ 1,608,604 1.793,768 \r\n \r\nTotal Liabilities \r\n \r\n$ 9,153,950 $ 3,402,372 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 9,634,418 2,186,075 2,660,841 \r\n \r\n$ 8,060,595 1,472,594 2,056,028 \r\n \r\nTotal Net Assets \r\n \r\n$ 14,481.334 $ 1115821217 \r\n \r\nNet assets increased $2.9 million in fiscal year 2007. This change in net assets is supported by Table 2 as presented below: \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. Certain fiscal year 2006 expenditures for enterprise operations and community services have been reclassified for purposes of comparability. \r\n \r\n-v- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nTable 2 Change in Net Assets \r\n \r\nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\n$ 1,216,111 9,641,985 700,087 \r\n \r\n$ 1,025,847 8,729,515 \r\n3,056 \r\n \r\nTotal Program Revenues \r\n \r\n$ 11,558,183 $ 9,758,418 \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 Debt Service \r\n \r\nFor Capital Projects \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\n2,521,808 \r\n1,965,535 \r\n1,045,031 327,064 589,681 \r\n \r\n$ 2,247,183 \r\n1,149,674 834,839 \r\n1,049,628 82,016 \r\n739,659 \r\n \r\nTotal General Revenues \r\n \r\n$ 6,449,119 $ 6,102,999 \r\n \r\nTotal Revenues \r\n \r\n$ 18,007,302 $ 15,861,417 \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 Enterprise Operations Food Services Community Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 10,184,335 \r\n470,085 269,578 230,535 312,408 876,306 176,992 907,468 203,621 \r\n26,620 78,876 \r\n270,941 683,532 215,411 208,476 \r\n \r\n$ 9,581,048 \r\n387,989 222,919 220,376 334,172 765,960 112,290 810,587 118,574 \r\n10,689 40,829 \r\n259,337 664,084 112,947 101,158 \r\n \r\nTotal Expenses \r\n \r\n$ 15,115,184 $ 13,742,959 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 2,892,118 $ 21118A58 \r\n \r\n- VI - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nCost of Providing Services \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 as compared to the prior fiscal year as restated. Certain fiscal year 2006 revenues and expenditures for enterprise operations and community services have been reclassified for purposes of comparability. \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 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 ofNon-Instructional Services Enterprise Operations Food Services Community Services Interest on Short-Term and Long-Term Debt \r\n \r\n$10,184,335 $ 9,581,048 $ \r\n \r\n470,085 269,578 230,535 312,408 876,306 176,992 907,468 203,621 26,621 78,876 \r\n \r\n387,989 222,919 220,376 334,172 765,960 112,290 810,587 118,574 \r\n10,689 40,829 \r\n \r\n270,941 683,531 215,411 208,476 \r\n \r\n259,337 664,084 112,947 101,158 \r\n \r\n1,758,290 $ \r\n329,195 146,268 23,631 -166,397 397,388 174,558 376,633 62,726 26,620 78,048 \r\n130,617 -13,281 24,229 208,476 \r\n \r\n2,560,061 \r\n273,154 100,194 53,773 -104,466 361,551 110,228 354,480 100,567 \r\n8,059 40,155 \r\n77,982 50,860 -103,215 101,158 \r\n \r\nTotal Expenses \r\n \r\n$15,115,184 $13,742,959 $ 3,557,001 $ 3,984,541 \r\n \r\nThe table above indicates that the net costs of providing services decreased in fiscal year 2007 as compared to the prior fiscal year. However, the reader should remember that in fiscal year 2007 $700,000 of capital grants revenue was reported and allocated against expenditures compared to only $3,000 in the prior fiscal year. This increase in capital outlay funding in fiscal year 2007 blurs the comparability of the net costs of providing services on a year to year basis. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nInformation about the School District's governmental funds is presented starting on Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $18 million and total \r\n \r\n- Vll - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nexpenditures of almost $20.3 million in fiscal year 2007. Additionally, the School District sold $6 million in General Obligation Debt during the fiscal year. Total governmental fund balances of $7.2 million at June 30, 2007, increased $3.7 million from the prior year. This increase in fund balance occurred primarily because of the General Obligation Bonds sold during fiscal year 2007. \r\nGeneral Fund Budget Highlights \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 year 2007, the School District amended its general fund budget as needed. \r\nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\nFor the General Fund, the final actual revenues of $15.1 million were over the final budgeted amount of $13.2 million by $1.9 million. This difference (final actual vs. final budget) was primarily attributable to revenues for property taxes over final budget of almost $293,000, revenues for State Funds over final budget of $882,000, revenues for charges for services over final budget of $108,000, and miscellaneous revenues over final budget of $533,000. The School District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. Additionally, the School District did not include revenues for school activity accounts (included in miscellaneous revenues) in the final budget. \r\nThe General Fund's final actual expenditures of $14.6 million exceeded the final budget amount of almost $12.8 million by $1.8 million. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction exceeding the final budget of $1.1 million, and the fact that expenditures for enterprise operations of $271,000 and expenditures for community services of $215,000 were not included in the School District's final budget. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt fiscal year ended June 30, 2007, the School District had over $13.8 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. This year's additions (net of depreciation) totaled over $3 .9 million and included: \r\n Construction in progress costs for new middle school totaling $3.3 million. \r\n- Vlll - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\n \r\nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\nLand Construction in Progress Land Improvements Buildings and Improvements Equipment \r\n \r\n$ 1,009,996 3,891,100 52,589 8,579,037 267 349 \r\n \r\n$ 1,009,996 \r\n56,023 8,547,277 \r\n240,523 \r\n \r\nTotal \r\n \r\n$ 13,800,071 $ 9,853,819 \r\n \r\nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \r\n \r\nLong-Term Debt \r\n \r\nAt June 30, 2007, the School District had $6.6 million in total debt outstanding which consisted of general obligation bond debt. Table 5 summarizes the School District's debt as compared to the prior fiscal year. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2007 \r\n \r\nYear 2006 \r\n \r\nBonds Payable Capital Leases \r\n \r\n$ 6,600,000 $ 1,790,000 3 768 \r\n \r\nTotal \r\n \r\n$ 6,600,000 $ 1,793,768 \r\n \r\nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \r\n \r\n- IX - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 \r\nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \r\n The School District is financially stable. The School District's current operating millage is 12.95, which produces approximately $193,380 per mill. The School District continues to grow with an average of 75 students per year over the last three years The School District is currently constructing a new middle school and is making renovations at the high school. The School District plans to fund additional capital outlays with the one percent Special Purpose Local Option Sales Tax revenue in conjunction with general obligation bonds and state capital outlay grants. \r\n The Bremen Educational Foundation, Inc. had net assets at $1.2 million at June 30, 2007. These funds were derived through private sources and are designated primarily for scholarships for graduating seniors and for construction of a Performing Arts Center. \r\n The School District will continue to face challenges from the implementation of the A+ Education Reform Act, which mandates lower teacher to student ratios. The School District will also continue to be impacted by the remedial actions required for under performing schools under the No Child Left Behind Act. In the midst of these challenges, the School District remains confident in the ability to maximize resources to provide the best possible educational experience for all of our students. \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 Dr. Stanley McCain, Superintendent, City of Bremen Board of Education, 504 Laurel Street, Bremen, Georgia 30110. You may also email your questions to Dr. McCain at stanley.mccain@bremencs.com. \r\n- X- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Funds 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 Retainages Payable Long-Term Liabilities \r\nDue 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 Services 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. \r\n- 1- \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,737,862.61 \r\n \r\n2,757,489.12 \r\n \r\n452,938.04 1,807,486.14 \r\n56,868.56 22,568.70 \r\n \r\n1,009,996.00 3,891,100.00 \r\n120,084.00 11,020,081.00 \r\n549,930.00 -2,791,120.00 \r\n \r\n$ ===23='=63=5=,2=8=4.=1.7.. \r\n \r\n$ \r\n \r\n1,001.83 \r\n \r\n1,721,547.80 \r\n \r\n629,665.39 \r\n \r\n201,734.54 \r\n \r\n6,600,000.00 \r\n \r\n$ \r\n \r\n9,153,949.56 \r\n \r\n$ \r\n \r\n9,634,418.08 \r\n \r\n8,052.00 102,635.70 128,153.13 1,947,234.40 2,660,841.30 \r\n \r\n$ \r\n \r\n14,481,334.61 \r\n \r\n$ ===23='=63=5=,2=8=4.=1==7 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION-HARALSON COUNTY 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 Support Services - Central Other Support Services Operations of Non-Instructional Services Enterprise Operations School Nutrition Program Community Services Operations 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 Debt Services 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$ 10,184,334.69 $ \r\n470,085.08 269,577.64 230,534.98 312,408.36 876,306.23 176,992.22 907,468.45 203,620.67 \r\n26,620.13 78,876.22 \r\n270,940.90 683,531.48 215,410.95 208,476.08 \r\n$ 15,115,184.08 $ \r\n \r\n515,015.87 \r\n140,324.06 369,589.54 191,181.85 1,216,111.32 \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 OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n7,390,713.94 $ \r\n \r\n140,890.53 123,309.62 206,904.24 461,982.19 476,359.12 \r\n2,433.86 525,383.88 \r\n13,755.15 \r\n \r\n827.84 \r\n \r\n299,424.71 \r\n \r\n$ \r\n \r\n9,641,985.08 $ \r\n \r\n520,315.44 $ \r\n16,822.52 2,558.97 5,451.48 127,139.65 \r\n27,798.37 \r\n700,086.43 $ \r\n \r\n-1,758,289.44 \r\n-329, 194.55 -146,268.02 \r\n-23,630.74 166,396.35 -397,388.14 -174,558.36 -376,633.09 -62,725.87 -26,620.13 -78,048.38 \r\n-130,616.84 13,281.14 -24,229.10 \r\n-208,476.08 \r\n-3,557,001.25 \r\n \r\n$ \r\n \r\n2,521,807.45 \r\n \r\n1,965,535.39 1,045,031.00 \r\n327,064.38 589,681.09 \r\n \r\n$ \r\n \r\n6,449,119.31 \r\n \r\n$ \r\n \r\n2,892,118.06 \r\n \r\n11,589,216.55 \r\n \r\n$ ===14='=48..,1...,,3=34==61= \r\n \r\n-3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY BALANCE SHEET COMPONENT UNIT JUNE 30, 2007 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nNET ASSETS Unrestricted \r\n \r\nBREMEN EDUCATIONAL FOUNDATION, \r\nINC. \r\n \r\n$ \r\n \r\n125,633.37 \r\n \r\n1,094,488.77 \r\n \r\n$ ===1=,2=2=0..1..2=2=.1=4= \r\n \r\n$ ===1=,2=2=0..1..=22==14= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF SUPPORT, REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\nCOMPONENT UNIT YEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT \"D\" \r\n \r\nREVENUES \r\nGifts and Contributions \r\nOPERATING COSTS \r\nAccounting Fees Bank Charge Gifts Given Grant Requests License Postage Rent Scholarships \r\nTotal Operating Costs \r\nNet Change \r\nOTHER INCOME AND EXPENSE \r\nInterest Income Dividend Income Gain on Sale of Securities \r\nTotal Other Income and Expense \r\nIncrease in Net Assets \r\nBeginning Net Assets \r\nEnding Net Assets \r\n \r\nBREMEN EDUCATIONAL FOUNDATION, \r\nINC. \r\n \r\n$ \r\n \r\n30,745.65 \r\n \r\n$ \r\n \r\n350.00 \r\n \r\n75.09 \r\n \r\n3,000.00 \r\n \r\n9,953.77 \r\n \r\n30.00 \r\n \r\n37.46 \r\n \r\n18.00 \r\n \r\n4,750.00 \r\n \r\n$ \r\n \r\n18,214.32 \r\n \r\n$ \r\n \r\n12,531.33 \r\n \r\n$ \r\n \r\n65,245.40 \r\n \r\n1,872.58 \r\n \r\n25,374.94 \r\n \r\n$ \r\n \r\n92,492.92 \r\n \r\n$ \r\n \r\n105,024.25 \r\n \r\n1,115,097.89 \r\n \r\n$ 1,220,122.14 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT\"E\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Designated for Student Activities Designated for Acquisition of Land 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$ 1,460,672.05 $ 3,158,099.66 $ 1,757,489.12 1,000,000.00 \r\n \r\n48,138.96 1,159,339.70 \r\n56,868.56 22,568.70 \r\n \r\n349,812.44 648,146.44 \r\n \r\n119,090.90 $ 4,737,862.61 2,757,489.12 \r\n397,951.40 1,807,486.14 \r\n56,868.56 22,568.70 \r\n \r\n$ 4,505,077.09 $ 5,156,058.54 $ 119,090.90 $ 9,780,226.53 \r\n \r\n$ \r\n \r\n1,001.83 \r\n \r\n1,721,547.80 \r\n \r\n$ \r\n \r\n$ 1,722,549.63 $ \r\n \r\n629,665.39 201,734.54 \r\n831,399.93 \r\n \r\n$ \r\n \r\n1,001.83 \r\n \r\n1,721,547.80 \r\n \r\n629,665.39 \r\n \r\n201,734.54 \r\n \r\n$ 2,553,949.56 \r\n \r\n$ \r\n \r\n8,052.00 \r\n \r\n80,067.00 \r\n \r\n$ \r\n \r\n9,062.23 $ \r\n \r\n22,568.70 \r\n \r\n4,315,596.38 \r\n \r\n260,655.35 530,000.00 \r\n \r\n1,881,184.41 \r\n \r\n$ 2,782,527.46 $ 4,324,658.61 $ \r\n \r\n$ 119,090.90 \r\n \r\n8,052.00 80,067.00 128,153.13 22,568.70 4,315,596.38 \r\n \r\n260,655.35 530,000.00 \r\n \r\n1,881,184.41 \r\n \r\n119,090.90 $ 7,226,276.97 \r\n \r\n$ 4,505,077.09 $ 5,156,058.54 $ 119,090.90 $ 9,780,226.53 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2007 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"E\") \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\nGeneral Obligation Bonds Payable \r\n \r\n$ 7,226,276.97 \r\n \r\n$ 1,009,996.00 3,891,100.00 120,084.00 \r\n11,020,081.00 549,930.00 \r\n-2,791,120.00 \r\n \r\n13,800,071.00 \r\n \r\n54,986.64 \r\n \r\n-6,600,000.00 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 14,481,334.61 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 \r\n \r\nEXHIBIT\"G\" \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 Enterprise Operations 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\nProceeds of Long-Term Capital Related Debt 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$ 2,476,418.81 $ \r\n9,975,280.48 763,675.59 \r\n1,216,111.32 117,862.54 583,053.59 \r\n \r\n712,449.89 $ 648,146.44 \r\n209,130.22 6 627.50 \r\n \r\n$ 1,253,085.50 \r\n71.62 \r\n \r\n2,476,418.81 1,965,535.39 10,623,426.92 \r\n763,675.59 1,216,111.32 \r\n327,064.38 589,681.09 \r\n \r\n$ 15,132,402.33 $ 1,576,354.05 $ 1,253,157.12 $ 17,961,913.50 \r\n \r\n$ 9,998,508.20 \r\n \r\n$ 9,998,508.20 \r\n \r\n470,085.08 269,577.64 230,534.98 307,136.36 875,393.23 110,463.00 $ 869,673.17 154,656.67 \r\n16,702.13 78,876.22 270,940.90 215,410.95 683,531.48 \r\n \r\n65,985.09 13,645.35 22,134.00 \r\n4,199,704.93 \r\n \r\n470,085.08 269,577.64 230,534.98 307,136.36 875,393.23 176,448.09 883,318.52 176,790.67 \r\n16,702.13 78,876.22 270,940.90 215,410.95 683,531.48 4,199,704.93 \r\n \r\n3,768.62 150.38 \r\n \r\n$ 1,190,000.00 208,325.70 \r\n \r\n1,193,768.62 208,476.08 \r\n \r\n$ 14,555,409.01 $ 4,301,469.37 $ 1,398,325.70 $ 20,255,204.08 \r\n \r\n$ \r\n \r\n576,993.32 $ -2, 725,115.32 $ -145, 168.58 $ -2,293,290.58 \r\n \r\n$ 6,000,000.00 $ \r\n-262,809.07 \r\n \r\n$ 262,809.07 \r\n \r\n6,000,000.00 262,809.07 -262,809.07 \r\n \r\n$ 5,737,190.93 $ 262,809.07 $ 6,000,000.00 \r\n \r\n$ \r\n \r\n576,993.32 $ 3,012,075.61 $ 117,640.49 $ 3,706,709.42 \r\n \r\n2,205,534.14 \r\n \r\n1,312,583.00 \r\n \r\n1 450.41 \r\n \r\n3,519,567.55 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,782,527.46 $ 4,324,658.61 $ 119,090.90 $ 7,226,276.97 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\"H\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"G\") \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 \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 Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 3,706,709.42 \r\n \r\n$ 4,177,500.00 -231,248.00 \r\n \r\n3,946,252.00 \r\n \r\n45,388.02 \r\n \r\n-6,000,000.00 \r\n \r\n$ 1,190,000.00 3,768.62 \r\n \r\n1,193,768.62 \r\n \r\n$ 2,892,118.06 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 \r\n \r\nEXHIBIT\"!\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n$ 70,809.69 \r\n$ 70,809.69 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 10 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofBremen Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nDISCRETELY PRESENTED COMPONENT UNIT \r\nThe Bremen Educational Foundation, Inc. is a non-profit organization established in 2001 as a permanent endowment created by alumni and supporters of the Bremen City School District to support the tradition of excellence in the system. The purpose of the Foundation is to improve the quality ofeducation in the system and act as a fiscal agent for donors who wish to sponsor approved projects for the system, its teachers and students. (See Note \"16\") \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 ofthe City of Bremen 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- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \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 of internal 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 clubs or individuals. \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\n \r\n- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \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, 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 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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(I) 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- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \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 City of Bremen fixed the property tax levy for the 2006 tax digest year (calendar year) on October 18, 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 Bremen City Clerk bills and collects the property taxes for the School District, withholds $3.50 per bill 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 $2,476,418.81. \r\n \r\nThe tax millage rate levied for the 2006 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.95 mills \r\n \r\n- 14 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \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 $1,965,535.39 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 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\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 Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ 10,000.00 10 to 60 years \r\n \r\n$ 50,000.00 45 to 60 years \r\n \r\n$ 10,000.00 5 to 30 years \r\n \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \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 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\nFUND BALANCES RESERVED \r\nReserves represent those portions of fund balance equity that are legally segregated for a specific future use. \r\nUNRESERVED-DESIGNATED Designated fund balances represent tentative plans for future use of financial resources. \r\nNote 3: DEPOSITS \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- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 3: DEPOSITS \r\nbeen 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 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, $400,000.00 of deposits 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(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\nCATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $8,317,578.48. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: \r\nCategory 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or \r\nby its trust department or agent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name. \r\n- 17 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 3: DEPOSITS \r\n \r\nThe School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 400,000.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n3,628,900.13 \r\n \r\nTotal \r\n \r\n$ 4!028!900.13 \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\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 July 1, 2006 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2007 \r\n \r\n$ 1,009,996.00 \r\n \r\n$ 1,009,996.00 \r\n \r\n0.00 $ 4, I 05,366.00 $ 214,266.00 3,891, I00.00 \r\n \r\n$ 1,009,996.00 $ 4, I05,366.00 $ 214,266.00 $ 4,901,096.00 \r\n \r\n$10,805,815.00 $ 477,796.00 120,084.00 \r\n \r\n214,266.00 $ 72,134.00 \r\n \r\n0.00 $11,020,081.00 549,930.00 120,084.00 \r\n \r\n2,258,540.00 237,271.00 64,061.00 \r\n \r\n182,504.00 45,310.00 \r\n3 434.00 \r\n \r\n2,441,044.00 282,581.00 67 495.00 \r\n \r\n$ 8,843,823.00 $ 55,152.00 $ \r\n \r\n0.00 $ 8,898,975.00 \r\n \r\n$ 2,853,812,QQ $ 4,16Q,518.QQ $ 214,266.QO $ 13,8QO,Q71.QO \r\n \r\n- 18 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 185,640.00 \r\n \r\n$ \r\n \r\n6,002.00 \r\n \r\n913.00 \r\n \r\n1,945.00 \r\n \r\n26,830.00 \r\n \r\n35,690.00 9,918.00 \r\n \r\n$ 231,248.00 \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\nDistrict-wide Capital Projects SPLOST \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\nRestricted Investments: Capital Acquisitions \r\n \r\n$ \r\n \r\n9,062.23 $ 119,090.90 \r\n \r\n$ 3,149,037.43 \r\n \r\n$ 1,000,000.00 \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 Capital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ 262,809.07 \r\n \r\n- 19 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 7: INTERFUND TRANSFERS \r\n \r\nTransfers are used to move capitalized interest, which was included as a part of Bond Proceeds, to the Debt Service Fund to pay interest on bonds. \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. Coverage under this system includes loss related to torts, theft of, damage to, and destruction ofassets; errors or omissions, and acts ofGod. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nCoverage in the Georgia School Boards Association Risk and Insurance Management System includes Dishonesty and Faithful Performance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Employees \r\n \r\n$ 50,000.00 $ 50,000.00 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for 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\nEnd of Year Liability \r\n \r\n2006 2007 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n4 954.00 $ \r\n \r\n4 954.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n1,235.00 $ \r\n \r\n1,235.00 $ \r\n \r\n0.00 \r\n \r\n- 20 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nCity ofBremen Board of Education has entered into various leases as lessee for a mobile classroom and various copiers. 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 $65,876.92. \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2008 2009 2010 2011 \r\n \r\n$ 38,530.00 22,832.00 4,145.00 1,925.00 \r\n \r\nTotal \r\n \r\n$ 67,432.00 \r\n \r\nNote 10: LONG-TERM DEBT \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 2001 (Carroll) General Government - Series 2006 (Haralson) \r\n \r\n3.6% \r\n \r\n$ 600,000.00 \r\n \r\n4.10% - 4.38% \r\n \r\n6,000,000.00 \r\n \r\n$ 6,600,000.00 \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 10: LONG-TERM DEBT \r\n \r\nOn March 21, 2006, voters authorized $6,000,000.00 in general obligation debt for capital outlay purposes which was not issued as of June 30, 2007. \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2006 \r\n \r\n$ \r\n \r\n3,768.62 $ 1,790,000.00 $ 1,793,768.62 \r\n \r\nAdditions G. 0. Bonds \r\n \r\n6,000,000.00 6,000,000.00 \r\n \r\nDeductions Debt Retired \r\n \r\n3,768.62 1,190,000.00 1,193,768.62 \r\n \r\nBalance June 30, 2007 \r\n \r\n$======='0==.0==0 $ 6,600,000.00 $ 6,600,000.00 \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 - 2022 2023 \r\n \r\n$ 267,106.26 \r\n \r\n$ 600,000.00 \r\n \r\n267,106.26 \r\n \r\n256,306.26 \r\n \r\n256,306.26 \r\n \r\n256,306.26 \r\n \r\n310,000.00 1,275,176.30 \r\n \r\n4,635,000.00 \r\n \r\n746,531.30 \r\n \r\n1,055,000.00 \r\n \r\n23,078.13 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 6,600,000.00 $ 3,347,917.03 \r\n \r\nNote 11: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $235,411.61 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n- 22 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 11: ON-BEHALF PAYMENTS \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 $234,115.61 \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 $1,296.00 \r\n \r\nNote 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2007, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n07-763-070 07-763-071 07-763-015 \r\n \r\n$ 332,987.51 $ 36,292.60 \r\n \r\n256,982.19 \r\n \r\n225,193.96 \r\n \r\n11,012,126.50 3,848,692.00 \r\n \r\n$ 11,602,096.20 $ 4,110,178.56 \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: SUBSEQUENT EVENTS \r\n \r\nIn the subsequent fiscal year, the School District issued general obligation bonds in the amount of $6,000,000.00. The debt was previously authorized by the voters on March 21, 2006. The proceeds from these bonds will be used for the acquisition, construction, renovation, and equipping of new and existing educational facilities and cost of issuance thereto. \r\n \r\n- 23 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 15: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2007 2006 2005 \r\n \r\n100% 100% 100% \r\n \r\n$ 779,138.79 $ 779,112.43 $ 669,309.00 \r\n \r\nNote 16: COMPONENT UNIT \r\n \r\nThe Bremen Educational Foundation, Inc. (Foundation) is a legally separate tax-exempt component \r\nunit ofthe City ofBremen Board of Education (School District). It was organized on December 17, \r\n2001, as a Georgia Corporation pursuant to the provisions of the Georgia Non-Profit Corporation Code. The Foundation's governing board consists of 8 members consisting of alumni and or local business persons plus ex-officio member to include the superintendent of the Bremen City School System. New members are elected by the Foundation Board. Although the School District does not control the timing or amount ofreceipts from the Foundation, the majority ofresources or income thereon the Foundation holds and invests are restricted to the improvement of the quality of education of the School District and act as a fiscal agent for donors who wish to sponsor approved projects for the system, its teachers and students. Consequently, the Foundation is considered a component unit of the School District and is discretely presented in the School District's financial statements. \r\n \r\nThe Foundation utilizes the accrual method of accounting. The Foundation is subject to Statement ofFinancial Standards (SFAS) 117, \"Financial Statement ofNot-for-Profit Organizations\". As such, certain revenue recognition criteria and presentation features are different from GASB revenue \r\n \r\n- 24 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2007 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 16: COMPONENT UNIT \r\nrecognition criteria and presentation features. No modifications have been made to the Foundation's financial information in the School District's financial reporting entity for these differences. The Foundation's fiscal year is July 1, 2006, through June 30, 2007. \r\nDuring the year ended June 30, 2007, the Foundation made contributions in the form of teacher grants and gifts to all three schools. These contributions totaled $12,954.00 with $2,000.00 to Sewell Middle School, $4,954.00 to Jones Elementary, $3,000.00 to Bremen High School, and $3,000.00 was given to Bremen High School as pass-through gift. Scholarships to individuals and colleges totaled $4,750.00. \r\nComplete audited financial statements for the Foundation were not available as of the date of this report. Any inquiries or information about the Foundation can be obtained from Bremen Educational Foundation, Inc. The contacts are as follows: Mr. Vann Pelt, President, 810 Valley Run Drive, Bremen, Georgia 30110, 770-834-0738, Ext. 134, e-mail address, vpelt@silvey.com or Ms. Joanie Lowe, Treasurer, 121 Buchanan Street North, Bremen, Georgia 30110, 770-537-1110, e-mail address, joanielowe@bellsouth.net \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Service \r\nDebt Service \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL(1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n2,183,602.00 $ \r\n \r\n2,183,602.00 $ \r\n \r\n2,476,418.81 \r\n \r\n8,672,452.00 \r\n \r\n9,093,318.00 \r\n \r\n9,975,280.48 \r\n \r\n220,856.00 \r\n \r\n711,765.00 \r\n \r\n763,675.59 \r\n \r\n1,109,352.59 \r\n \r\n1,109,352.59 \r\n \r\n1,216,111.32 \r\n \r\n39,000.00 \r\n \r\n39,000.00 \r\n \r\n117,862.54 \r\n \r\n50,000.00 \r\n \r\n50 000.00 \r\n \r\n583,053.59 \r\n \r\n$ \r\n \r\n12,275,262.59 $ \r\n \r\n13,187,037.59 $ \r\n \r\n15,132,402.33 \r\n \r\n$ \r\n \r\n8,569,712.04 $ \r\n \r\n8,900,923.32 $ \r\n \r\n9,998,508.20 \r\n \r\n351,505.00 206,115.00 227,270.00 237,248.00 801,009.13 117,963.00 798,661.00 133,396.00 \r\n11,845.00 42,995.42 639,635.00 175,100.00 \r\n \r\n425,652.85 298,058.25 227,270.00 266,668.25 800,998.13 117,963.00 798,661.00 133,396.00 \r\n11,845.00 42,995.42 640,135.00 175,100.00 \r\n \r\n470,085.08 269,577.64 230,534.98 307,136.36 875,393.23 110,463.00 869,673.17 154,656.67 \r\n16,702.13 78,876.22 683,531.48 270,940.90 215,410.95 \r\n3 919.00 \r\n \r\n$ \r\n \r\n12,312,454.59 $ \r\n \r\n12,839,666.22 $ \r\n \r\n14,555,409.01 \r\n \r\n$ \r\n \r\n-37, 192.00 $ \r\n \r\n347,371.37 $ \r\n \r\n576,993.32 \r\n \r\n2,064,309.41 \r\n \r\n2,064,309.41 \r\n \r\n2,205,534.14 \r\n \r\n6 898.47 \r\n \r\n9,023.79 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n2,034,015.88 $ \r\n \r\n2,420,704.57 $ =====2=,7=8='2'=52=7=.4==6 \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR 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) \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 Direct School-Based Student Drug-Testing Program Pass-Through From Georgia Department of Education Enhancing Education Through Technology Program Improving Teacher Quality State Grants Title I Grants to Local Educational Agencies State Grants for Innovative Programs Vocational Education - Basic Grants to States \r\nTotal U. S. Department of Education \r\nTotal Federal Financial Assistance \r\nN/A = 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 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 604,389.19 \r\n604,389.19 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n51,356.13 655,745.32 \r\n \r\n84.027 84.173 \r\n \r\nNIA \r\n \r\n$ \r\n \r\nNIA \r\n \r\n$ \r\n \r\n296,595.88 30,208.00 \r\n326,803.88 \r\n \r\n84.184 \r\n84.318 84.367 84.010 84.298 84.048 \r\n \r\nNIA NIA N/A NIA NIA \r\n$ \r\n \r\n22,376.00 \r\n4.00 47,794.60 89,290.36 \r\n1,570.12 12,785.00 \r\n500,623.96 \r\n \r\n$==1='=15=6=,3=6=9.=28.,. \r\n \r\n- 28 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2007 \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 ($38,832.59) were not maintained separately and are included in the 2007 National School Lunch Program. \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 City of Bremen 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Brighi 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 Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Special Education - Supplemental Speech Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Art Education Curriculum Graduation Coaches Health Insurance K-8 Statewide Reading and Math Grant Middle School Summer Remedial Program National Teacher Certification Preschool Handicapped Program Virtual Schools State Grant \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\n$ \r\n \r\n458,748.61 \r\n \r\n$ \r\n \r\n630,273.00 89,600.00 \r\n1,287,218.00 147,054.00 664,804.00 57,207.00 967,845.00 804,769.00 458,381.00 \r\n137,849.00 51,705.00 \r\n539,898.00 200,391.00 128,486.00 206,550.00 \r\n50,440.00 81,982.00 \r\n2,500.00 184,100.00 \r\n57,383.00 34,461.00 \r\n370,871.00 403,777.00 463,289.00 \r\n12,446.00 51,940.00 35,802.00 47,986.00 \r\n5,689.00 9,429.00 1,045,031.00 37,842.00 16,063.26 -160,820.00 \r\n30,000.00 40,075.00 234,115.61 22,500.00 \r\n294.00 3,136.00 62,774.00 \r\n100.00 \r\n \r\nTOTAL \r\n458,748.61 \r\n630,273.00 89,600.00 \r\n1,287,218.00 147,054.00 664,804.00 57,207.00 967,845.00 804,769.00 458,381.00 \r\n137,849.00 51,705.00 \r\n539,898.00 200,391.00 128,486.00 206,550.00 \r\n50,440.00 81,982.00 \r\n2,500.00 184,100.00 \r\n57,383.00 34,461.00 \r\n370,871.00 403,777.00 463,289.00 \r\n12,446.00 51,940.00 35,802.00 47,986.00 \r\n5,689.00 9,429.00 1,045,031.00 37,842.00 16,063.26 -160,820.00 \r\n30,000.00 40,075.00 234,115.61 22,500.00 \r\n294.00 3,136.00 62,774.00 \r\n100.00 \r\n \r\n- 30- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 \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\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\n648,146.44 $ \r\n \r\n648,146.44 \r\n \r\n1 296.00 \r\n \r\n$ \r\n \r\n9,975,280.48 $ \r\n \r\n648,146.44 $ 10,623,426.92 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \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\nHARALSON COUNTY Acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, adding to, renovating, repairing, improving and equipping existing school buildings and other buildings and facilities, useful or desirable in connection therewith, including constructing, modifying and equipping classrooms, acquiring system-wide technology improvements, acquiring school transportation vehicles and acquiring the necessary property for such schools, both real and personal, and for the future school sites, all at a maximum cost of $4,900,000.00 \r\n \r\n$ 4,900,000.00 $ 4,900,000.00 $ 816,573.83 $ 3,323,026.00 Ongoing \r\n \r\nCARROLL COUNTY Funding the acquisition, construction, renovation, modification, improvement, extending and equipping of projects throughout the City of Bremen School System, including, but without limitation, additions, renovations, and improvements of certain existing system facilities, system-wide technology improvements, the acquisition of school transportation vehicles; the acquisition of land for additional schools, and the acquisition of all property, both real and personal, deemed necessary and advisable therefore including the funding of capitalized interest on debt of the City of Bremen with respect to the Bremen School Projects (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $4,840,000.00 \r\n \r\n4,840,000.00 \r\n \r\n4,840,000.00 \r\n \r\n179,152.09 \r\n \r\n3,141,816.00 Ongoing \r\n \r\nHARALSON COUNTY II Funding a portion of the costs of the acquisition, construction, equipping and furnishing of new school buildings and facilities, including, but not limited to, additional classrooms, a new middle school, a new fine arts center and new physical education/athletic facilities, the addition, renovation, repair and improvement to existing school buildings and facilities, including, but not limited to, all existing schools, existing physical education/athletic facilities and the high school cafeteria, the acquisition and purchase of system-wide technology and safety equipment, including, but not limited to, computer hardware and software and security and safety equipment, the acquisition and purchase of school vehicles, including, but not limited to, school buses and maintenance vehicles, the addition, renovation, repair, paving and improvement to driveways and parking facilities, the acquisition and purchase of any property necessary and desirable therefore, both real and personal and the purchase of land (the \"Bremen Projects\"), capitalized interest on the Bremen Bonds through and including October 1, 2007 \r\n \r\n9,390,000.00 \r\n \r\n9,390,000.00 \r\n \r\n3,514,069.15 \r\n \r\nOngoing \r\n \r\n$ 19,130,000.00 $ 19,130,000.00 $ 4,509 795.07 $ 6,464,842.00 - 32 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2007 \r\n \r\nSCHEDULE \"4\" \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 Haralson County, Carroll County, and the City of Bremen 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- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\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 Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \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\n673,050.00 $ 660,161.00 $ \r\n \r\n37,037.00 $ \r\n \r\n697,198.00 \r\n \r\n96,570.00 \r\n \r\n122,749.00 \r\n \r\n533.00 \r\n \r\n123,282.00 \r\n \r\n1,402,953.00 \r\n \r\n1,954,539.00 \r\n \r\n72,223.00 \r\n \r\n2,026,762.00 \r\n \r\n152,733.00 \r\n \r\n119,331.00 \r\n \r\n824.00 \r\n \r\n120,155.00 \r\n \r\n718,068.00 \r\n \r\n833,734.00 \r\n \r\n26,272.00 \r\n \r\n860,006.00 \r\n \r\n58,588.00 1,052,778.00 \r\n883,619.00 481,141.00 1,141,367.00 \r\n225,833.00 49,087.00 89 309.00 \r\n \r\n52,411.00 \r\n1,225,611.00 1,502,970.00 \r\n248,285.00 \r\n97,189.00 56,812.00 443,112.00 159,946.00 76,413.00 105,611.00 12,906.00 108,252.00 \r\n \r\n385.00 4,657.00 32,071.00 58,613.00 6,536.00 \r\n453.00 553.00 \r\n \r\n52,796.00 4,657.00 \r\n1,257,682.00 1,561,583.00 \r\n254,821.00 \r\n97, 189,00 56,812.00 443,112.00 159,946.00 76,413.00 106,064.00 12,906.00 108,805.00 \r\n \r\n$ \r\n \r\n7,025,096.00 $ 7,780,032.00 $ \r\n \r\n240,157.00 $ \r\n \r\n8,020,189.00 \r\n \r\n199,289.00 37 838.00 \r\n \r\n194,192.00 3,509.00 \r\n \r\n31,654.00 37,416.00 \r\n \r\n225,846.00 40 925.00 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n7,262,223.00 $ 7,977,733.00 $ \r\n \r\n309,227.00 $ \r\n \r\n8,286,960.00 \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- 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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 18, 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 ofthe City of Bremen 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 City of Bremen Board ofEducation as ofand for the year ended June 30, 2007, which collectively comprise City of Bremen Board of Education's basic financial statements and have issued our report thereon dated March 18, 2008. This report was qualified for a scope limitation, as identified in the auditor's report on the basic financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nThe financial statements of Bremen Educational Foundation, Inc. (Foundation) have not been audited, and we were not engaged to audit the Foundation's financial statements as part of our audit ofthe School District's basic financial statements. The Foundation's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Bremen Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion \r\n2007YB-10X \r\n \r\n on the effectiveness of the City of Bremen Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Bremen Board of Education's internal control over financial reporting. \r\nA 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 affect the City ofBremen Board ofEducation'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 City of Bremen Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the City of Bremen Board of Education'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 a material misstatement ofthe financial statements will not be prevented or detected by the City of Bremen 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 or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Bremen 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 City of Bremen Board of Education in a separate letter dated March 18, 2008. \r\n2007YB-10X \r\n \r\n This report is intended solely for the information and use ofthe management, members ofthe City of Bremen 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-=RA ___ no w,~~ \r\n~u~~ton, CPA, CGFM State Auditor \r\nRWH:as 2007YB-10X \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 18, 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 City of Bremen 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 City ofBremen Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2007. City of Bremen 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 City of Bremen Board of Education's management. Our responsibility is to express an opinion on City of Bremen 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 ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City ofBremen Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the \r\n \r\n2007SA-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 City of Bremen Board of Education's compliance with those requirements. \r\nIn our opinion, the City of Bremen Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2007. \r\nInternal Control Over Compliance \r\nThe management of City of Bremen Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Bremen 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 of a control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \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 of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\n2007SA-10 \r\n \r\n This report is intended solely for the information and use ofthe management, members ofthe City of Bremen 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 2007SA-10 \r\n \r\n~to~ Russell 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Bremen Board of Education's financial statements was unqualified for all opinion units with the exception of the Board's discretely presented component unit. Those financial statements have not been audited and we express no opinion on them. \r\n2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the City of Bremen Board of Education did not disclose any significant deficiencies related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \r\n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the City of Bremen Board of Education did not disclose any significant deficiencies in internal control over major programs. \r\n5. Type of Report Issued on Compliance for MajGr Programs The auditor's opinion on the City ofBremen Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The City ofBremen Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \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\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The City ofBremen Board ofEducation qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2005-h2006","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2006-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001?; ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: City of Bremen Board of Education, Haralson County, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (City of Bremen Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"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":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["City of Bremen Board of Education, Haralson County, 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-be33-bb6-b2005-h2006"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-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":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF BREMEN BOARD OF EDUCATION \r\nHARALSON COUNTY, GEORGIA REPORT ON AUDIT \r\nOF 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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\nCOMPONENT UNIT FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\n4 \r\n \r\nD \r\n \r\nSTATEMENT OF SUPPORT, REVENUES, EXPENSES AND \r\n \r\nCHANGES IN NET ASSETS \r\n \r\n5 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nE \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \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\nG \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\nH \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\nI \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\n10 \r\n \r\nJ \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n12 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \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\nGENERALFUND \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\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\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - TABLE OF CONTENTS - \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\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 16, 2007 \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 City of Bremen 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 J) of the City of Bremen 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 City ofBremen Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nExcept as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nThe financial statements of Bremen Educational Foundation, Inc. (Foundation) have not been audited, and we were not engaged to audit the Foundation's financial statements as part of our audit ofthe School District's basic financial statements. The Foundation's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\n \r\n2006ARL-25X \r\n \r\n Because the Foundation's financial statements have not been audited, the scope ofour work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements of the Foundation as of and for the year ended June 30, 2006. \r\nIn addition, 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 for the City of Bremen 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\nIn accordance with Government Auditing Standards, we have also issued our report dated February 16, 2007, on our consideration of the City of Bremen 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 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 City of Bremen 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, such information, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\n2006ARL-25X \r\n \r\n A 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\nRWH:as 2006ARL-25X \r\n \r\nRus 11 W. Hinton, CPA, CGFM State Auditor \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nINTRODUCTION \r\nOur discussion and analysis of the City of Bremen School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended 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 to enhance their understanding of the School District's financial performance. \r\nThe reporting model is a combination of both government-wide financial statements and fund financial statements. The basic financial statements contain three components: \r\n1) District-wide financial statements including the Statement of Net Assets and the Statement of Activities, which provide both short-term and long-term overviews of the School District's finances. \r\n2) Fund financial statements including the balance sheets that provide a greater level of detail and focus on how well the School District has performed in the short-term in the most significant or major funds. \r\n3) Notes to the Basic Financial Statements. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2006 are as follows: \r\nOn the District-wide financial statements: \r\n Total assets of the School District exceeded liabilities by $11.6 million. This represented an increase of $2.1 million in net assets when compared to the prior year as restated. \r\n The School District had $13.7 million in expenses relating to governmental activities; $9.8 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of$6.l million were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $6.1 million or about 38% of all revenues totaling $15.9 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \r\nOn the fund financial statements: \r\n Among major funds, the General Fund had $13.9 million in revenues and $13.2 million in expenditures. The General Fund balance of $2.2 million at June 30, 2006, increased approximately $0.8 million when compared to the prior year. \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis (this section), 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 '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. In the case of the City of Bremen School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \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\nSince the City of Bremen School District has no operations that have been classified as \"Business Activities\", the 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 now 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, student-teacher ratios, and other factors. \r\n- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nThe 'Statement of Net Assets' and the 'Statement of Activities' reflects 100% of the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds or subfunds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \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 be 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 government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others 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 Districtwide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nAs discussed previously, the Statement of Net Assets provides a financial snapshot of the School District as a whole. The reader can think of the School District's net assets as the difference between its assets (i.e., what the School District owns) and its liabilities (i.e., what the School District owes) at the end of a fiscal year. This balance represents one way to measure the School District's financial health or its financial position. In the case of the City of Bremen School District, assets exceeded liabilities by $11.6 million at June 30, 2006. \r\nTo better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net asset category. For example, of the $11.6 million of net assets, about $1.5 million was restricted for bus replacement, continuation of Federal programs, debt service and completion of capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\n- l1l - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nIn addition, the School District also had $8.0 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\n \r\nThe remaining balance of unrestricted net assets of over $2 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\n \r\nTable 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year as restated. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2005 \r\n \r\nYear 2006 \r\n \r\n(Restated) \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 5,137,770 $ 3,783,344 \r\n \r\n9,853,819 \r\n \r\n9,975,432 \r\n \r\nTotal Assets \r\n \r\n$ 14,991,589 $ 13,758,776 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 1,608,604 $ 1,415,736 \r\n \r\n1,793,768 \r\n \r\n2,872,281 \r\n \r\nTotal Liabilities \r\n \r\n$ 3,402,372 $ 4,288,017 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 8,060,595 1,472,594 2,056,028 \r\n \r\n$ 7,180,798 990,706 \r\n1,299,255 \r\n \r\nTotal Net Assets \r\n \r\n$ 11!589!217 $ 9!470!759 \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. \r\n \r\n- IV - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 \r\nCapital Grants and Contributions \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\n$ 1,025,847 8,729,515 3 056 \r\n \r\n$ 983,786 7,863,327 2,628 \r\n \r\nTotal Program Revenues \r\n \r\n$ 9,758,418 $ 8,849,741 \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 Debt Service \r\n \r\nFor Capital Projects \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\n2,247,183 \r\n1,149,674 834,839 \r\n1,049,628 82,016 \r\n739 659 \r\n \r\n$ 1,816,611 \r\n1,046,557 507,640 63,626 \r\n1,022,709 65,793 \r\n545,510 \r\n \r\nTotal General Revenues \r\n \r\n$ 6,102,999 $ 5,068,446 \r\n \r\nTotal Revenues \r\n \r\n$ 15,861,417 $ 13,918,187 \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 Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 9,840,385 \r\n387,989 222,919 220,376 334,172 765,960 112,290 810,587 118,574 \r\n10,689 40,829 \r\n112,947 664,084 101,158 \r\n \r\n$ 8,388,456 \r\n343,283 251,268 238,957 248,618 754,020 110,111 711,375 117,462 \r\n6,607 62,303 \r\n312,278 635,715 134,329 \r\n \r\nTotal Expenses \r\n \r\n$ 13,742,959 $ 12,314,782 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 2!11si45s $ 1!603!405 \r\n \r\n- V- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nCost of Providing Services \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 as compared to the prior fiscal year. \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 2006 Year 2005 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear2006 Year2005 \r\n \r\nInstruction \r\n \r\n$ 9,840,385 $ 8,388,456 $ 2,601,209 $ 1,849,635 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n387,989 \r\n \r\n343,283 \r\n \r\n273,154 \r\n \r\n227,668 \r\n \r\nImprovement of Instructional Services \r\n \r\n222,919 \r\n \r\n251,268 \r\n \r\n100,194 \r\n \r\n96,419 \r\n \r\nEducational Media Services \r\n \r\n220,376 \r\n \r\n238,957 \r\n \r\n53,773 \r\n \r\n89,030 \r\n \r\nGeneral Administration \r\n \r\n334,172 \r\n \r\n248,618 \r\n \r\n-104,466 -120,801 \r\n \r\nSchool Administration \r\n \r\n765,960 \r\n \r\n754,020 \r\n \r\n361,551 \r\n \r\n384,870 \r\n \r\nBusiness Administration \r\n \r\n112,290 \r\n \r\n110,111 \r\n \r\n110,228 \r\n \r\n110,111 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n810,587 \r\n \r\n711,375 \r\n \r\n354,480 \r\n \r\n280,521 \r\n \r\nStudent Transportation Services \r\n \r\n118,574 \r\n \r\n117,462 \r\n \r\n100,567 \r\n \r\n103,465 \r\n \r\nCentral Support Services \r\n \r\n10,689 \r\n \r\n6,607 \r\n \r\n8,059 \r\n \r\n6,607 \r\n \r\nOther Support Services \r\n \r\n40,829 \r\n \r\n62,303 \r\n \r\n40,155 \r\n \r\n64,424 \r\n \r\nOperations ofNon-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\n112,947 \r\n \r\n312,278 \r\n \r\n-66,381 \r\n \r\n225,356 \r\n \r\nFood Services \r\n \r\n664,084 \r\n \r\n635,715 \r\n \r\n50,860 \r\n \r\n13,407 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n101,158 \r\n \r\n134,329 \r\n \r\n101,158 \r\n \r\n134,329 \r\n \r\nTotal Expenses \r\n \r\n$13,742.959 $12,314.782 $ 3,984.541 $ 3,465,041 \r\n \r\nThe table above shows that while the total cost of services for providing services increased about 12% from the prior year, the net cost to the local taxpayers increased almost 15% from the prior year. In other words, as compared to the proceeding fiscal year, a slightly larger percentage of the cost of providing services is falling to the taxpayers of the City of Bremen. This condition is occurring because increased costs for such items as salaries, benefits, maintenance, fuel, etc. is occurring at a marginally higher rate than is being funded from program revenues (State, Federal, and revenues for services and sales). \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nInformation about the School District's governmental funds is presented starting on Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $16 million and total \r\n \r\n- Vl - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nexpenditures of $14.7 million in fiscal year 2006. Total governmental fund balances of almost $3.5 million at June 30, 2006, increased almost $1.3 million from the prior year. This increase in fund balance occurred because revenues exceeded expenditures in both the General Fund and Capital Projects Fund. \r\nGeneral Fund Budget Highlights \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 year 2006, the School District amended its general fund budget as needed. \r\nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\nFor the General Fund, the final actual revenues of $13.9 million were over the final budgeted amount of $12 million by almost $2 million. This difference (final actual vs. final budget) was primarily attributable to revenues for Property taxes over budget of $262,000, State Funds over final budget of about $386,000, Federal Funds over final budget of about $572,000, and miscellaneous revenues over final budget by about $591,000. The School District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. Additionally, the School District did not include revenues for school activity accounts (included in miscellaneous revenues) in the final budget. \r\nThe General Fund's final actual expenditures of $13.2 million exceeded the final budget amount of $11.6 million by almost $1.6 million. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction exceeding the final budget $1.4 million. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt fiscal year ended June 30, 2006, the School District had almost $9.9 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation as compared to the prior fiscal year as restated. \r\n-vu - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2005 \r\n \r\nYear 2006 \r\n \r\n(Restated) \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\n$ 1,009,996 56,023 \r\n8,547,277 240,523 \r\n \r\n$ 1,009,996 33,924 \r\n8,728,089 203,423 \r\n \r\nTotal \r\n \r\n$ 9,853,819 $ 9,975,432 \r\n \r\nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \r\n \r\nDebt \r\n \r\nAt June 30, 2006, the School District had approximately $1.8 million in total debt outstanding. This debt is primarily the result of bonds sold by the City of Bremen, on behalf of the City of Bremen School District, for the purpose of acquisition, construction, equipping, renovating and repairing of school facilities. Payment of this debt is secured by Haralson and Carroll County local option sales taxes. \r\n \r\nTable 5 summarizes the School District's debt for general obligation bonds and capital leases outstanding as compared to the prior fiscal year. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2006 \r\n \r\nYear 2005 \r\n \r\nBonds Payable Capital Leases \r\n \r\n$ 1,790,000 $ 2,840,000 \r\n \r\n3 768 \r\n \r\n32,281 \r\n \r\nTotal \r\n \r\n$ 1,793,768 $ 2,872,281 \r\n \r\nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \r\n \r\n- viii - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2006 \r\nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \r\n The School District will continue to face challenges from the implementation of the A+ Education Reform Act, which mandates lower teacher to student ratios. The School District will also continue to be impacted by the remedial actions required for under performing schools under the No Child Left Behind Act. In the midst of these challenges, the School District remains confident in the ability to maximize resources to provide the best possible educational experience for all of 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 is currently constructing a new Middle School which is scheduled to open in the summer of 2008. This school will create new demands on the School District for continuing funding requirements for personnel and operating costs associated with this facility. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizen's 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 Dr. Stanley McCain, Superintendent, City of Bremen Board of Education, 504 Laurel Street, Bremen, Georgia 30110. You may also email your questions to Dr. McCain at stanley.mccain@bremencs.com. \r\n- IX - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF NET ASSETS JUNE 30, 2006 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets Land Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries 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\nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n2,341,744 \r\n \r\n1,250,000 \r\n \r\n324,823 975,852 102,816 130,022 \r\n12,513 \r\n \r\n1,009,996 120,084 \r\n10,805,815 477,796 \r\n-2,559,872 \r\n \r\n$ ===1=4=9=9=1=5=89=== \r\n \r\n$ \r\n \r\n481,412 \r\n \r\n1,127,192 \r\n \r\n3,768 1790000 \r\n \r\n$ \r\n \r\n3 402 372 \r\n \r\n$ \r\n \r\n8,060,595 \r\n \r\n28,246 130,314 \r\n1,451 1,312,583 2,056,028 \r\n \r\n$ \r\n \r\n11 589 217 \r\n \r\n$ ===14=9=9=1=5=89= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Enterprise Operations 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 Debt Services For Capital Projects 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 (Restated) \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n9,840,385 $ \r\n \r\n387,989 222,919 220,376 334,172 765,960 112,290 810,587 118,574 \r\n10,689 40,829 \r\n \r\n112,947 664,084 101 158 \r\n \r\n$ \r\n \r\n13,742,959 $ \r\n \r\n481,673 \r\n179,328 364,846 1,025,847 \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\n6,757,503 \r\n \r\n114,835 122,725 166,603 438,638 404,409 \r\n2,062 456,107 \r\n14,951 $ 2,630 \r\n674 \r\n \r\n248,378 \r\n \r\n$ \r\n \r\n8,729,515 $ \r\n \r\n$ 3,056 3 056 $ \r\n \r\n-2,601,209 \r\n-273,154 -100,194 \r\n-53,773 104,466 -361,551 -110,228 -354,480 -100,567 \r\n-8,059 -40,155 \r\n66,381 -50,860 -101158 \r\n-3,984,541 \r\n \r\n$ \r\n \r\n2,247,183 \r\n \r\n1,149,674 834,839 \r\n1,049,628 82,016 \r\n739 659 \r\n \r\n$ \r\n \r\n6,102,999 \r\n \r\n$ \r\n \r\n2,118,458 \r\n \r\n9 470 759 \r\n \r\n$ ====11=,5=8=9=,2=17= \r\n \r\n-3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY BALANCE SHEET COMPONENT UNIT JUNE 30, 2006 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nNET ASSETS Unrestricted \r\n \r\nBREMEN EDUCATIONAL FOUNDATION, \r\nINC. \r\n \r\n$ \r\n \r\n118,404 \r\n \r\n996 694 \r\n \r\n$ ===1=1=1=5=0=98= \r\n \r\n$ ===1=1=1=5=09=8= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF SUPPORT, REVENUES, EXPENSES AND CHANGES IN NET ASSETS \r\nCOMPONENT UNIT YEAR ENDED JUNE 30, 2006 \r\n \r\nEXHIBIT \"D\" \r\n \r\nREVENUES \r\nGifts and Contributions \r\nOPERATING COSTS \r\nAccounting Fees Advertising Annual Registration Bank Charge Blue Devil Dash Brick Program Gifts Given Grant Requests Scholarships \r\nTotal Operating Costs \r\nNet Change \r\nOTHER INCOME AND EXPENSE \r\nInterest Income \r\nIncrease in Net Assets \r\nBeginning Net Assets \r\nEnding Net Assets \r\n \r\nBREMEN EDUCATIONAL FOUNDATION, \r\nINC. \r\n \r\n$ \r\n \r\n1 015 667 \r\n \r\n$ \r\n \r\n300 \r\n \r\n100 \r\n \r\n30 \r\n \r\n19 \r\n \r\n708 \r\n \r\n397 \r\n \r\n2,046 \r\n \r\n10,500 \r\n \r\n2 250 \r\n \r\n$ \r\n \r\n16 350 \r\n \r\n$ \r\n \r\n999,317 \r\n \r\n-6 811 \r\n \r\n$ \r\n \r\n992,506 \r\n \r\n122,592 \r\n \r\n$ ==1=1=1=-5=09=8= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2006 \r\n \r\nEXHIBIT\"E\" \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$ 1,342,935 $ 1,250,000 \r\n975,852 102,816 130,022 \r\n12 513 \r\n \r\n997,358 $ 315,225 \r\n \r\n1,451 $ \r\n \r\n2,341,744 1,250,000 \r\n315,225 975,852 102,816 130,022 \r\n12 513 \r\n \r\nTotal Assets \r\n \r\n$ 3,814,138 $ 1,312,583 $ \r\n \r\n1 451 $ ==~5;,i,,1~2,;;;,i8.:,17~2= \r\n \r\nLIABILITIES AND FUND BALANCES \r\n \r\nLIABILITIES \r\n \r\nAccounts Payable \r\n \r\n$ \r\n \r\nSalaries Payable \r\n \r\nTotal Liabilities \r\n \r\n$ \r\n \r\nFUND BALANCES \r\n \r\nReserved for: \r\n \r\nBus Replacement \r\n \r\n$ \r\n \r\nContinuation of Federal Programs \r\n \r\nDebt Service \r\n \r\nInventories \r\n \r\nCapital Projects \r\n \r\nUnreserved \r\n \r\nUndesignated Reported in: \r\n \r\nGeneral Fund \r\n \r\nTotal Fund Balances \r\n \r\n$ \r\n \r\n481,412 1,127,192 1,608,604 \r\n28,246 117,801 \r\n12,513 $ \r\n2,046,974 2,205,534 $ \r\n \r\n$ 1,312,583 \r\n1,312,583 $ \r\n \r\n$ $ $ 1,451 \r\n1 451 $ \r\n \r\n481,412 1127 192 1 608 604 \r\n28,246 117,801 \r\n1,451 12,513 1,312,583 \r\n2 046 974 3 519 568 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 3,814,138 $ 1,312,583 $ \r\n \r\n1 451 $ =====5=-1=2=8!::1=72= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION-HARALSON COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2006 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"E\") \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 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 Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 3,519,568 \r\n \r\n$ 1,009,996 120,084 \r\n10,805,815 477,796 \r\n-2,559,872 \r\n \r\n9,853,819 \r\n \r\n9,598 \r\n \r\n$ -1,790,000 -3 768 \r\n \r\n-1,793,768 \r\n \r\n$ 11,589,217 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2006 \r\n \r\nEXHIBIT\"G\" \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 Enterprise Operations 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$ 2,336,115 $ \r\n8,971,755 810,444 \r\n1,025,847 50,971 \r\n729,207 \r\n$ 13,924,339 $ \r\n \r\n$ 834,839 $ 1,149,674 \r\n \r\n30,804 \r\n \r\n241 \r\n \r\n10452 \r\n \r\n876,095 $ 1,149,915 $ \r\n \r\n2,336,115 1,984,513 8,971,755 \r\n810,444 1,025,847 \r\n82,016 739,659 \r\n15,950,349 \r\n \r\n$ 9,528,814 \r\n387,989 222,919 220,376 323,691 764,366 112,290 791,761 $ \r\n75,574 10,689 40,829 112,947 646,075 \r\n \r\n5,646 594 \r\n \r\n$ 13,244,560 $ \r\n \r\n$ \r\n \r\n679 779 $ \r\n \r\n$ \r\n \r\n14,163 \r\n \r\n267,705 \r\n \r\n22,867 $ 1,050,000 \r\n \r\n886 \r\n \r\n99 678 \r\n \r\n305,621 $ 1,149,678 $ \r\n \r\n570 474 $ \r\n \r\n237 $ \r\n \r\n9,528,814 \r\n387,989 222,919 220,376 323,691 764,366 112,290 805,924 \r\n75,574 10,689 40,829 112,947 646,075 267,705 \r\n1,078,513 101 158 \r\n14,699,859 \r\n1,250,490 \r\n \r\n$ \r\n \r\n150,342 \r\n \r\n$ -150,342 \r\n \r\n$ \r\n \r\n150,342 $ -150,342 \r\n \r\n$ \r\n \r\n830,121 $ 420,132 $ \r\n \r\n1,375,413 \r\n \r\n892,451 \r\n \r\n$ \r\n$ 237 $ 1 214 \r\n \r\n150,342 -150 342 \r\n0 1,250,490 \r\n2,269,078 \r\n \r\n$ 2,205,534 $ 1,312,583 $ \r\n \r\n1451 $====3,=51=9=,5=68= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2006 \r\n \r\nEXHIBIT\"H\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"G\") \r\n \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\n \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\n \r\nCapital Outlay \r\n \r\n$ \r\n \r\nDepreciation Expense \r\n \r\nExcess of Capital Outlay over Depreciation Expense \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\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\n$ \r\n \r\nCapital Lease Payments \r\n \r\nTotal Long-Term Debt Repayments \r\n \r\n$ \r\n101,331 -222 944 \r\n1,050,000 28 513 \r\n \r\n1,250,490 \r\n-121,613 -88,932 \r\n1 078 513 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ==2==1'=1=8==,4=5=8 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2006 \r\n \r\nEXHIBIT\"!\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n$ =====85==64=2= \r\n$ ===8=5'=64=2= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 10 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofBremen Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nDISCRETELY PRESENTED COMPONENT UNIT \r\nThe Bremen Educational Foundation, Inc. is a non-profit organization established in 2001 as a permanent endowment created by alumni and supporters of the Bremen City School District to support the tradition of excellence in the system. The purpose of the Foundation is to improve the quality ofeducation in the system and act as a fiscal agent for donors who wish to sponsor approved projects for the system, its teachers and students. \r\nThe Bremen Educational Foundation's financial data (Balance Sheet and Statement of Support, Revenues, Expenses and Changes in Net Assets) is included within the School District's basic financial statements as a discretely presented component unit. See Note 14 for additional component unit disclosure. \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 ofthe City of Bremen 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- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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, 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) and Bond 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 funds, governments or individuals. \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\n \r\n- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and claims and judgments, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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\nRESTATEMENT OF PRIOR YEAR NET ASSETS \r\nFor fiscal year 2006, the School District restated Capital Assets due to errors and omissions. The School District increased Land by $63,642. This change is in accordance with generally accepted accounting principles. \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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia \r\n- 14 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nAnnotated 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 of Georgia, 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\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\nRECEIVABLES \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\nPROPERTY TAXES \r\nThe City of Bremen fixed the property tax levy for the 2005 tax digest year (calendar year) on October 29, 2005 (levy date). Taxes were due on December 29, 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 Bremen City Clerk bills and collects the property taxes for the School District 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 $2,336,115. \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nThe tax millage rate levied for the 2005 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.950 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 $1,984,513 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 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\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\n- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \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\n10,000 10 to 60 years \r\n \r\n$ \r\n \r\n50,000 45 to 60 years \r\n \r\n$ \r\n \r\n10,000 5 to 30 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 entered into a joint agreement with the City of Bremen whereby the City of Bremen issued general obligation bonds on behalf ofthe School District. The bond issuance costs are recognized in the financial statement ofthe School District during the year the bonds are issued. According to the terms ofthe aforementioned agreement, the bonds are the direct obligations ofthe School District; therefore, the outstanding amount ofthese bonds is recorded in the Statement ofNet Assets. \r\n \r\nNote 3: DEPOSITS \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- 17 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 3: DEPOSITS \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 $4,668,893. The amounts of the total bank balances are classified into four categories of custodial credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal Deposit Insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Cash collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name. \r\nCategory 4 - Uncollateralized. \r\n \r\nThe School District's deposits are classified by custodial credit risk category at June 30, 2006, as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 917,670 \r\n \r\n2 \r\n \r\n0 \r\n \r\n3 \r\n \r\n3,751,223 \r\n \r\n4 \r\n \r\n0 \r\n \r\nTotal \r\n \r\n$ 4,668,893 \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \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, 2005 (Restated) \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2006 \r\n \r\nGovernmental Activities \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ 1,009,996 $ \r\n \r\n0 $ \r\n \r\n0 $ 1,009,996 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 10,805,815 495,875 $ 95,174 \r\n \r\n76,421 $ 24,910 \r\n \r\n$ 10,805,815 \r\n \r\n94,500 \r\n \r\n477,796 \r\n \r\n120,084 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n2,077,726 292,452 61,250 \r\n \r\n180,812 39,321 \r\n2 811 \r\n \r\n94,500 \r\n \r\n2,258,538 237,273 64 061 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 8,965,436 $ -121,613 $ \r\n \r\n0 $ 8,843,823 \r\n \r\nGovernmental Activity Capital Assets - Net $ 9,975,432 $ -121,613 $ \r\n \r\n0 $ 9,853,819 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2006, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ \r\n \r\n15,627 \r\n \r\n7,032 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nGeneral Administration \r\n \r\n$ \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$====8'=\"5==9==5 \r\n \r\n$ \r\n6,002 913 \r\n2,670 24,624 \r\n$ \r\n \r\n178,422 \r\n34,209 10,313 222!944 \r\n \r\n- 19 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST) proceeds are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable statutory provisions. Restricted assets at June 30, 2006, were as follows: \r\n \r\nDistrict-wide Capital Projects SPLOST \r\n \r\nDebt Service Funds \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\n \r\n$ \r\n$ 997,358 \r\n \r\n1,451 \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 District-wide Capital Projects \r\n \r\nGeneral Fund \r\n \r\n$====1==50=\",3===4==2 \r\n \r\nTransfers are used to reimburse the General Fund for funds transferred in the prior years to the Haralson County Bond Proceeds Account in Capital Projects for the purchase of land. \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \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 elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for 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\n2005 2006 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n4 954 $ \r\n \r\n4 954 $ \r\n \r\n0 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $500,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Bremen Board of Education has entered into various lease agreements as lessee for buses and copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \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 2001 (Carroll) General Government- Series 2001 (Haralson) \r\n \r\n3.6% 3.9% \r\n \r\n$ 645,000 1,145,000 \r\n \r\n$ 1,790.000 \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\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2005 \r\n \r\n$ \r\n \r\n32,281 $ 2,840,000 $ 2,872,281 \r\n \r\nDeductions Debt Retired \r\n \r\n28.513 \r\n \r\n1,050,000 \r\n \r\n1,078.513 \r\n \r\nBalance June 30, 2006 \r\n \r\n$ \r\n \r\n3,768 $ 1,790,000 $ 1,793,768 \r\n \r\nPortion of Long-Term Debt \r\n \r\nDue within One Year \r\n \r\n$ \r\n \r\n3 768 $ \r\n \r\n0 $ \r\n \r\n3 768 \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\n- 22- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCaQital Leases \r\n \r\nPrinciQal \r\n \r\nInterest \r\n \r\n2007 \r\n \r\n$ \r\n \r\n3 768 $ \r\n \r\n150 \r\n \r\nFiscal Year Ended June 30 \r\n \r\nGeneral Obligation \r\n \r\nDebt \r\n \r\nPrinci2al \r\n \r\nInterest \r\n \r\n2007 2008 2009 \r\n \r\n$ $ 1,190,000 \r\n600,000 \r\n \r\n31,543 42,343 10 800 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 1)90,000 $ \r\n \r\n84,686 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $243,481 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 $242,185 \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 $1,296 \r\n \r\nNote 11: 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\nNote 12: SUBSEQUENT EVENTS \r\n \r\nIn the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $6,000,000. The proceeds from these bonds will be used for paying the cost ofthe acquisition, construction, renovation and equipping of new and existing educational facilities and cost of issuance thereto. \r\n- 23 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 13: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2006 2005 2004 \r\n \r\n100% 100% 100% \r\n \r\n$ 779,112 $ 669,309 $ 628,506 \r\n \r\nNote 14: COMPONENT UNIT \r\n \r\nThe Bremen Educational Foundation, Inc. (Foundation) is a legally separate tax-exempt component unit ofthe City ofBremen Board ofEducation (School District). It was organized on December 17, 2001, as a Georgia Corporation pursuant to the provisions of the Georgia Non-Profit Corporation Code. The Foundation's governing board consists of 8 members consisting of alumni and or local business persons plus ex-officio member to include the superintendent of the Bremen City School system. New members are elected by the Foundation Board. Although the School District does not control the timing or amount ofreceipts from the Foundation, the majority ofresources or income thereon the Foundation holds and invests are restricted to the improvement of the quality of education of the School District and act as a fiscal agent for donors who wish to sponsor approved projects for the system, its teachers and students. Consequently, the Foundation is considered a component unit of the School District and is discretely presented in the School District's financial statements. \r\n \r\nThe Foundation utilizes the accrual method of accounting. The Foundation is subject to Statement ofFinancial Standards (SFAS) 117, \"Financial Statement ofNot-for-Profit Organizations\". As such, certain revenue recognition criteria and presentation features are different from GASB revenue \r\n \r\n- 24- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2006 \r\n \r\nEXHIBIT \"J\" \r\n \r\nNote 14: COMPONENT UNIT \r\nrecognition criteria and presentation features. No modifications have been made to the Foundation's financial information in the School District's financial reporting entity for these differences. The Foundation's fiscal year is July 1, 2005, through June 30, 2006. \r\nDuring the year ended June 30, 2006, the Foundation made contributions in the form of teacher grants and gifts to all three schools. These contributions totaled $12,500 with $1,200 to Sewell Middle School, $1,500 to Jones Elementary, $7,800 to Bremen High School, and $2,000 was given to Bremen High School as pass-through gift. Scholarships to individuals and colleges totaled $2,250. Complete audited financial statements for the Foundation were not available as of the date of this report. Any inquiries or information about the Foundation can be obtained from Bremen Educational Foundation, Inc. The contacts are as follows: Mr. Vann Pelt, President, 810 Valley Run Drive, Bremen, Georgia 30110, 770-834-0738, Ext. 134, e-mail address, vpelt@silvey.com or Ms. Joanie Lowe, Treasurer, 121 Buchanan Street North, Bremen, Georgia 30110, 770-537-1110, e-mail address, joanielowe@bellsouth.net \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOther Sources \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n2,074,000 $ \r\n \r\n2,074,000 $ \r\n \r\n2,336,115 \r\n \r\n8,200,924 \r\n \r\n8,586,103 \r\n \r\n8,971,755 \r\n \r\n219,353 \r\n \r\n238,727 \r\n \r\n810,444 \r\n \r\n895,906 \r\n \r\n895,906 \r\n \r\n1,025,847 \r\n \r\n19,500 \r\n \r\n19,500 \r\n \r\n50,971 \r\n \r\n136 848 \r\n \r\n137 848 \r\n \r\n729 207 \r\n \r\n$ \r\n \r\n11546531 $ \r\n \r\n11,952,084 $ \r\n \r\n13,924,339 \r\n \r\n$ \r\n \r\n8,134,661 $ \r\n \r\n8,134,646 $ \r\n \r\n9,528,814 \r\n \r\n332,012 171,420 207,897 238,969 752,894 112,268 762,329 \r\n80,790 10,745 40,892 101,654 600,000 \r\n \r\n349,512 172,920 207,897 238,969 752,894 112,268 762,329 \r\n80,790 10,745 40,892 101,654 600,000 \r\n \r\n387,989 222,919 220,376 323,691 764,366 112,290 791,761 \r\n75,574 10,689 40,829 112,947 646,075 \r\n6 240 \r\n \r\n$ \r\n \r\n11546531 $ \r\n \r\n11,565,516 $ \r\n \r\n13,244,560 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n386,568 $ \r\n \r\n679,779 \r\n \r\n150 342 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n386,568 $ \r\n \r\n830,121 \r\n \r\n1,365,394 \r\n \r\n1365394 \r\n \r\n1375413 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n1,365,394 $ \r\n \r\n1,751,962 $ ===2='=,2=0='5,=53=4= \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"2\" \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 Services School Breakfast Program National 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 Donation (1) \r\n \r\n10.550 \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 Special Education Grants to States Preschool Grants \r\n \r\n* 84.027 * 84.173 \r\n \r\nTotal Special Education Cluster \r\n \r\nOther Programs Direct Safe And Drug-Free Schools And Communities National Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Education for Homeless Children and Youth Enhancing Education Through Technology Program Improving Teacher Quality State Grants Safe And Drug-Free Schools And Communities National Programs Title I Grants to Local Educational Agencies State Grants for Innovative Programs Vocational Education - Basic Grants to States \r\n \r\n84.184 \r\n84.332 84.196 84.318 84.367 84.184 84.010 84.298 84.048 \r\n \r\nTotal U. S. Department of Education \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 573 725 \r\n573,725 \r\n \r\nN/A $ \r\n \r\n17 736 591 461 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n322,168 33,023 \r\n355,191 \r\n \r\nNIA N/A NIA \r\nN/A \r\nN/A N/A \r\nN/A \r\nN/A \r\n$ \r\n \r\n15,313 \r\n52,100 15,000 \r\n1,889 47,673 \r\n6,240 97,023 \r\n3,165 12,523 \r\n606117 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$ =====1=19=7=5=78= \r\n \r\n- 28- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR 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 ($32,674) were not maintained separately and are included in the 2006 National School Lunch Program. \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 City of Bremen 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2006 \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 Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs Health Insurance K-3 Statewide Reading Program National Teacher Certification Preschool Handicapped Program Virtual Schools Grant \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n451,093 \r\n \r\n513,898 78,859 \r\n1,240,510 90,979 \r\n607,885 30,790 \r\n904,129 822,601 308,589 \r\n123,418 45,390 \r\n429,006 235,620 \r\n89,625 206,680 \r\n10,750 78,893 162,379 51,885 31,453 \r\n353,310 378,395 441,488 \r\n11,849 3,056 \r\n35,802 47,299 \r\n5,509 4,546 1,049,628 37,094 136,744 -357,754 \r\n242,185 25,000 6,028 35,698 150 \r\n1 296 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30- \r\n \r\n$ ======8=,9=7=1'=75=5= \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2006 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \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\nHaralson County Acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, adding to, renovating, repairing, improving and equipping existing school buildings and other buildings and facilities, useful or desirable in connection therewith, including constructing, modifying and equipping classrooms, acquiring system-wide technology improvements, acquiring school transportation vehicles and acquiring the necessary property for such schools, both real and personal, and for the future school sites, all at a maximum cost of $4,900,000 \r\n \r\n$ 4,900,000 $ 4,900,000 $ \r\n \r\n346,979 $ 2,976,048 Ongoing \r\n \r\nCarroll County Funding the acquisition, construction, renovation, modification, improvement, extending and equipping of projects throughout the City of Bremen School System, including, but without limitation, additions, renovations, and improvements of certain existing system facilities, system-wide technology improvements, the acquisition of school transportation vehicles; the acquisition of land for additional schools, and the acquisition of all property, both real and personal, deemed necessary and advisable therefore including the funding of capitalized interest on debt of the City of Bremen with respect to the Bremen School Projects (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $4,840,000 \r\n \r\n4,840,000 \r\n \r\n4,840,000 \r\n \r\n58,320 \r\n \r\n3,083,496 Ongoing \r\n \r\n$ 9,740,000 $ 9,740,000 $ \r\n \r\n405,299 $ 6,059,544 \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 Haralson County, Carroll County, and the City of Bremen 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\n560,137 $ 85,828 \r\n1,341,419 100,787 647,262 \r\n33,502 994,052 884,763 339,398 1,002,372 \r\n220,205 11,696 85124 \r\n \r\n563,650 $ 90,137 \r\n1,743,298 110,328 795,417 \r\n23,569 1,067,071 1,056,933 \r\n273,036 \r\n12,327 73,003 398,831 204,397 387,034 20,881 90454 \r\n \r\n12,324 $ 595 \r\n54,424 754 \r\n14,815 \r\n346 47,779 61,381 12,281 \r\n7,862 2,426 \r\n282 \r\n758 \r\n511 \r\n \r\n575,974 90,732 \r\n1,797,722 111,082 810,232 \r\n23,915 1,114,850 1,118,314 \r\n285,317 \r\n20,189 75,429 399,113 204,397 387,792 20,881 90965 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n6,306,545 $ 6,910,366 $ \r\n \r\n216,538 $ \r\n \r\n7,126,904 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n175,931 34436 \r\n \r\n188,543 4985 \r\n \r\n26,992 28455 \r\n \r\n215,535 33440 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$====6=,5=16=,9=1=2 $ 7,103,894 $ \r\n \r\n271985 $===7=3=75=8=7=9 \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\nFebruary 16, 2007 \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 City of Bremen 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 City of Bremen Board of Education as of and for the year ended June 30, 2006, which collectively comprise City of Bremen Board of Education's basic financial statements and have issued our report thereon dated February 16, 2007. This report was qualified for a scope limitation, as identified in the auditor's report on the basic financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nThe financial statements of Bremen Educational Foundation, Inc. (Foundation) have not been audited, and we were not engaged to audit the Foundation's financial statements as part ofour audit ofthe School District's basic financial statements. The Foundation's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion for the discretely presented component unit. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Bremen Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting \r\n2006YB-10X \r\n \r\n would not necessarily disclose all matters in the internal control over financial reporting 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 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. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Bremen 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 City ofBremen 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~-. ID ~.4.:t.s. \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\nRWH:as 2006YB-10X \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\nFebruary 16, 2007 \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 City of Bremen 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 ofCity ofBremen Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2006. City of Bremen Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Bremen Board of Education's management. Our responsibility is to express an opinion on City of Bremen 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 City ofBremen Board ofEducation'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 City of Bremen Board of Education's compliance with those requirements. \r\nIn our opinion, the City of Bremen Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2006. \r\nInternal Control Over Compliance \r\nThe management of City of Bremen Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \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 ofthe management, members ofthe City of Bremen 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 2006SA-10 \r\n \r\nRu sell 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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-7631-04-01 FS-7631-05-01 \r\n \r\nFurther Action Not Warranted Previously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Bremen Board of Education's financial statements was qualified for a scope limitation. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Bremen Board of Education did not disclose any reportable conditions related to the financial statements. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen 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 City of Bremen Board of Education 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 City ofBremen Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The City of Bremen Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. \r\n7. Major Programs Federal awards audited as major programs are as follows: 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The City of Bremen 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\nNo matters were reported. \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2006 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2004-h2005","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. 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Hinton State Auditor \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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\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\n10 \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n11 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n25 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY -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\n27 \r\n \r\n3 SCHEDULE OF STATE REVENUE \r\n \r\n28 \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\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - TABLE OF CONTENTS - \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nSECTION V 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 (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 3, 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 City of Bremen 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) of the City of Bremen 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 City of Bremen 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 of Americl'! and the standards applicahle to financial audits contained in Q:9y~-mm~.nL.t\\mJjting 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 opm1ons. \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 City ofBremen Board of Education, as ofJune 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 In accordance with Government Auditing Standards, we have also issued our report dated June 3, 2005, on our consideration ofthe City ofBremen Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope ofour testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \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 25 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 City of Bremen 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~~-~ Russell W. Hinton State Auditor \r\nRWH:as 2004ARL-11 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\nINTRODUCTION \r\nOur discussion and analysis of the City of Bremen School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2004. 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\nThe net assets of the District at June 30, 2003, were unintentionally overstated by $1,223,291 due an understatement of Capital Assets of $374,860 and an overstatement of revenues for property taxes of $1,598,151. Appropriate restatements have been made in the comparative data for the prior year that are included within this discussion. \r\nKey financial highlights for fiscal year 2004 are as follows: \r\nOn the District-wide financial statements: \r\n Total assets of the School District exceeded liabilities by approximately $7.8 million. This represented an increase of $1.8 million in net assets when compared to the restated net assets of the prior year. \r\n The School District had $11.7 million in expenses relating to governmental activities; only $8.9 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) and special items of approximately $4.7 million were adequate to provide for these programs. \r\n As stated above, general revenues and special items accounted for approximately $4.7 million or approximately 34.5% of all revenues totaling $13.5 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \r\nOn the fund financial statements: \r\n Among major funds, the General Fund had $11.6 million in revenues and approximately $11.3 in expenditures. The general fund balance of $1.2 million at June 30, 2004, increased over $0.3 million when compared to the prior year. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual financial report consists of three parts; management's discussion and analysis (this section), 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\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \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 'Fiduciary Funds' statement provides information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the City of Bremen School District, the General Fund, Capital Projects Fund, and Debt Service Fund are all considered to be major funds. The District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \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\nSince the City of Bremen School District has no operations that have been classified as \"Business Activities\", the 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 now 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, student-teacher ratios, and other factors. \r\nThe 'Statement of Net Assets' and the 'Statement of Activities' reflects 100% of the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide \r\n- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\ndetail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \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 be readily 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 government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others 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 Districtwide 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. The reader can think of the School District's net assets as the difference between its assets (i.e., what the School District owns) and its liabilities (i.e., what the School District owes) at the end of a fiscal year. This balance represents one way to measure the School District's financial health or its financial position. In the case of the City of Bremen School District, assets exceeded liabilities by approximately $7.8 million at June 30, 2004. \r\nTo better understand the School District's actual financial position and ability to deliver services in future periods, the reader will need to review the various components of the net asset category. For example, of the $7.8 million of net assets, approximately $0.8 million was restricted for bus replacement, continuation of Federal programs, debt service and completion of capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District also had approximately $6.1 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\nThe remaining balance of unrestricted net assets of over $0.9 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\n- 111 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nTable 1 provides a summary of the School District's net assets as of June 30 for this fiscal year as compared to the prior fiscal year as restated. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 \r\n \r\nYear 2003 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 3,459,137 $ 4,129,403 \r\n \r\n9,642,091 \r\n \r\n8,295,448 \r\n \r\nTotal Assets \r\n \r\n$ 13,101,228 $ 12,424,851 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 1,483,014 $ 1,848,559 \r\n \r\n3,814,502 \r\n \r\n4,577,093 \r\n \r\nTotal Liabilities \r\n \r\n$ 5,297,516 $ 6,425,652 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 6,071,834 $ 4,670,145 \r\n \r\n771,514 \r\n \r\n566,460 \r\n \r\n960,364 \r\n \r\n762,594 \r\n \r\nTotal Net Assets \r\n \r\n$ 7,803,712 $ 5,999,199 \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year as restated. \r\n \r\n- iv - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \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 2004 \r\n \r\nYear 2003 \r\n \r\n$ \r\n \r\n967,516 $ \r\n \r\n900,036 \r\n \r\n7,779,707 \r\n \r\n7,568,658 \r\n \r\n125,497 \r\n \r\n414 763 \r\n \r\nTotal Program Revenues \r\n \r\n$ 8,872,720 $ 8,883,457 \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 Debt Service \r\n \r\nFor Capital Projects \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\nSpecial Items \r\n \r\nDonation \r\n \r\n1,677,046 $ \r\n959,292 410,540 \r\n674,246 25,969 \r\n493,673 422,811 \r\n \r\n1,487,462 \r\n909,352 306,952 \r\n14,930 \r\n965,232 76,001 \r\n480,488 \r\n \r\nTotal General Revenues and Special Items \r\n \r\n$ 4,663,577 $ 4,240,417 \r\n \r\nTotal Revenues \r\n \r\n$ 13,536.297 $ 13,123.874 \r\n \r\nProgram Expenses \r\n \r\nInstruction \r\n \r\n$ 8,048,886 $ 7,717,428 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n345,053 \r\n \r\n300,390 \r\n \r\nImprovement of Instructional Services \r\n \r\n179,792 \r\n \r\n289,842 \r\n \r\nEducational Media Services \r\n \r\n227,580 \r\n \r\n191,019 \r\n \r\nGeneral Administration \r\n \r\n271,593 \r\n \r\n229,176 \r\n \r\nSchool Administration \r\n \r\n728,388 \r\n \r\n629,211 \r\n \r\nBusiness Administration \r\n \r\n111,701 \r\n \r\n100,855 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n556,823 \r\n \r\n841,441 \r\n \r\nStudent Transportation Services \r\n \r\n157,248 \r\n \r\n51,962 \r\n \r\nCentral Support Services \r\n \r\n3,917 \r\n \r\n3,651 \r\n \r\nOther Support Services \r\n \r\n70,899 \r\n \r\n25,667 \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\n298,684 \r\n \r\n326,642 \r\n \r\nFood Services \r\n \r\n568,636 \r\n \r\n509,398 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n162,584 \r\n \r\n185.575 \r\n \r\nTotal Expenses \r\n \r\n$ 11,731.784 $ 11,402.257 \r\n \r\nIncrease in Net Assets \r\n \r\n$ 1,804,513 $ 1,721,617 -v- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nGovernmental Activities \r\n \r\nTable 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 as compared to the prior fiscal year. \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 2004 Year 2003 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear2004 Year 2003 \r\n \r\nInstruction \r\n \r\n$ 8,048,886 $ 7,717,428 $ 1,596,503 $ 1,483,250 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n345,053 \r\n \r\n300,390 \r\n \r\n226,937 \r\n \r\n181,082 \r\n \r\nImprovement of Instructional Services \r\n \r\n179,792 \r\n \r\n289,842 \r\n \r\n2,597 \r\n \r\n44,570 \r\n \r\nEducational Media Services \r\n \r\n227,580 \r\n \r\n191,019 \r\n \r\n79,953 \r\n \r\n50,977 \r\n \r\nGeneral Administration \r\n \r\n271,593 \r\n \r\n229,176 -119,476 -289,408 \r\n \r\nSchool Administration \r\n \r\n728,388 \r\n \r\n629,211 \r\n \r\n355,590 \r\n \r\n273,216 \r\n \r\nBusiness Administration \r\n \r\n111,701 \r\n \r\n100,855 \r\n \r\n111,701 \r\n \r\n100,855 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n556,823 \r\n \r\n841,441 \r\n \r\n121,981 \r\n \r\n379,622 \r\n \r\nStudent Transportation Services \r\n \r\n157,248 \r\n \r\n51,962 \r\n \r\n142,863 \r\n \r\n-30,739 \r\n \r\nCentral Support Services \r\n \r\n3,917 \r\n \r\n3,651 \r\n \r\n3,917 \r\n \r\n3,651 \r\n \r\nOther Support Services \r\n \r\n70,899 \r\n \r\n25,667 \r\n \r\n68,797 \r\n \r\n25,667 \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\n298,684 \r\n \r\n326,642 \r\n \r\n146,058 \r\n \r\n155,095 \r\n \r\nFood Services \r\n \r\n568,636 \r\n \r\n509,398 \r\n \r\n-40,941 \r\n \r\n-44,613 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n162,584 \r\n \r\n185,575 \r\n \r\n162,584 \r\n \r\n185,575 \r\n \r\nTotal Expenses \r\n \r\n$ 11,731,784 $ 11,402.257 $ 2,859,064 $ 2,518,800 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $13 .1 million and total expenditures of $13.5 million in fiscal year 2004. Total governmental fund balances of $1.9 million at June 30, 2004, decreased $0.3 million from the prior year. This decrease occurred mainly because expenditures for capital outlay of approximately $0.6 million were made from reserves that had been accumulated in prior years. \r\n \r\nGeneral Fund Budget 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 year 2004, the School District amended its general fund budget as needed. \r\n \r\n- Vl - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\n \r\nFor the General Fund, the final actual revenues of $11.6 million were over the final budgeted amount of approximately $10.9 million by $0.7 million. This difference (final actual vs. final budget) was primarily attributable to State Funds exceeding the final budget by approximately $171,000 and miscellaneous revenues exceeding the final budget by approximately $366,000. \r\n \r\nThe final actual expenditures of approximately $11.3 million exceeded the final budget by approximately $0.5 million. This difference was primarily attributable to expenditures for instruction exceeding the final budget by approximately $96,000, expenditures for school administration exceeding the final budget by approximately $81,000, and expenditures for enterprise operations exceeding the final budget by approximately $225,000. \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\n \r\nCapital Assets \r\n \r\nAt fiscal year ended June 30, 2004, the School District had over $9.6 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation as compared to the prior fiscal year as restated. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 \r\n \r\nYear 2003 \r\n \r\nLand Construction in Progress Land Improvements Buildings and Improvements Equipment \r\n \r\n$ 522,166 $ \r\n \r\n15,000 \r\n \r\n190,673 \r\n \r\n2,624,190 \r\n \r\n35,138 \r\n \r\n37,327 \r\n \r\n8,654,703 \r\n \r\n5,448,706 \r\n \r\n239,411 \r\n \r\n170,225 \r\n \r\nTotal \r\n \r\n$ 9,642,091 $ 8,295,448 \r\n \r\nDebt \r\n \r\nAt fiscal year ended June 30, 2004, the School District had $3.8 million in debt outstanding. This debt is primarily the result of bonds sold by the City of Bremen, on behalf of the City of Bremen \r\n \r\n-Vll - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n \r\nSchool District, for the purpose of acquisition, construction, equipping, renovating, and repairing of school facilities. Payment of this debt is secured by Haralson and Carroll County local option sales taxes. \r\n \r\nTable 5 summarizes the School District's debt for general obligation bonds and capital leases outstanding as compared to the prior fiscal year. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2004 \r\n \r\nYear 2003 \r\n \r\nBonds Payable Capital Leases \r\n \r\n$ 3,755,000 $ 4,555,000 \r\n \r\n59,502 \r\n \r\n22,093 \r\n \r\nTotal \r\n \r\n$ 3,814.502 $ 4,577.093 \r\n \r\nCURRENT ISSUES \r\n \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations in future years are as follows: \r\n \r\n The School District will continue to face challenges from the implementation of the A+ Education Reform Act, which mandates lower teacher to student ratios. The School District will also be impacted by the remedial actions required for under-performing schools under the No Child Left Behind Act. In the midst of these challenges, the School District remains confident in the ability to maximize resources to provide the best possible educational experience for all of our students. \r\n \r\n State QBE Revenue Reductions - During fiscal year 2004, the State of Georgia implemented a 2.5% QBE revenue formula funding reduction to all state School Districts. This reduction was top of the 2.5% reduction for fiscal year 2003. These two cuts resulted in State funding for the fiscal year 2005 budget being 5% less than its original level. Considering the stagnant economy of the past few years, these formula funding reductions challenge the long-term financial stability of the School District. However, despite these conditions, the City of Bremen School District is strong financially and we remain 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 \r\n- vm - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 \r\n As authorized by the Georgia Legislature, effective January 1, 2005, the School District assumed sole authority to approve and amend its budget, establish appropriate rates for the taxing of property in the incorporated limits of the City of Bremen, and vest title of all property owned in the name of the Board of Education. Prior to enactment of this legislation, the authority for these functions was vested in the City of Bremen local government. We believe this change will enable the School District to better control and maintain its financial affairs in the future. \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. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizen's 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 Dr. Stanley McCain, Superintendent, City of Bremen Board of Education, 504 Laurel Street, Bremen, Georgia 30110. You may also email your questions to Dr. McCain at smccain@doe.kl2.ga.us. \r\n- IX - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF NET ASSETS JUNE 30. 2004 \r\n \r\nEXHIBIT\"A\" \r\n \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 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\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n1,646,808 \r\n \r\n500,000 \r\n \r\n295,707 906,353 \r\n93,415 853 \r\n16,001 \r\n \r\n522,166 190,673 \r\n95,174 10,553,613 \r\n422,375 -2,141,910 \r\n \r\n$ ===1=3=,1=0=1,=22=8= \r\n \r\n$ \r\n \r\n452,036 \r\n \r\n1,030,978 \r\n \r\n27,221 3,787 281 \r\n \r\n$ \r\n \r\n5,297,516 \r\n \r\n$ \r\n \r\n6,071,834 \r\n \r\n22,562 143,392 \r\n1,028 604,532 960,364 \r\n \r\n$ \r\n \r\n7,803,712 \r\n \r\n$ ===1=3..,,1=0=1='2=28== \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2004 \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 Enterprise Operations Food Services Interest on 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 Debt Services For Capital Projects Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Donation \r\nTotal General Revenues and Special Items \r\nChange in Net Assets \r\nNet Assets - Beginning of Year (Restated) \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n8,048,886 $ \r\n \r\n345,053 179,792 227,580 271,593 728,388 111,701 556,823 157,248 \r\n3,917 70,899 \r\n \r\n298,684 568,636 162 584 \r\n \r\n$ \r\n \r\n11 731 784 $ \r\n \r\n439,404 \r\n152,626 375,486 967 516 \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\n5,902,553 $ \r\n \r\n118,116 177,195 147,627 388,843 372,111 \r\n \r\n433,379 11,029 \r\n \r\n2,102 \r\n \r\n226,752 \r\n \r\n$ \r\n \r\n7 779 707 $ \r\n \r\n110,426 $ \r\n2,226 687 \r\n1,463 3,356 \r\n7,339 125 497 $ \r\n \r\n-1,596,503 \r\n-226,937 -2,597 \r\n-79,953 119,476 -355,590 -111,701 -121,981 -142,863 \r\n-3,917 -68,797 \r\n-146,058 40,941 \r\n-162,584 \r\n-2,859,064 \r\n \r\n$ \r\n \r\n1,677,046 \r\n \r\n959,292 410,540 674,246 \r\n25,969 493,673 \r\n \r\n422,811 \r\n \r\n$ \r\n \r\n4,663,577 \r\n \r\n$ \r\n \r\n1,804,513 \r\n \r\n5,999,199 \r\n \r\n$ \r\n \r\n7803712 \r\n \r\n-5- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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$ 1,132,518 $ 500,000 \r\n14,408 906,353 \r\n93,415 853 \r\n16 001 \r\n \r\n513,120 $ 241,766 \r\n \r\n1,170 $ \r\n \r\n1,646,808 500,000 \r\n256,174 906,353 \r\n93,415 853 \r\n16,001 \r\n \r\nTotal Assets \r\n \r\n$ 2,663,548 $ \r\n \r\n754,886 $ \r\n \r\n1 170 $ ======3=4=1=9=60=4= \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved Undesignated Reported in: General Fund \r\nTotal Fund Balances \r\n \r\n$ \r\n \r\n451,325 $ \r\n \r\n1,030,978 \r\n \r\n$ 1,482,303 $ \r\n \r\n$ \r\n \r\n22,562 \r\n \r\n127,391 \r\n \r\n16,001 $ \r\n \r\n1,015,291 $ 1,181,245 $ \r\n \r\n569 $ 569 $ \r\n$ 754,317 754 317 $ \r\n \r\n142 $ 142 $ \r\n$ 1,028 \r\n1 028 $ \r\n \r\n452,036 1,030,978 1,483,014 \r\n22,562 127,391 \r\n1,028 16,001 754,317 \r\n1,015,291 1,936,590 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 2,663,548 $ \r\n \r\n754 886 $ \r\n \r\n1170 $===3=4=1=9=60=4= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30. 2004 \r\n \r\nEXHIBIT\"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Capital Leases \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 1,936,590 \r\n \r\n$ 522,166 190,673 95,174 \r\n10,553,613 422,375 \r\n-2,141,910 \r\n \r\n9,642,091 \r\n \r\n39,533 \r\n \r\n$ -3,755,000 -59,502 \r\n \r\n-3,814,502 \r\n \r\n$ =====7'=80=3=7,=12= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Enterprise Operations 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 \r\nCapital Leases \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$ 1,672,086 $ \r\n7,677,380 776,271 967,516 12,517 484,844 \r\n$ 11,590,614 $ \r\n \r\n410,540 $ 125,799 \r\n13,405 11 429 561,173 $ \r\n \r\n$ 959,292 \r\n47 959,339 $ \r\n \r\n1,672,086 1,369,832 7,803,179 \r\n776,271 967,516 \r\n25,969 496,273 \r\n13,111,126 \r\n \r\n$ 7,666,182 \r\n \r\n337,251 $ 179,792 227,580 268,239 726,008 111,701 717,369 103,930 \r\n3,917 70,899 298,684 543,201 \r\n \r\n7,802 \r\n167,468 90,794 \r\n974,815 \r\n \r\n7,469 1,559 \r\n \r\n45,916 $ 1 591 \r\n \r\n$ 11,263,781 $ 1,288,386 $ \r\n \r\n$ \r\n \r\n326,833 $ -727,213 $ \r\n \r\n$ \r\n800,000 159,434 959,434 $ \r\n-95 $ \r\n \r\n7,666,182 \r\n345,053 179,792 227,580 268,239 726,008 111,701 884,837 194,724 \r\n3,917 70,899 298,684 543,201 974,815 \r\n853,385 162,584 \r\n13,511,601 \r\n-400,475 \r\n \r\n90,794 \r\n \r\n$ \r\n \r\n326,833 $ -636,419 $ \r\n \r\n854,412 \r\n \r\n1,390,736 \r\n \r\n-95 $ 1123 \r\n \r\n90,794 -309,681 2,246,271 \r\n \r\n$ 1 181 245 $ \r\n \r\n754 317 $ \r\n \r\n1 028 $ ===1=,9=36=''=59=0= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY 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\nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \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 Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\n \r\n$ \r\n \r\n-309,681 \r\n \r\n$ 1,533,774 -184,531 \r\n \r\n1,349,243 4,960 \r\n \r\n-2,600 \r\n \r\n-90,794 \r\n \r\n$ 800,000 53,385 \r\n \r\n853,385 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ==1='8=04=,5=1=3 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS $ ==9=0==,4=86= \r\n$ ===90='=48=6= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 10 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofBremen Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes. Accordingly, the School District is a primary government and consists ofall 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 ofthe City of Bremen 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\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 \r\n- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \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, grants from Georgia State Financing and Investment Commission 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 funds, governments or individuals. \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 and claims and judgments, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\nRESTATEMENT OF PRIOR YEAR NET ASSETS \r\nFor fiscal year 2004, the School District restated Net Assets due to an invalid maintenance and operations taxes receivable. The School District decreased net assets at July 1, 2003, in the amount of $1,598,151. This change is in accordance with generally accepted accounting principles. \r\nFor fiscal year 2004, the School District restated Capital Assets due to errors and omissions noted during the initial year ofimplementation ofGASB Statement No. 34. The School District increased Construction in Progress by $239,505. Additionally, the School District increased, net of accumulated depreciation, building and improvements and equipment, $123,974 and $11,381, respectively. The result is an increase in Net Assets at July 1, 2003, of$374,860. This change is in accordance with generally accepted accounting principles. \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- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \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\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 City of Bremen fixed the property tax levy for the 2003 tax digest year (calendar year) on October 16, 2003 (levy date). Taxes were due on December 22, 2003 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Bremen City Clerk bills and collects the property taxes for the School District and remits the 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 $1,672,086. \r\n \r\nThe tax millage rate levied for the 2003 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n5.301 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 $1,369,832 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 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 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 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\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 Equipment \r\n \r\nAll \r\n \r\nNIA \r\n \r\n$ \r\n \r\n10,000 10 to 60 years \r\n \r\n$ \r\n \r\n50,000 45 to 60 years \r\n \r\n$ \r\n \r\n10,000 5 to 30 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 entered into a joint agreement with the City of Bremen whereby the City of Bremen issued general obligation bonds on behalf of the School District. The bond issuance costs are recognized in the financial statement of the School District during the year bonds are issued. \r\n \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nAccording to the terms ofthe aforementioned agreement, the bonds are the direct obligations ofthe School District; therefore, the outstanding amount ofthese bonds is recorded in the Statement ofNet Assets. \r\nNote 3: DEPOSITS \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. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \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- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATJON - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 3: DEPOSITS \r\n \r\nCATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $2,475,898. The amounts of the total bank balances are classified into three categories of credit risk: \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2004, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 664,468 \r\n \r\n2 \r\n \r\n1,586,120 \r\n \r\n3 \r\n \r\n225,310 \r\n \r\nTotal \r\n \r\n$ 2,475.898 \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- 17 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 5: CAPITAL ASSETS \r\n \r\nBalances July 1, 2003 \r\nRestated \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2004 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n15,000 $ \r\n \r\n2,624,190 \r\n \r\n507,166 \r\n \r\n$ \r\n \r\n190 673 $ 2,624,190 \r\n \r\n522,166 190 673 \r\n \r\nTotal Capital Assets Not Being Depreciated $ 2,639,190 $ 697 839 $ 2,624,190 $ 712,839 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 7,197,368 $ 3,356,245 \r\n \r\n374,495 \r\n \r\n103,880 $ \r\n \r\n95,174 \r\n \r\n$ 10,553,613 \r\n \r\n56,000 \r\n \r\n422,375 \r\n \r\n95,174 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n1,748,662 204,270 57 847 \r\n \r\n150,248 32,094 \r\n2 189 \r\n \r\n53,400 \r\n \r\n1,898,910 182,964 60,036 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 5,656,258 $ 3,275,594 $ \r\n \r\n2,600 $ 8,929,252 \r\n \r\nGovernmental Activity Capital Assets - Net $ 8,295,448 $ 3,973,433 $ 2,626,790 $ 9,642,091 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2004, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ 106,421 8 446 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\n$====97='=9===7===5 \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 146,825 \r\n \r\n$ \r\n \r\n2,961 \r\n \r\n913 \r\n \r\n1,945 \r\n \r\n22,129 \r\n \r\n27,948 9 758 \r\n \r\n$ 184,531 \r\n \r\n- 18 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \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, 2004, 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: Debt Services Capital Acquisitions \r\n \r\n$ \r\n$ 358,383 $ 154,737 \r\n \r\n1,170 \r\n \r\nNote 7: 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 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 elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for 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\n- 19 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 7: RISK MANAGEMENT \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 of Year Liability \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n13 070 $ \r\n \r\n13 070 $ \r\n \r\n0 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ \r\n \r\n50,000 \r\n \r\n$ \r\n \r\n50,000 \r\n \r\nNote 8: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Bremen Board of Education has entered into various lease agreements as lessee for buses and copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \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 2001 (Carroll) General Government - Series 2001 (Haralson) \r\n \r\n3.6% 3.9% \r\n \r\n$ 2,030,000 1,725,000 \r\n \r\n$ 3,755,000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows: \r\n \r\n- 20 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 8: LONG-TERM DEBT \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2003 \r\n \r\n$ \r\n \r\n22,093 $ 4,555,000 $ 4,577,093 \r\n \r\nAdditions Capital Leases \r\n \r\n90,794 \r\n \r\n90,794 \r\n \r\nDeductions Debt Retired \r\n \r\n53,385 \r\n \r\n800,000 \r\n \r\n853,385 \r\n \r\nBalance June 30, 2004 \r\n \r\n$ \r\n \r\n59,502 $ 3,755,000 $ 3,814,502 \r\n \r\nPortion of Long-Term Debt Due within One Year \r\n \r\n$ \r\n \r\n27,221 $ \r\n \r\n0 $ \r\n \r\n27,221 \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\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2005 2006 2007 \r\n \r\n$ \r\n \r\n27,221 $ \r\n \r\n28,512 \r\n \r\n3 769 \r\n \r\n2,772 1,481 \r\n151 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n59,502 $ \r\n \r\n4 404 \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 2009 \r\n \r\n$ $ 915,000 \r\n1,050,000 1,190,000 \r\n600,000 \r\n \r\n65,778 115,618 81,382 42,343 \r\n10,800 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 3,755.000 $ 315,921 \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30. 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 9: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of$94,240 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $93,534 \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 $706 \r\nNote 10: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNote 11: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nTRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 22 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2004 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 11: RETIREMENT PLANS \r\nFiscal Year 2004 2003 2002 \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 628,506 $ 626,656 $ 580,998 \r\n \r\n- 23 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 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 Enterprise Operations Food Services Operation \r\nDebt Service \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\n1,718,103 $ \r\n \r\n1,718,103 $ \r\n \r\n1,672,086 \r\n \r\n7,559,257 \r\n \r\n7,506,195 \r\n \r\n7,677,380 \r\n \r\n613,346 \r\n \r\n698,443 \r\n \r\n776,271 \r\n \r\n834.400 \r\n \r\n834.400 \r\n \r\n967,516 \r\n \r\n19,500 \r\n \r\n19,500 \r\n \r\n12,517 \r\n \r\n119 014 \r\n \r\n119,014 \r\n \r\n484,844 \r\n \r\n$ \r\n \r\n10,863,620 $ \r\n \r\n10,895,655 $ \r\n \r\n11,590,614 \r\n \r\n$ \r\n \r\n7,552,126 $ \r\n \r\n7,569,328 $ \r\n \r\n7,666,182 \r\n \r\n292,918 197,314 201,168 242,969 641,634 111,536 787,368 69,331 \r\n11,500 27,268 74,073 527,300 \r\n \r\n292,918 212,009 201,168 243,371 645,443 111,536 787,368 \r\n69,331 11,500 27,268 74,073 527,300 \r\n \r\n337,251 179,792 227,580 268,239 726,008 111,701 717,369 103,930 \r\n3,917 70,899 298,684 543,201 \r\n9,028 \r\n \r\n$ \r\n \r\n10,736,505 $ \r\n \r\n10,772,613 $ \r\n \r\n11,263,781 \r\n \r\n$ \r\n \r\n127,115 $ \r\n \r\n123,042 $ \r\n \r\n326,833 \r\n \r\n$ \r\n \r\n8,798 $ \r\n \r\n8,396 \r\n \r\n-8 798 \r\n \r\n-8,396 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 \r\n \r\n$ \r\n \r\n127,115 $ \r\n \r\n123,042 $ \r\n \r\n1,096,094 \r\n \r\n1,096,094 \r\n \r\n-402.424 \r\n \r\n-402,424 \r\n \r\n326,833 854,412 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n820 785 $ \r\n \r\n816 712 $===1=1=8=1=2=45= \r\n \r\nNotes to the Schedule of Revenues. Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Donation (1) \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Education for Homeless Children and Youth Enhancing Education Through Technology Program Improving Teacher Quality State Grants State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States \r\nTotal U.S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 462,965 \r\n462,965 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n41,532 504 497 \r\n \r\n84.027 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n84.332 84.196 84.318 84.367 84.298 84.010 84.048 \r\n \r\nN/A N/A N/A N/A N/A N/A N/A \r\n$ \r\n \r\n269,001 32,006 \r\n301,007 \r\n71,398 15,000 \r\n3,360 48,004 \r\n5,596 135,188 \r\n8,798 \r\n588,351 \r\n \r\nTotal Federal Financial Assistance \r\n \r\n$ ==~1,~09::,::2;,i;,8~4~8 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \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 ($22,631) were not maintained separately and are included in the 2004 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Bremen Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nGRANTS \r\n \r\nBright From the Start: \r\n \r\nGeorgia Department of Early Care and Learning \r\n \r\nPre-Kindergarten Program \r\n \r\n$ \r\n \r\n371,845 \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 Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Education Equalization Funding Grant Food Services Austerity Reduction Other State Programs 4-8 Statewide After School Program Health Insurance K-3 Statewide Reading Program National Teacher Certification Preschool Handicapped Program Technology/Career Education - Supervision Vocational Construction Related Equipment - State Bonds Lottery Program Student Information System Conversion \r\n \r\n518,545 65,092 \r\n1,081,179 86,102 \r\n451,622 42,771 \r\n988,019 686,733 353,810 \r\n79,630 92,312 435,024 149,884 59,097 117,242 11,477 76,082 147,614 47,418 28,744 \r\n328,691 357,396 420,442 \r\n11,042 3,356 \r\n34,907 46,982 \r\n5,707 578,152 \r\n38,832 -325,944 \r\n12,000 93,534 14,828 \r\n5,625 33,085 \r\n9,008 55,000 \r\n33,789 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n$ \r\n \r\n122,141 \r\n \r\nTOTAL \r\n371,845 \r\n518,545 65,092 \r\n1,081,179 86,102 \r\n451,622 42,771 \r\n988,019 686,733 353,810 \r\n79,630 92,312 435,024 149,884 59,097 117,242 11,477 76,082 147,614 47,418 28,744 \r\n328,691 357,396 420,442 \r\n11,042 3,356 \r\n34,907 46,982 \r\n5,707 578,152 \r\n38,832 -325,944 \r\n12,000 93,534 14,828 \r\n5,625 33,085 \r\n9,008 55,000 \r\n33,789 \r\n122,141 \r\n \r\n- 28 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION-HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Office of Planning and Budget Art Challenge \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Transportation, Georgia Department of Paving Project Reimbursement \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\n30,000 \r\n \r\n706 \r\n \r\n$ \r\n \r\n30,000 \r\n \r\n706 \r\n \r\n$ \r\n \r\n3,658 \r\n \r\n3,658 \r\n \r\n$ 7,677,380 $ \r\n \r\n125 799 $ ==7=8=0=3=1=79=== \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2004 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nHARALSON COUNTY Acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, adding to, renovating, repairing, improving and equipping existing school buildings and other buildings and facilities, useful or desirable in connection therewith, including constructing, modifying and equipping classrooms, acquiring system-wide technology improvements, acquiring school transportation vehicles and acquiring the necessary property for such schools, both real and personal, and for the future school sites, all at a maximum cost of $4,900,000 \r\nCARROLL COUNTY Funding the acquisition, construction, renovation, modification, improvement, extending and equipping of projects throughout the City of Bremen School System, including, but without limitation, additions, renovations, and improvements of certain existing system facilities, systemwide technology improvements, the acquisition of school transportation vehicles; the acquisition of land for additional schools, and the acquisition of all property, both real and personal, deemed necessary and advisable therefor including the funding of capitalized interest on debt of the City of Bremen with respect to the Bremen School Projects (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $4,840,000 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS(2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 4,900,000 $ 4,900,000 $ \r\n \r\n838,572 $ 1,570,300 Ongoing \r\n \r\n4,840,000 \r\n \r\n4,840,000 \r\n \r\n609,248 \r\n \r\n2,348,383 Ongoing \r\n \r\n$ 9,740,000 $ 9,740,000 $ 1,447,820 $ 3,918,683 \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 Haralson County, Carroll County and the City of Bremen 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\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\nCategory V \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\n560,613 $ 70,637 \r\n1,151,505 96,832 \r\n508,681 \r\n42,913 1,063,418 \r\n752,149 366,033 \r\n78,474 94,572 471,776 168,530 58,460 131,666 11,236 81,782 \r\n \r\n513,340 $ 64,297 1,529,372 94,507 620,080 \r\n13,996 1,049,577 1,074,359 \r\n241,045 \r\n10,650 48,857 427,490 131,403 \r\n4,903 88,429 \r\n3,747 36 969 \r\n \r\n11,841 $ 7 \r\n39,498 1,986 \r\n10,143 \r\n7 23,972 52,665 \r\n1,923 \r\n269 \r\n441 \r\n22,828 \r\n \r\n525,181 64,304 \r\n1,568,870 96,493 \r\n630,223 \r\n14,003 1,073,549 1,127,024 \r\n242,968 \r\n10,919 48,857 427,490 131,403 \r\n4,903 88,870 \r\n3,747 59,797 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n5,709,277 $ 5,953,021 $ \r\n \r\n165,580 $ \r\n \r\n6,118,601 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n159,165 31 232 \r\n \r\n166,656 \r\n \r\n26,999 20,029 \r\n \r\n193,655 20,029 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n5 899,674 $ 6 119,677 $ \r\n \r\n212,608 $ ===6,\"=3=32=,2=8=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- 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\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 3, 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 City of Bremen 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 City of Bremen Board of Education as of and for the year ended June 30, 2004, which collectively comprise City of Bremen Board of Education's basic financial statements and have issued our report thereon dated June 3, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit, we considered City of Bremen Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect City of Bremen Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7631-04-01. \r\n \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 City of Bremen 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 City ofBremen Board ofEducation and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n0#4.,~~~ \r\n~~ell W. Hinton State Auditor \r\nRWH:as 2004YB-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\n254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 \r\nJune 3, 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 City of Bremen 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 City ofBremen Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2004. City of Bremen 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 City of Bremen Board of Education's management. Our responsibility is to express an opinion on City of Bremen 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 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 City of Bremen Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Bremen Board of Education's compliance with those requirements. \r\n2004SA-10 \r\n \r\n In our opinion, the City of Bremen Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2004. \r\nInternal Control Over Compliance \r\nThe management of City of Bremen Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. \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 ofthe management, members ofthe City of Bremen 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\nRespectfully submitted, \r\n \r\nRWH:as 2004SA-10 \r\n \r\nState Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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-7631-03-01 \r\n \r\nUnresolved - See Corrective Action/Reponses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nREVENUES/RECEIPTS/RECEIVABLES EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7631-03-01 \r\n \r\nThe Board of Education is in the process of implementing procedures to further segregate duties of staff members made responsible for account functions. The Board is currently working to meet this audit requirement. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Bremen Board of Education's financial statements was unqualified. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Bremen Board of Education disclosed a financial statement reportable condition related to the following control categories. \r\nExpenditures/Liabilities/Disbursements Revenues/Receivables/Receipts \r\nThe reportable condition described above is not considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen 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 City of Bremen Board of Education 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 City ofBremen Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The City ofBremen Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \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 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The City of Bremen Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7631-04-01 Our examination of the principals' accounts disclosed weaknesses in internal control as discussed below: Revenues/Receivables/Receipts \r\nDeposit preparation was not separated from the record keeping and cash custody functions. Expenditures/Liabilities/Disbursements \r\nBased on a test of twenty-five items, fourteen (14) voucher packets included purchase request forms which were dated and approved after the invoice date and three (3) voucher packets did not include any supporting documentation. These deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for account functions and failure to ensure established controls were functioning as designed. Management should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization be segregated. Additionally, controls should be revised and monitored to provide reasonable assurance that transactions are processed according to established procedures. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n SECTIONV MANAGEMENT'S RESPONSES \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF MANAGEMENT'S RESPONSES YEAR ENDED JUNE 30, 2004 \r\nFinding Control Number: FS-7631-04-01 \r\nSchool bookkeepers will implement procedures to insure purchase orders are approved and dated prior to invoices. The School Principals will insure that deposit preparation duties are separated from record keeping and cash custody functions. \r\nContact Person: Judy Sweatt, Bookkeeper Phone: (770) 537-5508, Fax Number: (779) 537-0610 Email: judy.sweat@bremencs.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2002-h2003","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2003-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001?; ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: City of Bremen Board of Education, Haralson County, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (City of Bremen Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"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":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["City of Bremen Board of Education, Haralson County, 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-be33-bb6-b2002-h2003"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-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":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":"CITY OF BREMEN BOARD OF EDUCATION \r\nHARALSON COUNTY, GEORGIA REPORT ON AUDIT \r\nOF 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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\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\n27 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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\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\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 (404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400 \r\nApril 21, 2004 \r\n \r\nHonorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education \r\nand Superintendent and Members ofthe City of Bremen 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 City of Bremen 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 City ofBremen 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 op1mons. \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 City of Bremen 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 As 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, consolidated its individual school activity accounts for inclusion in the basic financial statements and changed its method of accounting for the salaries of certain ten-month employees from a cash basis to a basis that is generally accepted. These changes are in accordance with generally accepted accounting principles. \r\nAs described in Note 2, the City of Bremen 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 April 21, 2004, on our consideration ofthe City ofBremen Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \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 City of Bremen 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~-'-..O l ~ ~ \r\n~sell W. Hinton State Auditor \r\nRWH:as 2003-34ARL-11 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nINTRODUCTION \r\nOur discussion and analysis of the City of Bremen Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2003. 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. The reader should also note that this fiscal year (fiscal year 2003) is the School District's first year of implementation of GASB Statement #34, a new financial reporting model. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2003 are as follows: \r\n The School District implemented GASB 34 for fiscal year 2003. Due to this being the implementation year, many comparisons are not available that will be available in fiscal year 2004. \r\n On the district-wide financial statements, the assets of the School District exceeded liabilities by $7.2 million. Of this amount, $2.3 million is unrestricted and is available for spending at the School District's discretion. \r\n The School District had $11.8 million in expenses relating to governmental activities; only $8.9 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of$5.8 million were more than adequate to provide for these programs. \r\n As stated above, General Revenues accounted for $5.8 million or about 40% of all revenues totaling $14.7 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis (this section), 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\n1 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \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. In the case of the City of Bremen Board of Education, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \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\nSince the City of Bremen Board of Education has no operations that have been classified as \"Business Activities\", the 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 now 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, student-teacher ratios, and other factors. \r\nThe 'Statement of Net Assets' and the 'Statement of Activities' reflects 100% of the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor Funds as defined by GASB Statement 34. \r\n11 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \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 be readily 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 government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others and 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. The reader can think of the School District's net assets as the difference between its assets (i.e., what the School District owns) and its liabilities (i.e., what the School District owes) at the end of a fiscal year. This balance represents one way to measure the School District's financial health or its financial position. In the case of the City of Bremen Board of Education, assets exceeded liabilities by $7.2 million at June 30, 2003. \r\nTo better understand the School District's actual financial position and ability to deliver services in future periods, the reader will need to review the various components of the net asset category. For example, of the $7.2 million of net assets, almost $0.6 million was restricted for bus replacement, continuation of Federal programs, debt service, and completion of ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District had $4.3 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \r\nThe remaining balance of unrestricted net assets of $2.3 million may be used to meet the School District's ongoing obligations to citizens and creditors. \r\n111 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nTable 1 provides a summary of the School District's net assets for this fiscal year. Since this is the first year the School District has prepared financial statements following GASB Statement 34, net asset comparisons to fiscal year 2002 are not available. \r\n \r\nTable 1 Net Assets (in Thousands) \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 5,727,554 7,920,588 \r\n \r\nTotal Assets \r\n \r\n$ 13,648,142 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 1,848,559 4,577,093 \r\n \r\nTotal Liabilities \r\n \r\n$ 6,425,652 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 4,295,285 566,460 \r\n2,360,745 \r\n \r\nTotal Net Assets \r\n \r\n$ 1,222i490 \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year. Since this is the first year the School District has prepared financial statements following GASB Statement 34, revenue and expense comparisons to fiscal year 2002 are not available. \r\n \r\nlV \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nTable2 Change in Net Assets \r\n(in Thousands) \r\nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nTotal Revenues \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 Enterprise Operations Food Services Interest on Long-Term Debt \r\nTotal Expenses \r\nIncrease in Net Assets \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n$ 900,036 7,568,658 414,763 \r\n$ 8,883,457 \r\n$ 3,085,613 \r\n909,352 306,952 \r\n14,930 \r\n965,232 76,001 \r\n480,488 \r\n$ 5,838,568 \r\n$ 14,722,025 \r\n$ 8,015,692 \r\n300,390 289,842 191,019 235,189 631,066 100,855 845,392 \r\n96,916 3,651 \r\n25,667 \r\n326,642 529,221 185,575 \r\n$ 11,777,117 \r\n$ 2!9442908 \r\n \r\nV \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \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. Since this is the first year the School District has prepared financial statements following GASB Statement 34, cost of service comparisons for fiscal year 2002 are not available. \r\n \r\nTable3 Governmental Activities \r\n(in Thousands) \r\n \r\nTotal Cost of Services Fiscal Year 2003 \r\n \r\nNet Cost of Services Fiscal Year 2003 \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 Enterprise Operations Food Services Interest on Long-Term Debt \r\n \r\n$ 8,015,692 $ 1,781,514 \r\n \r\n300,390 289,842 191,019 235,189 631,066 100,855 845,392 \r\n96,916 3,651 \r\n25,667 \r\n \r\n181,082 44,570 50,977 -283,395 275,071 100,855 383,573 14,215 \r\n3,651 25,667 \r\n \r\n326,642 529,221 185,575 \r\n \r\n155,095 -24,790 185,575 \r\n \r\nTotal Expenses \r\n \r\n$ 11,7771117 $ 2,893,660 \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 almost $13 .2 million and total expenditures of $16.7 million. Included in the expenditures of $16.7 million were capital outlay expenditures of almost $4 million. Revenues to fund these capital outlay expenditures were received through a sale of General Obligation Bonds in a prior fiscal year. \r\n \r\nvi \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nGeneral Fund Budget Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. \r\nDuring the course of fiscal year 2003, the School District amended its general fund budget as needed. The School District uses site-based budgeting as a part of the budget process. The budgeting systems are designed to control total site budgets but provide flexibility for site management. \r\nFor the General Fund, the final actual revenues of $11.4 million exceeded the final budgeted amounts of $10.5 million by $0.9 million. This difference (final actual vs. final budget) was due primarily to Federal funds revenues in excess of budget of $0.3 million, charges for services revenues over final budget of $0.2 million, and miscellaneous revenues over final budget in excess of $0.3 million. \r\nThe final actual expenditures of $11.2 million exceeded the final budgeted amount of $10.5 million by $0.7 million. This difference (final actual vs. final budget) was due primarily to expenditures for Instruction exceeding budget by $0.4 million and expenditures for Enterprise Operations exceeding budget by $0.2 million. The budget over-expenditure for Instruction was caused primarily because expenditures funded by State Lottery revenues (Pre-K Program) and Special Grants (K-3 Reading; and 4-8 Reading and Math) were not included in the School District level operating budget. Additionally, the budget over expenditure in Enterprise Operations was caused primarily because expenditures for the After School Program and expenditures for Student Activities made at the local schools were not included in the School District level operating budget. \r\nIt should be noted that actual General Fund revenues exceeded actual expenditures by $209,669. As a result of this excess of revenues over expenditures, together with other factors, the unreserved undesignated fund balance of the General Fund at fiscal year end increased in excess of 15% from the prior year to $749,998 at June 30, 2003. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt June 30, 2003, the School District had $7.9 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. Since this is the first year the School District has prepared financial statements following GASB Statement 34, capital assets comparisons to fiscal year 2002 are not available. \r\nvu \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\n \r\nTable 4 Capital Assets (Net of Depreciation, in Thousands) \r\n \r\nGovernmental Activities Fiscal Year 2003 \r\n \r\nLand Construction in Progress Buildings Equipment Land Improvements \r\n \r\n$ 15,000 2,384,685 5,324,732 158,844 37,327 \r\n \r\nTotal \r\n \r\n$ 7,920.588 \r\n \r\nAdditional information on the School District's Capital Assets can be found in the Notes to the Financial Statements. \r\n \r\nDebt \r\n \r\nAt June 30, 2003, the School District had almost $4.6 million in debt outstanding. This debt is primarily the result of bonds sold by the City of Bremen, on behalf of the City of Bremen School District, for the purpose of the acquisition, construction, equipping, renovating, and repairing of school facilities. Payment of this debt is secured by Haralson and Carroll County local option sales taxes. \r\n \r\nTable 5 summarizes the School District's debt. \r\n \r\nTable 5 Debt at June 30 (in Thousands) \r\n \r\nGovernmental Activities Fiscal Year2003 \r\n \r\nCapital Leases General Obligation Bonds \r\n \r\n$ 22,093 4,555.000 \r\n \r\nTotal \r\n \r\n$ 4,577.093 \r\n \r\nAdditional information can be found on the School District's debt obligations in the Notes to the Financial Statements. \r\n \r\nvm \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2003 \r\nCURRENT ISSUES \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations in future years are as follows: \r\n As was the case in the prior year, the State of Georgia is suffering from the effects of the prevailing unfavorable economic conditions. Total revenue collections for the State for the 2003 fiscal year were down roughly 3% compared to the previous period. This has forced the State's Office of Planning and Budget to continue reducing the budgets of the various government agencies. \r\n State QBE Revenue Reductions - During the current fiscal year the State of Georgia implemented a 2.5% QBE revenue formula funding reduction to all state school districts. This funding reduction carried forward into the fiscal year 2004. Additionally, because state revenues are falling well below the projected amounts, all state school districts have been warned to expect a 5% reduction of revenues for fiscal year 2005. Considering the stagnant economy of the past few years, these formula funding reductions will seriously affect the long-term financial stability of the School District. Despite these challenges, the City of Bremen Board of Education is strong financially and we remain 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, education local option sales taxes 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 \r\nThis financial report is designed to provide our citizen's 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 Dr. Stanley McCain, Superintendent, City of Bremen Board of Education, 504 Laurel Street, Bremen, Georgia 30110. You may also email your questions to Dr. McCain at smccain@doe.kl2.ga.us. \r\nIX \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF NET ASSETS JUNE 30, 2003 \r\n \r\nEXHIBIT\"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Deferred Revenue 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\nBus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n2,865,650 \r\n \r\n1,875,975 870,228 104,602 11,099 \r\n \r\n15,000 2,384,685 \r\n95,174 7,072,403 \r\n376,368 -2,023,042 \r\n \r\n$ ===1~3,~64~8.,;,1,.,;,;42;,,. \r\n \r\n$ \r\n \r\n429,141 \r\n \r\n1,095,101 \r\n \r\n70 \r\n \r\n196,541 \r\n \r\n127,706 \r\n \r\n7,469 4,569,624 \r\n \r\n$ \r\n \r\n6,425,652 \r\n \r\n$ \r\n \r\n4,295,285 \r\n \r\n23,235 81,179 \r\n1,123 460,923 2,360,745 \r\n \r\n$ \r\n \r\n7,222,490 \r\n \r\n$ =====13.,i,;,6;;.,4;,;;;8.,1.,=42= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Enterprise Operations Food Services Interest on 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 Debt Services For Capital Projects 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 - Ending of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n8,015,692 $ \r\n \r\n300,390 289,842 191,019 235,189 631,066 100,855 845,392 \r\n96,916 3,651 \r\n25,667 \r\n \r\n326,642 529,221 185,575 \r\n \r\n$ \r\n \r\n11777117 $ \r\n \r\n375,400 \r\n171,547 353,089 900,036 \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\n5,542,691 $ \r\n \r\n119,308 245,272 140,042 509,343 353,146 \r\n \r\n455,749 25,794 \r\n \r\n177,313 \r\n \r\n$ \r\n \r\n7,568,658 $ \r\n \r\n316,087 $ \r\n9,241 2,849 6,070 56,907 \r\n23,609 414 763 $ \r\n \r\n-1,781,514 \r\n-181,082 -44,570 -50,977 283,395 -275,071 \r\n-100,855 -383,573 \r\n-14,215 -3,651 \r\n-25,667 \r\n-155,095 24,790 \r\n-185 575 \r\n-2,893,660 \r\n \r\n$ \r\n \r\n3,085,613 \r\n \r\n909,352 306,952 \r\n14,930 965,232 \r\n76,001 480488 \r\n \r\n$ \r\n \r\n5,838,568 \r\n \r\n$ \r\n \r\n2,944,908 \r\n \r\n4,277,582 \r\n \r\n$ ===7=,2=2=2=,49=0= \r\n \r\n-5- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30. 2003 \r\n \r\nEXHIBIT\"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Inventories \r\nTotal Assets \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Deferred Revenue Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Bus Replacement Continuation of Federal Programs Debt Service Inventories Capital Projects \r\nUnreserved 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$ 1,376,395 $ 1,488,132 $ \r\n \r\n37,150 847,454 104,602 \r\n11 099 \r\n \r\n206,101 22,774 \r\n \r\n1,123 $ 2,865,650 \r\n243,251 870,228 104,602 \r\n11,099 \r\n \r\n$ 2,376,700 $ 1,717,007 $ 1 123 $ 4,094,830 \r\n \r\n$ 427,117 $ 1,095,101 70 \r\n$ 1,522,288 $ \r\n \r\n2,024 \r\n196,541 127,706 326,271 \r\n \r\n$ 429,141 1,095,101 70 196,541 127,706 \r\n$ 1,848,559 \r\n \r\n$ 23,235 70,080 $ 11,099 $ 1,390,736 \r\n \r\n$ 23,235 \r\n \r\n70,080 \r\n \r\n1,123 \r\n \r\n1,123 \r\n \r\n11,099 \r\n \r\n1,390,736 \r\n \r\n749,998 $ 854,412 $ 1,390,736 $ \r\n \r\n749,998 1123 $ 2,246,271 \r\n \r\n$ 2,376,700 $ 1,717,007 $ 1 123 $ 4,094,830 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\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 Capital Leases \r\nTotal Long-Term Liabilities \r\n \r\n$ 2,246,271 \r\n \r\n$ \r\n \r\n15,000 \r\n \r\n2,384,685 \r\n \r\n95,174 \r\n \r\n7,072,403 \r\n \r\n376,368 \r\n \r\n-2,023,042 \r\n \r\n7,920,588 \r\n \r\n1,632,724 \r\n \r\n$ -4,555,000 -22,093 \r\n \r\n-4,577,093 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ ====7,=22=2=,4=90= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -7- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Enterprise Operations 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\nCapital Leases 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$ 1,515,534 14,930 $ \r\n7,808,223 686,643 900,036 16,845 483,738 \r\n$ 11,425,949 $ \r\n \r\n306,952 $ 450,537 \r\n58,152 \r\n815,641 $ \r\n \r\n$ 909,352 \r\n1,004 910,356 $ \r\n \r\n1,515,534 1,231,234 8,258,760 \r\n686,643 900,036 \r\n76,001 483,738 \r\n13,151,946 \r\n \r\n$ 7,867,839 \r\n \r\n$ \r\n \r\n300,390 289,842 191,019 230,867 629,733 \r\n98,867 $ 612,392 \r\n61,547 3,651 \r\n25,667 326,642 562,029 \r\n \r\n1,988 472,109 \r\n8,750 \r\n3,965.729 \r\n \r\n13,535 2,260 \r\n \r\n31,565 $ 1 385 \r\n \r\n830,000 181,930 \r\n \r\n$ 11,216,280 $ 4,481,526 $ 1,011,930 $ \r\n \r\n$ \r\n \r\n209,669 $ -3,665,885 $ -101 574 $ \r\n \r\n7,867,839 \r\n300,390 289,842 191,019 230,867 629,733 100,855 1,084,501 \r\n70,297 3,651 \r\n25,667 326,642 562,029 3,965,729 \r\n875,100 185,575 \r\n16,709,736 \r\n-3,557,790 \r\n \r\n$ \r\n \r\n7,888 \r\n \r\n$ \r\n \r\n7,888 \r\n \r\n1,669 $ \r\n \r\n349 $ \r\n \r\n16,820 \r\n \r\n18,838 \r\n \r\n-318 \r\n \r\n-18 489 \r\n \r\n-31 \r\n \r\n-18 838 \r\n \r\n$ \r\n \r\n9239 $ \r\n \r\n-18 140 $ \r\n \r\n16 789 $ \r\n \r\n7 888 \r\n \r\n$ \r\n \r\n218,908 $ -3,684,025 $ \r\n \r\n-84,785 $ -3,549,902 \r\n \r\n635,504 \r\n \r\n5,074,761 \r\n \r\n85,908 \r\n \r\n5,796,173 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n854,412 $ 1,390,736 $ \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -8- \r\n \r\n1123 $=~2~,2,;;4~6,~27~1~ \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2003 \r\n \r\nEXHIBIT\"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\n \r\n$ \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$ 4,190,423 -132,904 \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\nIn Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. \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 Capital Lease Payments \r\nTotal Long-Term Debt Repayments \r\n \r\n$ 830,000 45100 \r\n \r\n-3,549,902 \r\n4,057,519 1,570,079 \r\n-7,888 875,100 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ ==2,,..94.,.4.,9...,0,..8 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30. 2003 \r\n \r\nEXHIBIT\"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS $ ====7=7=78=8= \r\n$ ===7=7=78=8= \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City ofBremen Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes. Accordingly, the School District is a primary government and consists ofall 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 ofthe City of Bremen 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, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n \r\n- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 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, grants from the Georgia State Financing and Investment Commission 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 (property and sales) legally restricted for the payment of general long-term 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 funds, governments or individuals. \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 and claims and judgments, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\nFor fiscal year 2003, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2003 financial statements to record costs for salaries and fringe benefits earned by employees through June 30, 2003, (even though paid in July and August 2003) and the related revenue due from the State to fund these contracts. Adjustments were also made for the similar salaries, benefits and related State revenues earned in fiscal year 2002 and recorded in fiscal year 2003. \r\nThe net effect of the above accounting treatment results in the accompanying financial statements reflecting costs for those salaries and benefits earned by employees during fiscal year 2003 and the related State revenue to fund these contracts. In addition, both the net assets and fund balance at July 1, 2002, have been restated for salaries and benefits earned by employees in fiscal year 2002 but not paid until July and August 2002 and for the related State revenue for these contracts. This change is in accordance with generally accepted accounting principles. See Restatement of Prior Year Fund Balance. \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND \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 $109,004 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$160,181 at July 1, 2002. This change is in accordance with generally accepted accounting principles. \r\n \r\n- 14 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nGeneral Fund Balance July 1, 2002 \r\n \r\n$ 681,231 \r\n \r\nAdd Funds Consolidated with General Fund: School Food Services Fund School Activity Account - Governmental Activity \r\n \r\n109,004 160,181 \r\n \r\nAdd: State Revenue Related to July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n844,186 \r\n \r\nDeduct: July and August 2002 Salary Payments Earned by Employees in Fiscal Year 2002 \r\n \r\n1,159,098 \r\n \r\nGeneral Fund Balance July 1, 2002 (Restated) \r\n \r\n$ 635.504 \r\n \r\nCHANGES IN ACCOUNTING PRINCIPLES \r\n \r\nThe City of Bremen 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 ofa 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$ 635,504 5,074,761 85,908 \r\n \r\nGovernmental Funds (Restated) July 1, 2002 Capital Assets Accumulated Depreciation Property Tax Revenue Timing Differences Bonds Payable Capital Leases Payable \r\n \r\n$ 5,796,173 5,753,207 -1,890,138 62,645 -5,385,000 -59,305 \r\n \r\nNet Assets Beginning (See Exhibit \"B\") \r\n \r\n$ 4,277.582 \r\n \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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\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 City of Bremen fixed the property tax levy for the 2002 tax digest year (calendar year) on October 20, 2002 (levy date). Taxes were due on December 20, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2002 tax digest are reported as revenue in the governmental funds for fiscal year 2003. The Bremen City Clerk bills and collects the property taxes for 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 $1,515,534. \r\n \r\nThe tax millage rate levied for the 2002 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n5.032 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 $1,216,304 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- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \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 ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \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 ofnormal 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 Equipment \r\n \r\nALL \r\n \r\nNIA \r\n \r\n$ \r\n \r\n10,000 10 to 60 years \r\n \r\n$ \r\n \r\n50,000 45 to 60 years \r\n \r\n$ \r\n \r\n10,000 5 to 30 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 entered into a joint agreement with the City of Bremen whereby the City of Bremen issued general obligation bonds on behalfofthe school system. The bond issuance costs are recognized in the financial statements of the School District during the year bonds are issued. According to the terms ofthe aforementioned agreement, the bonds are the direct obligations ofthe School District; therefore, the outstanding amount ofthese bonds is recorded in the Statement ofNet Assets. \r\n \r\n- 17 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS \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 ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. \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 ofthe bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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, 2003, the bank balances were $3,177,812. The amounts of the total bank balances are classified into three categories of credit risk: \r\n \r\n- 18 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 3: DEPOSITS \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) \r\n \r\nThe School District's deposits are classified by risk category at June 30, 2003, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 220,990 \r\n \r\n2 \r\n \r\n2,802,625 \r\n \r\n3 \r\n \r\n154,197 \r\n \r\nTotal \r\n \r\n$ 3,177.812 \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- 19 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \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, 2002 \r\n \r\nIncreases \r\n \r\nBalances Decreases June 30, 2003 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n15,000 \r\n \r\n$ \r\n \r\n15,000 \r\n \r\n182,007 $ 2,252,316 $ \r\n \r\n49,638 \r\n \r\n2,384,685 \r\n \r\nTotal Capital Assets Not Being Depreciated $ \r\n \r\n197,007 $ 2,252,316 $ \r\n \r\n49,638 $ 2,399,685 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 5,128,509 $ 1,943,894 \r\n \r\n332,517 \r\n \r\n43,851 \r\n \r\n95,174 \r\n \r\n$ 7,072,403 376,368 95,174 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n1,641,360 193,080 55,698 \r\n \r\n106,311 24,444 \r\n2 149 \r\n \r\n1,747,671 217,524 57 847 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 3,666,062 $ 1,854,841 $ \r\n \r\n0 $ 5,520,903 \r\n \r\nGovernmental Activity Capital Assets - Net $ 3.863.069 $ 4,107,157 $ \r\n \r\n49.638 $ 7,920.588 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 101,285 \r\n \r\n$ \r\n \r\n2,961 \r\n \r\n913 \r\n \r\n1,945 \r\n \r\n18,235 \r\n \r\n24,054 7,565 \r\n \r\n$ 132,904 \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nSpecial Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds, Georgia State Financing and Investment Commission (GSFIC) funds 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\n-20- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 6: RESTRICTED ASSETS \r\n \r\nRestricted Cash and Cash Equivalents: Debt Services Capital Acquisitions \r\n \r\nDistrict-wide Capital Projects \r\n \r\nBond \r\n \r\nSPLOST \r\n \r\nProceeds \r\n \r\nGSFIC \r\n \r\nDebt Service Funds \r\n \r\n$ \r\n \r\n$ \r\n \r\n266,014 $ 960,085 $ \r\n \r\n262,033 \r\n \r\n1,123 \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\nGeneral Fund District-wide Capital \r\nProjects Debt Service Funds \r\nTotal \r\n \r\nGeneral Fund \r\n \r\nTransfers From District-wide Capital Projects \r\n \r\nDebt Service Funds \r\n \r\n$ \r\n \r\n1,669 \r\n \r\n$ \r\n \r\n318 \r\n \r\n$ \r\n \r\n31 \r\n \r\n16,820 \r\n \r\n$ \r\n \r\n318 $ \r\n \r\n18,489 $ \r\n \r\n31 \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 (2) to move sales tax revenues, and bond proceeds collected by the district-wide Capital Projects Fund to the Debt Service Fund for retirement of debt. \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 has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 8: RISK MANAGEMENT \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditures an liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the last two fiscal years. \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $400,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Board Treasurer All Other Employees \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n10,000 \r\n \r\n$ \r\n \r\n50,000 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Bremen Board of Education has entered into various lease agreements as lessee for copiers and mobile classrooms. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date oftheir inception. \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 2001 (Carroll) General Government - Series 2001 (Haralson) \r\n \r\n3.6% 3.39% \r\n \r\n$ 2,390,000 2,165.000 \r\n \r\n$ 4,555.000 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2003, were as follows: \r\n \r\n-22- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nGovernmental Funds \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nObligation \r\n \r\nLeases \r\n \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2002 \r\n \r\n$ \r\n \r\n59,305 $ 5,385,000 $ 5,444,305 \r\n \r\nAdditions Capital Leases \r\n \r\n7,888 \r\n \r\n7,888 \r\n \r\nDeductions Debt Retired \r\n \r\n45,100 \r\n \r\n830,000 \r\n \r\n875,100 \r\n \r\nBalance June 30, 2003 \r\n \r\n$ \r\n \r\n22,093 $ 4,555.000 $ 4,577,093 \r\n \r\nPortion of Long-Term Debt \r\n \r\nDue within One Year \r\n \r\n$ \r\n \r\n7 469 $ \r\n \r\n0 $ \r\n \r\n7 469 \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\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2004 2005 2006 2007 \r\n \r\n$ \r\n \r\n7,469 $ \r\n \r\n1,559 \r\n \r\n5,209 \r\n \r\n1,031 \r\n \r\n5,646 \r\n \r\n594 \r\n \r\n3 769 \r\n \r\n150 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n22,093 $ \r\n \r\n3,334 \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 2009 \r\n \r\n$ $ 800,000 \r\n915,000 1,050,000 1,190,000 \r\n600,000 \r\n \r\n79,717 145,495 115,618 81,382 42,343 \r\n10,800 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 4,555.00Q $ 475,355 \r\n \r\n- 23 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and costs in the amount of $100,877 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 $88,356 \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 $12,521 \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2003, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n03/02S-763-026 \r\n \r\n$ 309,901 $====59-,0==9===6 \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\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 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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2003 \r\n \r\nEXHIBIT\"H\" \r\n \r\nNote 13: 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% 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\n2003 2002 2001 \r\n \r\n100% 100% 100% \r\n \r\n$ 626,656 $ 580,998 $ 661,272 \r\n \r\n- 25 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Enterprise Operations Food Services Operation \r\nDebt Service \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\n1,560,000 $ \r\n \r\n1,560,000 $ \r\n \r\n1,515,534 \r\n \r\n14,930 \r\n \r\n7,157,710 \r\n \r\n7,720,656 \r\n \r\n7,808,223 \r\n \r\n135,771 \r\n \r\n359,120 \r\n \r\n686,643 \r\n \r\n690,200 \r\n \r\n690,200 \r\n \r\n900,036 \r\n \r\n29,000 \r\n \r\n29,000 \r\n \r\n16,845 \r\n \r\n22,000 \r\n \r\n137 014 \r\n \r\n483 738 \r\n \r\n$ \r\n \r\n9,594,681 $ \r\n \r\n10,495,990 $ \r\n \r\n11,425,949 \r\n \r\n$ \r\n \r\n6,952,705 $ \r\n \r\n7,466,305 $ \r\n \r\n7,867,839 \r\n \r\n203,818 80,822 \r\n187,151 192,454 640,295 \r\n95,895 581,327 \r\n63,370 11,210 27,861 \r\n534,300 \r\n \r\n265,925 312,807 187,151 218,525 625,843 \r\n95,895 588,108 \r\n63,370 11,210 27,861 99,320 535,750 \r\n \r\n300,390 289,842 191,019 230,867 629,733 \r\n98,867 612,392 \r\n61,547 3,651 \r\n25,667 326,642 562,029 \r\n15 795 \r\n \r\n$ \r\n \r\n9,571,208 $ \r\n \r\n10,498,070 $ \r\n \r\n11,216,280 \r\n \r\n$ \r\n \r\n23473 $ \r\n \r\n-2 080 $ \r\n \r\n209,669 \r\n \r\n$ \r\n \r\n9,271 $ \r\n \r\n12,971 $ \r\n \r\n9,557 \r\n \r\n-9 271 \r\n \r\n-12 971 \r\n \r\n-318 \r\n \r\n$ \r\n \r\n0 $ \r\n \r\n0 $ \r\n \r\n9239 \r\n \r\n$ \r\n \r\n23,473 $ \r\n \r\n-2,080 $ \r\n \r\n218,908 \r\n \r\n810,850 \r\n \r\n810,850 \r\n \r\n635,504 \r\n \r\n3908 \r\n \r\n3908 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n838,231 $ \r\n \r\n812 678 $======8=5='4'=4=12= \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\nSee notes to the basic financial statements. \r\n \r\n-27 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR 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) \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 Capacity Building Improvement Flow Through Preschool \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act. Title I Grants to Local Educational Agencies School Improvement Title II Enhancing Education Through Technology Improving Teacher Quality Title VI Innovative Education Program Strategies Stewart B. McKinney Homeless Assistance Act. Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant \r\nTotal U. S. Department of Education \r\nNational Endowment for the Arts Pass-Through From Georgia Council for the Arts Promotion of the Arts Partnership Agreement \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) 498177 \r\n498,177 \r\n \r\n10.550 \r\n \r\nN/A $ \r\n \r\n25,215 523,392 \r\n \r\n84.027 84.027 84.173 \r\n \r\nN/A $ \r\nN/A \r\nNIA \r\n$ \r\n \r\n4,462 247,942 \r\n43982 \r\n296,386 \r\n \r\n* 84.010 * 84.010 \r\n84.318 84.367 84.298 84.196 \r\n84.048 \r\n \r\nNIA N/A N/A N/A N/A N/A \r\nN/A $ \r\n \r\n45.025 \r\n \r\nN/A $ \r\n \r\n145,026 4,680 4,493 \r\n51,164 6,992 12,000 \r\n9 271 530,012 \r\n17,400 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n-28 - \r\n \r\n$ ======1,~07~0;;i,;,8~0;;;,,4 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($17,239) were not maintained separately and are included in the 2003 National School Lunch Program. \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 City of Bremen 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- 29- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2003 \r\n \r\nSCHEDULE \"3\" \r\n \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 Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Austerity Reduction Other State Programs Grades 4-8 Statewide After School Program Health Insurance K-3 Statewide Reading Program Preschool Handicapped Program Lottery Programs Assistive Technology Computers in the Classroom Post Secondary Options Technology Installation \r\nGeorgia Institute of Technology Student Information System \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \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\n$ \r\n \r\n499,912 \r\n \r\n$ \r\n \r\n62,704 \r\n \r\n917,816 \r\n \r\n104,512 \r\n \r\n569,427 \r\n \r\n17,691 \r\n \r\n902,405 \r\n \r\n720,677 \r\n \r\n222,905 \r\n \r\n22,361 48,746 414,175 186,806 21,664 142,107 \r\n3,889 69,665 140,042 47,322 27,852 \r\n \r\n484,108 339,526 413,080 \r\n \r\n11,396 3,574 \r\n34,095 46,686 \r\n5,758 7,862 869,560 38,082 -166,679 \r\n11,400 88,356 14,269 33,085 \r\n5,911 8,348 \r\n492 22,526 \r\n \r\n18,771 \r\n \r\n$ \r\n \r\n414,763 \r\n \r\nTOTAL \r\n499,912 62,704 \r\n917,816 104,512 569,427 \r\n17,691 902,405 720,677 222,905 \r\n22,361 48,746 414,175 186,806 21,664 142,107 \r\n3,889 69,665 140,042 47,322 27,852 \r\n484,108 339,526 413,080 \r\n11,396 3,574 \r\n34,095 46,686 \r\n5,758 7,862 869,560 38,082 -166,679 \r\n11,400 88,356 14,269 33,085 \r\n5,911 8,348 \r\n492 22,526 \r\n18,771 \r\n414,763 \r\n \r\n- 30 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Office of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACT Transportation, Georgia Department of Paving Project Reimbursement \r\nOTHER Community Affairs, Georgia Department of Local Assistance Grant \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\n362,818 \r\n \r\n12,521 \r\n \r\n$ \r\n \r\n362,818 \r\n \r\n12,521 \r\n \r\n$ \r\n \r\n22,774 \r\n \r\n22,774 \r\n \r\n13,000 \r\n \r\n13 000 \r\n \r\n$ 7,808,223 $ \r\n \r\n450,537 $ ===8,1:,2=58=''=76=0= \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST {1} \r\n \r\nCURRENT ESTIMATED COSTS {2} \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3} \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\nHARALSON COUNTY The addition to and the renovation, repair, acquisition, improvement and equipping of, existing school buildings, the acquisition of system-wide technology, school transportation vehicles and a new media center and the necessary property therefore and for future schools, all at a maximum cost of $4,000,000 \r\n \r\n$ \r\n \r\n4,000,000 $ \r\n \r\n4,385,744 $ \r\n \r\n603,210 $ 3,782,534 Complete \r\n \r\nAcquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, adding to, renovating, repairing, improving and equipping existing school buildings and other buildings and facilities, useful or desirable in connection therewith, including constructing, modifying and equipping classrooms, acquiring system-wide technology improvements, acquiring school transportation vehicles and acquiring the necessary property for such schools, both real and personal, and for the future school sites, all at a maximum cost of $4,900,000 \r\n \r\n4,900,000 \r\n \r\n4,900,000 \r\n \r\n1,570,300 \r\n \r\nOngoing \r\n \r\nCARROLL COUNTY Funding the acquisition, construction, renovation, extending and equipping of capital outlay projects throughout the City of Bremen School System, including specifically, but without limitation, renovations, extensions and equipping of H. A. Jones Elementary School to include a new classroom and cafeteria additions and other improvements; at Bremen High School to include a cafeteria extension and other improvements; at Sewell Middle School to include a new science and technology lab and other improvements; and constructing a new physical education facility, including the acquisition of all property, both real and personal, necessary therefor (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $2,900,000 \r\n \r\n2,900,000 \r\n \r\n2,491,250 \r\n \r\n141,563 \r\n \r\n2,349,687 Complete \r\n \r\n- 32- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2003 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1} \r\n \r\nCURRENT ESTIMATED COSTS (2} \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3} \r\n \r\nFunding the acquisition, construction, \r\n \r\nrenovation, modification, improvement, \r\n \r\nextending and equipping of projects \r\n \r\nthroughout the Bremen School System, \r\n \r\nincluding, but without limitation, additions, \r\n \r\nrenovations, and improvements of \r\n \r\ncertain existing system facilities, system- \r\n \r\nwide technology improvements, the \r\n \r\nacquisition of school transportation \r\n \r\nvehicles; the acquisition of land for \r\n \r\nadditional schools, and the acquisition of \r\n \r\nall property, both real and personal, \r\n \r\ndeemed necessary and advisable therefor \r\n \r\nincluding the funding of capitalized interest \r\n \r\non debt of the City of Bremen with respect \r\n \r\nto the Bremen School Projects (the \r\n \r\n\"Bremen School Projects\"), the maximum \r\n \r\ncost of such Bremen School Projects not \r\n \r\nto exceed $4,840,000 \r\n \r\n$ \r\n \r\n4,840,000 $ \r\n \r\n4,840,000 $ 2,348,383 \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3} \r\n \r\nPROJECT STATUS \r\nOngoing \r\n \r\n$ 16,640,000 $ 16,616,994 $ 4,663,456 $ 6,132,221 \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 Haralson County, Carroll County and the City of Bremen 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- 33- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Grades (6-8) 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 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\n526,557 $ \r\n67,905 982,774 113,267 603,094 \r\n20,531 \r\n970,602 766,612 236,500 753,840 \r\n153,048 3,585 \r\n74148 \r\n \r\n516,452 $ \r\n78,734 1,310,427 \r\n116,417 729,031 \r\n56,244 -32 \r\n1,137,628 1,131,205 \r\n219,771 \r\n33,004 80,071 422,162 115,495 \r\n3,558 179,084 \r\n5,271 39,210 \r\n \r\n19,124 $ \r\n117 24,938 \r\n1,667 12,424 \r\n48 \r\n18,624 25,363 \r\n913 \r\n24 1,525 \r\n24 24 24 254 \r\n37 658 \r\n \r\n535,576 78,851 \r\n1,335,365 118,084 741,455 \r\n56,292 -32 \r\n1,156,252 1,156,568 \r\n220,684 \r\n33,028 81,596 422,186 115,519 \r\n3,582 179,338 \r\n5,271 76 868 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n5,272,463 $ 6,173,732 $ \r\n \r\n142,751 $ \r\n \r\n6,316,483 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n149,661 29958 \r\n \r\n169,136 4 558 \r\n \r\n18,705 27404 \r\n \r\n187,841 31 962 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n5,452,082 $ 6,347,426 $ \r\n \r\n188,860 $ ==~6,~53~6~,2:;;:8~6 \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\nApril 21, 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 ofthe City of Bremen 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 of City of Bremen Board of Education as of and for the year ended June 30, 2003, which collectively comprise City of Bremen Board of Education's basic financial statements and have issued our report thereon dated April 21, 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 City of Bremen 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 City of Bremen 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\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 City ofBremen Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7631-03-01. \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, we believe the reportable condition described above is not a material weakness. \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of Bremen 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\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\nApril 21, 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 City of Bremen 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 ofCity ofBremen Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2003. City of Bremen Board of Education's major Federal programs are identified in the Summary ofAuditor's Results Section ofthe accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Bremen Board of Education's management. Our responsibility is to express an opinion on City of Bremen 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 City of Bremen Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Bremen Board of Education's compliance with those requirements. \r\n2003SA-10 \r\n \r\n In our opinion, the City ofBremen Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2003. \r\nInternal Control Over Compliance \r\nThe management of City of Bremen Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, \r\ncontracts and grants applicable to Federal programs. In planning and performing our audit, we \r\nconsidered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance 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 ofthe management, members ofthe City of Bremen 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\nRespectfully submitted, \r\n \r\nRWH:as 2003SA-10 \r\n \r\nState Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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-7631-01-01 FS-7631-02-01 \r\n \r\nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n1. Type of Report Issued on the Financial Statements The auditor's opinion on the City of Bremen Board of Education's financial statements was unqualified. \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Bremen Board of Education disclosed a financial statement reportable condition related to the following control categories. \r\nExpenditures/Liabilities/Disbursements Revenues/Receivables/Receipts \r\nThe reportable condition described above is not considered to be a material weakness. \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen 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 City of Bremen Board of Education 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 City ofBremen Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. \r\n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The City ofBremen Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \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 84.010 Elementary and Secondary Education Act - Title I -School Improvement \r\n8. Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000. \r\n9. Low Risk Auditee The City of Bremen Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2003 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separation of Duties Reportable Condition Finding Control Number: FS-7631-03-01 Our examination of the various principals' accounts disclosed weaknesses in internal control as discussed below: Revenues/Receivables/Receipts \r\nDeposit preparation was not separated from the record keeping and cash custody functions. Expenditures/Liabilities/Disbursements \r\nBased on a test of fifty-one items, twenty voucher packets included purchase request forms which were dated and approved after the invoice date and two voucher packets included purchase request forms which were not dated. These deficiencies were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for account functions, at the school principal account sites, and failure to ensure established controls were functioning as designed. Management should implement procedures to ensure that the key accounting functions ofcustody, record keeping and authorization be segregated. Additionally, controls should be revised and monitored to provide reasonable assurance that transactions are processed according to established procedures. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2001-h2002","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2002-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001?; ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: City of Bremen Board of Education, Haralson County, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (City of Bremen Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"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":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["City of Bremen Board of Education, Haralson County, 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-be33-bb6-b2001-h2002"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-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":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":",~A, A\u003cco\"o ''f!..J . ' \r\n(:33, ' \r\nB~. \r\n \r\n. ' \r\n' - I  \r\n'. \r\n \r\n..... \r\n'r . \r\n'. \r\n. ' .' - \r\n \r\n:;,,001-;too;,, \r\n \r\n.- ' \r\n \r\n., \r\n \r\n, . \r\n \r\nSTATE OF GEORGIA.:- \r\n \r\n-, \r\n7 \r\n \r\nDEPARTMENT-oF Auo,rs ANc, AccouN1s- \r\n \r\n \r\n \r\nI \r\n \r\n..,: \r\n \r\n' \r\n \r\n~ - \r\n \r\n 'I \r\n \r\n \r\n \r\no \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 \r\nI \r\n \r\n\" \r\n \r\n.- \r\n.. ' \r\ns,,- \r\n\\I .... \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\n',_ ' ' \r\n,. \r\n.' ' \r\n \r\n,-, I \r\n_, \r\n \r\n:-crtYoF BREMEN BOARD OF'EDUCATION \r\n \r\n.. ; \r\n \r\nHARAl.SON COUNTY. GEORGIA;' \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\nREP,ORT.ONAUDrr. \r\nOF THE FINANCIAL STATEMENTS \r\n \r\nFO. R \r\n \r\nTHE \r\n, \r\n \r\nFISCAL \r\n \r\nYEAR ' \r\n \r\nENDED \r\n \r\nJU-.NE \r\n \r\n30; \r\n \r\n2002 \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:.1, \r\n \r\n. ='' \r\n \r\n'Russell W. Hint~~ \r\n \r\n: \r\n \r\n'+S: tate\" \r\n \r\nAuditor .,. ,. \r\n \r\nr \r\n.. \r\n \r\n. , \r\n \r\n\" r \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 CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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 INFORMATION SCHEDULE 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\n7 \r\n \r\nD \r\n \r\nSTATEMENT OF REVENUES, EXPENSES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND \r\n \r\n8 \r\n \r\nE \r\n \r\nSTATEMENT OF CASH FLOWS \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND \r\n \r\n9 \r\n \r\nF NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n10 \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nG \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n20 \r\n \r\nH \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n22 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n24 \r\n \r\nJ \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n26 \r\n \r\nSCHEDULES \r\n \r\nI 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\n31 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDITIONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \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\n5 \r\n \r\nBY SITE \r\n \r\n~ \r\n32 33 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nREPORT ON COMPLIANCE AND ON INTERNAL CONTROL OYER 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 Ill 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 COSl S \r\n \r\n SECTION I FINANCIAL \r\n \r\n 1rn,,t.u. W. H1N10\" \r\n',TAI[ AIJDITOA \r\n(404) 656-21/4 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 WJshmg1on S1rcc1. '.\u003e W Sunc 214 AIIJnla, Gcorg1J 30334-g.\\OO \r\nJune 25, 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducat10n \r\nand Supenntendent and Members of the City of Bremen Board of Education \r\nINDEPENDENl AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS \r\nLadies and Gentlemen \r\nWe have audited the accompanying general-purpose financial statements of the City of Bremen Aoard of Educat10n. as of and for the year ended June 30, 2002, as listed in the table of contents lbese general-purpose financial statements are the respons1b1lity of the City of Bremen Board of Educauon's management Our responsibility 1s to express an op1mon on these general-purpose financial statements based on our audit \r\nWe conducted our audn in accordance wnh auditing standards generally accepted in the Umtcd States of Amenca and the standards applicable to financial audns contained in Government Auditing Standards. issued by the Comptroller General of the United States Those standards rcqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statement~ are free of matenal misstatement An audn includes examining, on a test basis. evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting pnnc1ples used and s1gmficant estimates made by management, as well as evaluating the overall financial statement presentat10n We believe that our audit provides a reru.onable basis for our opinion \r\nAs described in the notes to the general-purpose financial statements, the Board of Education's financial statements have heen prepared using certain accounung practices and policies which. in our op1mon. vary in some respects from generally accepted accounting pnnc1ples These vanances are de~cnbed 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 General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accountmg pnnciples \r\n School activity accounts mamtamed at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accounting pnnc1ples, these accounts should be included m the general-purpose financial statements \r\n The Board of Education did not recogmze as expenditures, m the year ended June 30. 2002, a portion of salanes and the correspondmg employer's cost of related benefits earned for contractual services completed prior to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salanes and related benefits were not recorded as revenue m the year under review. Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were improperly recorded m the year ended June 30, 2002 To conform to generally accepted accountmg prmc1ples, revenues should be recorded when available and measurable and expenditures should be recorded when mcurred, rather than when funds are received or disbursed \r\nThe aggregate effects on the general-purpose financial statements of these vanances or om1ss1ons have not been determined, but are believed to be matenal \r\nIn our opimon, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly, m all material respects, the financial position of the City of Bremen Board of Educallon as of June 30, 2002, and the results of its operallons and the cash flows of its nonexpendable trust fund for the year then ended, m conformity with accounllng pnnc1ples generally accepted in the United States of Amenca \r\nIn accordance with Government Aud1tmg Standards, we have also issued our report dated June 25, 2003, on our consideration of the City of Bremen Board ofEducallon's mtemal control over financial reportmg and our tests of its compliance with certain provisions oflaws, regulations, contracts and granu, That report 1s an integral part of an audit performed in accordance with Government \r\nAud1tmg Standards and should be read m conJuncllon with this report in considenng the results of \r\nour audit \r\nOur audit was performed for the purpose of formmg an opimon on the general-purpose financial statements of the City of Bremen Board of Education taken a~ a whole The accompanying combmmg statements (Exhibits G through J) and the financial schedules (Schedules l 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 Orgam=atwns. are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements Such mformation has been subjected to the aud1tmg \r\n2002ARL-13 \r\n \r\n procedures applied in the audit ofthe general-purpose financial statements and m our opinion. except for the effects ofthe matters referred to in the thud paragraph, such information 1s fairly stated, in all material respects, m relation to the general-purpose financial statements taken as a whole A copy ofthis report has been filed as a permanent record m the office of the 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\nRWHgp 2002ARL-l3 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n --- - - ------- \r\n \r\nCIJY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\nCOMBINED BALANCE SHEET \r\nALL FUND TYPES ANP ACCOUNT GROUP JUNE 30 2002 \r\n \r\n~ Cash and Cash Equivalents \r\nInvestments \r\nAccounts Receivable \r\nPrepaid Items \r\nInventories Food Donated Commodllies Pt.dlased Food \r\nAmount Available m Debt SeMce Fund \r\nAmount to be Provided In Future Years For Payment ot Bond Debt Caprtal Lease Agreements \r\nTotal Assets \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\ns \r\n \r\ns s 703,224 37 \r\n \r\n169 690 60 \r\n \r\n4,671,890 14 \r\n \r\n54,164 48 \r\n \r\n68,011 61 \r\n \r\n425 145 70 \r\n \r\n670911 1,675 60 \r\n \r\ns \r\n \r\ns s 757 368 85 \r\n \r\n2661287 12 \r\n \r\n51097:035 84 \r\n \r\nblABl6ITIEl;; AND FIJNQ EQ!IITY \r\nUABILmES \r\nAccounts Payable \r\nSalal1e1 Payable Expired Grant Balances Payabla Contracts Payabla Retamages Payable Capital Lease Agreements General Obllgahon Bonds Payable \r\nTotal uabilllles \r\nFUND EOUIIY \r\nFund Balances Reserved For Bus Roplacemont Funds For Debt Service For Endowment Corpus For lnventones Food Donated Commodrties PurchaM!d Food \r\nFor Purpose of Bond Issue \r\nFor SPLOST Protects Unreserved \r\nUndes,gnated \r\nTotal Fund Equity \r\n \r\ns \r\n \r\n63 476 37 s \r\n \r\n56 856 71 s \r\n \r\n2200 \r\n \r\n12,681 22 \r\n \r\n100 329 77 \r\n \r\n9660 \r\n \r\n20 027 13 \r\n \r\n2,225 24 \r\n \r\ns \r\n \r\n76 157 59 s s 157,283 26 \r\n \r\n22 274 37 \r\n \r\ns \r\n \r\n19,661 00 \r\n \r\ns \r\n \r\n670911 \r\n \r\n1,675 60 \r\ns 4,652,604 90 \r\n \r\n222 156 57 \r\n \r\n661 570 26 \r\n \r\n100 619 13 \r\n \r\n0 00 \r\n \r\ns \r\n \r\ns s 681,231 26 \r\n \r\n109 003 64 \r\n \r\n5 074 761 47 \r\n \r\nTotal uablhtles and Fund Equity \r\n \r\ns \r\n \r\n757 368 65 s \r\n \r\nThe notes to the general-purpose financial \u0026tatement\u0026 are an lr\\tegral part of ttns statement \r\n \r\n-2 - \r\n \r\ns 26628712 \r\n \r\n5 097 035 64 \r\n \r\n EXHIBIT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nFIDI./CIARY \r\nFUND TYPE \r\nTRUST FUND \r\n \r\ns \r\n \r\ns 85 907 64 \r\n \r\n000 \r\n \r\nACCOUNT GROUP GENERAL \r\nLONG-TERM DEBT \r\n \r\nTOTALS \r\n \r\n{Memorandum Onl;i) \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\ns s 5 630 912 75 \r\n \r\n1,6TT,827 65 \r\n \r\n20 000 00 \r\n \r\n567,321 99 \r\n \r\n267,005 22 \r\n \r\n652 57 \r\n \r\ns \r\n \r\n85,907 64 \r\n \r\n870911 1 675 60 \r\n85 907 64 \r\n \r\n8,683 68 2,844 29 \r\n1 760 22 \r\n \r\ns \r\n \r\n85 907 64 s \r\n \r\n5,299 092 38 59,304 50 \r\n \r\n5 299 092 38 59 304 50 \r\n \r\n1,083,239 78 157 054 91 \r\n \r\ns s s 000 \r\n \r\n514441304 50 \r\n \r\n11.650,923 95 \r\n \r\n3 219 068 32 \r\n \r\ns \r\n \r\n120 355 08 s \r\n \r\n143 860 19 \r\n \r\n113,010 99 \r\n \r\n96,234 27 \r\n \r\n9680 \r\n \r\n431 70 \r\n \r\n20,027 13 \r\n \r\ns \r\n \r\n59,304 50 \r\n \r\n2 225 24 59 304 50 \r\n \r\n9 028 10 157 054 91 \r\n \r\n5,385,000 00 \r\n \r\n5 385 000 00 \r\n \r\n1 085 000 00 \r\n \r\ns s 5,444,304 50 \r\n \r\ns 5 700 019 74 \r\n \r\n1 491 609 17 \r\n \r\n$ \r\n \r\n85 907 64 \r\n \r\n000 s \r\n \r\ns \r\n \r\n85 907 64 s \r\n \r\ns \r\n \r\n85 907 64 s \r\n \r\ns \r\n \r\n19,661 00 $ \r\n \r\n15,219 00 \r\n \r\n85 907 64 \r\n \r\n1 760 22 \r\n \r\n20 000 00 \r\n \r\n670911 1 675 60 4,852 604 90 222 156 57 \r\n \r\n8,683 68 2,844 29 \r\n182,199 19 \r\n768,709 68 \r\n \r\n000 \r\n \r\n782 189 39 \r\n \r\n728 042 89 \r\n \r\n000 \r\n \r\ns 5,950,904 21 s 1 727459 15 \r\n \r\ns s s 0 00 \r\n \r\n544430450 \r\n \r\n11,6501923 95 \r\n \r\n3,2191068 32 \r\n \r\n. 3. \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION HARALSON COUNTY COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES \r\nYEAR ENDED JUNE JO 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent lnstruchon Support Services Pupil Services Improvement of Instructional Sarvas Educational Med,a Services General Administration School Admlnlstrabon Business Administrabon Maintenance and Operation of Plant Student Tranoportabon Services Cen1ral Support Serv1ces Other Support ServlC89 Food Services OperaUon En1erpnse Operabons \r\nCspltal OuUay Deb1Serv,ce \r\nPrincipal \r\nInterest \r\nTo1al Expend~ures \r\nExcess of Revenues over (under) Expenditures \r\nQTt!!;R FINANCING QURC!i (USES} \r\nProceeds from General Obltgabon Bonds Par Value \r\nCapital Lease,, \r\nOperating Transfers In \r\nOperating Transfe~ Out \r\nTo1al Other F1nancmg Sources (Uses) \r\nExcess of Revenues and Other Flnanang Sources over (under) Expenchtures and Other Financing Uses \r\nFUND BALANCE JULY 1 \r\nFood lnven1ory. Net Change 1n Penod Donated Commodnles Purchased Food \r\n \r\nGENERAL FUND \r\n \r\nSPECIAL REVENUE \r\nFUND \r\n \r\n$ 7,039,706 31 $ 5351362 \r\n1,212,019 28 425 839 21 \r\n \r\n444,157 19 643,434 30 \r\n325,576 89 \r\n \r\ns $ 8,731,078 42 \r\n \r\n1413 168 38 \r\n \r\ns 6,479,092 22 $ \r\n226,839 23 151,10424 192 104 58 207,127 25 624,872 80 75,912 53 582,362 49 \r\n52,075 45 \r\n27 879 93 4 516 55 \r\n85,033 92 \r\n \r\n579,827 24 \r\n47,800 51 240,134 28 \r\n85 53 27,361 88 \r\n5,456 51 10,734 78 \r\n508,42542 \r\n \r\n15,09517 2 465 62 \r\n \r\ns s 8,706,482 18 \r\n \r\n1419826 15 \r\n \r\ns \r\n \r\ns 24 596 24 \r\n \r\n-6 657 77 \r\n \r\ns \r\n \r\n21,514 89 \r\n \r\ns \r\n \r\n-1795342 \r\n \r\ns \r\n \r\n3 561 47 $ \r\n \r\n17,95H2 17 953 42 \r\n \r\n$ \r\n \r\n28,157 71 s \r\n \r\n11,295 65 \r\n \r\n653,073 55 \r\n \r\n100,651 45 \r\n \r\n-1,97457 -116869 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\ns_ _ 681 231 26 \r\n \r\n1,,09=0_03._84._ \r\n \r\nThe notes to the general-purpose finanCl\u0026I 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 On!);) YEAR ENDED \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\ns \r\n \r\n149,166 ~9 \r\n \r\ns s 7,633,030 39 \r\n \r\n7,386,743 85 \r\n \r\ns 519,305 37 \r\n \r\n662,953 00 \r\n \r\n696,947 92 2,394,277 65 \r\n \r\n738,325 10 2,363,339 52 \r\n \r\n81 559 89 \r\n \r\n2 618 79 \r\n \r\n835 594 78 \r\n \r\n753 476 34 \r\n \r\ns \r\n \r\n750 032 15 $ \r\n \r\n665 571 79 $ 1155985074 $ 1124188481 \r\n \r\n$ \r\n \r\n102 000 00 \r\n \r\n1 152,851 38 \r\n \r\ns 10417013 \r\n9 951 59 \r\n \r\ns $ 1 368 973 10 \r\n \r\ns \r\n \r\n-618 940 95 $ \r\n \r\ns s 7,058,919 48 \r\n \r\n6,554,282 60 \r\n \r\n274,639 74 391 238 52 192,19011 234,48913 624,872 80 177 912 53 567,819 00 \r\n62,810 23 \r\n27,879 93 512,941 97 \r\n85 033 92 1,152,851 38 \r\n \r\n238,700 90 481,880 73 181,36548 209,146 09 643,61648 \r\n90 261 91 571,744 03 \r\n53,532 56 3,819 65 \r\n31,978 20 506,74816 \r\n71,586 51 779,026 31 \r\n \r\n630000 00 13863102 \r\n768 631 02 $ \r\ns -103 059 23 \r\n \r\n749,265 30 15104843 \r\ns 12,263,912 45 s -704 061 71 \r\n \r\n643,733 43 67 888 76 \r\n11109111 80 \r\n132 773 01 \r\n \r\ns s 4,742,793 35 \r\ns $ 4 742 793 35 s s 4 123 852 40 \r\n950 909 07 \r\n \r\n187,206 65 $ \r\ns 187 206 65 \r\n \r\n4,930,000 00 \r\ns 21 514 89 \r\n17,953 42 -17 953 42 \r\ns 4 951 514 89 \r\n \r\n140,795 39 1179954 -1179954 \r\n140 795 39 \r\n \r\ns 84,147 42 \r\n1 760 22 \r\n \r\n4,247,453 18 $ 1 706,594 29 \r\n \r\n273,568 40 1432,41805 \r\n \r\n-1,974 57 -1 168 69 \r\n \r\n855 51 -247 67 \r\n \r\ns 5074 76147 $ \r\n \r\n85 907 64 $ \r\n \r\n- 5. \r\n \r\n _ C[TY Of BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\nCOMBINED STATEMENT OF REVENUES EXPENDITIJRES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - (NON-GAAP BASIS! \r\nGENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nEXHIBIT c \r\n \r\nGENERAL FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\nREVENUES \r\nStale Funds Federal Funds Taxe\u0026 Other Funds \r\nTotal Revenues \r\n \r\ns s 8 822 835 00 \r\n \r\n7 039 708 31 \r\n \r\n50 000 00 \r\n \r\n53 513 82 \r\n \r\n1,200 000 00 \r\n \r\n1.212 019 28 \r\n \r\n34 10000 \r\n \r\n25 839 21 \r\n \r\n$ 8.  18.935 00 $ 8.731,07B 2 \r\n \r\nEXPENDITURES \r\n \r\nCurrent lnstrucbon Support Services Pupil SeMCeS Improvement of ln1trudk\u003enal SeMces EoocabOnal Madia Selvlces General Adnunistratton Schod AdmmistratK\u003en Business AdmriMalrrtenance 811d Operaban of Plant Swdent TranspOrtatlon Sennces Central Support SeMces Other Support SeMces Food Serw:es Openlbon En1erprt\u0026e OperabOns \r\nDebtServk:e \r\nTotal Expenditures \r\nExcess of Revenues over (under) \"-\"\u003clltures \r\n \r\ns s B,381,038 87 \r\n \r\n8, 79,092 22 \r\n \r\n202,279 00 1 2,871 00 164 87 00 190,510 00 816.285 87 \r\n73.226 61 513,569 00 \r\n55,739 00 11,000 00 29 384 00 6 038 00 \r\n \r\n226 B39.23 \r\n151,10 2 \r\n192,10 58 207,127.25 624872 80 \r\n75 912 53 562 362 9 \r\n52 075  5 \r\n27 879 93  518 55 \r\n85 033 92 17 560 99 \r\n \r\ns s 8,388,595 35 \r\n \r\n8.708.82 18 \r\n \r\ns 30,339 65 $ \r\n \r\n2 598 2 \r\n \r\nOTHER FINANl,ING SOU!lC!;S (USES! \r\n01118rSources Other Uses \r\nTotal Other Financing Sout:es (Uses) \r\n \r\ns 21,514 89 \r\n-17 953 2 \r\n \r\ns \r\n \r\n3 56147 \r\n \r\nExcesa of Revenues and Other F1nanc:mg Sources \r\n \r\ns s ~ (..-i Expenditures and Olher Financing Uses \r\n \r\n30,339 65 \r\n \r\n28,157 71 \r\n \r\nFUND BALANCE JULY 1 2001 \r\n \r\n864 511 70 \r\n \r\n853 073 55 \r\n \r\nAdJUstmenlS Food lm,emory - Ne1 Chango In Period \r\nDonaled Commodlbes Purchased Food \r\n \r\nFUND BALANCE JUNE 30. 2002 \r\n \r\n$ 694,851 35 S 681 J31 28 \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nBUDGET \r\n \r\nACTUAL \r\n \r\ns s 79,761 00 \r\n583,818 79 \r\n \r\n#1,15719 643, 34 30 \r\n \r\n308.885 00 \r\n \r\n325 576 89 \r\n \r\n$ 972, 64 79 $ 1. 13 168 38 \r\n \r\ns s 220 565 00 \r\n \r\n579 827 24 \r\n \r\n25,000 00 253,215 00 \r\n9,802 OD \r\n \r\n7 800 51 20,134 28 \r\n85 53 27 361 88 \r\n \r\n5  56 51 10 734 78 \r\n \r\n83 985 00 \r\n \r\n50B, 25 2 \r\n \r\n$ 972 567 00 s 1.  19.826 15 \r\n \r\n$ \r\n \r\n-102 21 s \r\n \r\n-8 B57 TT \r\n \r\ns 9 788 00 s \r\n-9 788 00 \r\n \r\ns \r\n \r\n0 00 s \r\n \r\n17,953  2 \r\n17 953  2 \r\n \r\ns s -102 21 \r\n \r\n11,295 65 \r\n \r\n261,514 84 \r\n \r\n100,851  5 \r\n \r\n-130,872 76 \r\n \r\n-1 97 57 -1188 69 \r\n \r\n$ 13073987 $ 10900384 \r\n \r\nThe notes to the general-purpose financial statement\u0026 are en Integral part of thl\u0026 \u0026tatemenL -7- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002 \r\n \r\nEXHIBIT\"D\" \r\n \r\nOPERATING REVENUES Donations \r\nOPERATING EXPENSES None Recorded Operating Income \r\nNONOPERATING REVENUES Interest Eamed Net Income \r\nFUND BALANCE JULY 1 Residual Equity Transfer Bremen Educabon Foundabon, Inc \r\nFUND BALANCE JUNE 30 \r\n \r\nBREMEN BOARD OF EDUCATION ENDOWMENT \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\n000 $ \r\n \r\n000 $ \r\n \r\n5 000 00 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n000 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n000 $ \r\n \r\n5 000 00 \r\n \r\n000 \r\n \r\n000 \r\n \r\n864 86 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n000 $ \r\n \r\n5,864 86 \r\n \r\n20,864 86 \r\n \r\n20,864 86 \r\n \r\n15,00000 \r\n \r\n-20 864 86 \r\n \r\n-20 864 86 \r\n \r\n000 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\nooo s___2_0_8_64_8_6_ \r\n \r\nThe notes to the genera~purpose finenc,al statements are an 1n1egral part of this statement -8- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNJY STATEMENT OF CASH FLOWS \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2002 \r\n \r\nEXHIBIT \"E\" \r\n \r\nCash Flows from Operating ActlVitles Cash Received from Donat10ns \r\nCash Flows from Noncap1tal F1nancmg Acbv1t1es Residual Equity Transfer Bremen Education Foundation, Inc \r\nCash Flows from lnvesbng ActMtles Interest Received on Investments Purchase of Investments Sale of Investments \r\nNet Cash Provided by Investment Act1v1t1es \r\nNet Increase (Decrease) m Cash \r\nCash and Cash Equivalents - Juty 1 \r\nCash and Cash Equivalents - June 30 \r\n \r\nBREMEN BOARD OF EDUCATION ENDOWMENT \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\n000 $ \r\n \r\n000 $ _ _---=c5~0~00~00=- \r\n \r\n$ \r\n \r\n-864 86 $ \r\n \r\n-864 86 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n000 $ \r\n \r\n864 86 \r\n \r\n-20,000 00 \r\n \r\n15 000 00 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n000 $ \r\n \r\n-'I 135 14 \r\n \r\n$ \r\n \r\n-864 86 $ \r\n \r\n-864 86 $ \r\n \r\n864 86 \r\n \r\n86486 \r\n \r\n66486 \r\n \r\n000 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\nooo s_ _ _864:;.;;;.;...;;;86~ \r\n \r\nThe notes to the general-purpose financial statements ere an mtegral part of this statement -9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nREPORTING ENTITY \r\nThe City of Bremen Board of Education (School Distnct) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board The School D1stnct is organized as a separate legal entity and has the power to levy taxes. Accordingly, the School D1stnct 1s 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 of1ts operations. Fund accounting 1s designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activilles. A fund 1s a separate accounting entlty with a self-balancmg 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 m the various funds at the time of purchase A General Fixed Assets Account Group 1s not presently mamtamed by the School D1stnct To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acqmred by governmental fund types. \r\nAlthough \"school acllvity accounts\" are maintained at the individual schools, neither the assets, liab1ht1es and fund eqmty, nor the revenues, expenditures and changes in fund balances of these accounts are reflected m these financial statements. To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements. \r\nThe general-purpose financial statements account for all State, Federal, TaJ(es and Other funds under control of the School District, in compliance with generally accepted accounting pnnc1ples applicable to governmental umts, 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 D1stnct's cducat1onal act1v1lles Governmental Fund Types mc\\ude \r\nGENERAL FUND - the fund used to account for all financial resources of the School D1stnct c'l.cept those reqmred to be accounted for in another fund These transactions relate to resources obtamed 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 purposes These funds are received pnmanly from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives \r\n- IO - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 \r\n \r\nEXHIBIT\"F\" \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 acqu1s1tion 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 pnnc1pal, interest and paying agent fees \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government umt ma trustee capacity or as an agent for md1v1duals, pnvate organizations, other government umts and/or other funds Tins fund includes \r\nNONEXPENDABLE TRUST FUND Bremen Board of Education Endowment Fund - the fund used to account for an endowment of which the corpus 1s to be invested and preserved mtact with the resultant income to be used as necessary by the School D1stnct. \r\nACCOUNT GROUP \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgat10n debt outstandmg and capital lease obligations \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reportmg treatment apphed to a fund 1s determined by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With tins measurement focus, only current assets and current hab1ht1es generally are mcluded on the balance sheet Operating statements of these funds present mcreases (i e., revenues and other financing sources) and decreases (1e., expenditures and other financing uses) in net current assets. Their reported fund balance 1s considered a measure of available spendable resources \r\nLiab1lit1es which are expected to be financed from available spendable resources are reported as hab1h11es in the governmental funds. Other liab1hties, which are not expected to be financed from avrulable spendable resources, are reported m the General Long-Term Debt Account Group. \r\nAll nonexpendablc trust funds are accounted for on a flow of economic resources measurement focus With this measurement focus, all assets and hab1ht1es associated with the operation of these funds are mcluded on the balance sheet Operatmg statements present mcreases (e g, revenues) and decreases (e.g, expenses) in net total assets \r\nGovernmental funds are accounted for using the modified accrual basis of accountmg under which: \r\nRevenues are recogmzed when susceptible to accrual (1 e  when they become both measurable and avrulable) \"Measurable\" means the amount of the transaction can be determmed and \"available\" means collectible within the current period or soon enough thereafter to be used to pay hab1ht1es of the current penod The School D1stnct considers receivables collected within sixty days after year- \r\n- 11 - \r\n \r\n ClTY OF BREMEN BOARD OF EOUCATION - HARALSON COUNTY \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nend to be available. Property truces, sales truces and mterest are considered to be susceptible to accrual Nonexchange transactions, m which the School Distnct gives (or receives) value without directly rece1vmg (or giving) equal value in exchange, include property truces, local option sales truces, intergovernmental grants and donahons. Revenue for property truces is recogniz.ed m the fiscal year for which the truces are levied. Revenue from sales truces is recogmzed in the fiscal year the resources are received or susceptible to accrual Revenue from grants and donat10ns is recognized m the fiscal year m which all eligibility requirements have been satisfied \r\nExpenditures are generally recognized when the related fund liability is mcurred. \r\nA departure from the above definit10ns 1s the accountmg treatment afforded the final two payments on General Fund teachers\" and bus drivers' contracts, and the resources available from the Georgia Department of Educat10n for the State's share of these contracts During fiscal year 2002, a substantial number of personnel ofthe School District were employed for a one hundred and nmety day penod begmnmg m August 2001 and ending m early June 2002. Personnel contracts for this employment period specify that compensation be paid m twelve equal monthly payments beginning m September 2001 and ending m August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensat10n under these employment contracts had been earned, but two of the twelve monthly payments. due for July and August 2002, had not been made Payments for these two months were made and recorded as expenditures by the School D1stnct subsequent to June 30, 2002 Also, the State's port10n of the compensation pmd in July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30, 200 I, were recorded m the year ended June 30, 2002 Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when mcurred, rather than when funds are received or disbursed. \r\nThe accrual basis of accountmg, as reqmred by generally accepted accounting pnnc1ples, 1s utilized by nonexpendable trust funds Under the accrual basis of accountmg, revenues are recorded when earned and expenses are recorded at the time liabihues are mcurred. \r\nBUDGET \r\nThe City of Bremen Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s bao;ed upon estimates of expenditures together with probable fundmg sources There 1s no statutory proh1b1t1on regarding overexpend1ture 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 pnnciples \r\nThe budget process begins when the School District's admmistration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget 1s advertised at least once ma newspaper of general c1rculat10n m the locahty At the next regular meetmg ofthe \r\n- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nBoard after advertisement, the Board receives comments on the tentative budget, makes rev1s10ns as necessary and adopts a final school budget. This final budget 1s then submltled, in accordance with prov1s1ons of the Quahty 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 dunng the year AH unexpended budget authonty lapses at fiscal year-end \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 matunties of three months or less from the date of acquis1t10n m authorized financial mst1tut10ns Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savmgs and loan associations \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 mfonnatlon available Receivables are recorded when either the asset or revenue recogmt10n cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollectible receivables \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Bremen fixed the property tax levy for the 2001 tax digest year (calendar year) on November 7, 2001 (levy date) Taxes were due on January 7, 2002 (hen date) Taxes collected w1thm the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m fiscal year 2002 The Bremen City Clerk bills and collects the property taxes for the School D1stnct and remits the taxes collected to the School D1stnct Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operat10ns amounted to $1,212.019 28. \r\n \r\nThe tax millage rate levied for the 2001 tax year (calendar year) for the City of Bremen Board of Educat10n was as follows (a mill equals $1 per thousand dollars of assessed value) \r\n \r\nSchool Operat10ns \r\n \r\n~mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax revenue during the year amounted to $1.182.258 37 and 1s to be used for capital outlay for educational purposes or debt service Tius sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years \r\n \r\n- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATlON - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 \r\n \r\nCXHIBIT \"F\" \r\n \r\nNote I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nINVENTORIES \r\nFOOD INVENTORIES lnventones of donated food commodities used in the preparatmn of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventones are reported on the Combined Balance Sheet at cost (first-in. first-out). Donated food commodities are recorded as revenues and expenditures at the !Jme commodity items are received Purchased foods inventones arc recorded as expenditures at the time of purchase. The inventones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets \r\nGENERAL OBLIGATION BONDS \r\nThe School District entered into a Joint agreement with the City of Bremen whereby the City of Bremen issued general obhgauon bonds on behalf of the school system. The bond premiums. discounts and issuance costs are recognized in the financial statements ofthe School D1stnct dunng the year bonds are issued. According to the terms of the aforementioned agreement, the bonds are the direct obhgatmns of the School D1stnct; therefore, the outstanding amount of these bonds 1s recorded in the General Long-Term Debt Account Group. \r\nINTERFUND TRANSACTIONS \r\nThe School Distnct has the following types of interfund transactmns \r\nReimbursements of expenditures/expenses 1mtially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the re1mbursmg fund and as reductions of expenditures/expenses m the fund that 1s reimbursed \r\nResidual equity transfers are recorded for nonrecurnng or nonroutme permanent transfers of equity \r\nOperating transfers are recorded for all mterfund transactions other than residual eqmty transfers and reimbursements \r\nMEMORANDUM ONLY -TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Only\" to md1cate that they are presented only to facihtate financial analysis Data m these columns do not present financial pos11lon. results of operations or cash flows in conformity wl!h generally accepted accounting principles Neither are such data comparable to a consolidation lnterfund climmations have not been made m the aggregat,0,1 of this data \r\n \r\n- 14 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNote 2 DEPOSITS \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 many depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate of the face value of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduction ofthe amount ofdeposit msurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe da1lypool balance OCGA Secuon 45-8-11 (b) provides an officer holdmg public funds may, m his d1scrctmn, waive the reqmrement for secunty in the case of operatmg funds placed m demand deposit checkmg accounts \r\nAcceptable sccunty for deposits consists of any one of or any combination of the followmg \r\n(I) Surety bond signed by a surety company duly qualified and authonzed to transact busines~ w1thm the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporatmn, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the Umted States or of the State of Georgia, \r\n(4) Bonds. bills, notes, certificates of indebtedness or other obligations of the countle~ or mun1c1pal1t1es of the State of Georgia. \r\n(5) Bonds of any pubhc authority created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obhgatmns of a subsidiary corporation of the Umted States government, which arc fully guaranteed by the Umted States government both as to pnnc1pal 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 Assoc1atmn, and the Federal Nauonal Mortgage Association \r\nCATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $6,321,889 75 The amounts ofthe total bank balance~ are classified mto three categories of credit nsk \r\n \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNote 2 DEPOSITS \r\n \r\nCategory I  Cash that is msured (e g, Federal depository insurance) or collaterahzed with secur1t1es held by the School District or by the School Distnct's agent in the \r\nSchool D1stnct's name. \r\nCategory 2  Cash collateral1zed with securities held by the pledgmg financial mstnution's \r\ntrust department or agent m the School Distnct's name. \r\nCategory 3  Uncollaterahzed deposits (This includes any bank balance that is collateralized \r\nwith secuntles held by the pledgmg financial institution, or by its trust department or agent but not m the School D1stnct's name.) \r\n \r\nThe School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\nI \r\n2 3 \r\nTotal \r\n \r\n$ 183,772 31 6,138,117.44 0 00 \r\n$ 6.321,889,75 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\nThe School Distnct receives food commod1t1es 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 I - Inventories \r\n \r\nNote 4 RISK MANAGEMENT \r\n \r\nThe School D1stnct 1s exposed to various risks of loss related to torts; theft of, damage to. and destruction of assets, errors or omissions, Job related illness or mJunes to employees, acts of God and unemployment compensatmn \r\n \r\nThe School D1stnct has obtamed cornmerc1al msurance for nsk of loss associated with torts, assets, errors or omissions and Job related illness or mjwies to employees The School D1stnct has neither s1gn1ficantly reduced coverage for these nsks nor incurred losses (settlements) which exceeded the School D1stnct's msurance coverage in any of the past three years \r\n \r\nThe School D1stnct has elected to self-insure for all losses related to acts of God The School District has not experienced any losses related to this nsk in the past three years \r\n \r\nThe School D1stnct 1s self-msured with regard to unemployment compensation claims. The School Distnct accounts for claims withm the sarrye fund that the employee's salary and benefits were paid Claims are accounted for with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated The School Distnct has not mcurred any hab1h11es for unemployment compensation durmg the last two fiscal year~. \r\n \r\n- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote 4 RISK MANAGEMENT \r\n \r\nThe School D1stnct has purchased surety bonds to provide add11Ional insurance coverage as follows \r\n \r\nPos11Ion Covered \r\n \r\nAmount \r\n \r\nSupenntendent Board Treasurer All Other Employees \r\n \r\n$ 10,000 00 $ 10,000 00 $ 50.000 00 \r\n \r\nNote 5 GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES l he City of Bremen Board of Educat10n has entered mto vanous lease agreements as lessee for copiers and mobile classrooms. These lease agreements quahfy as capital leases for accountmg purposes and, therefore, have been recorded at the present value of the future mm1mum lease payments as of the date of their inception. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obhgat10n Bonds currently outstanding are as follows \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Senes 1997 General Government - Series 2001 (Carroll) General Government - Senes 2001 (Haralson) \r\n \r\n3 85%-4 30% 36% 3 39% \r\n \r\n$ 455,000 00 2,390,000 00 2.540.000.00 \r\n \r\n$ 5.385.000.00 \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows \r\n \r\nCapital Leases \r\n \r\nGeneral Obhgallon \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July I, 2001 \r\n \r\n$ 157,054 91 $ 1,085,000 00 $1,242,054.91 \r\n \r\nAdditions Capital Leases GO Bonds \r\n \r\n21,514 89 \r\n \r\n21,514.89 \r\n \r\n4,930,000 00 4,930,000 00 \r\n \r\nDeductions Debt Retired \r\nBalance June 30. 2002 \r\n \r\nI I 9.265 30 \r\n \r\n630.000 00 \r\n \r\n749.265 30 \r\n \r\n$ 59,304.50 $ 5,385,000.00 $ 5,444,304.50 \r\n \r\n- 17 - \r\n \r\n - - - - - - - - - - --- -- \r\n \r\nCJTY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FlNANCJAL STATEMENTS JUNE 30. 2002 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNote 5 GENERAL LONG-TERM DEBT \r\n \r\nAt June 30, 2002, payments due by fiscal year which mcludes pnnc1pal and mterest for these nems arc as follows. \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligallon \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2003 2004 2005 2006 2007 2008 - 2009 \r\nTotal Principal and Interest \r\nDeduct Imputed Interest \r\n \r\n$ 47,097 27 $ 550,855 50 $ 597,952 77 \r\n \r\n6,832 11 \r\n \r\n540,789 75 \r\n \r\n547,621.86 \r\n \r\n4,044.00 \r\n \r\n945,495 50 \r\n \r\n949.539.50 \r\n \r\n4,044 00 1,030,617.75 1,034,661.75 \r\n \r\n3.370.00 1,131.381 75 I. 134,751.75 \r\n \r\n1,843.142 75 1.843. 142 75 \r\n \r\n$ 65,387 38 $ 6,042.283 .00 $ 6.)07.670.38 \r\n \r\n6.082 88 \r\n \r\nNet Present Value of Future \r\nMinimum Lease Payments $ 59,304.50 \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures m the amount of $100,766.90 for health msurance and retirement contributions pa.id on the School D1stnct\"s behalf by the follm,.1ng State Agencies \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Commumty Health For Health Insurance of Non-Certified Personnel In the amount of $88,668 90 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer\"s Cost In the amount of$ I2,098.00 \r\n \r\nNote 7 SIGNIFICANT COMMITMENTS \r\n \r\nThe followmg 1s an analysis ofs1gn1ficant outstanding construct10n or renovat10n contracts executed by the School District as of June 30, 2002, together with funding available \r\n \r\n- I8 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION HARALSON COUNTY \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30. 2002 \r\n \r\nEXHIBIT \"f\" \r\n \r\nNote 7 SIGNIFICANT COMMITMENTS \r\n \r\nPrO)ect \r\n \r\nUnearned Executed Contracts \r\n \r\nFundmg Available From State \r\n \r\n03/02S763-026 Sewell Middle School Renovations \r\n \r\n$ 2.775,217 15 $ 473,858 37 1.259,57 I 36 \r\n \r\n$ 4.034.788,51 $ 473.858,37 \r\nThe amounts descnbed m this note are not reflected m the general-purpose financial statements \r\n \r\nNote 8 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 Distnct beheves that such d1sallowanccs, 1f any, will be 1mmatenal to its overall financial position. \r\n \r\nNote 9 RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS) \r\n \r\nTRS PLAN DESCRJPTION Substant1ally all teachers. admmistrat1ve and clerical personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing multiple employer defined benefit pens10n plan TRS provides service retirement, d1sabihty retirement and survivors benefits for Its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts \r\n \r\nTRS CONTRJBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross eammgs to TRS The School District makes monthly employer contnbut10ns to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their mdependent actuary The reqmred employer contnbut10n rate is 9 24% and employer contn but10ns 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 Contnbut10n \r\n \r\n2002 2001 2000 \r\n \r\n100% 100% 100% \r\n \r\n$ 580.997 60 $ 661,27219 $ 6 I6,007 34 \r\n \r\n I9  \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION HARALSON COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002 \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nAccounts Receivable \r\nlnventones 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\n139,35318 $ \r\n \r\n56,194 97 \r\n \r\n2,375 35 \r\n \r\n6,70911 1 67560 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n14113189 s~_._se_.5_1..,o-=3-2 \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable \r\nTotal L1abdrt1es \r\nFUND EQUITY \r\nFund Balances Reserved For lnventones Food Donated Commodities Purchased Food Unreserved Undes,gnated \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n6,691 18 $ \r\n \r\n16,770 85 \r\n \r\n32,042 87 \r\n \r\n41,703 91 \r\n \r\n9556 \r\n \r\n$ \r\n \r\n38 734 05 $ \r\n \r\n58 570 32 \r\n \r\n$ \r\n \r\n6,709 11 \r\n \r\n1,675 60 \r\n \r\n100 619 13 $ \r\n \r\n000 \r\n \r\n$ \r\n \r\n109 003 84 $ \r\n \r\n0 00 \r\n \r\nTotal Liab1lrues and Fund Equity \r\n \r\n$ \r\n \r\n147 737 89 S_~,;;;58::.5~7..;;0,,;;;3=-2 \r\n \r\nSee notes to the general-purpose finanaal statements . 20. \r\n \r\n EXHIBIT \"G\" \r\n \r\nFEDERAL \r\nPROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ \r\n \r\n195,548 15 $ \r\n \r\n183,292 54 \r\n \r\n$ \r\n \r\n85,63646 \r\n \r\n88,011 81 \r\n \r\n34,869 30 \r\n \r\n6,709 11 167560 \r\n \r\n8,683 68 2 844 29 \r\n \r\n$ \r\n \r\n85 63646 $ \r\n \r\ns 291 944 s1 _-==229==._.68..,9._8_1__ \r\n \r\n$ \r\n \r\n25,657 55 $ \r\n \r\n25,657 55 \r\n \r\n33,394 68 \r\n \r\n56,856 71 $ \r\n \r\n38,395 05 \r\n \r\n26,582 99 \r\n \r\n100,329 77 \r\n \r\n90,011 61 \r\n \r\n1 24 \r\n \r\n9680 \r\n \r\n431 70 \r\n \r\n$ \r\n \r\n8563646 $ \r\n \r\n182 940 83 $ \r\n \r\n128 838 36 \r\n \r\n$ \r\n \r\n$ _ _ _---'0~00~ \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n6,70911 $ 1,675 60 \r\n \r\n8,683 68 2,844 29 \r\n \r\n100 619 13 \r\n \r\n89 323 48 \r\n \r\n109 003 84 s _ _1~0~0~8~51_4~5~ \r\n \r\n$ \r\n \r\n85 636 46 S \r\n \r\n291 944 s1 s_===2..2_9._.68_9..._81.,, \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\nCOMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\n \r\n- \r\n \r\nSPECIAL REVENUE FUND \r\n \r\nYEAR ENDED JUNE 30. 2002 \r\n \r\nREVENUES \r\nState Funds Federal Funds Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent lnstructJon Support Services Pupil Services Improvement of lnstruCIJonal Serv,ces Educallonal Media Services General Administration School Adm1n1stratIon Maintenance and Operabon of Plant Student Transportation SeMces Food Services Operallon \r\nTotal Expendrtures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOperating Transfers In \r\nExcess of Revenues and Other Financing Sources 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\n39,318 00 $ \r\n \r\n404.83919 \r\n \r\n158,076 18 \r\n \r\n322,326 89 \r\n \r\n$ \r\n \r\n51972107 $ \r\n \r\n404 839 19 \r\n \r\n$ \r\n \r\n371,388 56 \r\n \r\n13,00300 \r\n5,679 30 \r\n \r\n15,16405 \r\n \r\n5,456 51 \r\n \r\n$ \r\n \r\n508,425 42 \r\n \r\n$ \r\n \r\n508,425 42 $ \r\n \r\n41069142 \r\n \r\n$ \r\n \r\n11,295 65 $ \r\n \r\n-5,852 23 \r\n \r\n$ \r\n \r\n11,295 65 $ \r\n \r\n100,851 45 \r\n \r\n-1,974 57 -1 168 69 \r\n \r\n5 852 23 \r\n000 000 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n1091003 84 $ =~----0.0..0;;;., \r\n \r\nSee notes to the general-purpose financial statements - 22 - \r\n \r\n EXHIBIT\"H\" \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\n444,15719 $ \r\n \r\n334,596 30 \r\n \r\n$ \r\n \r\n485,358 12 \r\n \r\n643,434 30 \r\n \r\n738,32510 \r\n \r\n3 250 00 \r\n \r\n325,576 89 \r\n \r\n309,258 70 \r\n \r\n$ \r\n \r\n488 60812 $ 1,413,16838 $ 1,382,18010 \r\n \r\n$ \r\n \r\n208,438 68 $ \r\n \r\n579,827 24 $ \r\n \r\n487,269 82 \r\n \r\n34,797 51 234,454 98 \r\n85 53 12,19783 \r\n10,734 78 \r\n \r\n47,800 51 240,134 28 \r\n85 53 27,361 88 \r\n5,456 51 10,734 78 508 42542 \r\n \r\n40,259 82 336,979 97 \r\n22,208 99 41 76 \r\n5,262 00 \r\n502 188 76 \r\n \r\n$ \r\n \r\n500 709 31 $ 1,419,82615 $ 139421112 \r\n \r\n$ \r\n \r\n-12, 101 19 $ \r\n \r\n-6,657 77 $ \r\n \r\n-12,031 02 \r\n \r\n12 101 19 \r\n \r\n17 953 42 \r\n \r\n1178560 \r\n \r\n$ \r\n \r\n000 $ \r\n \r\n11,295 65 $ \r\n \r\n-245 42 \r\n \r\n000 \r\n \r\n100,851 45 \r\n \r\n100,489 03 \r\n \r\n-1,974 57 -1 168 69 \r\n \r\n855 51 -247 67 \r\n \r\n$ \r\n \r\n000 S \r\n \r\ns _ _ 100 003 64 \r\n \r\n1_0_0_8..,5._14_5._ \r\n \r\n1 \r\n \r\n- 23 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002 \r\n \r\nASSETS Cash and Cash Equrvalents Accounts Receivable Prepaid Items \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ 4,852,626 90 \r\n \r\n$ \r\n \r\n117,098 63 \r\n \r\nTotal Assets \r\n \r\n$ 4,852,82890 $ ~ _.1..1.7...__09_8 6_3_ \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nCash Overdraft Accounts Payable Contracts Payable Reta,nages Payable \r\nTotal l.JabdrtJes \r\nFUND EQUITY \r\nFund Balances Reserved For Purpose of Bond Issue For SPLOST Projects Unreserved Undes,griated \r\nTotal Fund Equity \r\nTotal l.Jab1httes and Fund Equity \r\n \r\n$ \r\n \r\n94,846 26 \r\n \r\n$ \r\n \r\n22 00 \r\n \r\n20,02713 \r\n \r\n2 225 24 \r\n \r\n$ \r\n \r\n2200 $ \r\n \r\n117,098 63 \r\n \r\n$ 4,852,604 90 \r\n000 $ $ 4,852,604 90 $ \r\n \r\n000 000 \r\n \r\ns ___ $ 4 as2 626 90 \r\n \r\n1-1\"\"1_0..9.8..63...._ \r\n \r\n11 \r\n \r\nSee notes to the general-purpose finanaal statements - 24 - \r\n \r\n EXHIBIT \"I\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2002 \r\n \r\nJUNE 30, 2001 \r\n \r\n$ 4,852,626 90 $ \r\n \r\n768,317 87 \r\n \r\n$ \r\n \r\n308,047 07 \r\n \r\n425,145 70 \r\n \r\n208,685 82 \r\n \r\n652 57 \r\n \r\n$ \r\n \r\n308 047 07 $ 5,277,772 60 $_....;9~77.;..,::6;:;;56.,2=6= \r\n \r\n$ \r\n \r\n85,890 50 $ \r\n \r\n180,736 76 \r\n \r\n2200 $ \r\n \r\n17,719 09 \r\n \r\n20,027 13 \r\n \r\n2 225 24 \r\n \r\n0 028 10 \r\n \r\n$ \r\n \r\n85 890 50 $ \r\n \r\n20301113 $ _ _~2=6~7~47~10~ \r\n \r\n$ 4,852,604 90 $ \r\n \r\n182,109 19 \r\n \r\n$ \r\n \r\n222, 156 57 \r\n \r\n222,156 57 \r\n \r\n768,709 88 \r\n \r\n000 \r\n \r\n000 \r\n \r\n000 \r\n \r\n$ \r\n \r\n222,156 57 $ 5 074 761 47 $ - ~ =050=90~9 07- \r\n \r\n$ \r\n \r\n308 047 07 $ 5,277,772 60 $=~0~77.;,,i;:,656=,;;;26;,,, \r\n \r\n- 25 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nREVENUES \r\nState Funds Taxes Other Funds \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Support Serv,ces Business Adm1nlstrahon \r\nCaprtal Outlay Salanes Employee Benefits Land and Land Improvements Building and Building Improvements Equipment \r\nDebtS8MC8 Pnncipal Interest \r\nTotal Expendrtures \r\nExcess of Revenues over (under) Expendrtures \r\nOTHER FINANCING SOURCES IUSESl \r\nCaprtalLeases Proceeds from General Obhgat1on Bonds \r\nPar Value Operating Transfers In Operahng Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nExcess of Revenues and Other Financing Sources over (under) Expendrtures and Other F1nancmg Uses \r\nFUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\nSee notes to the genera~purpose financial statements \r\n- 26 - \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n117,098 63 \r\n \r\n$ \r\n \r\n49 278 10 \r\n \r\n$ \r\n \r\n49 278 10 $ \r\n \r\n117 098 63 \r\n \r\n$ \r\n \r\n102,000 00 \r\n \r\n6,000 00 1,313 76 \r\n$ 95,86346 \r\n \r\n67,558 32 5 782 96 \r\n \r\n$ \r\n \r\n278,518 50 $ \r\n \r\n$ -229,240 40 $ \r\n \r\n15,00000 139,724 63 \r\n154 724 63 -37,626 00 \r\n \r\n$ 4,742,793 35 156 852 76 $ \r\ns 4,899,646 11 $ \r\n$ 4,670,405 71 $ 182 19919 \r\n \r\n37,626 00 37,626 00 \r\n000 000 \r\n \r\n$ oo 418521604 s~--=-o_oo-= \r\n \r\n EXHIBIT \"J\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \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\n32,068 26 S \r\n \r\n149,166 89 $ \r\n \r\n70,00000 \r\n \r\n519,305 37 \r\n \r\n519,305 37 \r\n \r\n566,674 84 \r\n \r\n32 281 79 \r\n \r\n8155989 \r\n \r\n3156769 \r\n \r\n$ \r\n \r\n583,655 42 $ \r\n \r\n750 032 15 $_~668~=2~42~5=3~ \r\n \r\n$ \r\n \r\n102,000 00 \r\n \r\n$ \r\n \r\n894,949 53 \r\n \r\n6,000 00 $ 1,31376 15,000 00 1,130,537 62 \r\n \r\n5,824 56 1,587 55 46,351 00 549,00544 176,257 76 \r\n \r\n36,611 81 4168 63 \r\n \r\n104,170 13 9 951 59 \r\n \r\n65,467 55 6 736 79 \r\n \r\n$ \r\n \r\n935 729 97 $ 1,368,97310 $ \r\n \r\n851,230 65 \r\n \r\n$ \r\n \r\n-352 074 55 $ \r\n \r\n-618 940 95 $ \r\n \r\n-182 988 12 \r\n \r\n$ \r\n \r\n106,209 78 \r\n \r\n$ 4,742,793 35 \r\n \r\n194,478 76 \r\n \r\n$ \r\n \r\n-194 478 76 \r\n \r\n-194 478 76 \r\n \r\n181,390 62 -181 376 68 \r\n \r\n$ \r\n \r\n-194 478 76 $ 4,742,793 35 $ \r\n \r\n106,223 72 \r\n \r\n$ \r\n \r\n-546,553 31 $ 4,123,852 40 $ \r\n \r\n-76,764 40 \r\n \r\n768 709 88 \r\n \r\n950,909 07 \r\n \r\n1 027 673 47 \r\n \r\n$ \r\n \r\n222 156 57 $ 5 074 761 47 s _ _9=-S0=909=_o_7_ \r\n \r\n- 27 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDIJ\\/RES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nFUNDING AGENCY \r\nPROGRAM/GRANT \r\nAgnailture, u S Departmem of \r\nChild NutnOon Cluster Pass-Through From Georgia Departmen1 of Education Food and NutnbOn Program Food 5eMces Sdlool Breakfast Program National School Lwl\u003ch Program \r\nTotal Ctuld Nutrttlon Ck.J1ter \r\nOther Programs Paaa-Ttrough From Georgia Departmen1 of Education Food and Nutrition Program Food D,gtribuhon Program (1) \r\nTotal U S Department of Agriculture \r\nEducation U S Departmem of Special Educatton Ouster Pass-Through From Georgia Departmen1 of Education lndrviduels wtth OtaabOlttes Educabon Ad Part B - Speaal Education Capacrty Bu11dsng Improvement Flow Through Preschool \r\nTotal Speaal Education Cluster \r\nOther Programs \r\nDirect \r\nElemenlary and Secondary Education A,;, TIiie VII Part B - Foreign Language Assistance \r\nPass-Through From Georgia Department of Education \r\nComprehenlM!!I Sdlool Reform Demonstrabon Protect \r\nElementary and Secondary Eduaitlon Act \r\nTrtle I Grant\u0026 to Local Educabonal Agendas \r\nTIiie II Eisenhower Professional Development \r\nTIiie VI looovatrve EducabOn Program Strategies \r\nc1a.. Size Reduebon \r\nStewart B McKinney Homeless Assistance A,;, \r\nEducabOn for Homeless Chaktren and Youth VocabOnal Educatton - Basic Grants to States \r\nHigh School Program Beale Grant \r\nTotal U S Departmen1 of Educatlon \r\nNational Endowment for the Arts Pa56-Through From Georgia COuncil for the Art\u0026 Promotion of the Arts Partnership Agreement \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\nNIA s 20 915 71 \r\n \r\nNIA \r\n \r\n108,163 13 s \r\n \r\ns 129,078 84 s \r\n \r\n(2) 479 428 08 (3) \r\n479 428 08 \r\n \r\n10 550 \r\n \r\nNIA \r\n \r\n28 997 34 \r\n \r\ns 158,076 18 s \r\n \r\n28 997 34 508 425 42 \r\n \r\n84 027 84 027 84 173 \r\n \r\ns NIA \r\n \r\n4,462 00 s \r\n \r\nNIA \r\n \r\n203,863 08 \r\n \r\nNIA \r\n \r\n32,257 39 \r\n \r\ns 240 582 47 s \r\n \r\n4 462 00 203 863 09 (3) \r\n32 257 39 \r\n240 582 48 \r\n \r\n84 293 84 332 84 010 84 281 84 298 84 340 84 196 84 046 \r\n45 025 \r\n \r\n5351362 \r\n \r\nNIA \r\n \r\n52,000 00 \r\n \r\nNIA \r\n \r\n111,84965 \r\n \r\nNIA \r\n \r\n17 500 00 \r\n \r\nNIA \r\n \r\n8,193 00 \r\n \r\nNIA \r\n \r\n22 885 00 \r\n \r\nNIA \r\n \r\n9 000 00 \r\n \r\nNIA \r\n \r\n10 368 00 \r\n \r\ns 523 871 74 s \r\n \r\n53,614 75 (3) 52,044 09 (3) \r\n111,849 65 17,505 40 (3) 6 193 00 22 877 83 (3) \r\n9 000 00 \r\n23 842 00 (3) 537 309 20 \r\n \r\nNIA s 15,000 00 S \r\n \r\n17 014 88 (3) \r\n \r\nTotal Federal Financial Aaatstance NIA ., Not Ava~able \r\n \r\n-28 - \r\n \r\ns 696 947 92 S \r\n \r\n1,062 749 48 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDIJURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotes to Jhe Schedule ot Exoendltures of Federal Awards \r\n(1) The amounts shown for the Food Dtslrlbutlon Program represents the Federally assigned value of nonmonetary assistance for donated commod,Oes received and/or consumed by the system dunng the OJIT8nt 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) Expendou\"\" for this program Include Stale, and/or Other Funds Expenditures are not maintained by fund source \r\nMaJor Programs are ldentrfied by an asterisk (*) In front of the CFDA number \r\nThe Sdlool Dlstnct dld not provide Federal Aaslstance to any Subreaptent \r\nThe accompanying schedule of expenditures of Federal awarda lndudes the Federal grant actrvlty of the City of Bremen Board of Educat\u003en and IS presented on the mod1fted aca\\l8I ba\u0026ls of account.lg which ,s the basis of accounting used In the presentation of the general-purpose financial statements \r\n \r\nSee notes to the general-purpose flnanc\u0026al statements \r\n \r\n- 29 - \r\n \r\n CITY OF BREMEN BOARD OF EPUCAJION  HARALSON COUNTY SCHEDULE OF STATE REVENUE \r\nYEAR ENPEP JUNE 30 2002 \r\n \r\nSCHEDULE\"? \r\n \r\nAGENCYtfUNPING \r\nGRANTS Educabon, Geo\u003cgoa Department or Quahty Basic Educabon \r\nD.recl lnttrucbonal Cost \r\nKmdergarten Program \r\nKu~rten Program Earty ln1ervenbon Program \r\nPnmary Gradel (1-3) Program Pnmary Grades Earty lntervenbou (1-3) Program Upper ElemElltary Grades (4-5) Program Upper Elementary Grades (4-5) Earty Intervention \r\nProgram M,ddle Grades (6-8) Program High Scllool General Educat\u003eon (!1-12) Program YOC811onel Laboratory (!1-12) Program Students with Olsab1hbes \r\nCategory I CStogory II CStogorylll Cotego\u003cy N C8togory V Gifted Student  Ca1egory YI AltematJve EduCabOn Program \r\nMedia Cenlef Program 20 Day, Addlbonel lnstruct,ou Staff and Proteasronal QeM\\ie\"'IOpt\"\"\"m\"'''\"'nt Indirect Cost Catego,\"'\"' Grants \r\nPl4)01 Tranapor!abOn Reguler \r\nBus Roplacement \r\nSpararty NUl'Slng Services Pnncipal ~plements \r\nVocat,onal Supe,v,''\" EducabOn EquallzabOn Funding Grant Food ServteeS Yocabonal EducatJon ClttlOf Slate Programs \r\nGrades 4-B Slll1\"'Mdo After Scllool Program \r\nHealth Insurance K-3 Statewide Roadmg Program Nabonal Toacher Corbficabon \r\n-veNext Generation Schools \r\nPreschool Handicapped Program Lottery Programs \r\nTechnology Computers In the Classroom \r\nGeorgia State F1nanong and Investment Corrrn1ssron Reuntxusement on ConstructJon Proiect,; \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and F15CSI SerVlces Pub\\,c School E\"\"'\"\"\"\"'\" Retirement \r\nCONTRACT Transportation Georg\u0026\u0026 Department of Paving PrOjOCI R e , ~ \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\ns 427 807 00 \r\n65,617 00 892 983 00 109 964 00 507,451 00 \r\n27,347 00 900,901 00 663 856 00 201 071 00 \r\n44 069 00 82 288 00 451 396 00 162,449 00 \r\n6,26600 143 303 00 64 474 00 146 803 00 \r\n44,493 00 27 032 00 1 025 626 00 \r\n \r\n1162800 4 442 00 35 889 00 46,686 00 6,104 00 7,862 00 688 146 00 \r\ns \r\n4 596 00 \r\n \r\n39 318 00 \r\n \r\n11112 00 \r\nBB 668 90 \r\n1550741 5 131 00 \r\n75 000 00 31,650 00 \r\n \r\n5 815 44 56 225 35 \r\n \r\ns 427 807 00 \r\n65 617 00 892 983 00 109,964 00 507,451 00 \r\n27,347 00 900,901 00 663 856 00 201 071 00 \r\n44 069 00 B2 288 00 451 396 00 162 449 00 \r\n6,266 00 143,303 00 64 474 00 146 803 00 44 493 00 27 032 00 1,025 626 00 \r\n1162800 4 442 00 35 889 00 46 686 00 6 104 00 7 862 00 688,146 00 39,318 00 4 596 00 \r\n1111200 88,668 90 15 507 41 \r\n5,131 00 \r\n75 000 00 \r\n31 650 00 \r\n5 815 44 58 225 35 \r\n \r\nS 117 098 63 \r\n340,798 40 12 098 00 \r\n \r\n11709863 340,798 40 \r\n1209800 \r\n \r\n32,068 26 \r\n \r\n32 068 26 \r\n \r\nSee notes to the general-purpoae flnanaal statements \r\n \r\nS 7 039 706 31 $ 444 157 19 S 1491166 89 S 7 633 030 39  30- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"3\" \r\n \r\nPROJECT \r\nHARALSON COUNTY The addltlon to and the renovation, repair acquisition improvement and equipping of, exlsUng school bLNldngs, the acq1.11srtMJn of system-wKle lechnology, school ttansportabon vehicles end a new media center and the necessary property therefore end for future schoots, all at a maximum cost of $4,000,000 00 \r\nCARROU COUNTY Func:hng the acquisrtlon, construction renovation, extending end equipping of caprtal outlay pro)\u0026C!S ttvoughoul the Bremen School System, 1nclud1ng apec,flcally bu1 wlthou1 hmrte~on reoovetions, exterlStOllS and eqLapp1ng of H A Jones Elemenrtery School to mdude a new dassroom and cafetena addlbons and other mprovernents at Bremen High School to mclude a cafetena exten:s,on and other ,mprovemems, at Sewell Middle School to include a new saence end tedmology lab and other improvements and construcbng a new physk::al educatJon feahty, mdudlng the ecquos/llon of ei property, bo1h reel end personal, necassery therefor (the \"Bremen School Projects\"), Iha maximum cost of such Bremen School Proiects not to exceed $2,900,000 00 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS(2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\ns 4,000,000 oo s 4,000,000 oo s 562 136 n s 3,220,397 42 Ongoing \r\n \r\n2,900,000 00 2 900,000 00 \r\n \r\n843 467 35 1,506,219 48 \r\n \r\nOngoing \r\n \r\n$ 6,900,000 00 $ 6,900,000 00 $ 1,405,604 12 $ 4,726 616 90 \r\n \r\n(1) The School Dlstnct's ong1nal cost estimate as speafied 1n the resolutJon callmg for the 1mposrtion of the Local Option Sales Tax \r\n(2) The Sdloot Dlstnd's current esllmate of total cost for the pro,ects Includes au cost from pro,ed i:ncephon to complebOn \r\n(3) The voters of Harelson County, Carroil County and the City of Bremen approved the 1mpos1boo of a 1% Hies tax to fund the above prDjeCtS and retre assooeted debt Amounts expended for these pro,eds may 111dude sales tax \r\nproceeds state, local property taxes and/or other funds over the Ufe of Iha projects \r\n \r\nSee notes to the general-purpose ftnancial statements \r\n \r\n- 31 - \r\n \r\n CITY Of BREMEN BOARD OF EDUCATION  HARALSON COUNTY GENERAL FUND  QUALITY BASIC EDUCATION PROGRAM /QBE) \r\nl\\bbOJMENTS ANP EXPENDITURES  BY PROGRAM YEAR ENDED JUNE 30 2002 \r\n \r\nSCHEDULE \"4\" \r\n \r\nDESCRIPTION \r\nDlrect lnstnJCbOnal Programs Kindergarten Program Kindergarten Program-EarlyI -Program Pnmary Grades (1-3) Program Pnmary Grades-Early ln1ervenbon (1-3) Program Upper Elomemary Gracteo (4-5) Program Upper Elemen1ary Grades-Early lmorven!Jon (4-5) Program Moddle Gradel (6-11) Program Middle School (6-11) Program High School General Education (9-12) Program Vocahonal Laboratory (9-12) Program Sludems with Disab1itles Category I Category II CotegOI)' Ill CotegOI)' IV Category V GH\\ed Slud9n1 - Calegor, VI Remedial Education Program AJtematlve EducabOn Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Progrsm Staff and Profeal,onal DevelOpmam \r\n \r\nALLOTI.IEN\"TS FROM GEORGIA DEPARTI.IEN\"T OF EDUCATION (1) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\ns \r\n \r\n455 85800 s 404,153 53 s \r\n \r\n10 485 B1 $ \r\n \r\n414,63914 \r\n \r\n69 919 00 \r\n \r\n75 321 54 \r\n \r\n23 95 \r\n \r\n75 345 49 \r\n \r\n951 535 00 1 198,001 64 \r\n \r\n21,993 35 \r\n \r\n1,219 994 99 \r\n \r\n11716400 \r\n \r\n125,049 4B \r\n \r\n125 049 48 \r\n \r\n540,667 00 \r\n \r\n656,983 02 \r\n \r\n14 343 73 \r\n \r\n673,206 75 \r\n \r\n29,197 00 959 972 00 707,364 00 214,255 00 795,413 00 \r\n152,69800 68 701 00 \r\n \r\n65 160 13 \r\n1 047,899 31 1 044,531 83 \r\n146 476 35 \r\n8,956 36 83,19340 464,60043 128 160 59 \r\n59 63 212,431 T7 \r\n28,523 11 48,195 64 \r\n \r\n23 95 1271151 \r\n3,709 50 31,03766 \r\n650 00 \r\n33444 13 835 50 \r\n \r\n65,164 08 12 711 51 1,051,608 81 1,075,569 51 147,126 35 \r\n8 956 36 83 19340 464 600 43 128,160 59 \r\n59 63 212 766 21 \r\n28,523 11 61,83114 \r\n \r\n$ \r\n \r\n5 062,763 00 $ 5 759,597 78 $ 106,949 22 s 5,BBB 546 98 \r\n \r\n156 429 00 28,604 00 \r\n \r\n180,266 58 3 604 56 \r\n \r\n29,755 96 25,602 83 \r\n \r\n190 022 54 2920741 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\ns \r\n \r\n5,247 996 00 $ 5 923 466 92 $ 164 308 01 $ 6 067 776 93 \r\n \r\n(1) Compnsed of State Funds plus Local Five MIii Sheie \r\n \r\nSee notes to the general-purpose flnanoal statement\u0026 \r\n \r\n 32  \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002 \r\n \r\nSCHEDULE 5 \r\n \r\nSITE Sewell Middle School Bremen High School Jones Elementary School Central Office (Altematrve Education Program) \r\nTOTAL \r\n(1) Comprised of State Funds plus Local F,ve 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\n1,188,208 00 $ \r\n \r\n1,314,759 60 \r\n \r\n1,245,161 00 \r\n \r\n1.550,194 22 \r\n \r\n2,560,693 00 \r\n \r\n2,989,957 66 \r\n \r\n68 701 00 \r\n \r\n13 635 50 \r\n \r\n$ \r\n \r\ns10021763 oo s \r\n \r\n518681546 98 \r\n \r\nSee notes to the general-purpose financ,al statements - 33 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n {L',.S~I I W. HNTO, \r\nSTATE ,IJJDITOR 140,ti 15~2, ,~ \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 W.1~hmg1on ~lrcet, ~ W Suite 214 AIIJnlJ, Gcorg1J 10114-1\\4()(1 \r\nJune 25, 2003 \r\n \r\nllonorablc Sonny Perdue, Governor Member~ of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the C1ty of Bremen Board of Educal!on \r\nREPORT ON COMPLIANCE AND ON INTERNAL CON fROL OVER FINANCIAL REPORTNG 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 City of Bremen Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated June 25, 2003 This report was qualified for vanous departures from generally accepted accounting principles, as 1denuficd in the auditor's report on the general-purpose financial statements We conducted our audit in accordance with auditing standards generally accepted in the Umted States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted States \r\nCompliance \r\nAs part of ohtaining reasonable assurance about whether City of Bremen Board of Education's financial stalements are free of material misstatement, we performed tests of its compliance with certain prov1s1ons of laws, regulat10ns, contracts and gnmts. noncompliance \\\\1th which could have a direct and matenal effect on the determination of financial statement amounts However, providing an op1mon on compliance mth those prov1s10ns was not an obJecuve of our audit, and accordingly, we do not express such an opinion fhe results ofour te~t~ disclosed no in~tances 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 City of Bremen Board of Education'~ internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opin10n 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 certam matter mvolving the mternal control over financial reportmg and its operauon that we consider to be a reportable cond1uon Reportable cond111ons mvolve matters commg to our attention relating to s1gmficant deficiencies in the design or operauon ofthe internal control over financial reporting that, in ourJudgment, could adversely affect City of Bremen Board ofEducat10n's ability to record, process. summanze and report financial data consistent wtth assertions of management in the financial statements The reportable cond111on 1s described in the accompanying Schedule of Findings and Questioned Costs as uem FS-7631-02-0 I \r\nA matenal weakness 1s a condition m which the design or operation of one or more of the internal control components does not reduce to a relauvely low level the nsk that misstatements in amounts that would be matenal in relation to the financial statements bemg audued may occur and not be detected wtthin a umely penod by employees in the normal course of performing theu assigned funct10ns. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the intemaJ control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable cond111ons that are also considered to be matenal weaknesses. However, we consider item FS-7631-02-0 I to be a matenal weakness. \r\nThis report 1s intended solely for the informauon and use of the management, members ofthe City of Bremen Board of Education, Federal awarding agencies and pass-through enIllies and is not intended to be and should not be used by anyone other than these specified parties. \r\n---Respectfully submitted, \r\n \r\nRWHgp 2002YB-41 \r\n \r\nHinton State Auditor \r\n \r\n :u~~i,,11 W. H1NJON \r\nSTATF AUDI IQR \r\n{404) \u0026\u003e6-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 W.1.shmgton Street.~ W Suite 214 AtlJnta. Georgi 30334-8400 \r\nJune 25. 2003 \r\n \r\nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \r\nand Supenntendent and Members of the City of Bremen Board ofEducallon \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE ro EACH MAJOR \r\nPROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WI fH 0MB CIRCULAR A-133 \r\nLadies and Gentlemen. \r\nCompliance \r\nWe have audited the compliance of City of Bremen Board ofEducat1on with the types ofcompliance requirements described in the US Ojjice of Management and Budget (0MB) C1rc11lar A-133 Comphance Supplement that are applicable to each of1ts maJor Federal programs for the year ended June 30, 2002 City of Bremen Board of Education's major Federal programs arc 1dent1fied in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questwned Costs Compliance with the requirements of laws, regulauons, contracts and grants applicable to each of its maJor lederal programs 1s the respons1b1lity of City of Bremen Board of Education's management. Our respons1b1lity 1s to express an opm1on on City of Bremen Board of l::ducat1on's compliance based on our audit \r\nWe conducted our audit of compliance m accordance with aud1tmg standards generally accepted m the Umted States of Amenca. the standard~ applicable to financial audits contamed m Government Aud1tmg Standards. issued by the Comptroller General of the Umted States. and 0MB Circular Al 33. A11d111 of States, Local Governments. and Non-Profit Orgam=atwns 1 hose standards and 0MB Circular A-133 require that we plan and perform the audit to obtam re~onable a~sumnce ahout 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 exam ming, on a test bas1~. evidence about the City of Bremen Board of Educat10n's compliance with those requirements and perfonnmg ~uch other procedure~ as we considered necessary in the c1rcumstances We believe that our audit provides a reasonable baMs for our op1mon Ou, audit does not provide a legal detenninauon on City of Bremen Board ofEducallon's compliance 1th those requ1remen~ \r\nw, \r\n2002SA-I0 \r\n \r\n In our opimon, the Cny of Bremen Board of Educat10n complied. in all matenal respects, With the reqmrements 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 City of Bremen Board of Education 1s responsible for establishing and maintaining effective mtcrnal control over compliance With requirements of laws, regulations. contracts and grants applicable to Federal programs In planmng and performing our audit, we considered City of Bremen Board of Education's internal control over compliance With reqmrements that could have a direct and material effect on a maJor Federal program in order to determine our audning procedures for the purpose of expressing our op1mon on compliance and to test and report on internal control over compliance in accordance With 0MB Circular A-133 \r\nOur cons1derauon of the internal control over compliance would not necessanly disclose all matters in the internal control that might be matenal weaknesses A material weakness 1s a cond1tton in which the design or operatton of one or more ofthe internal control components does not reduce to a relattvely low level of nsk that noncompliance With applicable requirements oflaws, regulattons, contracts and grants that would be matenal in relat10n to a maJor Feder-di program being audited may occur and not be detected within a ttmely penod by employees in the normal course of performing thetr assigned functions. We noted no matters involving the internal control over compliance and its operatton that we consider to be matcnal weaknesses \r\nThi~ report is intended solely for the informat10n and use ofthe management. members ofthe City of Bremen Board ofEducatton, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties \r\n---~Respectfully submitted, \r\n \r\nRWHgp 2002SA-I0 \r\n \r\nState Auditor \r\n \r\n SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YF AR FINDINGS AND QUESTIONED COSTS YcAR ENDED JUNE 30, 2002 \r\n \r\nPRIOR YcAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7631-00-01 FS-7631-01-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group FmdmgControl Number: FS-7631-01-01 \r\n \r\nThe School District has contracted v.,1th Amencan Appraisal Associates to cap1taliLe assets m excess of $10,000 00 and to mamtam an inventory of computer eqmpment and assets valued at $1,000.00 to $9,999.00. The School District 1s currently workmg m con3unct1on with the Depart111ent of Education to add the fixed asset software (FASgov Capital Assets Inventory) to the PC Genesis program. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7631-01-01 \r\n \r\nPreviously Reported Correcllve Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \r\nSUMMARY OF AUDITOR'S RESULTS \r\nType of Report Issued on the Financial Statements The auditor's opinion on the City of Bremen Board of Education's financial statements was qualified for various departures from generally accepted accounting pnnc1ples \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City of Bremen Board ofEducal!on disclosed a financial statement reportable cond1t10n related to the following control category \r\nGeneral Fixed Assets \r\nThe reportable condition described above 1s considered to be a matenal weakness \r\n3 Noncomphance Matenal to the Financial Statements The audit of the City of Bremen Board of Education disclosed no instances of noncompliance that were deemed to be matenal to the financial statements \r\n4 Reportable Condit10ns in Internal Control Over Ma1or Programs The audit report for the City of Bremen Board of Education did not disclose any reportable conditions in internal control over major programs \r\n5 Type of Report Issued on Compliance for Ma1or Programs The auditor's op1ruon on the City of Bremen Board of Education's report on comphance with reqmrements apphcable to major programs was unquahfied \r\n6 Audit Fmdmgs Required to be Reported by Section 510(a) ofOMB Circular A-133 The City of Bremen Board of Education's audit did not disclose audit findings reqmred to be reported by section 510(a) ofOMB Circular A-133 \r\n7 Major Programs Federal awards audited as ma1or programs are as follows IO 553 Food and Nutnt1on Program - Food Services - School Breakfast Program I 0.555 Food and Nutrit10n Program - Food Services - Nat10nal School Lunch Program 84.010 Elementary and Secondary Educat10n Act - Title I - Grants to Local Educat10nal Agencies \r\n8 Type \"A\" Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000 00 \r\n9 Low Risk Aud1tee The City of Bremen Board of Educat10n did not qualify as a low nsk audnee as defined by Section 530 of 0MB Circular A-133 \r\n- I- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Cond111on - Material Weakness Repeated From Prior Year Finding Control Number FS-7631-02-01 The City of Bremen Board of Education did not maintain a system-wide General Fixed Assets Account Group withm the formal accounting records as required by generally accepted accounting pnnc1pals ThIS cond1t1on results in the general-purpose financial statements of the School District being mcomplete and not in accordance with generally accepted accounting pnnc1ples Appropnate act10n 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, bmldmgs and equipment owned by the School District and should include, but may not be limited to, date acquired, acqms1t10n cost. esnmatcd replacement cost, location and descnpt10n Detailed records should be maintamed of all add1t1ons and deletions to the General Fixed Assets Account Group Management's Response The School D1stnct has contracted with American Appl'!llsal to cap1tali.le assets in excess of $10,000 00 and to mamtam an mventory of computer eqmpment and assets valued at $1,000 00 to $9,999 00 The School D1stnct is currently working to meet this audit requirement at the end of the fiscal year 2003 audll, as well as, GASB 34 reqmrements lil FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported \r\n-2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b2000-h2001","title":"City of Bremen Board of Education, Haralson County, 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, Haralson County, Bremen, 33.72122, -85.1455"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2001-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001?; ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: City of Bremen Board of Education, Haralson County, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (City of Bremen Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"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":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["City of Bremen Board of Education, Haralson County, 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-be33-bb6-b2000-h2001"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-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":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":" CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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 INFORMATION SCHEDULE 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 RJND TYPES AND ACCOUNT GROUP \r\n \r\n2 \r\n \r\nB \r\n \r\n. COMBINED 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\n7 \r\n \r\nD \r\n \r\nSTATEMENT OF REVENUES, EXPENSES AND \r\n \r\nCHANGES IN FUND BALANCES \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND \r\n \r\n8 \r\n \r\nE \r\n \r\nSTATEMENT OF CASH FLOWS \r\n \r\nFIDUCIARY FUND TYPE - NONEXPENDABLETRUST FUND \r\n \r\n9 \r\n \r\nF NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n11 \r\n \r\nADDmONAL FINANCIAL INFORMATION \r\n \r\nCOMBINING STATEMENTS \r\n \r\nSPECIAL REVENUE 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, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n26 \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\nI \r\n \r\nCOMBINING BALANCE SHEET \r\n \r\n28 \r\n \r\nJ \r\n \r\nCOMBINING STATEMENT OF REVENUES, EXPENDITURES \r\n \r\nAND CHANGES IN FUND BALANCES \r\n \r\n30 \r\n \r\nSCHEDULES \r\n \r\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n32 \r\n \r\n2 SCHEDULE OF STATE REVENUE \r\n \r\n34 \r\n \r\n3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n35 \r\n \r\n( \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY -TABLEOFCONTENTS- \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nADDIDONAL FINANCIAL INFORMATION \r\n \r\nSCHEDULES \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\n36 \r\n \r\n5 \r\n \r\nBY SITE \r\n \r\n37 \r\n \r\nSECTION IT \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 \r\nACCORDANCE~GOVERNMENTAUDITINGSTANDARDS \r\nREPORT ON COMPLIANCE~ REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE~ OMB CIRCULAR A-133 \r\n \r\nSECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n II \r\n \r\nRUSSELL W. HINTON \r\nSTATEAUDITOR \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\nJuly 3, 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 City of Bremen 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 City of Bremen Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the City of Bremen 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 opmion, \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\n2001ARL-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 \r\ngeneral-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. \r\n* The Board of Education did not recognize as expenditures, in the year ended \r\nJune 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 200 I. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues 'should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \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 City of Bremen Board of Education as of June 30, 2001, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformitywith 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 3, 2002, on our consideration ofthe City ofBremen Board ofEducation's internal control over financial reporting and our tests.ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. \r\nOur audit was performed for the purpose of forming an opinion on the general-purpose financial statements' of the City of Bremen Board of Education taken as a whole. The accompanying combining statements (Exhibits G through J) and the financial schedules (Schedules 1 through 5), \r\nwhich 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\n2001ARL-13 \r\n \r\n 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\n \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 ofGeorgia Annotated Section 506-24. \r\n \r\n\\ . \" Respectfully submitted, \r\n \r\n. \r\n \r\n- \r\n \r\nU)~ \r\n \r\nR sell W. Hinton State Auditor \r\n \r\nRWH:gp 2001ARL-13 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n CITY OF BREMEN BOARDOF EDUCATION HARALSON COUNTY COMBINED BALANCE SHEET \r\nALL FUNDTYPESAND ACCOUNT GROUP JUNE 30, 2001 \r\n \r\n EXHIBIT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nFIDUCIARY FUND TYPE \r\nTRUST FUND \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, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n1,748.71 $ \r\n \r\n864.86 \r\n \r\n$ 1,677,827.65 $ 1,473,430.02 \r\n \r\n20,000.00 \r\n \r\n20,000.00 \r\n \r\n15,000.00 \r\n \r\n11.51 \r\n \r\n267,005.22 \r\n \r\n220,261.84 \r\n \r\n652.57 \r\n \r\n$ \r\n \r\n1,760.22 \r\n \r\n8,683.68 2,844.29 \r\n1,760.22 \r\n \r\n7,828.17 3,091.96 \r\n2,625.15 \r\n \r\n1,083,239.78 157,054.91 \r\n \r\n1,083,239.78 157,054.91 \r\n \r\n1,647,374.85 94,992.95 \r\n \r\n$ \r\n \r\n1,760.22 $ \r\n \r\n20,864.86 $ 1,242,054.91 $ 3,219,068.32 $ 3,464,604.94 \r\n \r\n$ \r\n$ 157,054.91 1,085,000.00 \r\n$ 1,242,054.91 $ \r\n \r\n143,860.19 $ 96,234.27 431.70 9,028.10 157,054.91 \r\n1,085,000.00 \r\n1,491,609.17 $ \r\n \r\n169,769.75 96,918.09 5,506.10 \r\n94,992.95 1,650,000.00 \r\n2,017,186.89 \r\n \r\n$ \r\n \r\n1,760.22 \r\n \r\n$ \r\n \r\n20,000.00 \r\n \r\n0.00 \r\n \r\n864.86 \r\n \r\n$ \r\n \r\n1,760.22 $ \r\n \r\n20,864.86 \r\n \r\n$ \r\n \r\n15,219.00 $ \r\n \r\n11,342.00 \r\n \r\n1,760.22 \r\n \r\n2,625.15 \r\n \r\n20,000.00 \r\n \r\n15,000.00 \r\n \r\n997.67 \r\n \r\n8,683.68 2,844.29 182,199.19 768,709.88 \r\n \r\n7,828.17 3,091.96 422,918.40 604,755.07 \r\n \r\n728,042.89 \r\n \r\n378,859.63 \r\n \r\n$ 1.727,459.15 $ 1,447,418.05 \r\n \r\n$ \r\n \r\n1,760.22 $ \r\n \r\n20,864.86 $ 1.242.054.91 $ 3.219,068.32 $ 3,464,604.94 \r\n \r\n-3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES IUSES) \r\nCapital Leases 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 Financing Uses \" \r\nFUND BALANCE JULY 1 (Restated - ~ee Note 1) \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$ 6,982,147.55 $ \r\n1,174,494,68 412,479.88 \r\n \r\n334,596.30 738,325.10 \r\n309,258.70 \r\n \r\n$ 8,569,122.11 $ 1,382,180.10 \r\n \r\n$ 6,067,012.78 $ \r\n198,441.08 124,900.76 181,365.48 186,937,10 643,574.72 90,261.91 566,482.03 53,532.56 \r\n3,819.65 31,978.20 4,559.40 71,586.51 \r\n \r\n487,269.82 40,259.82 336,979.97 22,208.99 41.76 5,262.00 \r\n502,188,76 \r\n \r\n13,265.88 2,746.97 \r\n \r\n$ 8,240,465,03 $ 1,394,211,12 \r\n \r\n~ \r\n \r\n328,657.08 $ \r\n \r\n-12,031.02 \r\n \r\n$ \r\n \r\n34,585.61 \r\n \r\n$ \r\n \r\n-11,799.54 \r\n \r\n.,.\" \r\n \r\n$ \r\n \r\n22,786.07 $ \r\n \r\n11,785.60 11,785.60 \r\n \r\n$ \r\n \r\n351,443.15 $ \r\n \r\n-245.42 \r\n \r\n301,630.40 \r\n \r\n100,489.03 \r\n \r\n855.51 -247.67 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n653,073.55 $ =====1\"0~0=,8=5=1=.4=5= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -4- . \r\n \r\n EXHIBlrB\" \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, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\ns \r\n \r\n70,000.00 \r\n \r\n$ 7,386,743.85 $ 6,473,309.45 \r\n \r\n738,325.10 \r\n \r\n676,008.53 \r\n \r\n566,674.84 $ \r\n \r\n622,170.00 \r\n \r\n2,363,339.52 \r\n \r\n2,253,326.88 \r\n \r\n31,567.69 \r\n \r\n170.07 \r\n \r\n753,476.34 \r\n \r\n715,942.97 \r\n \r\ns \r\n \r\n668.24 2.53 $ \r\n \r\ns 622,340.07 $ 11,241,884.81 \r\n \r\n10,118,587.83 \r\n \r\n$ \r\n \r\n779,026.31 \r\n \r\n65,467.55 s 6,736.79 \r\n \r\n$ \r\n \r\n851,230.65 $ \r\n \r\ns -182,988.12 $ \r\n \r\n$ 6,554,282.60 $ 5,729,502.39 \r\n \r\n238,700.90 461,880.73 181,365.48 209,146.09 643,616.48 \r\n90,261.91 571,744.03 \r\n53,532.56 3,819.65 \r\n31,978.20 506,748.16 \r\n71,586.51 779,026.31 \r\n \r\n342,314.89 537,992.38 188,412.27 204,326.70 569,443.84 \r\n98,509.21 481,101.66 \r\n54,618.41 3,522.50 \r\n28,175.89 453,278.18 \r\n73,934.16 962,182.09 \r\n \r\n565,000.00 58,205.00 \r\n \r\n643,733.43 67,688.76 \r\n \r\n526,721.09 127,367.44 \r\n \r\n623.205.00 $ 11,109,111.80 $ 10,381,403.10 \r\n \r\n-864.93 $ \r\n \r\n132,773.01 $ -262,815.27 \r\n \r\ns \r\n \r\n106,209.78 \r\n \r\n13.94 \r\n \r\ns \r\n \r\n106,223.72 \r\n \r\n$ \r\n \r\n-76,764.40 $ \r\n \r\n1,027,673.47 \r\n \r\n$ \r\n \r\n140,795.39 $ \r\n \r\n88,207.00 \r\n \r\n11,799.54 \r\n \r\n146,309.05 \r\n \r\n-11,799.54 \r\n \r\n-146,309.05 \r\n \r\n$ \r\n \r\n140,795.39 $ \r\n \r\n88,207.00 \r\n \r\n-864.93 $ 2,625.15 \r\n \r\n273,568.40 $ 1,432,418.05 \r\n \r\n-174,608.27 1,609,597.59 \r\n \r\n855.51 -247.67 \r\n \r\n-3,107.86 536.59 \r\n \r\ns \r\n \r\n950,909.07 $ \r\n \r\n1.760.22 $ 1,706,594.29 $ 1,432,418.05 \r\n \r\n-5- \r\n \r\n  CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - INON-GAAp BASIS) GENERAL AND SPECIAL REVENUE FUNDS \r\nYEAR ENDED 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\nState Funds Federal Funds. Taxes Other Funds \r\n \r\n$ 6.842,533,00 $ 6.982,147,55 \r\n \r\n60,000,00 \r\n \r\n1,080,000.00 1,174.494.68 \r\n \r\n383.825,00 \r\n \r\n412,479.88 \r\n \r\nTotal Revenues EXPENDITURES \r\n \r\n$ 8.366.358.00 $ 8.569,122,11 \r\n \r\nCurrent \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n. Improvement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportatlon Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nFood Services Operation \r\n \r\nEnterprise Operations \r\n \r\nI \r\n \r\nDebt Service . \r\n \r\nI \r\n \r\nTotal Expenditures \r\n \r\n~ \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n] \r\n \r\nOTHER FINANCING SOURCES IUSES) \r\n \r\nOther Sources Other Uses \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ 6,192,132,00 $ 6.067,012.78 \r\n \r\n193,795.00 127,715.00 176.525,00 186.124,00 582.552.00 90,175.00 534,399.00 56.441.00 \r\n9,505.00 28.129,00 5,338.00 80,500,00 \r\n \r\n198.441,08 124,900,76 181,365,48 186,937.10 643.574.72 90,261,91 566.482,03 53,532.56 \r\n3,819.65 31.978.20 \r\n4.559,40 71,586,51 16.012.85 \r\n \r\n$ 8.263.330.00 $ 8,240.465.03 \r\n \r\n$ 103.028,00 $ 328,657,08 \r\n \r\n$ 34.585.61 -11,799.54 \r\n$ 22.786.07 \r\n \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses \r\nfUND BAlANCE JULY 1. 2000 (Restated See Note 1) \r\nAdjustments food Inventory - Net Change in Period \r\nDonated Commodities Purchased food \r\n \r\n$ 103,028.00 $ 351,443.15 \r\n \r\n333,596.00 \r\n \r\n301.630.40 \r\n \r\n-11,901.00 \r\n \r\nfUND BALANCE JUNE 30, 2001 \r\n \r\n$ 424,723.00 $ 653,073,55 \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$ 410,416,00 $ 334.596,30 \r\n \r\n619,009,00 \r\n \r\n738.325,10 \r\n \r\n290,500,00 \r\n \r\n309.258.70 \r\n \r\n$ 1,319.925,00 $ 1,382.180,10 \r\n \r\n$ 529,333.00 $ 487,269.82 \r\n \r\n42,199.00 319,959.00 \r\n \r\n40,259,82 336.979.97 \r\n \r\n21,752.00 \r\n \r\n22,208.99 41.76 \r\n \r\n5.758,00 \r\n \r\n5,262.00 \r\n \r\n410,703,00 \r\n \r\n502.188,76 \r\n \r\n$ 1,329.704,00 $ 1.394.211.12 $ -9,779.00 $ -12.031.02 \r\n \r\n$ 11,785,60 \r\n \r\n$ 11.785.60 \r\n \r\n$ -9,779.00 $ 136,117.00 \r\n \r\n-245.42 100,489.03 \r\n \r\n855.51 -247,67 \r\n$ 126.338.00 $ 100.851.45 \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -7 \r\n \r\n CITY OF .BREMEN BOAROOF EDUCATI@N \"HARALSON COUNTY STATEMENTOF~R6VEN8ES)!\u0026XI2ENSES;ANDicf:iANGES'IN FUNO BALANCES \r\nFIOOCIARY'FUr'JD;~P\"E:_f';j0NEXPENDAB[E TRUST FUNO . YE~RE,NDEEfjUNE '30,2001 \r\n \r\nEXHIBIT \"0\" \r\n \r\nOPERATING REVENUES Donations \r\nOPERATING EXPENSES None Recorded Operating Income \r\nNONOPERATING REVENUES Interest Earned Net Income \r\nFUND BALANCE JULY 1 (Restated - See Note 1) \r\n \r\nBREMEN BOARD OF EDUCATION ENDOWMENT \r\nFUND \r\n \r\nTOTALS (Memorandum Only) \r\nYEARENOED JUNE 30, 2001 JUNE 30, 2000 \r\n \r\n$ \r\n \r\n5,000,00 $ \r\n \r\n5,000.00 $ \r\n \r\n2,500.00 \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\n5,000.00 $ \r\n \r\n5.000.00 $ \r\n \r\n2,500.00 \r\n \r\n864.86 \r\n \r\n864.86 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n5,864.86 $ \r\n \r\n5,864.86 $ \r\n \r\n2,500.00 \r\n \r\n15,000.00 \r\n \r\n15,000.00 \r\n \r\n12,500.00 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n20,864,86 $ \r\n \r\n20,864.86 $ ==:====15=,=0=0=0=.0=0= \r\n \r\n\". \r\n \r\nThe notes to the general-purpose financial statements are an irltegral,partof this statement. -8- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY STATEMENT OF CASH FLOWS \r\nFIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2001 \r\n \r\nEXHIBIT\"E\" \r\n \r\nCash Flows from Operating Activities: Cash Received from Donations \r\ncash Flows from Investing Activities: Interest Received on Investments Purchase of Investments Sale of Investments \r\nNet cash Used by Investment Activities \r\nNet Increase in Cash \r\nCash and Cash Equivalents - July 1 \r\nCash and Cash Equivalents - June 30 \r\n \r\nBREMEN BOARD OF EDUCATION ENDOWMENT \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$ \r\n \r\n5,000.00 $ \r\n \r\n5,000.00 $ \r\n \r\n2,500.00 \r\n \r\n$ \r\n \r\n864.86 $ \r\n \r\n-20,000.00 \r\n \r\n15,000.00 \r\n \r\n864.86 \r\n-20,000.00 $ \r\n15,000.00 \r\n \r\n-15,000.00 12,500.00 \r\n \r\n$ \r\n \r\n-4,135.14 $ \r\n \r\n$ \r\n \r\n864.86 $ \r\n \r\n0.00 \r\n \r\n-4,135.14 $ 864.86 $ \r\n0.00 \r\n \r\n-2,500.00 0.00 0.00 \r\n \r\n$ \r\n \r\n864.86 $ \r\n \r\n864.86 $========0.=00= \r\n \r\nThe notes to the general-purpose financial statements are an integral part of this statement. -9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES' \r\nREPORTING ENTITY \r\nThe City ofBremen Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes. 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' ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fmancial resources. \r\nGeneral Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. 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 a School District's educational activities. Governmental Fund Types include: \r\n. GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. \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\n- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON couNTY \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30,' 2001 \r\n \r\nEXHmIT\"F\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \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 ~sed to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and p~ying agent fees. \r\n \r\nFIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: \r\n \r\nNONEXPENDABLE TRUST FUND , BremenBoard ofEducation Endowment Fund - the furidused to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used as necessary by the School D i s t r i c t . ! ,. \r\n \r\nACCOUNT GROUP \r\n \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to \r\n \r\naccount for general obligation debt outstanding and' capital lease obligations. \r\n \r\n~ t \r\n \r\n \r\n \r\nBASIS OF ACCOUNTING '. \r\n \r\n\" \r\n \r\n'I \r\n \r\nThe accounting and financial reporting treatment applied to a fund is determined by its measurement \r\n \r\nfocus. All governmental funds.are accounted for using a current financial resources measurement \r\n \r\nfocus. With this measurement focus, only currentassets and current liabilities generally are \r\n \r\nincluded on the balance sheet. OPerating statements ofthese funds present increases (i.e., revenues \r\n \r\nand other financing sources) and decreases (i.e., expenditures and other financing uses) iri net current \r\n \r\nassets. Their reported fund balance is considered a measure of available spendable resources. \r\n \r\n, \r\n \r\n. \r\n \r\nLiabilities which are expected to be financed from available spendable resources are reported as. \r\n \r\nliabilities inthe governmental 'funds. Other liabilities, which are not expected to be financed from \r\n \r\navailable spendable resources, are reported in the General Long-Term Debt Account Group, \r\n \r\nAll nonexpendable trust funds are accounted for on a flow of economic resources measurement \r\n \r\nfocus. With this measurement focus, all assets and liabilities associated with the operation of these \r\n \r\nfunds are included on the balance sheet. Operating statements present increases (e.g., revenues) and \r\n \r\ndecreases (e.g., expenses) in net total assets. \r\n \r\n. \r\n \r\n\" \r\n \r\nGovernmental funds are accounted for using the modified accrual basis 'of accounting under which: \r\n \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 enoughthereafter to be used to payliabilities of \r\n \r\n- 12 :- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nEXHffiIT\"F\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nthe 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of'Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had . been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \r\nThe accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. \r\nRESTATEMENT OF PRIOR YEAR FUND BALANCE \r\nIn prior years, the investment activities for the School District's Nonexpendable Trust Fund were reported as a part ofthe General Fund. This fund had a fund balance of$15,000.00 at June 30, 2000. For fiscal year 200 1, this fund has been reported as a Nonexpendable Trust Fund. The fund balance at July 1, 2000, has been restated as appropriate. \r\nBUDGET \r\nThe City of Bremen 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 \r\n- 13- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nEXHmIT\"F\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nsources. 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 tha. n generally accepted accounting principles. \r\n \r\n. The budget process begins when the School District's administration prepares a tentative budget for \r\n \r\nthe Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised \r\n \r\nat least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe \r\n \r\nBoard after advertisement, the Board receives comments on the tentative budget, makes revisions as \r\n \r\nnecessary and adopts a final school budget. This final budget is then submitted, in accordance with \r\n \r\nprovisions of the Quality Basic Education Act, OCGA Section' 20-2-167(c), to the Georgia \r\n \r\nDepartment of Education. The Board may increase or decrease the budget at any time during the \r\n \r\nyear. All unexpended budget authority lapses at fiscal year-end:' \r\n \r\n.. \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 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(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- 14- \r\n \r\n , I, \r\n \r\nI \r\n \r\nCITY OF BREMEN BOARD OF EDUCAnON - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30,'2001 \r\n \r\nEXHmIT\"F\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICiES \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 City of Bremen fixed the property tax levy for the 2000 tax year (calendar year) on September 30, 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 Bremen City Clerk bills and collects the property taxes for the School District and remits the taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $1,172,485.03. \r\n \r\nThe tax millage rate levied for the 2000 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n5,032 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 and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,188,844.84 ($550,859.45 from Carroll County and $637,985.39 from Haralson County) and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthe tax within Haralson County once an additional $1,716,183.77 has been collected or on June 30, 2002, whichever occurs first. The State will terminate collection of the tax within Carroll County once an additional $1,235,059.30 has been collected or on December 31, 2002, whichever occurs first. \r\n \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION HARALSONCOUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \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 ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute \"available spendable resources\" even though they are a component of net current assets. \r\n \r\nPREPAID ITEMS \r\n \r\nPayments made to vendors for services that will benefit periods subsequent to June 30, 2001, are \r\n \r\nrecorded as prepaid items.' \r\n \r\n. \r\n \r\n'. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District entered into a joint agreement with the City of Bremen whereby the City of \r\n \r\nBremen issued general obligation bonds, on behalf of the school system. The bond premiums, \r\n \r\ndiscounts and issuance costs are recognized in the financial statements ofthe School District during \r\n \r\nthe year bonds are issued. According to the terms ofthe aforementioned agreement, the bonds are. \r\n \r\nthe direct 'obligations of the School District; therefore, the outstanding amount of these bonds is \r\n \r\nrecorded in the General Long-Term Debt Account Group. \r\n \r\n.' , \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe School District has the following types of interfund transactions: \r\nReimb'urse~ents of expenditures/expenses initially made from a fund that are properly applicable, to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. \r\nOperating transfers are recorded for ail interfund transactions other than reimbursements. \r\n \r\nMEMORANDUM ONLY - TOTAL COLUMNS \r\nTotal columns on the general-purpose financial statements are captioned \"Memorandum Onlyto indicate that 'they are presented only to facilitate fmancial analysis.' Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. \r\n- 16 -' \r\n \r\n CITY OF BREMEN BOARD OF EDUCA nON - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote 2: DEPOSITS \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 thanten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than . 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance, Ifa depository elects the pooled method (OCGA 45-R-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\nCATEGORIZATION OF DEPOSITS AtJune 30, 2001, the bank balances were $2,031,753.13. The amounts ofthe total bank balances are classified into three categories of credit risk: \r\n \r\n- 17 - \r\n \r\n ,----------------~-~-~~ \r\n \r\nCITY OF BREMEN BOARD OF EDUCATION - HARALSON'COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2001 \r\n \r\nEXHmITIF\" \r\n \r\nNote 2: DEPOSITS \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. \r\n, Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name, \r\nCategory 3 - Uncollateralized deposits, .(This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) , \r\n \r\nas The School District's deposits are classified by risk category at June 30, 2001, follows: \r\n \r\n.~ \r\n \r\n, \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 120,000,00 \r\n \r\n2 \r\n \r\n1,911,753.13 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 2,031.753.13 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \r\n-, The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories \r\n.: \r\nNote 4: RISK MANAGEMENT \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 has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three ye~s. \r\n \r\n. The School District has elected to self-insure for all losses related to natural disaster. The School \r\nDistrict has not experienced any losses related to this risk in the past three years, \r\nThe School District is self-insured with regard to unemployment compensation claims. The School. District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for 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. The School District has not incurred any liabilities for unemployment compensation during the last two fiscal years. \r\n \r\n- 18 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\nJUNE 30, 2001 \r\n \r\n. \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote 4: 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 Board Treasurer All Other Employees \r\n \r\n$ 10,000.00 $ 10,000.00 $ 50,000,00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Bremen Board of Education has entered into various lease agreements as lessee for mobile classrooms, school buses and copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception, \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 1997 \r\n \r\n3,85% ':\" 4.30% $ 1.085.000,00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\nBalance July 1, 2000 \r\n \r\n$ 94,992.95 $ 1,650,000,00 $ 1,744,992,95 \r\n \r\nAdditions Capital Leases \r\n \r\n. 140,795.39 \r\n \r\n140,795.39 \r\n \r\nDeductions Debt Retired \r\n \r\n78.733.43 \r\n \r\n565.000.00 \r\n \r\n643.733.43 \r\n \r\nBalance June 30, 2001 \r\n \r\n$ 157.054,91 $ 1.085.000,00 $ 1.242,054.91 \r\n \r\nAt June 30, 2001, payments due by fiscal year which includes principal and interest for these items \r\nare as follows: \r\n \r\n- 19- \r\n \r\n CITY OF BREMEN BOARD OF EDUCA nON - HARALSON COUNTY \r\n \r\nNOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS \r\n \r\n. \r\n \r\nJUNE 30; 2001 \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\n.Fiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral . Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2002 2003 2004 2005 \r\n \r\n$ 81,191.42 $ 676,340.00 . $ 757,531.42 \r\n \r\n67,295.86 \r\n \r\n474,565.00 \r\n \r\n541,860.86 \r\n \r\n12,174.23 \r\n \r\n12,174.23 \r\n \r\n11.675.99 \r\n \r\n11,675.99 \r\n \r\nTotal Principal and Interest $ 172,337.50 $ 1.150,905.00 $ 1.323,242.50 \r\n \r\nDeduct: Imputed Interest \r\n \r\n15,282.59 \r\n \r\nNet Present Value of Future Minimum Lease Payments $ 157,054.91 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and expenditures in the amount of $109,240.65 for health insurance and retirement contributions paid on the School District's behalfby 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 $92,616.65 \r\n \r\nOffice of Treasury and.Fiscal Services Paid to the Public School Employees Retirement System For Public School Einployees Retirement (PSERS) Employer's Cost In the, amount of$16,624.00 \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed \r\n \r\nby the School District as of June 30, 2001: \r\n \r\n.. \r\n \r\n- 20- \r\n \r\n '. ~. '. \r\n \r\n. :~ \r\n \r\nCITY OF BREMEN BOARD OF EDUCAnON - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nEXHmIT\"F\" \r\n \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nCentral Office Renovation Construction ofNew Maintenance \r\nBuilding at Bremen High School Bremen High School Renovation Additions to H, A. Jones Elementary Resurfacing of Parking Lot at Bremen \r\nHigh School and H. A. Jones Elementary \r\n \r\n$ 4,349.00 \r\n6,572.00 163,015.26 78,495.47 \r\n42,175.50 \r\n \r\n$ 294,607.23 \r\n \r\nThe amounts described in this note are not reflected in the general-purpose financial statements. \r\n \r\nNote 8: 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 9: SUBSEQUENT EVENTS \r\n \r\nIn the subsequent fiscal year, voters authorized the School District to issue general obligation bonds in the amount of $2,540,000.00 and $2,390,000.00. The proceeds from the $2,540,000.00 bond issue will be used for the purpose of providing funds to payor to be applied toward the cost of acquiring, constructing and equipping school buildings and other buildings and facilities useful or desirable in connection therewith, adding to, renovating, repairing, improving and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, including constructing, modifying and equipping classrooms, acquiring system-wide technology improvements, acquiring school transportation vehicles, acquiring the necessary property for such schools, both real and personal and for future school sites and paying expenses incident to accomplishing the foregoing. The proceeds from the $2,390,000.00 bond issue will be used for the purpose of providing funds to payor to be applied toward the cost of (i) funding a portion of the acquisition, construction and equipping of capital outlay projects throughout the Bremen School System including additions, improvements, renovations, modifications and equipping of existing schools and the acquisition of all necessary property, both real and personal, necessary therefor. . \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCAnON -HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 \r\n \r\nEXHIBIT\"F\" \r\n \r\nNote 9: SUBSEQUENT EVENTS \r\n \r\nIn the subsequent fiscal year, voters of the School District voted in favor of two Special Purpose Local Option Sales Tax referendums for educational purposes. The impositions ofthe taxes by the voters, as stated on the Official Ballots ofthe City ofBremen and applicable to the City ofBremen Board of Education are as follows: \r\n \r\nCity ofBremen within Haralson County \r\n \r\n\"Shall a special 1 percent sales and use tax be imposed in the City ofBremen for a period of \r\n \r\ntime not to exceed 20 consecutive calendar quarters commencing upon the expiration of the \r\n \r\ncurrent 1 percent sales and use tax for educational purposes for the raising of not more than \r\n \r\n$17,100,000 for the purpose of ... (a) for the City of Bremen, acquiring, constructing and \r\n \r\nequipping school buildings and other buildings and facilities useful or desirable in connection \r\n \r\n. therewith, adding to, renovating, repairing, improving and equipping existing school buildings \r\n \r\nand other buildings and facilities useful or desirable in connection therewith, including \r\n \r\nconstructing, modifying and equipping classrooms, acquiring system-wide technology \r\n \r\nimprovements, acquiring school transportation vehicles and acquiring the necessary property \r\n \r\nfor such schools, both real and personal, and for future school sites, all at a maximum cost of \r\n \r\n$4,900,000.00, as described in the Notice of Election...\" \r\n \r\n' \r\n \r\nCity ofBremen within Carroll County \r\na \"Shall special one percent sales and use tax be imposed in Carroll Comity (such tax to be a \r\ncontinuation ofthe existing 1% sales and use tax and not an additional sales and use tax) for a period oftime not to exceed five years (20 calendar quarters) commencing upon the expiration ofthe existing one percent sales and use tax currently in force, and for the raising ofnot more than $110,000,000 for the purpose of... (vi) funding the acquisition, construction, renovation, modification, improvement, extending and equipping of projects throughout the Bremen School System, including, but without limitation, additions, renovations and improvements of . certain existing system facilities, system-wide technology improvements, the. acquisition of school transportation vehicles; the acquisition of land for additional schools, and the acquisition of all property, both real and personal, deemed necessaryand advisable therefor including the funding ofcapitalized interest on debt ofthe City ofBremen with respect to the Bremen School Projects (the \"Bremen School Projects\"), the maximum costs ofsuch Bremen School Projects not to exceed $4,840,000, as described in the Notice of Election...\" \r\n \r\nNote 10: RETIREMENT PLANS \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nTRS PLAN DESCRIPTION \r\n \r\n,\" \r\n \r\nSubstantially all teachers, administrative and clerical personnel employed by local school districts \r\n \r\nare covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple \r\n \r\nemployer defined benefit pension plan. TRS provides service retirement, disability retirement and \r\n \r\nsurvivors benefits for its members in accordance with State statute. The Teachers Retirement \r\n \r\nSystem of Georgia issues a separate stand alone financial audit report and a copy can be obtained \r\n \r\nfrom the Georgia Department of Audits and Accounts. \r\n \r\n- 22- \r\n \r\n 111I ~ \r\n \r\nCITY OF BREMEN BOARD OF EDUCA nON - HARALSON COUNTY NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 \r\n \r\nEXHffiIT\"F\" \r\n \r\nNote 10: RETIREMENT PLANS \r\n \r\nTRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2001 2000 1999 \r\n \r\n100% 100% 100% \r\n \r\n$ 661,272.19 $ 616,007.34 $ 601,628.15 \r\n \r\n- 23- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 \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$ \r\n \r\n125,314.40 $ \r\n \r\n45,483.86 \r\n \r\n395.29 \r\n \r\n8,683.68 2,844.29 \r\n \r\n$ \r\n \r\n137,237.66 $ =====4~5=.4=8=3=.8=6= \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$========= $ \r\n \r\n137,237.66 \r\n \r\n45.483.86 \r\n \r\nSee notes to the general-purpose financial statements. - 24 \r\n \r\n EXHIBIT\"G\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS \r\n \r\nJUNE 3D,2001 \r\n \r\nJUNE 3D, 2000 \r\n \r\n$ \r\n \r\n12,494.28 $ \r\n \r\n183,292.54 $ \r\n \r\n202,124.05 \r\n \r\n34,474.01 \r\n \r\n34,869.30 \r\n \r\n27,842.95 \r\n \r\n8,683.68 2,844.29 \r\n \r\n7,828.17 3,091.96 \r\n \r\n$ \r\n \r\n46,968.29 $ 229,689.81 $ =====2=4=0=,=88=7=.=1=3= \r\n \r\n$ \r\n \r\n19,041.54 $ \r\n \r\n38,395.05 $ \r\n \r\n44,573.79 \r\n \r\n27,495.05 \r\n \r\n90,011.61 \r\n \r\n90,318.21 \r\n \r\n431.70 \r\n \r\n431.70 \r\n \r\n5,506.10 \r\n \r\n$ \r\n \r\n46,968.29 $ \r\n \r\n128,838.36 $ \r\n \r\n140,398.10 \r\n \r\n$ \r\n \r\n$ ------';;.;.;;.,0;.;0;0... \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n8,683.68 $ 2,844.29 \r\n \r\n7,828.17 3,091.96 \r\n \r\n89,323.48 \r\n \r\n89,568.90 \r\n \r\n100,851.45 $ _ _1=0l.0..,4.:8..9:,.;0=3:'\" \r\n \r\n$ \r\n \r\n======a====== 46,968.29 $ \r\n \r\n229,689.81 $ \r\n \r\n240,887.13 \r\n \r\n- 25- \r\n \r\n ,-----------------~-~-----~~- \r\nCITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 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 General Administration School Administration Maintenance and Operation of Plant Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOperating Transfers In \r\nExcess of Revenues and Other Financing Sources over (under) Expenditures \r\nFUND BALANCE JUL Y 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\n37,606.00 $ \r\n \r\n296,990,30 \r\n \r\n155,078.64 \r\n \r\n309,258.70 \r\n \r\n$ \r\n \r\n501,943,34 $ \r\n \r\n296,990,30 \r\n \r\n$ \r\n \r\n265.991,10 \r\n \r\n$ \r\n \r\n502,188.76 \r\n \r\n13.886.21 488.00 \r\n11,501.38 41.76 \r\n5,262.00 \r\n \r\n$ \r\n \r\n502,188.76 $ \r\n \r\n297,170.45 \r\n \r\n$ \r\n \r\n-245.42 $ \r\n \r\n-180.15 \r\n \r\n$ \r\n \r\n-245.42 $ \r\n \r\n100,489.03 \r\n \r\n855.51 -247.67 \r\n \r\n180.15 \r\n0.00 0.00 \r\n \r\n. $ 100,851.45 $======0=.00= \r\n \r\nSee notes to the general-purpose financial statements. - - 26- \r\n \r\n EXHIBIT\"H\" \r\n \r\nFEDERAL PROGRAMS \r\n \r\nTOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 \r\n \r\n$ \r\n \r\n334,596.30 $ \r\n \r\n380,314.91 \r\n \r\n$ \r\n \r\n583,246.46 \r\n \r\n738,325.10 \r\n \r\n676,008.53 \r\n \r\n309,258.70 \r\n \r\n297,921.01 \r\n \r\n$ \r\n \r\n583.246.46 $ 1.382,180.10 $ 1.354.244.45 \r\n \r\n$ \r\n \r\n221,278.72 $ \r\n \r\n487,269.82 $ \r\n \r\n514,464.65 \r\n \r\n26,373.61 336,491.97 \r\n10,707.61 \r\n \r\n40,259.82 336,979.97 \r\n22,208.99 41.76 \r\n5,262.00 502,188.76 \r\n \r\n17,727.32 327,971.08 25,767.99 \r\n3,162.56 448,590.86 \r\n9,788.55 \r\n \r\n$ \r\n \r\n594,851.91 $ 1.394,211.12 $ 1.347,473.01 \r\n \r\n$ \r\n \r\n-11,605.45 $ \r\n \r\n-12,031.02 $ \r\n \r\n6,n1.44 \r\n \r\n11,605.45 \r\n \r\n11,785.60 \r\n \r\n16,216.55 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n-245.42 $ \r\n \r\n22,987.99 \r\n \r\n0.00 \r\n \r\n100,489.03 \r\n \r\n80,072.31 \r\n \r\n855.51 -247.67 \r\n \r\n-3,107.86 536.59 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n100,851.45 $ \r\n \r\n100,489.03 \r\n \r\n- 27- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 3D, 2001 \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable Prepaid Items \r\n \r\nBOND PROCEEDS \r\n \r\nGEORGIASTATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\n$ \r\n \r\n187,183.16 $ \r\n \r\n0.00 \r\n \r\n,-;; \r\n1,836.00 \r\n \r\nTotal Assets \r\n \r\n$ 189,019.16 $=======0.=00= \r\n \r\nSee notes to the general-purpose financial statements. - 28- \r\n \r\n EXHIBIT \"I\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION \r\nSALES TAX. \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30. 2000 \r\n \r\n$ \r\n \r\n581.134.71 $ \r\n \r\n768.317.87 $ \r\n \r\n835.999.93 \r\n \r\n206.849.82 \r\n \r\n208,685.82 \r\n \r\n192,418.89 \r\n \r\n652.57 \r\n \r\n652.57 \r\n \r\n$ \r\n \r\n788,637.10 $ \r\n \r\n9n,656.26 $ 1.028,418.82 \r\n \r\n$ \r\n \r\n10.899.12 $ \r\n \r\n17,719.09 $ \r\n \r\n9,028.10 \r\n \r\n9.028.10 \r\n \r\n$ \r\n \r\n19,927.22 $ \r\n \r\n26,747.19 s \r\n \r\n745.35 745.35 \r\n \r\n$ \r\n \r\n182.199.19 $ \r\n \r\n422,918.40 \r\n \r\n$ \r\n \r\n768,709.88 \r\n \r\n768.709.88 \r\n \r\n604,755.07 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n768,709.88 $ \r\n \r\n950.909.07 $ 1,027.673.47 \r\n \r\n$ \r\n \r\n788,637.10 $ \r\n \r\n977,656.26 $ 1,028,418.82 \r\n \r\n- 29- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nCAPITAL PROJECTS FUND YEAR ENDED JUNE 3D, 2001 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n182,199,19 $========0.=00= \r\n \r\nSee notes to the general-purpose financial statements, - 30 ~ \r\n \r\n EXHIBIT\"J\" \r\n \r\nSPECIAL PURPOSE LOCAL OPTION \r\nSALES TAX \r\n \r\nTOTALS \r\n \r\nYEAR ENDED \r\n \r\nJUNE 30, 2001 \r\n \r\nJUNE 30, 2000 \r\n \r\n$ \r\n \r\n70,000.00 $ \r\n \r\n70,000.00 $ \r\n \r\n78,242.87 \r\n \r\n566,674.84 \r\n \r\n566,674.84 \r\n \r\n841,853.97 \r\n \r\n16,284.32 \r\n \r\n31,567.69 \r\n \r\n38,349.82 \r\n \r\n$ \r\n \r\n652,959.16 $ \r\n \r\n668,242.53 $_-..:=.9\u00265.8..,.4:4..6:.6=6:.. \r\n \r\n$ \r\n \r\n5,824.56 $ \r\n \r\n5;499.96 \r\n \r\n1,587.55 \r\n \r\n1,311.75 \r\n \r\n$ \r\n \r\n43,851.00 \r\n \r\n46,351.00 \r\n \r\n3,853.86 \r\n \r\n519,061.38 \r\n \r\n549,005.44 \r\n \r\n941,727.97 \r\n \r\n82,675.76 \r\n \r\n176,257.76 \r\n \r\n29,931.12 6,145.81 \r\n \r\n65,467.55 6,736.79 \r\n \r\n11,721.09 1,147.44 \r\n \r\n$ \r\n \r\n681,665.07 $ \r\n \r\n851,230.65 $ \r\n \r\n965,262.07 \r\n \r\n$ \r\n \r\n-28,705.91 $ -182,988.12 $ \r\n \r\n-6,815.41 \r\n \r\n$ \r\n \r\n12,646.78 $ \r\n \r\n106,209.78 $ \r\n \r\n88,207.00 \r\n \r\n180,013.94 \r\n \r\n181,390.62 \r\n \r\n322,353.22 \r\n \r\n-181,376.68 \r\n \r\n-452,445.72 \r\n \r\n$ \r\n \r\n192,660.72 $ \r\n \r\n106,223.72 $ \r\n \r\n-41,885.50 \r\n \r\n$ \r\n \r\n163,954.81 $ \r\n \r\n-76,764.40 $ \r\n \r\n-48,700.91 \r\n \r\n604,755.07 \r\n \r\n1,027,673.47 \r\n \r\n1,076,374.38 \r\n \r\n$ \r\n \r\n768,709.88 $ \r\n \r\n950,909.07 $ 1,027,673.47 \r\n \r\n- 31 - \r\n \r\n CITY OF BREMENBOARDOF EDUCATION - HARALSON COUNTY SCHEDULEOF EXPENDITURES OF FEDERALAWARDS YEAR ENDEDJUNE 30, 2001 \r\n \r\nSCHEDULE\"1\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY 10 \r\nNUMBER \r\n \r\nFEDERAL REVENUE IN PERIOD \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nAgriculture, U, 5, Department of Child Nutrition Cluster Pass-Through From Georgia Departmentof Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program \r\n \r\n\" 10.553 \r\n. 10.555 \r\n \r\nN1A $ 19,181.92 \r\n \r\nN1A \r\n \r\n107,856.13 $ \r\n \r\n(2) 474,148.17 (3) \r\n \r\nTotal Child Nutrition Cluster \r\n \r\n$ 127,038.05 $ \r\n \r\n474,148.17 \r\n \r\nOther Programs Pass-ThroughFrom Georgia Departmentof Educatlon Food and Nutrition Program Food Distribution Program (1) \r\n \r\n10,550 \r\n \r\nN1A \r\n \r\n28,040.59 \r\n \r\n28,040.59 \r\n \r\nTotal U. S. Departmentof Agriculture \r\n \r\n$ 155,078.64 $ \r\n \r\n502,188.76 \r\n \r\nEducation,U. S. Departmentof Special Education Cluster Pass-ThroughFrom Georgia Departmentof Education Individualswith DisabilitiesEducationAct Part B - Special Education Capacity Building Improvement Flow Through Preschool \r\n \r\n. 84.173 * 84.027 * 84.173 \r\n \r\nN1A $ 4,684.00 $ \r\n \r\nN1A \r\n \r\n190.335.79 \r\n \r\nN1A \r\n \r\n.24,879.93 \r\n \r\n4,684.00 190,335.79 24,879.93 \r\n \r\nTotal Special EducationCluster \r\n \r\n$ 219,899.72 $ \r\n \r\n219,899.72 \r\n \r\nOther Programs Direct Bementary and SecondaryEducationAct Title VII Part B - Foreign Language Assistance Pass-ThroughFrom Georgia Departmentof Education ComprehensiveSchool Refonn Demonstration Project Elementaryand SecondaryEducationAct Title I Grants to Local EducationalAgencies Title II Eisenhower Professional Development Title VI Innovative EducationProgramStrategies Class Size Reduction Goals 2000 State and Local EducationSystemicImprovement Grants Stewart B. McKinney HomelessAssistanceAct Education for Homeless Childrenand Youth Vocational Education- Basic Grants to States High School Program Basic Grant Tech Prep Education \r\n \r\n84.293 84.332 \r\n84.010 84.281 84.298 84.340 84.276 84.196 \r\n84.048 84.243 \r\n \r\nTotal U. S, Departmentof Education \r\n \r\n56,599.66 \r\n \r\nN1A \r\n \r\n50,000.00 \r\n \r\nN1A \r\n \r\nn.998.08 \r\n \r\nN1A \r\n \r\n16.000.00 \r\n \r\nN1A \r\n \r\n5,747.00 \r\n \r\nN1A \r\n \r\n18,187.00 \r\n \r\nN1A \r\n \r\n112,500.00 \r\n \r\nN1A \r\n \r\n7,407.00 \r\n \r\nN1A \r\n \r\n8,908.00 \r\n \r\nN1A \r\n \r\n10,000.00 \r\n \r\n$ 583,246.46 $ \r\n \r\n~,599.66 \r\n50,044.65 (3) \r\nn,998.08 16.031.09 (3) \r\n5.765.76 (3) 18,187.00 114,619.42 (3) \r\n7,413.57 (3) \r\n18,041.51 (3) 10,251.45 (3) 594,851.91 \r\n \r\nTotal Federal FinancialAssistance \r\nN1A = Not Available \r\n \r\n- 32- \r\n \r\n$ 738,325.10 $ 1,097,040.67 \r\n \r\n CITYOF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE30. 2001 \r\n \r\nSCHEDULE \"1\" \r\n \r\nNotesto the Schedule of Expenditures of Federal Awards \r\n(1) The amountsshownfor the FoodDistribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/orconsumed by the system duringthe currentfiscal year. \r\n(2) Expenditures for the SchoolBreakfast Program werenot maintained separately and are included In the 2001 National School lunch Program. \r\n(3) Expenditures for this program includeState.and/orOtherFunds. Expenditures are not maintained by fund source. \r\nMajorPrograms are Identified by an asterisk(*) In front of the CFDAnumber. \r\nThe SchoolDlstrid did not provideFederal Assistance to anySubreclplent. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grantactivityof the City of BremenBoard of Education and is presented on the modified aeaual basisof accounting whichis the basis of accounting usedIn the presentation of the general-purpose financial statements. \r\n \r\nSee notesto the general-purpose financial statements. \r\n \r\n- 33- \r\n \r\n CITYOF BREMEN BOARP OF EPUCATION - HARALSON COUNTY SCHEPULE OF STATE REVENUE YEARENDEDJUNE 30, 2001 \r\n \r\nSCHEDULE \"2\" \r\n \r\nAGENCYIFUNplNG \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program- EarlyIntervention Program PrimaryGrades (1-3) Program PrimaryGrades - EarlyIntervention (1-3) Program Upper Elementary Grades(4-5) Program Middle Grades (6-8) Program High SChool GeneralEducation (9-12) Program VocationalLaboratory(9-12) Program Studentswith Disabilities CategoryI CategoryII CategoryIII Category IV CategoryV Gifted Student- CategoryVI RemedialEducation Program AlternativeEducation Program Media Center Program Staff and Professional Development Indirect Cost CategoricalGrants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements VocationalSupervisors Education Equalization FundingGrant Food Services Other State Programs At-Risk SummerSchool Program Health Insurance Innovative Programs Mentor Teachers NationalTeacher Certiflcation Next Generation Schools PreschoolHandicapped Program RemedialSummerSchool Lottery Programs Applied TechnologyLabs Computersin the Classroom \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasuryand Fiscal Services Public School Employees Retirement \r\nCONTRACTS CommunityAffairs, GeorgiaDepartment of Local Assistance Grant \r\nEducation, Georgia Department of Georgia's Reading Challenge \r\n \r\nGOVERNMENTAL FUNDTYPES \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$ 356,961,00 74,206,00 \r\n981,651,00 114,843,00 482,987.00 880,380.00 708,463,00 208,276,00 \r\n12,842.00 77,964.00 495,017.00 119,427.00 \r\n6,489,00 136,560.00 \r\n53,933,00 67,267,00 148,454.00 38,257,00 1,009,912.00 \r\n \r\n$ 356,961,00 74,206.00 \r\n981,651.00 114,843.00 482,987.00 880,380.00 708,463.00 208,276,00 \r\n12,842.00 77,964.00 495,017.00 119,427.00 \r\n6,489.00 136,560.00 \r\n53,933.00 67,267.00 148,454.00 38,257,00 1,009,912.00 \r\n \r\n10,980.00. 3,877.00 \r\n46,535.00 6,046.00 7,386.00 \r\n639,561.00 $ \r\n \r\n37,606,00 \r\n \r\n1,067,76 92,616,65 \r\n5,000,00 489.00 \r\n5,216.00 75,000.00 30,701,00 \r\n1,958.14 \r\n \r\n$ 70,000.00 29,014,00 \r\n \r\n10,980.00 3,877.00 \r\n46,535.00 6,046.00 7,386.00 \r\n639,561.00 37,606,00 \r\n1,067.76 92,616,65 \r\n5,000.00 489.00 \r\n5,216.00 75,000,00 30,701.00 \r\n1,958.14 \r\n70,000.00 29,014.00 \r\n \r\n267,976,30 \r\n \r\n267,976.30' \r\n \r\n16,624.00 \r\n \r\n16,624.00 \r\n \r\n32,000.00 33,201.00 \r\n \r\n32,000,00 33,201.00 \r\n \r\nSee notes to the general-purpose financialstatements. \r\n \r\n$ 6,982,147.55 $ 334,596.30 S 70,000.00 S 7,386,743.85 - 34- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE 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\n.ORIGINAL 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\nHARALSON COUNTY The addition to and the renovation, repair, acquisition, improvement and equipping of, existing school bUildings, the acquisition of system-wide technology, school transportation vehicles and a new media center and the necessary property therefore and for future schools, all at a maximum cost of $4,000,000.00 \r\n \r\n$ 4,000,000.00 $ 4,000,000.00 $ 134,207.58 $ 3,086,189.84 Ongoing \r\n \r\nCARROLL COUNTY Funding the acquisition, construction, renovation, extending and equipping of capital outlay projects throughout the Bremen School System, including specifically, but without limitation, . renovations, extensions and equipping of H. A Jones Elementary School to include a new classroom and cafeteria additions and other improvements; at Bremen High School to include a cafeteria extension and other improvements; at Sewell Middle School to include a new science and technology lab and other improvements; and constructing a new physical education facility, inciuding the acquisition of all property, both real and personal, necessary therefor (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $2,900,000.00 \r\n \r\n2,900,000,00 \r\n \r\n2,900,000.00 \r\n \r\n669,018.29 \r\n \r\n837,201.19 Ongoing \r\n \r\ns s $ 6,900,000,00 $ 6,900,000,00 \r\n \r\n803,225.87 \r\n \r\n3,923,391,03 \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 \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 \r\n(3) The voters of Haralson County, Carroll County and the City of Bremen 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 general-purpose financial statements. \r\n \r\n- 35- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM laBEl \r\n, ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPESCRIPTION \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 Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Dis,abilitles; Category I Category II Category 11/ Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia center Program Staff and Professional Development \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\n$ \r\n \r\n377,940,00 $ 350,759.42 $ \r\n \r\n8,742,78 $ \r\n \r\n359,502,20 \r\n \r\n78,567.00 \r\n \r\n114,619.66 \r\n \r\n114,619.66 \r\n \r\n1,039,344.00 1,098,200.99 \r\n \r\n23,395.53 \r\n \r\n1,121,596,52 \r\n \r\n121,592.00 \r\n \r\n158,855.44 \r\n \r\n158,855.44 \r\n \r\n511,373.00 \r\n \r\n642,637.60 \r\n \r\n5,199.40 \r\n \r\n647,837.00 \r\n \r\n932,121.00 \r\n \r\n993,601.89 \r\n \r\n12,961.67 \r\n \r\n1,006,563.56 \r\n \r\n750,100,00 \r\n \r\n880,607.65 \r\n \r\n26.343.40 \r\n \r\n906,951.05 \r\n \r\n220.517.00 \r\n \r\n163,559.65 \r\n \r\n457.97 ' \r\n \r\n164,017.62 \r\n \r\n753,568.00 \r\n \r\n24,022.22 \r\n \r\n267,10 \r\n \r\n24,289.32 \r\n \r\n48,536.92 \r\n \r\n48,536.92 \r\n \r\n493,345.86 \r\n \r\n3,166.45 \r\n \r\n496.512.31 \r\n \r\n150.217.18 \r\n \r\n150,217.18 \r\n \r\n144,586,00 \r\n \r\n254.167.05 \r\n \r\n721.97 \r\n \r\n254,889.02 \r\n \r\n57.103,00 \r\n \r\n63,325,96 \r\n \r\n729.28 \r\n \r\n64.055.~4 \r\n \r\n71,220.00 \r\n \r\n23,225.72 \r\n \r\n44,049.54 \r\n \r\n67,275.26 \r\n \r\n$ \r\n \r\n5,058.031.00 $ 5,459,683.21 $ 126,035,09 $ 5,585,718.30 \r\n \r\n157.179.00 40,505,00 \r\n \r\n153,040.10 11,466.11 \r\n \r\n26,066.13 29,038,89 \r\n \r\n179,106.23 40,505.00 \r\n \r\nTOTAL aBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n5,255,715.00 $ 5,624,189.42 $ 181,140,11 $ 5,805,329,53 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. \r\n \r\nSee notes to the general-purpose financial statements. \r\n \r\n- 36- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY GENERALFUND - QUALITY BASIC EDUCATION PROGRAM CgBE) \r\nALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D. 2001 \r\n \r\nSCHEDULE \"5\" \r\n \r\nSewell Middle School Bremen High School Jones Elementary School Central Office (AlternativeEducation 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\n1,141,057.00 $ 1,248,765.48 \r\n \r\n1,297,938.00 \r\n \r\n1,433,540.63 \r\n \r\n2,547,816.00 \r\n \r\n2,903,412.19 \r\n \r\n71,220.00 \r\n \r\n$ \r\n \r\n5,058,031.00 $ ===~i:5!,:5:8:5::,7==1=8=.=3=0= \r\n \r\n/ See notes to the general-purpose financial statements. \r\n- 37- \r\n \r\n I. \r\nSECTIONll . COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n RUSSELL W. HINTON \r\nSTATE AUDITOR \r\n(404) 6562174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n254 Washington Street. S.W. Suite 214 Atlanta. Georgia 30334-8400 \r\nJuly 3,2002 \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 City ofBremen 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 fmancial statements of City of Bremen Board of Education as of and for the year ended June 30,2001, and have issued our report thereon dated July 3,2002. This report was \"\" qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the\" Comptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether City of Bremen 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 City ofBremen 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-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 ofthe internal control over financial reporting that, in our judgment, could adversely affect City ofBremen Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7631-01-01. \r\n \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, we consider item FS-7631-01-01 to be a material weakness. \r\n \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of \r\n \r\nI \r\n \r\nBremen 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\n___R-..espectfully submitted, \r\n1.O.~ \r\nRu ell W. Hinton State Auditor \r\n \r\nRWH:gp 2001YB-41 \r\n \r\n RUSSELL W. HINTON \r\nSTATEAUDITOR \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\nJuly 3,2002 \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 City ofBremen Board ofEducation \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofCity ofBremen Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. City of Bremen 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 City of Bremen Board of Education's management. Our responsibility is to express an opinion on City of Bremen 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 City of Bremen Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Bremen Board of Education's compliance with those requirements. \r\n2001SA-40 \r\n \r\n In our opinion, the City of Bremen Board of Education complied, in all materialrespects, with the \r\n \r\nrequirements referred to above that are applicable to each ofits major Federal programs for the year \r\n \r\nended June 30, 2001. \r\n \r\n. \r\n \r\nInternal Control Over Compliance \r\n \r\nThe management of City of Bremen Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3. \r\n \r\nWe noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the City of Bremen Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7631-01-01. \r\n \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 of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness. \r\n \r\nThis report is intended solely for the information and use ofthe management, members ofthe City of Bremen 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\nRuss II W. Hinton State Auditor \r\n \r\nRWH:gp 2001SA-40 \r\n \r\n SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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-763 1-99-0 1 FS-763 1-00-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective ActionlResponses \r\n \r\nCORRECTIVE ACTIONIRESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-763l-00-0l \r\n \r\nThe Board has contracted with American Appraisal Associates to capitalize assets in excess of $10,000.00 and to maintain an inventory of computer equipment and assets valued at $1,000.00 to $9,999.00. The School District is currently working in conjunction with the Department ofEducation to add the fixed asset software (FASgov Capital Assets Inventory) to the PC Genesis program. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-763 1-99-02 FA-763 1-99-03 FA-763 1-00-01 FA-763 1-00-02 FA-763 1-00-03 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCAnON - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\n1. Type ofReport Issued on the Financial Statements The auditor's opinion on the City ofBremen Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City ofBremen Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\n \r\nGeneral Fixed Assets \r\n \r\nThe reportable condition described above is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen 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 City ofBremen Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement. \r\n \r\nEquipment and Real Property Management \r\n \r\nThe reportable condition described above is not considered to be a material weakness. \r\n \r\n5. Type of Report Issued on Compliance for Major Programs \r\n \r\nThe auditor's opinion on the City ofBremen Board ofEducation's report on compliance with \r\n \r\nrequirements applicable to major programs was unqualified. \r\n \r\n' \r\n \r\n6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-l33 The City of Bremen Board of Education's audit disclosed an audit finding required to be reported by section .51O(a) ofOMB Circular A-133. This audit finding is included in section IV of this report. \r\n \r\n- 1- \r\n \r\n CITYOF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2001 \r\nI SUMMARY OF AUDITOR'S RESULTS \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 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool \r\n8. Type \"A'i Program Dollar Threshold The dollar threshold for type \"A\" programs was $300,000.00. \r\n9. Low Risk Auditee The City of Bremen Board of Education did not qualify as a low risk auditee as defined by Section .530 ofQMB Circular A-B3. \r\n, \r\nIT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7631-01-01 \r\nThe City of Bremen 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.ofa General Fixed Assets Account Group. These subsidiary records should include ari 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\nManagement's Response: \r\nManagement has contracted with American Appraisal Associates to capitalize assets in excess of $10,000.00 and to maintain an inventory of computer equipment and assets valued at $1,000.00 to $9,999.00. The School District is currently working in conjunction with the Department of \r\n-2- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b1999-h2000","title":"Audit report, City of Bremen Board of Education, Haralson County, Georgia, year ended June 30, 2000","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts. Education Division"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts. Education Division"],"dc_date":["2000-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2000, released in 2001?; ceased with fiscal year ended June 30, 2008, released in 2009?","Title from cover.","Report year covers fiscal year.","Has supplements: City of Bremen Board of Education, Haralson County, Georgia, schedule of salaries and travel for the fiscal year ended ..., fiscal year ended June 30, 2000-fiscal year ended June 30, 2002; Salaries and travel reimbursement (City of Bremen Board of Education), fiscal year ended June 30, 2008.","Fiscal year ended June 30, 2008, released in 2009? (online surrogate); (Georgia Government Publications database, viewed March 28, 2017)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts. Education Division"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["City of Bremen Board of Education--Appropriations and expenditures--Periodicals.","Education--Georgia--Bremen--Auditing--Periodicals.","Education--Georgia--Bremen--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bremen","Georgia Government Documents--Serial"],"dcterms_title":["Audit report, City of Bremen Board of Education, Haralson County, Georgia, 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-be33-bb6-b1999-h2000"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bb6-b1999-h2000"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["publications (documents)"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bremen--fast--https://id.oclc.org/worldcat/entity/E39PBJwxK7f3BqHXgK9RBGTmBP","Periodicals--fast","Statistics--fast"],"fulltext":"A\u003cooo \r\n. RI \r\nE.33 \r\n~(o \r\n\\CfAZOOD \r\n \r\n \r\nSTATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS \r\n \r\n \r\n \r\n00 000000 O \r\n1776 \r\nI \r\nCITY OF BREMEN BOARD OF EDUCATION \r\nHARALSON COUNTY, GEORGIA REPORT ON AUDIT \r\nOF THE FINANCIAL STATEMENTS \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2000 \r\nRussell W. Hinton State Auditor \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY - 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 INFORMATION SCHEDULE 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\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\nGENERAL AND SPECIAL REVENUE FUNDS \r\n \r\nD NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \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\nF \r\n \r\nCOMBINING 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\n1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nANALYSIS OF 1YLli \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\nBYPROGRAM \r\n \r\nPage \r\n2 \r\n4 6 \r\n7 \r\n18 20 \r\n22 \r\n24 \r\n26 28 29 \r\n31 32 \r\n \r\n  \r\n \r\nCITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n \r\n,. \r\n \r\n- 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 0MB CIRCULAR A-133 \r\n \r\nSECTION ill \r\n \r\nAUDfI'EE'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\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 4, 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 of the City of Bremen 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 City of Bremen Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the City of Bremen 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 perfu11n 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 op1 n1 on. \r\nAs described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: \r\n \r\n2000ARL-13A \r\n \r\n \r\n * The general purpose financial statements ofthe Board did not contain a General Fixed \r\nAssets Account Group to account for property and equipment owned by the Board which should be included to co11fo11n 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 confor111 to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. \r\n* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion \r\nof salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these umecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. \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 City of Bremen Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo11nity 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 4, 2001, on our consideration ofthe City ofBremen Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perforrned 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 perfo11ned for the purpose of fo11ning an opinion on the general purpose financial statements of the City of Bremen 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-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 \r\ngeneral purpose financial statements. Such info11nation has been subjected to. the auditing procedures applied in the audit ofthe general purpose financial staternents 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\n2000ARL-13A \r\n \r\n A copy ofthis report has been filed as a pe11nanent 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\n \r\nRWH:gp 2000ARL-13A \r\n \r\nell W. Hinton State Auditor \r\n \r\n \r\n \r\n ..- . \r\nCITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY \r\n. \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINED BALANCE SHEET \r\nALL FUND TYPES AND ACCOUNT GROUP \r\nJUNE 30, 2000 \r\n \r\n \r\nASSETS \r\nCash and Cash Equivalents \r\nInvestments Accounts Receivable \r\nInventories 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 Capital Lease Agreements \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$ \r\n \r\n432,680.89 $ 202,124.05 $ \r\n \r\n835,999.93 \r\n \r\n15,000.00 \r\n \r\n27,842.95 \r\n \r\n192,418.89 \r\n \r\n7,828.17 3,091.96 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n447,680.89 $ 240,887.13 $ 1,028,418.82 . \r\n \r\nLIABILITIES AND FUND EQUITY \r\n \r\nLIABILITIES \r\n \r\nAccounts Payable \r\n \r\nSalaries Payable \r\n \r\nExpired Grant Balances Payable \r\n \r\nContracts Payable \r\n \r\n \r\n \r\nRetainages Payable \r\n \r\nCapital Lease Agreements \r\n \r\nGeneral Obligation Bonds Payable \r\n \r\nTotal Liabilities \r\n \r\nFUND EQUITY \r\n \r\nFund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories \r\nFood \r\nDonated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Un designated \r\n \r\nTotal Fund Equity \r\n \r\n$ \r\n \r\n124,450.61 $ \r\n \r\n44,573.79 $ \r\n \r\n6,599.88 \r\n \r\n90,318.21 \r\n \r\n5,506.10 \r\n \r\n745.35 \r\n \r\n$ \r\n \r\n131,050.49 $ 140,398.10 $ _ _ _ _7_4__5__._3__5_ _ \r\n \r\n$ \r\n \r\n11,342.00 \r\n \r\n997.67 \r\n \r\n$ \r\n \r\n7,828.17 \r\n \r\n3,091.96 \r\n \r\n$ \r\n \r\n422,918.40 \r\n \r\n604,755.07 \r\n \r\n304,290.73 \r\n \r\n89,568.90 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n316,630.40 $ 100,489.03 $ __1.,0:;.;::2;.;..7,r.::;6.;.;73:;.:.4.a.;.7_ \r\n \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n447,680.89 $ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n \r\n-2- \r\n \r\n240,aa1.13 $ .........1.,.o..2...,a4=1a_.a;;;;2;.. \r\n \r\n EXHIBIT \"A\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\n$ \r\n \r\n2,625.15 \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, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ 1,473,430.02 $ 1,353,459.85 \r\n \r\n15,000.00 \r\n \r\n12,500.00 \r\n \r\n220,261.84 \r\n \r\n633,296.17 \r\n \r\n$ \r\n \r\n2,625.15 \r\n \r\n7,828.17 3,091.96 \r\n2,625.15 \r\n \r\n10,936.03 2,555.37 \r\n229,064.71 \r\n \r\n1,647,374.85 94,992.95 \r\n \r\n1,647,374.85  94,992.95 \r\n \r\n1,935,935.29 18,507.04 \r\n \r\n$ \r\n \r\n2,625.15 $ 1,744,992.95 $ 3,464,604.94 $ 4,196,254.46 \r\n \r\n$ \r\n \r\n169,769.75 $  \r\n \r\n54,801.24 \r\n \r\n96,918.09 \r\n \r\n72,803.99 \r\n \r\n5,506.10 \r\n \r\n4,866.63 \r\n \r\n228,074.72 \r\n \r\n30,103.25 \r\n \r\n$ \r\n \r\n94,992.95 \r\n \r\n94,992.95 \r\n \r\n18,507.04 \r\n \r\n1,650,000.00 \r\n \r\n1,650,000.00 \r\n \r\n2,165,000.00 \r\n \r\n$ 1,744,992.95 $ 2,017,186.89 $ 2,574,156.87 \r\n \r\n$ \r\n \r\n2,625.15 \r\n \r\n0.00 $ _ _~2~,6;::;25:.:..1.:..;:5a... \r\n \r\n$ \r\n \r\n11,342.00 $ \r\n \r\n7,385.00 \r\n \r\n12,500.00 \r\n \r\n2,625.15 \r\n \r\n229,064.71 \r\n \r\n997.67 \r\n \r\n2,565.23 \r\n \r\n7,828.17 3,091.96 422,918.40 604,755.07 \r\n \r\n10,936.03 2,555.37 \r\n753,875.38 295,161.06 \r\n10,615.28 \r\n \r\n393,859.63 \r\n \r\n297,439.53 \r\n \r\n$ 1,447,418.05 $ 1,622,097.59 \r\n \r\n$ \r\n \r\n2,625.15 $ 1,744,992.95 $ 3,464,604.94 $ 4,196,254.46 \r\n \r\n-3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nALL GOVERNMENTAL FUND TYPES \r\nYEAR ENDED JUNE 30, 2000 \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 Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nCapital Leases 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 Financing Uses \r\nFUND BALANCE JULY 1 \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$ 6,014,751.67 $ \r\n1,132,437.91 376,519.20 \r\n \r\n380,314.91 676,008.53 \r\n297,921.01 \r\n \r\n$ 7,523,708.78 $ __1:..r;,3::..:54c..=,2'-'-44..:..:..4..:.;:5::.... \r\n \r\n$ 5,215,037.74 $ \r\n324,587.57 210,021.30 188,412.27 178,558.71 569,443.84 \r\n98,509.21 477,939.10 \r\n54,618.41 3,522.50 \r\n28,175.89 4,687.32 \r\n73,934.16 \r\n \r\n514,464.65 17,727.32 \r\n327,971.08 25,767.99 \r\n3,162.56 \r\n448,590.86 9,788.55 \r\n \r\n$ 7,427,448.02 $ _ __:.;1IL:34.:.7,_.,4.:,.7:.,:3a,:;Q \"-'1~ \r\n \r\n$ \r\n \r\n96,260.76 $ _ _......:::6.i.:.7.:..71.:.:..4.:..4~ \r\n \r\n$ \r\n$ _ _ _-1\"\"'6..._,2;..;.1=6.=55;;;.... \r\n \r\n16,216.55 \r\n \r\n$ \r\n \r\n-16,216.55 $ _ __;1c=6.i::,2:.:.;16;;.:..5::..:5::.... \r\n \r\n$ \r\n \r\n80,044.21 $ \r\n \r\n236,586.19 \r\n \r\n22,987.99 80,072.31 \r\n \r\n-3, 107.86 536.59 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n316,630.40 $ _ _ _1o_o.,4..,89_._o3_ \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. \r\n \r\n-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, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n78,242.87 \r\n \r\n$ 6,473,309.45 $ 5,820,715.48 \r\n \r\n676,008.53 \r\n \r\n779,042.75 \r\n \r\n841,853.97 $ \r\n \r\n279,035.00 \r\n \r\n2,253,326.88 \r\n \r\n2,029,081.70 \r\n \r\n38,349.82 \r\n \r\n5,652.94 \r\n \r\n718 442.97 \r\n \r\n855,969.94 \r\n \r\n$ \r\n \r\n958,446.66 $ \r\n \r\n284,687.94 $ 1o, 121,087.83 $ 9,484,809.87 \r\n \r\n$ 5,729,502.39 $ 5,477,222.62 \r\n \r\n$ \r\n \r\n952,393.54 \r\n \r\n342,314.89 537,992.38 188,412.27 204,326.70 569,443.84 \r\n98,509.21 481,101.66 \r\n54,618.41 3,522.50 \r\n28,175.89 . 453,278.18 \r\n73,934.16 962,182.09 \r\n \r\n248,860.69 459,254.28 179,698.89 185,868.46 587,092.42 \r\n52,890.74 458,882.45 \r\n58,395.33 3,440.00 \r\n27,480.33 472,661.66 \r\n71,484.51 1,574,322.27 \r\n \r\n11,721.09 $ 1 147.44 \r\n \r\n515,000.00 126,220.00 \r\n \r\n526,721.09 127,367.44 \r\n \r\n478,851.96 56,668.27 \r\n \r\n$ \r\n \r\n965,262.07 $ \r\n \r\n641,220.00 $ 10,381,403.10 $ 10,393,074.88 \r\n \r\n$ \r\n \r\n-6 815.41 $ \r\n \r\n-356,532.06 $ \r\n \r\n-260,315.27 $ \r\n \r\n-908,265.01 \r\n \r\n$ \r\n \r\n88,207.00 \r\n \r\n$ \r\n \r\n-130,092.50 \r\n \r\n$ \r\n \r\n-41,885.50 $ \r\n \r\n$ \r\n \r\n-48,700.91 $ \r\n \r\n1,076,374.38 \r\n \r\n$ \r\n130,092.50 \r\n130,092.50 $ \r\n \r\n88,207.00 146,309.05 $ -146,309.05 \r\n \r\n17,096.80 -17,096.80 \r\n \r\n881201.00 $ _ _ _ _.::;ao.\"\"oo=-- \r\n \r\n-226,439.56 $ 229,064.71 \r\n \r\n-172, 108.27 $ 1,622,097.59 \r\n \r\n-908,265.01 2,527,789.21 \r\n \r\n-3, 107.86 536.59 \r\n \r\n2,337.01 236.38 \r\n \r\n$ 1,027,673.47 $ \r\n \r\n2,625.15 $ 1 447,418.05 $ 1,622,097.59 \r\n \r\n-5- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES \r\nBUDGET AND ACTUAL - (NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS \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$ 5,868,813.33 $ 6,014,751.67 \r\n \r\n9,722.00 \r\n \r\n1,050,000.00 1,132,437.91 \r\n \r\n332,922.00 \r\n \r\n376,519.20 \r\n \r\nTotal Revenues \r\n \r\n$ 7,261,457.33 $ 7,523,708.78 \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 \r\nCapital Outlay \r\n \r\n$ 5,155,933.00 $ 5,215,037.74 \r\n \r\n317,729.00 193,031.00 180,674.00 177,818.00 557,141.00 82,662.88 442,514.00 \r\n51,739.00 7,908.00 \r\n29,266.00 4,599.00 \r\n76,722.00 \r\n \r\n324,587.57 210,021.30 188,412.27 178,558.71 569,443.84 \r\n98,509.21 477,939.10 \r\n54,618.41 3,522.50 \r\n28,175.89 4,687.32 \r\n73,934.16 \r\n \r\nTotal Expenditures \r\n \r\n$ 7,277,736.88 $ 7,427,448.02 \r\n \r\nExcess of Revenues over (under) Expenditures $ -16,279.55 $ 96,260.76 \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\n \r\n$ 8,422.00 -8,422.00 $ \r\n$ _ _ _0___._o__o__ $ \r\n \r\n-16,216.55 -16,216.55 \r\n \r\nExcess of Revenues and Other Financing Sources \r\n \r\nover (under) Expenditures and Other Financing \r\n \r\nUses \r\n \r\n$ \r\n \r\n-16,279.55 $ \r\n \r\n80,044.21 \r\n \r\nFUND BALANCE JULY 1. 1999 \r\n \r\n271,695.97 \r\n \r\n236,586.19 \r\n \r\nAdjustments Food Inventory - Net Change in Period \r\nDonated Commodities Purchased Food \r\n \r\n1,638.54 \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$ 375,874.56 $ 380,314.91 \r\n \r\n654,860.00 \r\n \r\n676,008.53 \r\n \r\n251,100.00 \r\n \r\n297,921.01 \r\n \r\n$ 1,281,834.56 $ 1,354,244.45 \r\n \r\n$ 573,736.17 $ 514,464.65 \r\n \r\n18,581.04 244,848.00 \r\n \r\n17,727.32 327,971.08 \r\n \r\n17,706.96 \r\n \r\n25,767.99 \r\n \r\n12,483.00 \r\n \r\n3,162.56 \r\n \r\n405,200.00 \r\n \r\n448,590.86 \r\n \r\n9,788.55 \r\n \r\n$ 1,272,555.17 $ 1,347,473.01 \r\n \r\n$ \r\n \r\n9,279.39 $ _ _6.;aa.;....7.7.1.;.a.4..;..4.;... \r\n \r\n$ 16,216.55 $ 16,216.55 \r\n \r\n$ \r\n \r\n9,279.39 $ \r\n \r\n88,604.17 \r\n \r\n20,197.85 \r\n \r\n22,987.99 80,072.31 \r\n-3, 107.86 536.59 \r\n \r\nFUND BALANCE JUNE 30. 2000 \r\n \r\n$ 257,054.96 $ 316,630.40 \r\n \r\n$ 118,081.41 $ 100,489.03 \r\n \r\nThe notes to the general purpose financial statements are an integral part of this statement. -6- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nREPORTING ENTITY \r\n \r\nThe City of Bremen 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. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. \r\n \r\nFUND ACCOUNTING \r\n \r\nThe Board 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 \r\nfund is a separate accounting entity with a self-balancing set of accounts. An account group is a \r\nfinancial 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\n \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 confonn 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\n \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 confonn 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 and the account group presented in this report are as follows: \r\n \r\nGOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: \r\n \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\n \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\n \r\n-7- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \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\nDEBT SERVICE FUND- the fund used to account for the accumulation ofresources for, and the payment of, general long-te11n principal, interest and paying agent fees. \r\nACCOUNT GROUP \r\n- \r\nGENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. \r\nBASIS OF ACCOUNTING \r\nThe accounting and financial reporting treatment applied to a fund is dete11nined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other fmancing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. \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 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 dete11nined 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 departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning \r\nI \r\nin September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments \r\n-8- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nfor these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. \r\nBUDGET \r\nThe City of Bremen Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. \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 with approval of the City Council adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe 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\nCASH AND CASH EQUIVALENTS \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\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-9- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: 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 ofthe State of Georgia. \r\nRECEIVABLES \r\n \r\nReceivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation 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 City of Bremen fixed the property tax levy for the 1999 tax year (calendar year) on November 29, 1999 (levy date). Taxes were due on February 29, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Bremen City Clerk bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board. \r\n \r\nThe tax millage rate levied for the 1999 tax year (calendar year) for the City of Bremen Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\nSALES TAXES \r\n \r\n5.22 mills \r\n \r\nSpecial Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,120,888.97 ($505,811.25 Carroll County and $615,077.72 Haralson County) and was recorded in \r\n \r\n- 10 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY N0JES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\n \r\nthe Capital Projects and Debt Service Funds. The State will terminate collection of the tax within Haralson County once an additional $2,354,169.16 has been collected or on June 30, 2002, whichever occurs first. The State will terminate collection ofthe tax within Carroll County once an additional $1,785,918.75 has been collected or on December 31, 2002, whichever occurs first. \r\n \r\nINVENTORIES \r\n \r\nFOOD INVENTORIES \r\nInventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources\" even though they are a component of net current assets. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe Board entered into a joint agreement with the City of Bremen whereby the City of Bremen \r\n \r\nissued general obligation bonds on behalfofthe school system. The bond premiums, discounts and \r\n \r\nissuance costs are recognized in the financial statements of the Board during the year bonds are \r\n \r\n \r\n \r\nissued. According to the terrns ofthe aforementioned agreement, the bonds are the direct obligations \r\n \r\nofthe Board; therefore, the outstanding amount ofthese bonds is recorded in the General Long-Te11n \r\n \r\nDebt Account Group. \r\n \r\nINTERFUND TRANSACTIONS \r\n \r\nThe Board has the following types 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\nOperating transfers are recorded for all interfund transactions other than reimbursements. \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 confotmity 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\n- 11 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 2: DEPOSITS \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 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 ofthe bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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 Intt:rtnediate 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, 2000, the bank balances were $1,809,593.95. Tueamountsofthetotal bank balances are classified into three categories of credit risk: \r\n \r\n- 12 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n,. \r\nNote 2: DEPOSITS \r\n \r\nEXHIBIT \"D\" \r\n \r\nCategory 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. \r\nCategory 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) \r\n \r\nThe Board's deposits are classified by risk category at June 30, 2000, as follows: \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ 115,000.00 \r\n \r\n2 \r\n \r\n1,694,593.95 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 1,809,593.95 \r\n \r\nNote 3: NON-MONETARY TRANSACTIONS \r\n \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\nNote 4: 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 has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. \r\n \r\nThe Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. \r\n \r\nThe Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the last two fiscal years. \r\n \r\n- 13 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 4: RISK MANAGEMENT \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 Board Treasurer All Other Employees \r\n \r\n$ 10,000.00 $ 10,000.00 $ 50,000.00 \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nCAPITAL LEASES The City of Bremen Board of Education has entered into various lease agreements as lessee for mobile classrooms and school buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \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 1997 \r\n \r\n3.85% - 4.30% $ 1,650,000.00 \r\n \r\nThe changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as \r\nfollows: \r\n \r\nBalance July 1, 1999 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal \r\n \r\n$ 18,507.04 $2,165,000.00 $2,183,507.04 \r\n \r\nAdditions  Capital Leases \r\n \r\n88,207.00 \r\n \r\n88,207.00 \r\n \r\nDeductions Debt Retired \r\n \r\n11,721.09 \r\n \r\n515,000.00 \r\n \r\n526,721.09 \r\n \r\nBalance June 30, 2000 \r\n \r\n$ 94,992.95 $ 1,650,000.00 $ 1,744,992 95 \r\n \r\nAt June 30, 2000, payments due by fiscal year which includes principal and interest for these items \r\nare as follows: \r\n \r\n- 14 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 5: GENERAL LONG-TERM DEBT \r\n \r\nFiscal Year Ended June 30 \r\n \r\nCapital Leases \r\n \r\nGeneral Obligation \r\nBonds \r\n \r\nTotal Debt \r\n \r\n2001 2002 2003 \r\n \r\n$ 40,326.53 $ 600,035.00 $ 640,361.53 \r\n \r\n32,949.60 \r\n \r\n676,340.00 \r\n \r\n709,289.60 \r\n \r\n32,949.60 \r\n \r\n474,565.00 \r\n \r\n507,514.60 \r\n \r\nTotal Principal and Interest $ 106,225.73 $ 1,750,940.00 $1,857,165.73 \r\n \r\nDeduct: Imputed Interest \r\n \r\n11,232.78 \r\n \r\nNet Present Value of Future Minimum Lease Payments $ 94,992.95 \r\n \r\nNote 6: ON-BEHALF PAYMENTS \r\n \r\nThe Board has recognized revenues and expenditures in the amount of $94,917.28 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $81,214.28 \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 $13,703.00 \r\nNote 7: SIGNIFICANT COMMITMENTS \r\nThe following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000: \r\n \r\n- 15 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS \r\nJUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 7: SIGNIFICANT COMMITMENTS \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nMobile Classroom Installation and School Renovation at H. A. Jones Elementary \r\nFreezer Installation and Gymnasium Renovation At Bremen High School \r\nRenovations at Sewell Middle School \r\n \r\n$ 40,675.37 \r\n59,759.44 12,628.58 \r\n \r\n$ 113,063.39 \r\n \r\nThe amounts described in this note are not reflected in the general purpose financial statements. \r\n \r\nNote 8: 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 te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 9: 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\nTRS CON'I\"RIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\n- 16 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 \r\n \r\nEXHIBIT \"D\" \r\n \r\nNote 9: RETIREMENT PLANS \r\nFiscal Year 2000 1999 1998 \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 616,007.34 $ 601,628.15 $ 538,342.90 \r\n \r\n- 17 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 \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\n127,518.89 $ \r\n \r\n46,637.22 \r\n \r\n7,828.17 3 091.96 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n138,439.02 $ ===4=6:!::,6.3..7==22= \r\n \r\nLIABILITIES AND FUND EQUITY \r\nLIABILITIES \r\nAccounts Payable Salaries Payable Expired Grant Balances Payable \r\nTotal Liabilities \r\nFUND EQUITY \r\nFund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated \r\nTotal Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\n$ \r\n \r\n7,177.69 $ \r\n \r\n14,750.92 \r\n \r\n30,772.30 \r\n \r\n31,886.30 \r\n \r\n$ \r\n \r\n37,949.99 $ _ _....;4..;;.6=,6=37\"-\".2=2'- \r\n \r\n$ \r\n \r\n7,828.17 \r\n \r\n3,091.96 \r\n \r\n89,568.90 $ _ _ _ _o__._o__o_ _ \r\n \r\n \r\n \r\n$ \r\n \r\n1001489.03 $ _ _ _ _o==ooa. . \r\n \r\n--=========--== $ \r\n \r\n138,439.02 $ \r\n \r\n------ --------- - - \r\n \r\n46,637.22 \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 18 - \r\n \r\n EXHIBIT \"E\" \r\n \r\n \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$ \r\n \r\n27,967.94 $ \r\n \r\n202,124.05 $ \r\n \r\n124,924.77 \r\n \r\n27,842.95 \r\n \r\n27,842.95 \r\n \r\n46,122.49 \r\n \r\n7,828.17 3 091.96 \r\n \r\n10,936.03 2,555.37 \r\n \r\n$ \r\n \r\n55,810.89 $ \r\n \r\n240,887.13 $ ===18=4,..,5=3=8..6...6= \r\n \r\n$ \r\n \r\n22,645.18 $ \r\n \r\n44,573.79 $ \r\n \r\n26,795.73 \r\n \r\n27,659.61 \r\n \r\n90,318.21 \r\n \r\n72,803.99 \r\n \r\n5,506.10 \r\n \r\n5,506.10 \r\n \r\n4,866.63 \r\n \r\n$ \r\n \r\n55,810.89 $ \r\n \r\n140z398.1 0 $ _ _1.:.:0:..;4.i4.:\",\"-66;:;.:.:::.;35=- \r\n \r\n$ \r\n \r\n12,500.00 \r\n \r\n$ \r\n \r\n$ _ _ ____,;o;;.;..o=o'- \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n7,828.17 3,091.96 \r\n \r\n10,936.03 2,555.37 \r\n \r\n89,568.90 \r\n \r\n54,080.91 \r\n \r\n100,489.03 $ _ _...,:8;;.;;;0..,;:,0;.;..72;.:=31-'- \r\n \r\n$ \r\n \r\n55,810.89 $ \r\n \r\n240,887.13 $ \r\n \r\n- 19 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nSPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 \r\n  \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 Maintenance and Operation of Plant Food Services Operation \r\nCapital Outlay \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\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\n37,140.00 $ \r\n \r\n343,174.91 \r\n \r\n149,067.84 \r\n \r\n297 871.01 \r\n \r\n50.00 \r\n \r\n$ \r\n \r\n484,078.85 $ _ ____;3:::...4:..;:;3=,2=24...:...:.;;.9-'-1 \r\n \r\n$ \r\n \r\n284,294.89 \r\n \r\n17,727.32 13,694.90 \r\n \r\n$ \r\n \r\n448,590.86 \r\n \r\n15,592.78 3,162.56 \r\n9,788.55 \r\n \r\n$ \r\n \r\n448,590.86 $ _ __,;3;;..;4....;.4=,2=6..;..;1...;;;..00~ \r\n \r\n$ \r\n \r\n35,487.99 $ _ _ _-....;.1.,;;;,0..;;;.36=..;;;..09~ \r\n \r\n$ \r\n \r\n1,036.09 \r\n \r\n$ _ ___,:1..z.:,0:,::3.:,;6:.::,09=- \r\n \r\n$ \r\n \r\n35,487.99 $ \r\n \r\n0.00 \r\n \r\n67,572.31 \r\n \r\n0.00 \r\n \r\n-3, 107.86 536.59 \r\n \r\nFUND BALANCE JUNE 30 \r\n \r\n$ \r\n \r\n100,489.03 $ \r\n \r\n0.00 \r\n \r\nSee notes to the general purpose financial statements. - 20- \r\n \r\n EXHIBIT \"F\" \r\n \r\n\"  \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\n380,314.91 $ \r\n \r\n259,724.51 \r\n \r\n$ \r\n \r\n526,940.69 \r\n \r\n676,008.53 \r\n \r\n779,042.75 \r\n \r\n297,921.01 \r\n \r\n247,074.52 \r\n \r\n$ \r\n \r\n526,940.69 $ 1,354,244.45 $ 1,285,841.78 \r\n \r\n$ \r\n \r\n230,169.76 $ \r\n \r\n514,464.65 $ \r\n \r\n631,151.18 \r\n \r\n314,276.18 10,175.21 \r\n \r\n17,727.32 327,971.08 \r\n25,767.99 3,162.56 \r\n448,590.86 9,788.55 \r\n \r\n15,995.10 248,312.71 \r\n1,619.27 20,246.20 19,658.93 468,892.80 \r\n \r\n$ \r\n \r\n554,621.15 $ 1,347,473.01 $ 1,405,876.19 \r\n \r\n$ \r\n \r\n-27,680.46 $ \r\n \r\n6 771.44 $ _ _-.:.:12:.::0.1.:,0:.::;34.:.:c.:.41.:,_ \r\n \r\n$ \r\n \r\n15,180.46 $ \r\n \r\n$ \r\n \r\n15,180.46 $ \r\n \r\n$ \r\n \r\n-12,500.00 $ \r\n \r\n12,500.00 \r\n \r\n16,216.55 $ \r\n \r\n16,275.58 -821.22 \r\n \r\n16,216.55 $ _ _..;1.;:;.5..a,4.a;.54.;.;.3;;.;6,_ \r\n \r\n22,987.99 $ 80,072.31 \r\n \r\n-104,580.05 182,078.97 \r\n \r\n-3, 107.86 536.59 \r\n \r\n2,337.01 236.38 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n1 oo \r\n- --- \r\n \r\n,-4--8--9-.-o3 \r\n \r\n$ ===-=8_0_.0_12_._31== \r\n \r\n- 21 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 \r\n ,. \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nTotal Assets \r\nLIABILITIES AND FUND EQUITY LIABILITIES \r\nCash Overdraft Accounts Payable Contracts Payable Retainages Payable \r\nTotal Liabilities FUND EQUITY \r\nFund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Un designated Total Fund Equity \r\nTotal Liabilities and Fund Equity \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n745.35 $ \r\n \r\n422,918.40 \r\n \r\n$ \r\n \r\n745.35 $ ==4=2=2=,9=1=8..,.40= \r\n \r\n$ \r\n \r\n745.35 \r\n \r\n$ _ _ _...:,7...:.45::..c.:.:35~ \r\n \r\n$ \r\n \r\n422,918.40 \r\n \r\n$ _ _ _ _...;;o;.;.;.o;..;;o'\"'\" \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 $ _ _4.:..:2::2i.::,,9.,:.:18::.:..4..:..:0:_ \r\n \r\n$ \r\n \r\n745.35 \r\n \r\n$ \r\n \r\n422,918.40 \r\n--------- \r\n \r\nSee notes to the general purpose financial statements. - 22- \r\n \r\n EXHIBIT \"G\" \r\n \r\n \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \r\n \r\nTOTALS \r\n \r\nJUNE 30, 2000 \r\n \r\nJUNE 30, 1999 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n412,336.18 $ \r\n \r\n835,999.93 $ 1,104,803.65 \r\n \r\n192,418.89 \r\n \r\n192,418.89 \r\n \r\n574 501.74 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n604,755.07 $ 1,028,418.82 $ 1,679,305.39 \r\n \r\n$ \r\n \r\n328,922.41 \r\n \r\n$ \r\n \r\n745.35 \r\n \r\n15,830.63 \r\n \r\n228,074.72 \r\n \r\n30,103.25 \r\n \r\n$ \r\n \r\n745.35 $ _ _..;6:;.:0:.::2.1.9:,~3.:..:1-=-01.;_ \r\n \r\n$ \r\n \r\n$ _ _ _ _0=..a..00'- \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n$ \r\n \r\n0.00 -- - ---------~-. \r\n \r\n$ \r\n \r\n$ \r\n604,755.07 \r\n0.00 604,755.07 $ \r\n \r\n422,918.40 $ -604,755.07 \r\n0.00 1,027,673.47 $ \r\n \r\n753,875.38 295,161.06 \r\n10,615.28 \r\n16,722.66 \r\n1,076,374.38 \r\n \r\n \r\n604,755.07 $ 1,028,418.82 $ 1,679,305.39 \r\n \r\n \r\n \r\n- 23- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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\nCurrent Support Services Business Administration Student Transportation \r\nCapital Outlay Salaries Employee Benefits Land and Land Improvements Building and Building Improvements Equipment \r\nDebt Service Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nCapital Leases 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 Financing Uses \r\nFUND BALANCE JULY 1 \r\nFUND BALANCE JUNE 30 \r\nSee notes to the general purpose financial statements. \r\n- 24- \r\n \r\nREGULAR \r\n \r\nBOND PROCEEDS \r\n \r\n$ \r\n \r\n60,000.00 $ \r\n \r\n18,242.87 \r\n \r\n590.08 \r\n \r\n27,312.87 \r\n \r\n$ \r\n \r\n60 z590.08 $ ___4:.:5J.:5:.:C5.:.:5c:..74..:,_ \r\n \r\n$ \r\n \r\n5,499.96 \r\n \r\n1,311.75 \r\n \r\n1,124.36 \r\n \r\n$ \r\n \r\n67,300.60 \r\n \r\n157,522.48 \r\n \r\n8,975.29 1 147.44 \r\n \r\n$ \r\n \r\n67,300.60 $ _ _.;.;17\"\"'5J.:15:.:C8.:.:1=28=- \r\n \r\n$ \r\n \r\n-6,710.52 $ _ _-1.:.,:3:.::c0..:,0=-25.::.:.::.54.:.. \r\n \r\n___ $ \r\n \r\n125,757.14 \r\n \r\n$ -10...0...1._2___._1_4 \r\n \r\n-326,688.58 \r\n \r\n$ \r\n \r\n-1 o o12.14 $ _ __;;-2;;;.;:o:..::co..9.:-,=-3.:.:1..:..44-'- \r\n \r\n$ \r\n \r\n-16,722.66 $ -330,956.98 \r\n \r\n16,722.66 \r\n \r\n753,875.38 \r\n \r\n$ \r\n \r\n0.00 $ ==4=2..,2.,.,9..,1=8...,40_, \r\n \r\n EXHIBIT \"H\" \r\n \r\n \r\n \r\nGEORGIA STATE FINANCING AND \r\nINVESTMENT COMMISSION \r\n \r\nSPECIAL PURPOSE LOCAL OPTION SALES TAX \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\n0.00 \r\n \r\n$ \r\n \r\n78,242.87 $ \r\n \r\n7,135.29 \r\n \r\n$ \r\n \r\n841,853.97 \r\n \r\n841,853.97 \r\n \r\n525,530.75 \r\n \r\n10 446.87 \r\n \r\n38,349.82 \r\n \r\n256,487.78 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n852,300.84 $ \r\n \r\n958,446.66 $ _ _7_8_9~1,_53_._82_ \r\n \r\n$ \r\n \r\n10.45 \r\n \r\n16,433.00 \r\n \r\n$ \r\n \r\n5,499.96 \r\n \r\n1,311.75 \r\n \r\n$ \r\n \r\n2,729.50 \r\n \r\n3,853.86 \r\n \r\n$ \r\n \r\n207,211.36 \r\n \r\n509,693.53 \r\n \r\n941,727.97 \r\n \r\n4,999.92 1,220.06 13,391.73 1,504,332.71 50,377.85 \r\n \r\n2,745.80 \r\n \r\n11,721.09 1 147.44 \r\n \r\n8,451.31 1 671.42 \r\n \r\n$ \r\n \r\n207,211.36 $ \r\n \r\n515,168.83 $ \r\n \r\n965,262.07 $ 1,600,888.45 \r\n \r\n-207,211.36 $ \r\n \r\n337, 132.01 $ \r\n \r\n-6 815.41 $ \r\n \r\n-811,734.63 \r\n \r\n$ \r\n \r\n88,207.00 $ \r\n \r\n88,207.00 \r\n \r\n$ \r\n \r\n196,596.08 \r\n \r\n322,353.22 $ \r\n \r\n572,071.54 \r\n \r\n-115,745.00 \r\n \r\n-452,445.72 \r\n \r\n-572,071.54 \r\n \r\n$ \r\n \r\n196,596.08 $ \r\n \r\n-27,538.00 $ \r\n \r\n-41,885.50 $ _ _ _ _o_.....,oo_ \r\n \r\n \r\n \r\n$ \r\n \r\n-10,615.28 $ \r\n \r\n309,594.01 $ \r\n \r\n-48,700.91 $ \r\n \r\n-811,734.63 \r\n \r\n10,615.28 \r\n \r\n295,161.06 \r\n \r\n1,076,374.38 \r\n \r\n1,888,109.01 \r\n \r\n$ ------ --- - \r\n \r\n0.00 $ \r\n-------- \r\n \r\n604,755.07 $ 1,027,673.47 $ 1,076,374.38 \r\n \r\n- 25- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"1\" \r\n \r\n \r\nFUNDING AGENCY PROGRAM/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\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\nN/A \r\n \r\n$ 18,080.66 \r\n \r\nNIA \r\n \r\n102,188.84 $ \r\n \r\n(2) \r\n420,464.00 (3) \r\n \r\nTotal Child Nutrition Cluster \r\n \r\n$ 120,269.50 $ \r\n \r\n420,464.00 \r\n \r\n \r\n \r\nOther Programs \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nFood and Nutrition Program Food Distribution Program (1) \r\n \r\n 10.550 \r\n \r\nNIA \r\n \r\n28,126.86 \r\n \r\n28,126.86 \r\n \r\nPass-Through From Office of School Readiness \r\n \r\nFood and Nutrition Program \r\n \r\nChild and Adult Care Food Program \r\n \r\n10.558 \r\n \r\nN/A \r\n \r\n671.48 \r\n \r\n!2! \r\n \r\nTotal U. S. Department of Agriculture \r\n \r\n$ 149,067.84 $ _ _..;.44.;.;8;.:.,5;;.:9;.;;.0.;.;;.8.;;_6 \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 Capacity Building Improvement Flow Through Preschool \r\n \r\n84.173 84.027 84.173 \r\n \r\nN/A $ 5,798.45 $ \r\n \r\nN/A \r\n \r\n146,860.34 \r\n \r\nN/A \r\n \r\n36,904.83 \r\n \r\n5,798.45 146,860.34 36,904.83 \r\n \r\nTotal Special Education Cluster \r\n \r\n$ 189,563.62 $ \r\n \r\n189,563.62 \r\n \r\nOther Programs \r\n \r\nDirect \r\n \r\nElementary and Secondary Education Act \r\n \r\nTitle VII \r\n \r\nPart B - Foreign Language Assistance \r\n \r\n84.293 \r\n \r\nPass-Through From Georgia Department of Education \r\n \r\nElementary and Secondary Education Act \r\n \r\nComprehensive School Reform Demonstration \r\n \r\n84.332 \r\n \r\nN/A \r\n \r\nTitle I \r\n \r\nGrants to Local Educational Agencies \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\nTitle II \r\n \r\nEisenhower Professional Development \r\n \r\n84.281 \r\n \r\nN/A \r\n \r\nTitle VI \r\n \r\nClass Size Reduction \r\n \r\n84.340 \r\n \r\nN/A \r\n \r\nInnovative Education Program Strategies \r\n \r\n84.298 \r\n \r\nN/A \r\n \r\nGoals 2000 \r\n \r\nState and Local Education Systemic Improvement \r\n \r\nGrants \r\n \r\n 84.276 \r\n \r\nN/A \r\n \r\nStewart B. McKinney Homeless Assistance Act \r\n \r\nEducation for Homeless Children and Youth \r\n \r\n84.196 \r\n \r\nN/A \r\n \r\nVocational Education - Basic Grants to States \r\n \r\nHigh School Program \r\n \r\nBasic Grant \r\n \r\n84.048 \r\n \r\nN/A \r\n \r\n68,652.79 \r\n37,500.00 87,205.00 16,000.00 16,816.00 \r\n5,671.00 \r\n92,203.28 4,407.00 \r\n8,922.00 \r\n \r\n68,652.79 \r\n50,000.00 90,302.53 (3) 16,118.37 (3) 16,862.97 (3) \r\n5,928.06 (3) \r\n92,203.28 4,415.25 (3) \r\n20,574.28 (3) \r\n \r\nTotal U. S. Department of Education \r\n \r\n$ 526,940.69 $ _ _.;;;..554\"-'-'-',6;;.;;;2;..;.1.;.1.;..;;_5 \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\n \r\n-26- \r\n \r\n$ 676,008.53 $ 1,003,212.01 \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"1\" \r\n \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. \r\n(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 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\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Bremen 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\n \r\nSee notes to the general purpose financial statements. \r\n \r\n-27 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"2\" \r\n \r\n  \r\nAGENCY/FUNDING \r\nGRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) \r\nEducation, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Health Insurance Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Remedial Summer School Program Lottery Programs Assistive Technology Computers in the Classroom \r\nOffice of School Readiness Pre-Kindergarten Program \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\nCONTRACTS Children's Trust Fund of Georgia Family Focused Early Intervention Program \r\nCommunity Affairs, Georgia Department of Local Assistance Grant \r\nEducation, Georgia Department of Georgia's Reading Challenge Program \r\nTransportation, Georgia Department of Paving Project Reimbursement \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$ 60,000.00 $ 60,000.00 \r\n \r\n$ 3,134,818.00 992,035.00 47,986.00 136,161.00 38,264.00 878,591.00 \r\n \r\n10,210.00 3,957.00 \r\n62,158.00 85,548.00 71,025.00 27,354.00 13,594.00 28,842.00 -353,397.00 509,201.00 \r\n$ \r\n \r\n37,140.00 \r\n \r\n1,959.55 81,214.28 \r\n324.00 75,000.00 28,297.00 \r\n2,278.78 \r\n \r\n13,372.30 53,000.00 \r\n \r\n276,802.61 \r\n \r\n13,703.00 \r\n \r\n3,134,818.00 992,035.00 47,986.00 136,161.00 38,264.00 878,591.00 \r\n10,210.00 3,957.00 \r\n62,158.00 85,548.00 71,025.00 27,354.00 13,594.00 28,842.00 -353,397.00 509,201.00 37,140.00 \r\n1,959.55 81,214.28 \r\n324.00 75,000.00 28,297.00 \r\n2,278.78 \r\n13,372.30 53,000.00 \r\n276,802.61 \r\n13,703.00 \r\n \r\n3,628.06 50,000.00 72,000.00 \r\n \r\n18,242.87 \r\n \r\n3,628.06 50,000.00 72,000.00 18,242.87 \r\n \r\n$ 6,014,751.67 $ 380,314.91 $ 78,242.87 $ 6,473,309.45 \r\n \r\n(1) The purpose of the funds is to remodel classrooms for ari alternative school. \r\n \r\nSee notes to the general purpose financial statements. \r\n \r\n- 28- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION- HARALSON COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2000 \r\n \r\nSCHEDULE \"3\" \r\n \r\n  \r\nPROJECT \r\nHARALSON COUNTY The addition to and the renovation, repair, acquisition, improvement and equipping of, existing school buildings, the acquisition of system-wide technology, school transportation vehicles and a new media center and the necessary property therefore and for future schools, all at a maximum cost of $4,000,000.00 \r\nCARROLL COUNTY Funding the acquisition, construction, renovation, extending and equipping of capital outlay projects throughout the Bremen School System, including specifically, but without limitation, renovations, extensions and equipping of facilities at the H. A. Jones Elementary School to include a new classroom and cafeteria additions and other improvements; at Bremen High School to include a cafeteria extension and other improvements; at Sewell Middle School to include a new science and technology lab and other improvements; and constructing a new physical education facility, including the acquisition of all property, both real and personal, necessary therefor (the \"Bremen School Projects\"), the maximum cost of such Bremen School Projects not to exceed $2,900,000.00 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED \r\nCOSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS \r\n \r\n$ 4,000,000.00 $ 4,000,000.00 $ 509,012.64 $ 2,577,177.20 \r\n \r\n2,900,000.00 2,900,000.00 \r\n \r\n426,961.83 \r\n \r\n410,239.36 \r\n \r\n$ 6,900,000.00 $ 6,900,000.00 $ 935,974.47 $ 2,987,416.56 \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 Haralson County, Carroll County and the City of Bremen approved the imposition of a 1o/o sales tax to \r\nfund 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 general purpose financial statements. \r\n \r\n- 29 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL \r\nGENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS \r\nYEAR ENDED JUNE 30. 2000 \r\n  \r\n \r\nSCHEDULE \"4\" \r\n \r\nMinimum Expenditure Requirements (Total Allotment) \r\nExpenditures on Combined Program Basis Salaries 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/o TEST FOR \r\nOPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS \r\n \r\n$ \r\n \r\n____ __ 4,338,354.00 $ \r\n \r\n118,,..7...4_ 6.00 \r\n \r\n$ \r\n \r\n4,847,441.03 \r\n \r\n156,677.12 $ _ _ _12_9-'-,6_8_9._34_ \r\n \r\n$ \r\n \r\n5,004, 118.15 \r\n \r\n-49,954.45 $ _ _ _4;_:.;,9;.;5..;.4.:.1.,..;;..63.;...._70.;... \r\n \r\nAmount of Underexpenditure for Total Allotment \r\n \r\n$ \r\n \r\n0.00 $ = = = = = =0.0=0 \r\n \r\nSee notes to the general purpose financial statements. \r\n- 31 - \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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 Kindergarten (*) \r\nGrades 1 - 3 (*) \r\nSub-Total - K-3 Grades 4 - 5 (*) \r\nGrades 6 - 8 (*) \r\nGrades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) \r\nTotal General and Career Education Programs SPECIAL EDUCATION PROGRAMS \r\nRegular Programs Category I (*) Category II (*) Category 111 (*) Category IV (*) Category V (*) \r\nSub-Total - Regular Category VI (Gifted) (*) \r\nTotal Special Education Programs REMEDIAL EDUCATION PROGRAM(*) \r\nTotal Fourteen Weighted Programs MEDIA CENTER PROGRAMS \r\nSalaries Operations \r\nTotal Media Center Programs  \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$ \r\n \r\n354,212.00 \r\n \r\n$ \r\n \r\n318,790.80 $ \r\n \r\n0.00 \r\n \r\n924,624.00 \r\n \r\n832,161.60 \r\n \r\n$ 1,278,836.00 90 $ 1,150,952.40 $ \r\n \r\n0.00 \r\n \r\n405,239.00 90 \r\n \r\n364,715.10 \r\n \r\n27,354.00 \r\n \r\n572,404.00 90 \r\n \r\n515,163.60 \r\n \r\n458,825.00 90 \r\n \r\n412,942.50 \r\n \r\n279,283.00 90 \r\n \r\n251,354.70 \r\n \r\n140,231.00 90 $ 3,134,818.00 \r\n \r\n126,207.90 \r\n \r\ns_ _ 2,821,336.20 \r\n \r\n..;;;2\"'\"'1.;;...354'-=.o..;;..o \r\n \r\n$ \r\n \r\n778,234.00 \r\n \r\n$ \r\n \r\n700,410.60 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n778,234.00 90 $ \r\n \r\n213,801.00 90 \r\n \r\n$ _ _9;;.;9..;:.2\"'\",0'\"'-35'-.0'-'-0 \r\n \r\n$ \r\n \r\n$ ----4-7-,98-6-.0-0 90 $ \r\n \r\n$ 4,174,839.00 \r\n \r\n$ \r\n \r\n700,410.60 $ \r\n \r\n0.00 \r\n \r\n192,420.90 \r\n \r\n892,831.so $ _ _ _----\"o\"'\".o_o_ \r\n \r\n43, 187.40 $ _ _ _ _..;:.o:..;;.o=-o  \r\n \r\n3,757,355.1 o $ _ _\"\"\"2'\"\"'7.'\"\"\"354~.o_o_ \r\n \r\n$ \r\n \r\n109,821.00 90 $ \r\n \r\n26,340.00 100 \r\n \r\n$ _ _..;..13;;.;s\"\"\".1'\"\"s\"'\"'1\"\"'.o_o_ \r\n \r\n$ \r\n \r\n98,838.90 $ \r\n \r\n0.00 \r\n \r\n26,340.00 \r\n \r\n125,178.90 $ _ _ _ _...;;o.;.;.o=o \r\n \r\nTotal Fourteen Weighted and Media Center Programs $ 4,-3-1-1-,0-0-0-.00 \r\n \r\nSTAFF DEVELOPMENT PROGRAMS \r\nCost of Instruction Professional Development \r\n \r\n$ \r\n \r\n12,406.00 \r\n \r\n25,858.00 \r\n \r\n$ \r\n \r\n3,882,534.00 \r\n----- ------- \r\n \r\n$ \r\n \r\n27,354.00 \r\n \r\n$ \r\n \r\n12,406.00 $ \r\n \r\n0.00 \r\n \r\n25,858.00 \r\n \r\n0.00 \r\n \r\nTotal Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. \r\n \r\n$ \r\n \r\n38,264.00 100 $ \r\n \r\n------ \r\n \r\n38,264.00 $ \r\n \r\n0.00 \r\n \r\n----., --- \r\n \r\n--------- \r\n \r\n- 32 - \r\n \r\n  \r\nSCHEDULE \"5\" \r\n \r\nEDUCATION TOTAL \r\nREQUIRED \r\n \r\nACTUAL EXPENDITURES \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nAMOUNT OF UNDEREXPENDITURE \r\nFOR REQUIRED ALLOTMENT \r\n \r\n$ \r\n \r\n318,790.80 $ \r\n \r\n354,468.59 $ \r\n \r\n11,773.74 $ \r\n \r\n366,242.33 \r\n \r\n832,161.60 \r\n \r\n989,995.45 \r\n \r\n24,019.66 \r\n \r\n1,014,015.11 \r\n \r\n$ 1,150,952.40 $ 1,344,464.04 $ \r\n \r\n35,793.40 $ 1,380,257.44 $ \r\n \r\n0.00 \r\n \r\n392,069.10 \r\n \r\n628,972.46 \r\n \r\n10,349.44 \r\n \r\n639,321.90 \r\n \r\n0.00 \r\n \r\n515,163.60 \r\n \r\n810,004.64 \r\n \r\n20,411.37 \r\n \r\n830,416.01 \r\n \r\n0.00 \r\n \r\n412,942.50 \r\n \r\n424,360.25 \r\n \r\n39,007.94 \r\n \r\n463,368.19 \r\n \r\n0.00 \r\n \r\n251,354.70 \r\n \r\n387,016.39 \r\n \r\n12,551.02 \r\n \r\n399,567.41 \r\n \r\n0.00 \r\n \r\n126,207.90 \r\n \r\n142,211.52 \r\n \r\n3,421.47 \r\n \r\n145,632.99 \r\n \r\n0.00 \r\n \r\n$ 2,848,690.20 $ 3,737,029.30 $ \r\n \r\n121,534.64 $ 3,858,563.94 \r\n \r\n$ \r\n \r\n700,410.60 \r\n \r\n$ \r\n \r\n22,865.38 78,872.99 454,815.27 $ 137,286.96 16,316.63 \r\n \r\n$ \r\n285.82 1,204.81 1,033.00 \r\n \r\n22,865.38 78,872.99 455,101.09 138,491.77 17,349.63 \r\n \r\n$ \r\n \r\n700,410.60 $ \r\n \r\n710,157.23 $ \r\n \r\n2,523.63 $ \r\n \r\n712,680.86 \r\n \r\n0.00 \r\n \r\n192,420.90 \r\n \r\n195,736.43 \r\n \r\n5,242.97 \r\n \r\n200,979.40 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n892,831.50 $ \r\n \r\n905,893.66 $ \r\n \r\n7,766.60 $ _ _;9::;..;1~3:a;,66;:,;0:..::.2=6 \r\n \r\n$ \r\n \r\n43,187.40 $ \r\n \r\n45,390.40 $ \r\n \r\n388.10 $ _ __;4~5,!.:.77.:...:8:..::.5=0 \r\n \r\n0.00 \r\n \r\n$ 3,784,709.10 $ 4,688,313.36 $ \r\n \r\n129,689.34 $ 4,818,002.70 \r\n \r\n$ \r\n \r\n98,838.90 $ \r\n \r\n159,127.67 \r\n \r\n$ \r\n \r\n159,127.67 \r\n \r\n0.00 \r\n \r\n26,340.00 - - - - - - $ _ _.;:;2:,:;;.6,.;_98;:,;7.;.;.7.;:;.8 \r\n \r\n26,987.78 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n125,178.90 $ \r\n \r\n159,127.67 $ \r\n \r\n26,987.78 $ _ _1:..:86::::,,.:,.11.:,:5:.:..;.4~5 \r\n \r\n$ 3,909,888.00 $ 4,847,441.03 $ \r\n \r\n156,677.12 $ 5,004,118.15 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n12,406.00 \r\n \r\n25,858.00 \r\n \r\n$ \r\n \r\n38,264.00 \r\n \r\n~-- -- - - - - - \r\n \r\n$ \r\n \r\n30,501.79 $ \r\n \r\n30,501.79 \r\n \r\n7,762.21 \r\n \r\n7,762.21 \r\n \r\n$ \r\n \r\n38,264.00 \r\n \r\n$ \r\n----- \r\n \r\n-38- ,-2-64.-0-- 0 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n- 33 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n W. RussELL \r\n \r\nHINTON \r\n \r\nSTATE AUDITOR \r\n \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 4, 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 of the City of Bremen 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 City of Bremen Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 4, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with 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 \r\n \r\nComptroller General of the United States. \r\nCompliance \r\nAs part of obtaining reasonable assurance about whether City of Bremen Board of Education's financial statements are free of material misstatement, we perfo11ned 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 City ofBremen 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\n2000YB-40A \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 City ofBremen Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7631-00-01. \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 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\nThis report is intended solely for the info11nation and use of management, members of the City of Bremen 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\nRespectfully submitted, \r\n \r\n \r\nRWH:gp \r\n2000YB-40A \r\n \r\nell W. Hinton State Auditor \r\n \r\n RussELL W. H1NTON \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\n \r\nJune 4, 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 of the City of Bremen Board of Education \r\nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCU LAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited the compliance ofCity ofBremen Board ofEducation with the types ofcompliance requirements described in the US. Office of Management and Budget (0MB) Circular A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. City of Bremen Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofCity ofBremen Board ofEducation's management. Our responsibility is to express an opihion on City of Bremen Board of Education's compliance based on our audit. \r\n.We 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 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Bremen Board of Education's compliance with those requirements and perfo1111ing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Bremen Board of Education's compliance with those requirements. \r\n2000SA-55A \r\n \r\n As described in item FA-7631-00-03 in the accompanying Schedule of Findings and Questioned Costs, City ofBremeH Board ofEducation did not comply with requirements regarding Special Tests and Provisions that are applicable to its Food Services - School Breakfast Program and National School Lunch Program. Compliance with such requirements is necessary, in our opinion, for City of Bremen Board of Education to comply with requirements applicable to those programs. \r\nIn our opinion, except for the noncompliance described in the preceding paragraph, the Ci- ty of Bremen Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000. \r\n) Internal Control Over Compliance \r\nThe management of City of Bremen 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 perforrning our audit, we considered City ofBremen Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to dete1111ine 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\nWe noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the City of Bremen Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-7631-00-01, FA-7631-00-02 and FA-7631-00-03. \r\nA material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the 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 no11nal course of perfurrning their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FA-7631-00-03 to be a material weakness. \r\n2000SA-55A \r\n \r\n  \r\n \r\nThis report is intended solely for the info1n1ation and use of management, members of the City of Bremen 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\nRWH:gp 2000SA-55A \r\n \r\n\", ..m ~- \r\nRu ell W. Hinton State Auditor \r\n \r\n  \r\nSECTION ill \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY 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-7631-98-03 FS-7631-99-01 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7631-99-01 \r\n \r\nDue to budgetary and staffing limitations the Board has decided not to pursue the recording ofGeneral Fixed Assets on financial statements at fiscal year 2000. However, the General Fixed Assets will be reported on the financial statements for fiscal year 2002 to comply with GASB Statement No. 34. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7631-98-01 FA-7631-99-01 FA-7631-99-02 FA-7631-99-03 \r\n \r\nFurther Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nSPECIAL TESTS AND PROVISIONS Inadequate Internal Controls Finding Control Number: FA-7631-99-02 \r\n \r\nAppropriate inventory procedures have been developed as of July 1, 2000 and the food services director and principal have been directed to ensure that the staff follow those procedures. \r\n \r\n \r\n \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES SPECIAL TESTS AND PROVISIONS Failure to Document Verification Process Finding Control Number: FA-7631-99-03 Appropriate procedures have been developed as of July 1, 2000 and adequate personnel have been hired to ensure that paper verification of free and reduced meal applications are performed according to Federal regulations. \r\n-2 - \r\n \r\n  \r\n SECTIONN FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \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 City ofBremen Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. \r\n \r\n2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City ofBremen Board ofEducation disclosed a financial statement reportable condition related to the following control category. \r\n \r\nGeneral Fixed Assets \r\n \r\nThe reportable condition described above is considered to be a material weakness. \r\n \r\n3. Noncompliance Material to the Financial Statements The audit of the City of Bremen 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 City ofBremen Board ofEducation disclosed reportable conditions in internal control over major programs for the following compliance requirements. \r\n \r\nCash Management \r\n \r\n \r\nSpecial Tests and Provisions \r\n \r\nOfthe reportable conditions described above, Special Tests and Provisions includes an item that is considered to be a material weakness. \r\n \r\n5. Type of Report Issued on Compliance for Maior Programs  The auditor's opinion on the City ofBremen Board ofEducation's report on compliance with \r\nrequirements applicable to major programs was qualified. \r\n \r\n6. Audit Findings Required to be Reported by Section .510{a) ofOMB Circular A-133 The City of Bremen Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report. \r\n \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 10.550 Food and Nutrition Program - Food Distribution Program 84.276 Goals 2000 - State and Local Education Systemic Improvement Grants \r\n \r\n- 1- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n..  \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\n \r\n \r\nThe City of Bremen Board of Education did not qualify 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\nGENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7631-00-01 \r\n \r\nThe City of Bremen Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal 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\nManagement's Response: \r\n \r\nManagement concurs with finding. Due to budgetary and financial limitations, the Board of Education did not pursue the recording of fixed assets on financial statements; however, the Board contracted with a fi11n to establish a fixed asset accounting system during the current school year. \r\n \r\n-2- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\n  \r\n \r\nill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH MANAGEMENT \r\n \r\nExcessive Cash Balances \r\n \r\nReportable Condition \r\n \r\nNonmaterial Noncompliance \r\n \r\nU.S. Department of Education \r\n \r\n \r\n \r\nThrough Georgia Department of Education \r\n \r\nAmount: $997.67 \r\n \r\nFinding Control Number: FA-7631-00-01 \r\n \r\nA review of cash management procedures and internal controls for the Goals 2000, State and Local Education Systemic Improvement Grants (CFDA 84.276) disclosed that cash draws were made in advru1ce ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2000, the Goals 2000 programs had an average cash balance of$ l 5,808.62 with excessive monthly cash balances in eleven months. \r\n \r\nIn accordance with A-102 Common Rule paragraph 2l(h)2(I) interest earned on advances by local government grantees is required to be submitted promptly to the Federal grantor agency. Up to $100 per year may be kept for administrative expenses. The Goals 2000 program (CFDA 84.276) earned \r\n \r\ninterest amounting to $1,097.67 of which $997.67 should have been submitted to the Georgia Department of Education. The interest earned on this program's funds was recorded in the Board's General Fund. \r\n \r\nManagement should become familiar with the Federal regulations for the Goals 2000 program in order to develop adequate control procedures designed to pr~vide for the achievement ofcompliance objectives. In addition, excessive interest earned totaling $997.67 should be refunded to the Georgia Department of Education. \r\n \r\nManagement's Response: \r\n \r\nManagement concurs with finding. Upon receipt of request from the Department of Education, $997.67 will be returned. Future controls to better project cash needs will be instituted. \r\n \r\n-3- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nSPECIAL TESTS AND PROVISIONS Inadequate Internal Controls Reportable Condition Repeated From Prior Year U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-7631-00-02 \r\nThere were no controls in place to identify, report or account for donated commodities food inventory losses for the Food Services - School Breakfast Program (CFDA 10.553) and the National School Lunch Program (CFDA 10.555). According to 7 CFR section250.16, accurate and complete records shall be maintained with respect to receipt, distribution/use and inventory ofdonated foods. Tests perfo1111ed on donated commodities activity records, revealed that no reconciliation of food usage is made between meal production records and periodic inventory counts. \r\nManagement should familiarize themselves with Federal regulations dealing with these programs in order to develop an adequate internal control structure consisting ofprocedures designed to provide for the achievement of compliance objectives. \r\nManagement's Response: \r\nManagement concurs with finding. Appropriate inventory controls were established during the 2001 FY. Finding should be resolved by the next audit. \r\nSPECIAL TESTS AND PROVISIONS Failure to Document Verification Process Reportable Condition - Material Weakness Material Noncompliance Repeated From Prior Year U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-7631-00-03 \r\nAn examination of free and reduced price meal applications for the School Breakfast Program (CFDA 10.553) and the National School Lunch Program (CFDA 10.555) revealed that the Board could not document that verification procedures were performed on approved applications as required by the U. S. Department ofAgriculture's ''Eligibility Guidance for School Meals'' manual and 7 CFR 245.6a. \r\n-4- \r\n \r\n CITY OF BREMEN BOARD OF EDUCATION - HARALSON COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SPECIAL TESTS AND PROVISIONS Failure to Document Verification Process Reportable Condition - Material Weakness Material Noncompliance Repeated From Prior Year U.S. Department of Agriculture Through Georgia Department ofEducation Finding Control Number: FA-7631-00-03 This deficiency was the result of management's failure to properly manage and document the verification process. Procedures should be implemented to ensure that verification procedures are perfo11ned in accordance with the aforementioned Federal regulations. The Georgia Department of Education should review this matter to dete1111ine if a reclaim of funds is appropriate. Management's Response: Management concurs with finding. Appropriate verification procedures were established during the 2001 FY. Finding should be resolved by the next audit. \r\n \r\n-5- \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. Department of Audits","hits":8},{"value":"Georgia. Department of Audits and Accounts. 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